UK Remote Gaming Tax Receipts Jump 108% Following Rate Hike

UK Remote Gaming Duty receipts more than doubled year-on-year in July. This gives us and early indication of the impact of the controversial increase from 21% to 40%.

The July figure reached almost £590 million. This was up approximately 108% from £283 million in the same month last year. The increase follows the government's decision to raise RGD from 21% to 40% from 1 April 2026.

According to the latest HMRC betting and gaming statistics, total betting and gaming duty receipts reached £1.93 billion between April and July. This was 19% higher than during the same period in 2025. RGD accounted for approximately half of the total.

July offers first look at 40% RGD rate

The figures provide an early indication that the higher rate is delivering substantially more revenue for the Treasury. However, the 108% increase does not mean remote gambling activity itself has doubled.

RGD is generally reported and paid quarterly. This means that July is the first month to substantially reflect the new 40% rate. The tax rate itself increased by around 90%, which accounts for much of the year-on-year increase.

Even so, receipts have risen slightly faster than the tax rate, suggesting the underlying taxable gaming base has so far remained resilient.

The figures are also provisional. Longer-term data will be required to establish whether the increase is sustainable.

Industry warned higher taxes could backfire

Operators and industry groups repeatedly warned that substantial tax increases could ultimately reduce government revenue. The belief was that people would be pushed towards unlicensed gambling.

Following the Budget announcement,  Flutter pointed towards the Netherlands. It said tax increases had contributed to lower channelisation and falling government receipts.

The Betting and Gaming Council (BGC) has similarly argued that higher gambling taxes risk strengthening the black market. They could also damage investment and employment within the regulated sector.

July's figures therefore provide an early challenge to claims that dramatically higher rates would necessarily translate into weaker tax receipts. However, they do not yet disprove the industry's longer-term warnings around player migration, operator profitability or investment.

What does this mean for UK gambling taxes?

The figures could prove significant as the government considers the future tax burden on Britain's gambling sector. The Treasury previously estimated its wider gambling tax reforms could eventually raise more than £1 billion per year.

Attention is now turning to other verticals. These include Machine Games Duty. Remote betting will also face a higher 25% General Betting Duty rate from April 2027.

For the government, July provides encouraging evidence that the regulated remote gaming sector has initially absorbed the dramatic RGD increase without a collapse in receipts.

Whether that remains the case as operators and players adjust to the new tax environment will become clearer over the coming quarters.