UK Confirms Major Tax Rises for Online Gambling in Budget Overhaul

Online Gambling Set for Steep Tax Increases

Under the new framework, online gambling will face sharp tax rises over the next two years. From 1 April 2026, the duty on online gaming products, including casino-style games, will rise from 21% to 40%. A year later, in April 2027, the tax on remote betting, such as online sports wagering, will increase from 15% to 25%.

In contrast, betting on UK horse racing will remain unchanged, and land-based gambling venues will continue to operate under existing tax rates. Bingo halls are set to benefit most, with bingo duty abolished entirely from April 2026.

Government Draws Clear Line Between Digital and Physical Betting

Ministers have been keen to distinguish between online gambling and in-person betting activities. According to HM Revenue & Customs, the rapid expansion of digital gambling, driven by smartphones and highly engaging game design, has been accompanied by growing evidence of social harm.

Treasury Committee findings highlight that online gambling now represents a far larger share of the market than it did a decade ago. Officials argue this growth, and the ease of access it brings, justifies a tougher tax approach for digital products.

Treasury Committee Supports Tougher Stance on Harm

The Treasury Committee has repeatedly challenged claims from parts of the gambling industry that online betting poses minimal social risk. Last year, MPs concluded that such arguments lacked credibility, warning that highly addictive online products deliver limited community benefit while exposing individuals and families to harm.

Committee chair Meg Hillier welcomed the tax increases, describing them as a more realistic response to the impact of online gambling and a sensible shift in how the sector is taxed.

Protecting Cultural and Economic Mainstays

The Treasury has framed the reforms as part of a broader effort to create a fairer, more sustainable tax system. While many people gamble responsibly, ministers argue that activities such as attending horse races, visiting seaside arcades, or playing bingo locally tend to generate fewer social issues and hold cultural and economic value.

By protecting these sectors, the government aims to avoid placing undue pressure on businesses seen as important to local communities and the wider economy.

A Turning Point for Online Gambling Regulation in the UK

The UK’s latest Budget marks a decisive turning point for online gambling, signalling tougher taxation in response to growth and harm concerns, while preserving traditional betting activities. As the new rules take shape, online operators will need to adapt quickly to a significantly more demanding fiscal landscape.