Remote gaming duty jumps from 21% to 40% while general betting duty rises from 15% to 25%. UK gambling operators attack government decisions about higher tax rates for the sector. Several big companies express worries about the long-term effects of increased taxes. Remote gaming duty increases from 21% to 40% among gambling-specific changes. New general betting duty for remote betting starts in April 2027 at 25% instead of 15%. Online betting profit faces this tax, but self-service betting terminals escape it. Spread betting, pool bets and horse racing bets also avoid the new rate.

April 2026 marks the beginning of new tax rates in the next financial year. Industry response shows negative and critical reactions as expected. Investment concerns dominate alongside potential job cuts coming soon. Operators worry about future financial performance, while black market gambling might increase.

Tax Rises Will ‘Significantly’ Harm UK Industry

Higher tax creates negative effects on the UK market, according to general agreement. Betting and Gaming Council CEO Grainne Hurst calls new online tax rates excessive. She says they undermine jobs, investment and growth. “Budget announces massive tax increases for online betting and gaming, making them among the world’s highest. They deliver a devastating hammer blow to tens of thousands working in the UK industry. Millions of customers who enjoy betting also suffer.” Evoke CEO Per Widerström shares concerns about the tax rise’s effects on the UK market. He describes increases as highly damaging for the UK economy and players.

“Industry consistently warned about a significant impact on jobs and UK investment. Player protection would suffer from these changes, too. The government chose not to listen, sadly. Proposals lack proper thought and prove counterproductive while causing serious damage. These changes will harm businesses, employees and customers significantly. “Required actions mean tax changes reduce overall tax levels from the regulated industry. More importantly, player protection suffers a significant negative impact. Changes incentivise activity, moving to the illegal and dangerous black market.”

Entain CEO Stella David expresses deep disappointment with the decision, citing industry risks. “Disproportionate gambling tax increases damage our industry while heightening customer risks. Other countries show that punitive tax increases often reduce overall tax revenues. Players move to illegal, unregulated operators lacking player protections.”

‘Robust’ Enforcement Must Accompany the Tax Rate

Super Group CEO Neal Menashe offers a slightly positive assessment of higher rates. He says rates become reasonable with robust and strict enforcement against black market activity. “Super Group supports reasonable online gaming taxation in the UK. The government must ensure a substantial increase paired with robust enforcement against non-paying offshore operators. This protects regulated sector investment in jobs, technology and responsible gaming.” Rank Group experiences mixed emotions about the budget. Online rise hits digital business, but bingo duty abolition offsets some impact. “Remote gaming duty increase delivers significant blow to the UK’s regulated betting and gaming industry. The government’s bingo duty abolition helps sustain jobs and land-based sector investment. Digital profitability takes a far more significant hit for the group.”

Budget ‘Slightly’ Better Than Expected

Professional firms and analysts share opinions beyond operator views. Deutsche Bank finds news slightly better than initially thought, considering land-based gambling reprieves. Budget improves near-term outlook for UK gambling sector. “Rank emerges significantly better than expected from a company perspective. Entain and Evoke also fare slightly better. Evoke still faces balance sheet and leverage concerns.” Alvarez and Marsal’s Adam Rivers calls the budget painful for the online sector. Not all business models suffer badly, though. “Scrapbing bingo duty while holding machine gaming duty steady helps land-based bingo operators. Venues important to communities stay on high streets supporting the wider hospitality sector.”

How Will Operators Cope with the Tax Rise?

Some operators forecast how higher tax affects financial performance looking forward. They detail measures offsetting additional tax costs. Super Group CFO Alinda van Wyk estimates 6% impact on the 2026 group adjusted EBITDA. Several mitigation levers already operate to offset tax impact. “Strategy remains unchanged, focusing on sustainable growth and disciplined capital allocation. News won’t alter long-term trajectory or capital return priorities.” Entain’s David explains how the business manages a higher tax rate. Approximately 25% of the impact gets mitigated through marketing and promotion reductions. EBITDA faces a £100 million impact in 2026 and a £150 million impact from 2027. David suggests Entain might gain more UK-based players. Smaller operators exit the market due to higher tax rates.

‘Thousands’ of Jobs Set to Be Cut

Evoke’s Widerström reveals potential mitigation steps. Medium-term mitigation covers approximately 50% of the higher tax costs. Supplier savings, reduced marketing and retail store closures contribute. Operating cost savings and customer proposition changes also help. Widerström confirms Evoke begins executing mitigation plans immediately, including redundancies. “UK investment faces a significant reduction, very regrettably. Thousands of jobs likely need cutting across the country.” Rank expects £46 million additional duty cost on the UK digital business. Bingo duty abolition partly offsets this impact. National Minimum Wage rises 4.1% to £12.71 hourly. This creates approximately £5.5 million additional cost impact.

Some Positivity Over Future Financial Prospects

Flutter UK and Ireland CEO Kevin Harrington voices concern over proposed changes. He stays optimistic about Flutter’s future performance, though. Direct first-order mitigation reaches approximately 20% of gross impact during the initial six months. This rises to 40% afterwards through reduced operational, promotional and marketing spend. Net adjusted EBITDA impact equals approximately $235 million for FY2026 and $339 million in 2027. “Scale and leading UK position help us navigate changes despite impact. Proactive cost initiatives position us well.”

Playtech acknowledges increases in its statement. Group adjusted EBITDA impact for 2026 reaches high-teens millions of euros before mitigation. Operations outside the UK help offset these declines. “Geographic diversity across regulated markets supports group performance. Strong prospects outside the UK mean Playtech remains comfortable meeting 2026 market expectations.”

The Enlarged Black Market Argument Remains

Tax rise impact on black market gambling forms the underlying theme. Industry voices expressed concerns about unlicensed operator growth before the budget. BGC’s Hurst says concerns become reality now. “The budget massively benefits an incredibly harmful, unsafe, unregulated gambling black market. They pay no tax and offer zero regulated sector protections.” Flutter’s Harrington agrees, saying increases give big wins to unlicensed operators. They become more competitive overnight. “Black market operators avoid tax and safer gambling investment. The UK’s 40% remote gaming duty exceeds the Netherlands’ levels. Their recent tax increase caused illegal gambling to rise, and government receipts fell.”

Regulus Echoes Black Market Concerns

Regulus analysts expect bonus reductions as operators mitigate tax rise costs. This drives players toward unlicensed sites offering more bonuses and promotions. £2.5 billion gross gaming revenue might flow into the black market. “People won’t gamble less because the licensed sector removes bonuses. Lack of profits prevents investment, worsening offers slowly. The Gambling Commission’s extra £26 million won’t tackle the illicit market effectively. £2.5 billion GGR flows directly into the black market instead. Smaller scale already happens due to other regulatory interventions. “Black market fills the vacuum from marketing cuts in the licensed sector. Product and operating expenditure reductions help them too. Their product becomes better and stands out, attracting seekers.”