Provisional HMRC data suggests that the UK’s increase in remote gaming duty has delivered a sharp rise in Treasury receipts, although industry representatives say it is too early to determine whether the policy has been successful.
Remote gaming duty receipts reached nearly £590 million in July, up from £283 million a year earlier. The rate increased from 21% to 40% in April 2026.
First Data Shows A Major Increase In Treasury Revenue
The wider gambling tax total for the financial year to July was provisionally £1.93 billion, representing a 19% increase, or £309 million, in the same period last year. Remote gaming duty accounted for half of the total. General betting duty is scheduled to rise from 15% to 25% in 2027, while bingo duty was abolished.
The early figures appear to support the Treasury’s decision, but critics have warned that higher rates could reduce regulated activity and push consumers towards unlicensed operators.
Industry Figures Warn Against Early Conclusions
Some analysts have compared the UK’s policy with the Netherlands, where tax increases were followed by lower gross gaming revenue and only a small increase in tax receipts. Others have pointed to Ireland, where a doubling of gambling taxation reportedly produced a doubling of revenue.
Derek Webb said the UK sector had so far absorbed the higher rate and argued that Remote Gaming Duty could potentially rise further.
“If some remote operators cease trading that will not impact total turnover but it will reduce the total expenses of the sector and therefore increase gross profits. I stand by my submission to last year’s Treasury consultation that by taxing to the peak of the Laffer curve there is scope to increase Remote Gaming Duty to 60%.”
However, Midnite VP of tax Stephen Hodgson said the industry would need 12 to 18 months of data before drawing conclusions.
Higher Taxes Could Affect Jobs And Retail Businesses
The Betting and Gaming Council warned that the broader effect on jobs, investment and businesses would be more important than the initial revenue increase.
A BGC spokesperson said: “The real test of these tax rises is their impact on jobs, investment and businesses across the regulated sector.” The trade body also predicted that more than 600 betting shops would close and over 10,000 jobs would be lost by the end of 2026.
The government is separately considering doubling machine games duty from 20% to 40%.
The initial HMRC data gives the Treasury a strong short-term argument, but it does not establish whether the tax rise is sustainable. Operators may currently be absorbing higher costs, delaying price changes and protecting bonuses while the market adjusts. The policy’s longer-term outcome will depend on customer behaviour, investment levels and the black market’s growth.
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