Running an online casino business in the UK has become more expensive. From 1 April 2026, Remote Gambling Duty increased from 21% to 40%, giving operators a much bigger tax bill to deal with. That means some practical changes for businesses based in London and across the UK. Players won’t necessarily see everything happening behind the scenes, but some of these changes will reach them, like bonuses, promotions and the amount of money operators are willing to put into marketing.
A big tax increase for online gaming
The new 40% rate is a pretty big increase compared with the previous 21%. The government expects the gambling tax changes to raise more than £1.6 billion in extra tax revenue each year. And online casinos aren’t the only part of the industry affected. Remote Betting Duty is due to increase online sports betting taxation from 15% to 25% in April 2027.
The problem right now for casino operators is the higher Remote Gambling Duty. Paying almost twice as much tax leaves less money available for other parts of the business.
What are operators doing about it?
Marketing is usually the place to start when companies need to save money. Some major gambling businesses have already said that their marketing spending will decrease in 2026. Industry estimates have put possible reductions at around 20% to 25%. That could change what the UK gambling market looks like, with fewer advertising campaigns, sponsorship deals and promotions competing for people’s attention.
Players could also see changes to RTP and game library sizes, as well as bonuses and loyalty programmes. Big welcome offers and cashback deals are expensive to fund. VIP schemes could be reduced or dropped altogether as operators try to protect their profits.
This is something players comparing any UK online casino will have to consider, rather than just looking at the size of a welcome bonus.
Could players turn to offshore sites?
The biggest concern might still be the unregulated industry. If licensed operators have less money for bonuses and promotions, some players could start looking at offshore sites. These businesses don’t pay UK gambling taxes and don’t operate under the same responsible gambling requirements. Some forecasts by industry analysts suggest that almost one in five online bets could potentially be made with unlicensed platforms by 2028 if regulatory pressure keeps increasing.
That puts the government in a tricky position. Higher taxes bring in more revenue, but regulated gambling businesses still need to compete with sites operating outside the UK system.
Smaller operators could feel the pressure
The new tax rate won’t affect every business the same way. The larger operators generally have international operations and several sources of revenue. That gives them more options when costs rise in one market. A smaller casino operator with most of its business coming from the UK has fewer ways to deal with the impact. Higher tax bills combined with compliance costs could push some operators towards mergers or acquisitions, while others could scale back their UK operations or leave the market entirely.
But the UK is still getting lots of attention. Bethan Lloyd has described consolidation in the UK gambling industry as a real possibility, but not something that will necessarily happen straight away. Overseas operators are still interested in getting UK licences, despite the costs involved. For London and the rest of the UK, the online gaming sector is still a major market.
Please play responsibly. For more information and advice visit https://www.begambleaware.org
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