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Read Full BioThe UK government has announced the opening of a 12-week consultation with plans to overhaul its remote gambling tax system.
Led by HM Revenue & Customs (HMRC), the new ‘Tax Treatment of Remote Gambling’ initiative aims to simplify the process by restructuring how taxes are apportioned to online gambling operations licensed in the UK.
What Would Change Under the New UK Gambling Tax Structure
The current HMRC structure facilitates three separate duties: Remote Gaming Duties at 21% of gross profits, General Betting Duties ranging from 3% to 15%, and Pool Betting Duties at 15%.
However, the latest government consultation seeks to consolidate these taxes into a single Remote Betting and Gaming Duty (RBGD), which will be applied based on the consumption principle of taxes being levied if the consumer is UK-based.
Online gambling now dominates the betting sector, generating over £6.9 billion annually in gross gambling yield (GGY). This has accelerated HMRC’s plans to create a structure that they claim will match the scale, innovation, and complexity of the online betting sphere.
“The tax system needs to keep pace with the developments and innovation,” HMRC stated, stressing, “The government believes that the time is now right to consider further reform to create a modern and coherent tax system that is simpler to use for the UK-facing remote gambling industry.”
Betting Sector Pushback Against Potential Rate Changes
In light of HMRC’s announcement, industry members are concerned that a universal formatting of the system is ultimately masking an inevitable tax hike. Of these concerns, many betting operators have voiced fears that the government will raise the current tax rate of 15% to match that of Remote Gaming Duty.
Despite Chancellor Rachel Reeves rejecting the idea in the Autumn Budget of 2024, Grainne Hurst, CEO of the Betting and Gaming Council (BGC), said that reversing that decision might not only backfire on the government but could also be devastating for the racing industry’s revenues.
The British Horseracing Authority also mirrored Hurst’s views, arguing that the sport depends on generated betting revenue and that a tax hike could inflict significant damage across the industry.
Industry insiders’ overriding concern is that the government’s increasing levies could further fuel black-market activity. Given that the Charity group Deal Me Out has already reported a growing migration to offshore operators, increased industry regulation and tax obligations could accelerate the consumer exodus.
The proposed HMRC consultation is accepting industry feedback before it closes on July 21, 2025. The government expects to outline its final policy suggestions during the autumn budget. Nevertheless, any new reforms will take a while before implementation, with the government indicating RBGD will not be rolled out until at least October 2027.
