Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioThe UK budget 2025 was leaked on Wednesday morning ahead of the official announcement by Chancellor Rachel Reeves. The leak revealed plans to increase gambling taxes, among others, with the aim of generating over £1 billion in revenue from the betting industry.
The Office for Budget Responsibility (OBR) apologized for releasing the report online earlier than planned, meaning Reeves’s measures were all revealed ahead of her announcement.
In a statement, the OBR said, “A link to our Economic and fiscal outlook document went live on our website too early this morning. It has been removed. We apologise for this technical error and have initiated an investigation into how this happened.”
Leaked Budget Shows Online Gambling Tax Increase
As expected, the budget includes a tax hike on gambling. The leaked document stated, “Several changes to gambling duties have been announced in the budget, which overall are estimated to raise £1.1 billion by 2029-30.
“From April 2026 there will be an increase in remote gaming duty from 21 to 40 per cent and abolition of bingo duty from its current 10 per cent rate.”
The tax on online sports betting will also be increased, from its current 15% to 25%, but not until 2027. Notably, the tax on retail and horseracing will not be increased.
The documents continued, “From April 2027, a new rate of general betting duty for remote betting will be introduced at 25 per cent, excluding self-service betting terminals, spread betting, pool bets, and horseracing.
“The Government has also announced a freeze in casino gaming duty bands in 2026-27 with the usual RPI [retail price index – inflation] uprating thereafter.”
Reeves previously stated that gambling companies “should pay their fair share of taxes, and we will make sure that happens.”
Horseracing Exempt After Staging Protests
The tax on horseracing has not been increased following an unprecedented strike in protest of a potential tax hike. In September this year, all racing was canceled by the British Horseracing Authority (BHA).
The tax rate will stay at 15% for horseracing, with online casinos targeted with the biggest increase, rising to 40% from the current 21%. The UK’s betting companies have strongly opposed tax increases, with the Betting and Gaming Council (BGC) saying the increases will cause “untold damage.”
Companies Make Preparations to Soften Blow
Several operators, including PaddyPower, William Hill, and Ladbrokes, have announced shop closures in response to the increases. Additionally, SkyBet, owned by Flutter, has relocated its headquarters to Malta.
The company said, “This decision was made for a number of strategic and commercial reasons and will have some tax implications.”
An insider claimed it is purely for tax avoidance, commenting, “Tax was the elephant in the room. It is absolutely understood, across everyone affected, indirectly or directly, or even aware of the announcement, that this is about tax. No one with a straight face would say it’s ‘for strategic reasons’ or whatever other nonsense people come up with.”
Other companies have said they will pass on the additional costs of a tax increase to bettors. The higher tax rates may also force a rethink of advertising strategy, as it was revealed UK betting companies paid the “astronomic sum” of £2 billion on marketing this past year.
The announcement was widely expected, but the leak has opened up Reeves and the UK government to further criticism and opposition to the tax hikes.
Ironically, betting companies were accepting wagers on which areas of the industry would be subject to tax increases. Bettors could continue to wager on the market even after the leak, but all bets are off now.
