The year 2026 is riddled with new resolutions, and the UK Government is leading the charge with changes to how the local gambling market is taxed. On November 26, Rachel Reeves, the Chancellor of the Exchequer, announced Labour’s budget, and one of the highlights was the changes that were going to be effected as relates to the gambling tax.
Reeves decision was not surprising, since the information was leaked from the Office for Budget Responsibility (OBR), it was still evident that the proposed changes would have enormous effects come the new year.
The United Kingdom already houses one of the most regulated gambling markets, with many patrons in the region willing to say it is even overregulated. While many implementations are designed with consumer protection in mind, some believe they are hampering market development, leaving consumers with few options but to seek licensed options in offshore jurisdictions where regulations allow innovation and development.
The offshore sites offer competitive odds, top bonuses, and quick, secure withdrawals, and employ technologies that enable them to process withdrawals quickly and securely. More details on the matter indicate that this is achieved primarily through the blockchain’s immutability, which requires minimal oversight and enables lightning-fast deposits and withdrawals. There’s growing concern among cabinet members that these changes will only cement offshore sites’ hold, further making local online casinos less desirable.
The changes will include a 40% rise in the remote gambling duty, while the 10% bingo duty will be removed from April 2026. A year later, in 2027, casino gaming duty bands will be frozen, and a 25% general betting duty rate will be introduced, excluding horse racing, self-service betting, pool betting, and spread betting. OBR estimates that these changes will see an estimated £1.1bn added to the government’s coffers by 2029-30. But it also predicts that the end user will likely feel these changes in taxation as many service providers are likely to increase their rates, reduce payouts, which will then see a reduction in demand from the consumers and a resulting £0.5bn yield drop come 2029-30.
While future projections indicate it will be a net positive for the government, industry players are not pleased about the developments that will roll in next year. One of the more vocal critics has been Per Widerström, CEO of Evoke. Evoke is one of the world’s leading iGaming companies. It was formerly 888 Holdings and operates internationally as Mr Green and William Hill, so it is clear that these new laws will drive major restructuring, explaining the CEO’s dissatisfaction. Per Widerström believes it is not a well-thought-out decision; at the very least, it is counterproductive and will be highly damaging to the economy, with consumers bearing the brunt of the change. Evoke is already considering a strategic review to explore options to weather this change, including a potential sale of the group or some of its assets.
The CEO of Flutter UKI, Kevin Harrington, agrees with Per Widerström that the changes will negatively affect the industry, but believes Flutter, having distinguished itself as one of the top iGaming brands in the UK, is positioned to weather the storm and effectively handle any hikes that will result from these changes.
The 2026 UK gambling tax reforms represent a bold fiscal strategy with uncertain outcomes. While the government anticipates significant revenue gains, industry leaders warn of market contraction and unintended consequences. The true test will be whether increased taxation strengthens regulation or undermines the competitiveness of Britain’s domestic gambling market.