Government Poised for Gambling Smash-and-Grab as Industry Surges

_{Rachel Reeves is set to Make announcement in the budget tomorrow. (Image: Pictorial Press Ltd/Alamy)}

The latest data shows the gambling market expanding again, giving the government a larger revenue base as it weighs higher gambling duties in the autumn budget.

The gambling industry in Great Britain grew sharply in the financial year ending March 2025, strengthening the government’s tax base just as ministers consider whether to increase gambling duties in the autumn budget and perform a smash-and-grab on the gambling industry.

For land based and online casino operators and players, the new figures raise the stakes: more revenue means more scrutiny, and potential tax changes could alter how casinos, bookmakers, and online platforms trade in 2026.

A Year of Strong Industry Growth

The annual industry statistics show total Gross Gambling Yield at £16.8 billion, up 7.3% year on year. The online sector continued to dominate the market, climbing by more than £900 million to £7.8 billion. Remote casino, betting, and bingo now account for 46% of all industry GGY.

Land-based operators generated £4.8 billion, representing 29% of the market, while licensed lotteries contributed £4.2 billion, or 25%.

This growth comes at a pivotal moment for the UK’s gambling landscape. A larger industry creates more tax revenue through General Betting Duty, Remote Gaming Duty, Machine Games Duty, Lottery Duty, and corporation tax. If the government opts to raise gambling-related taxes this autumn, the numbers published today provide the baseline for estimating how much more the Treasury could collect.

What Rising GGY Means for Tax Revenue

The Treasury already takes a significant share of gambling profits. Remote Gaming Duty, for example, currently sits at 21% of operator GGY, while General Betting Duty is 15%.

If the government increased duties by even 1 percentage point across the online sector, the impact would be immediate. Based on the newly published £7.8 billion online GGY:

• A 1-point rise in Remote Gaming Duty would generate roughly £78 million in additional annual revenue.
• A 2-point rise would generate about £156 million.
• Extending the same increase across General Betting Duty would raise tens of millions more.

Any change may not apply uniformly. Recent consultations have hinted at rebalancing tax structures to reflect the industry’s shift toward online play. Policymakers could also target high-profit verticals such as remote slots, which historically yield more tax per pound wagered.

For operators, these decisions matter. A higher duty reduces margin, which can lead to changes in pricing models, promotions, bonuses, or customer acquisition strategies. For players, the effects often appear indirectly: fewer generous sign-up deals, tighter wagering terms, or reduced odds value. The industry has raged against tax rises.

Quarterly Figures Offer New Insight Into Operator Performance

Alongside the annual report, the Gambling Commission released the first set of quarterly statistics covering April to June 2025. The move follows changes introduced in July 2024 requiring operators to submit harmonised regulatory returns every quarter.

The new reporting system offers near-real-time insight into seasonal shifts across the sector. Family entertainment centres, for example, showed clear summer peaks once operators began reporting within the same 28-day window.

For businesses, the quarterly data provides early warnings about revenue slowdowns or growth surges previously visible only in annual releases. For regulators and government departments, it delivers a more dynamic picture of tax receipts and market behaviour – useful when assessing whether further rule changes or new taxes are warranted.

Why This Matters Ahead of the Autumn Budget

The government is under pressure to increase revenue without politically sensitive tax rises in other sectors. Gambling has long been considered a “low-friction” source of additional income because duty increases fall on operators, not consumers directly.

The industry’s 7.3% expansion gives the Treasury a strong argument that any increase would be absorbed by a profitable sector. But operators are expected to push back, arguing that higher duties risk harming investment, jobs, and innovation, particularly as more regulated jurisdictions compete for market share.

For players, the implications are more subtle but still important. Tax pressure tends to shift operator behaviour. Bonuses become less generous, RTPs can be quietly adjusted where permitted, and product innovation sometimes slows.

With the next annual report due in autumn 2026, today’s figures may become the baseline policymakers use to frame new fiscal measures. Any decisions taken in the upcoming budget will shape how operators plan for the next 12 months.