UK Proposes Unified Remote Gambling Tax to Streamline Industry Regulation

_{James Murphy MP leads the Government's Consultation. (Image: David Woolfall, CC )}

The United Kingdom is set to overhaul its remote gambling tax regime, proposing the introduction of a single, consolidated tax known as the Remote Betting & Gaming Duty (RBGD). This initiative aims to replace the current three-tier system, reflecting the rapid growth and transformation of the online gambling industry over recent years.

Understanding the Evolution from Separate Gambling Taxes to RBGD

Historically, the UK has taxed remote gambling operators through separate duties: the Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD). These rates have varied, with RGD set at 21% of profits, and GBD and PBD at 15% of net stakes. The fragmented structure originated in a different era of gambling, primarily brick-and-mortar betting shops, land based and online casinos, long before the digital revolution.

In recent years, however, the UK’s remote gambling market has experienced exponential growth. The sector now generates approximately £6.9 billion (around US$7.86 billion) annually—more than doubling over the past decade and increasing by 20% in the last five years alone. This surge has prompted the government to reconsider its approach to taxation, aiming to create a clearer, more efficient framework aligned with current industry dynamics.

Consultation Seeks Industry Feedback on New Remote Gambling Tax

The move may not be popular with the gambling industry, who believe they are already subject to some of the highest taxes and stringent regulations in UK industry. The government plans a 12 week consultation launched by HM Revenue & Customs (HMRC) and the Treasury.

In November 2024 the Betting and Gaming Council praised the Government for ‘getting the balance right’ with CEO Grainne Hurst emphasising the damage the tax rises would have caused.

The CEO warned of risks to jobs, preventing growth, impacting customers, and ultimately driving gamblers towards the black market, an area that escapes the tight regulations and tax demands.  

The consultation will seek industry input on several aspects. These include how the new RBGD should be calculated, which activities should be included, and how promotional incentives like free bets and bonuses should be treated. The consultation also invites recommendations on enforcement and penalties to ensure compliance.

Government's Vision for a Streamlined Remote Gambling Tax System

James Murray, Exchequer Secretary to the Treasury, emphasised the need for the tax system to adapt. He said: 

“Since remote gambling was first developed, it has grown exponentially; the three-tax system needs to adapt to reflect the dynamic and expanding nature of the sector.”

He also highlighted that a unified duty could reduce loopholes, provide regulatory clarity, and support efforts to mitigate gambling-related harm.

This move comes amid past speculation about possible tax hikes—at one point, discussions suggested rates could rise by up to 50%. Although such increases were not implemented, the prospect of reform has already impacted the industry, including a temporary slump in gambling stocks. The government’s current consultation signals a deliberate step toward modernising the tax landscape, with final decisions expected in the Autumn Budget later this year.

The proposed reforms mark a significant chapter in the UK’s ongoing efforts to regulate a rapidly evolving digital gambling industry, balancing economic growth with responsible gaming and consumer protection.