UK Government Proposes Unified Remote Gambling Tax

The UK government has launched a significant consultation to reshape the tax structure for online gambling, aiming to streamline three existing gambling tax categories into a single, unified system.

His Majesty’s Revenue and Customs (HMRC) is gathering feedback on a proposal to combine Remote Gaming Duty, General Betting Duty, and Pool Betting Duty into a new tax category: the Remote Betting and Gaming Duty (RBGD).

Currently, these duties are charged separately based on verticals, with varying rates:

• Remote Gaming Duty (covering online slots, bingo, poker) at 21% of gross profits.
• General Betting Duty (for fixed-odds and spread betting) ranging from 3% to 15%.
• Pool Betting Duty at 15% on gross profits from sports pools, excluding horse and greyhound racing.

Under the proposed RBGD, the system would retain the place of consumption (POC) model, which ensures that taxes are based on where the customer is located, not where the operator is based. This approach has been the UK standard since 2014 and would continue under the new framework.

The UK’s online gambling market is now worth approximately £6.9 billion in annual gross gambling yield (GGY), and the government argues that the time is right to modernize the tax approach to reflect this evolving sector.

The aim is to simplify compliance for operators and administration for HMRC while better aligning tax policy with the increasingly dominant role of online betting and gaming.

HMRC emphasized in its announcement:

“The government believes now is the right time to explore further reforms, creating a simpler and more coherent tax system that aligns with the industry’s evolution.”

Importantly, the consultation is not currently addressing the tax rate itself. Instead, it focuses on gathering technical feedback from stakeholders to ensure the smooth implementation of the RBGD model.

The 12-week consultation period runs until midnight on July 21, 2025. Stakeholders—including operators, industry groups, and compliance experts—are invited to provide input via an online submission form.

UK gambling operators should engage actively in this consultation process. By providing feedback, they can help shape how the future tax framework will operate, ensuring it is both fair and feasible. This is particularly critical as the sector anticipates further regulatory updates, including the government’s planned 2026 review of remote gambling taxes.

UK Government Proposes Unified Remote Gambling Tax, Seeks Industry Feedback

Key Points

• Unified Tax Proposal: HMRC plans to merge three gambling tax categories into a single Remote Betting and Gaming Duty (RBGD).
• Place of Consumption Maintained: The RBGD would continue to apply taxes based on where UK customers are located.
• Stakeholder Consultation Open: A 12-week consultation period runs until July 21, seeking technical insights from industry participants.

What the UK Gambling Tax Consultation Means for the Industry

This proposed reform is part of a broader modernization strategy for the UK gambling sector. The government recognizes that the market has shifted dramatically, with online gambling now representing the lion’s share of industry revenue. Consequently, the tax system must evolve to reflect this shift, replacing outdated structures designed for an earlier era of land-based and segmented gambling activities.

While the government has held off on changing tax rates for now, the technical design and implementation of the RBGD will lay the groundwork for potential future adjustments. By harmonizing the tax approach, HMRC hopes to make compliance easier for operators and reduce complexity in tax administration, benefiting both the industry and the public sector.

Notably, this proposal arrives as political debate over gambling taxes intensifies. Last year, some policymakers called for higher gambling taxes, particularly on online operations. However, Chancellor Rachel Reeves rejected such increases for the Autumn 2024 Budget, signaling instead that any tax changes would follow a comprehensive review slated for 2026.

For operators, this consultation presents both opportunities and challenges. Engaging early allows the industry to influence how the new system is shaped and ensure that practical concerns, such as system integration, reporting, and cross-vertical operations, are fully considered.

The UK government’s proposal to unify online gambling taxes under a single Remote Betting and Gaming Duty represents a landmark moment for the sector. With online gambling now driving the majority of industry revenue, a streamlined tax system promises greater clarity and efficiency. However, success hinges on meaningful input from operators, industry bodies, and compliance experts. As the 12-week consultation window unfolds, the gambling sector has a crucial opportunity to shape the future of UK gambling taxation.