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Last Updated on 3 May 2025 by Casinos etc.
This is a shortened and summarised version of this page — we have included key points and important information.
UK Government Proposes Single Remote Gambling Tax to Replace Three-Tier System
The UK government has launched a consultation on creating a single tax for remote gambling activities, aiming to simplify the current complex structure. Under the new proposal, a single Remote Betting & Gaming Duty (RBGD) would replace the existing three-tax system that applies to different types of online gambling.
Officials say the move is designed to reduce administrative burden, close potential loopholes, and better reflect the way consumers gamble online today. The consultation period is now open and will run until 21 July 2025.
Why Is a New Tax Needed?
At present, UK operators face three separate tax obligations depending on the type of remote gambling they offer:
- Remote Gaming Duty (RGD): 21% of operator profits from online casino-style games.
- General Betting Duty (GBD): 15% of profits from betting activities, such as sports betting.
- Pool Betting Duty (PBD): 15% of net stake receipts from pool betting formats.
However, as gambling habits have shifted sharply online over the last decade, these distinctions have become less relevant. James Murray, Exchequer Secretary to the Treasury, explained that remote gambling has expanded dramatically and the outdated three-tax model no longer fits how players actually engage with digital betting products.
Since remote gambling was first
James Murray said in the proposal document.
developed it has grown exponentially; the three-tax system needs to adapt to reflect the dynamic and expanding nature of the sector.
Remote gambling’s gross gambling yield is now worth approximately £6.9 billion a year in the UK, reflecting over 200% growth in the last decade and a 20% increase over the past five years alone.
What the Consultation Covers
Rather than just setting a new tax rate behind closed doors, the UK government is actively inviting input from the industry. The consultation paper asks for feedback on:
- How the Remote Betting & Gaming Duty should be structured and calculated.
- Which remote gambling activities should fall within the tax’s scope.
- How free bets, free-play bonuses, and prize promotions should be treated for tax purposes.
- Appropriate sanctions and enforcement for operators who fail to comply with the new rules.
The government wants to create a system that is both simple to administer and future-proofed against further changes in gambling technology and consumer behaviour. It also intends to align the new tax system with wider objectives like encouraging safer gambling and protecting vulnerable players.
Previous Hints at Tax Reform
The idea of reforming online gambling taxes first emerged publicly during discussions around the 2024 Autumn Budget. At that time, media outlets speculated that the government could raise taxes on remote gambling by as much as 50% – a rumour that caused significant turbulence in gambling sector share prices.
Ultimately, the Budget did not deliver any immediate tax hikes. However, it confirmed that a consultation would take place during 2025 to review and possibly consolidate the various gambling tax duties into a simpler framework. That consultation has now officially begun with the Remote Betting & Gaming Duty.
Documents from the 2024 Budget made it clear that the aim was to “simplify, future-proof, and close loopholes” within the system, not necessarily to increase tax rates dramatically across the board.
What Happens Next?
The consultation for the Remote Betting & Gaming Duty will gather responses over the next 12 weeks, closing on 21 July 2025. Industry operators, trade associations, and other stakeholders are expected to submit their views on how the tax should be implemented.
After reviewing the feedback, the government will publish its final plans in the Autumn Budget 2025. Operators should be prepared for changes that could come into effect shortly afterward, although no specific timeline for implementation has yet been announced.
For now, the focus remains on creating a tax system that reflects modern gambling patterns, simplifies compliance, and provides clear, consistent rules for all types of remote gambling businesses operating in the UK.
Closing Thoughts from Casinos etc.
The proposed move to a single Remote Betting & Gaming Duty marks a major shift for the UK online gambling industry. While the aim of simplifying the tax framework makes sense, much will depend on the final rate set and how broadly the new system is applied.
Operators, players, and stakeholders across the sector will all be watching closely as the consultation progresses. Casinos etc. will continue to follow developments and share updates as the final decisions take shape in the Autumn Budget 2025.
