PwC has prepared a report for the Betting and Gaming Council (BGC), highlighting a worrying trend: across European countries, stricter regulations and higher gambling taxes are slowing market growth, pushing players toward unlicensed platforms, and reducing the efficiency of tax collection.
🇬🇧 The UK in the European Context
According to PwC, the UK’s tax and regulatory model is now close to the European average. After raising the Remote Gaming Duty from 15% to 21% in 2019, the UK entered the group of "stable" markets.
Current UK gambling tax rates:
🔵 Horse racing — 25%
🔵 Casino — 21%
🔵 Sports betting — 15%
Market Growth and Tax Revenues
PwC points to a direct link between high taxation levels and slower industry growth:
🔴 In Western European countries where taxes increased between 2019 and 2024, average annual GGR growth was only 6%
🔴 Where tax burdens were kept the same or reduced, growth reached 17% per year
🔴 In Germany, the turnover tax on online slots and poker (5.3%) led to a 50% drop in tax revenues and a significant reduction in available games
Overall, low-tax markets grew by 13% annually, while high-tax jurisdictions grew only by 9%. In the Netherlands, where the gambling tax increased from 30.5% to 34.2%, authorities expect a 9% decrease in tax revenue despite rising betting volumes.
Operator Reaction
🔵 13 out of 19 companies reduced bonus budgets
🔵 15 out of 21 cut advertising spend
🔵 In France and Spain, bonus volumes dropped by nearly 47% after new advertising restrictions were introduced
Players Are Moving Into the "Shadow" Market
🔴 40%-53% of players said they are ready to switch to unlicensed sites
🔴 In France and Germany, nearly half of online players already bet on offshore platforms
🔴 High-stakes users — the top 5% of players — turned out to be the most sensitive to reduced bonuses and payouts
According to PwC, the UK’s tax and regulatory model is now close to the European average. After raising the Remote Gaming Duty from 15% to 21% in 2019, the UK entered the group of "stable" markets.
Current UK gambling tax rates:
🔵 Horse racing — 25%
🔵 Casino — 21%
🔵 Sports betting — 15%
Market Growth and Tax Revenues
PwC points to a direct link between high taxation levels and slower industry growth:
🔴 In Western European countries where taxes increased between 2019 and 2024, average annual GGR growth was only 6%
🔴 Where tax burdens were kept the same or reduced, growth reached 17% per year
🔴 In Germany, the turnover tax on online slots and poker (5.3%) led to a 50% drop in tax revenues and a significant reduction in available games
Overall, low-tax markets grew by 13% annually, while high-tax jurisdictions grew only by 9%. In the Netherlands, where the gambling tax increased from 30.5% to 34.2%, authorities expect a 9% decrease in tax revenue despite rising betting volumes.
Operator Reaction
🔵 13 out of 19 companies reduced bonus budgets
🔵 15 out of 21 cut advertising spend
🔵 In France and Spain, bonus volumes dropped by nearly 47% after new advertising restrictions were introduced
Players Are Moving Into the "Shadow" Market
🔴 40%-53% of players said they are ready to switch to unlicensed sites
🔴 In France and Germany, nearly half of online players already bet on offshore platforms
🔴 High-stakes users — the top 5% of players — turned out to be the most sensitive to reduced bonuses and payouts