United Kingdom: Major Gambling Tax Increases Announced

Just hours before the official budget presentation, the full version of the document leaked online — including plans for the largest gambling tax hike in years for online gambling and sports betting.

How the leak happened

A link to the document was mistakenly published on the website of the Office for Budget Responsibility.

As a result, the market learned about the tax increases before the speech of Chancellor Rachel Reeves, which sparked criticism: the government lost control over the narrative, while operators gained time to prepare.

Key tax changes

🔵 Online gambling: tax increase from 21% to 40% starting April 2026

🔵 Online sports betting: from 15% to 25% in 2027

🔵 New unified rate: 25% on most remote bets starting April 2027 (exceptions include SBT, spread betting, pool betting, horse racing)

🔵 Bingo: 10% tax abolished

🔵 Land-based casinos: tax bands frozen for 2026−27, then indexed by RPI

Market reaction

🔴 PaddyPower, William Hill, and Ladbrokes are closing part of their retail shops

🔴 SkyBet is relocating its headquarters to Malta

🔴 Player costs will rise — operators are passing the tax burden onto customers

🔴 Advertising budgets are shrinking: with £2bn spent last year, operators must optimize marketing under rising tax pressure

🔴 The leak increased political pressure on the government — critics warn of strengthening the offshore segment

Consequences

🔵 Additional revenue expected: £1.1bn by 2029−30

🔵 Bookmakers cancelled betting markets on the tax announcement following the leak

🔵 Operators are preparing for restructuring: jurisdiction changes, retail downsizing, cost optimization

Conclusions

🔴 The tax burden on the online sector is rising sharply

🔴 Companies are adjusting strategies: closures, relocations, marketing cuts

🔴 The leak created political pressure and a negative backdrop for the reform

🔴 Operators able to quickly adapt their structure and financial models will benefit the most