UK Gambling Industry at Risk? BGC Classifies Tax Hikes as Real Threat

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The British gambling sector seems to be facing one of the most turbulent periods in recent years. At the centre of the potential horror is the government’s project that suggests unifying taxes on online gambling. Situation spicing up the fact that industry leaders sound the alarm bells regarding the proposed hikes.

At present, there are three autonomous tax rates for online betting in the United Kingdom. Namely:

• RGD (Remote Gaming Duty) – 21% of revenue. This rate applies to online casino entertainment like slots, blackjack, roulette and other games of chance.
• GBD (General Betting Duty) – 15%. Covers online betting of sports like rugby, horse racing and dozens of other markets.
• PBD (Pool Betting Duty) – 15%. Represents net stake receipts and embraces all forms of pool-based betting.

According to the new proposition from the British government, the three existing taxes can merge into a potential single rate of 21% across all gambling verticals. This raises widespread concern that the unified tariff could be a devastating blow to the industry. A grounded fear of UKGC-licensed platforms losing their appeal and expanding offshore activity grows stronger.

Betting and Gaming Council CEO, Grainne Hurst, is at the forefront of protests against the consolidation of current tax rates. Hurst and other industry representatives are afraid that this step could do more harm than good. The most treacherous part of the initiative is that people will choose non UK casinos and sportsbooks over safe and regulated ones. This tendency is predictable as currently licensed operators will likely start exiting the British market.

“We can’t support proposals driven more by politics than by evidence, especially when they risk pushing customers into the unsafe, unregulated black market where there are zero protections and no tax is paid,” Grainne Hurst stresses.

Recent polls back these worries. Nearly two-thirds of UK-based gamblers say they would switch to offshore operators if taxes grow as proposed by the government. Hurst believes that policymakers behind the reforms are underestimating the enormous risks they could lead to. In her words, it will cut safer play initiatives rather than support problem gamblers.

Autumn Budget 2025 might become a game-changer for the UK gambling sector. We can only wait until late October (or early November) to see how it all goes.