There was little escaping Chancellor Rachel Reeves’ 2025 Budget. There have been few Budgets delivered in recent years that have generated more speculation in the lead-up to the event, and fewer still that have left a government defending them long after they were delivered.
Nevertheless, as the dust has settled, we have to deal with the reality of the changes. One sector that was hit significantly was the gambling sector, with new rules and levies, particularly over remote gambling. While noteworthy, it was among the least surprising aspects of the Budget, given that the proposed changes had been discussed for months. But Reeves did have a few aces up her sleeve.
But how will the changes – many of which involve tax rises on operators – impact the average punter? It arguably depends on how you gamble, on which sport you have a flutter, and where you do it. Most (but not all) of the changes will come into force on April 1st, 2026, but below we break down the key aspects:
Remote Gaming Duty Rises
This was one of the key takeaways: Revenues on remote gaming activity, which basically means online casinos that offer roulette, slots, etc., will be taxed at 40% instead of 21%. Clearly, it’s a big jump, and it will likely lead operators to make moves to recoup revenue elsewhere. Not all operators will take the same approach: Some may cut promotions or payout rates, others might curtail marketing activity or cut costs elsewhere. Online gamers are advised to consult expert platforms like Casino.com UK to find which operators still offer the best bonuses and promos, as well as the best payout rates.
Remote Sports Betting Duty Rises
Revenues from sports bets placed online will now be subject to a 25% duty, which is up from the 15% today. This measure will come into force in April 2027. Again, there is a question of
where and how operators will act to protect revenues. And once again, the basic advice for punters is to shop around to ensure they are getting the best odds.
Horse Racing Escapes Tax Rises
This was the bright spot for the horse racing sector in Reeves’ statement. Horse racing bets will remain at 15%, the same as offline and online. It was exempted from the rise seen in other sports betting. Reeves arguably bowed to pressure from the UK’s racing industry, which campaigned tirelessly for the exemption, arguing that it would hurt the sport.
Some Things Remain Unchanged
You could probably argue that the Budget was a win for high-street bookmakers, although many of the major chains have both offline and online presences. Nonetheless, taxes on in-person bets remain unchanged at 15%. Physical machines in bookmakers’ shops also remain untouched, remaining subject to a specific taxation method called MGD (Machine Games Duty).
Finally, a Win for Bingo Halls
There was some cheer for bingo halls, which will see the 10% duty that applied to bingo game revenues axed next April. Halls have been struggling for years, dropping by about two-thirds since 2007 for various reasons. But the tax break was widely celebrated by bingo fans, with some operators calling the Budget “welcome” news and a “vote of confidence” in the sector.
Article by James Kelly.
