Chancellor Raises Online Gambling Taxes Impacting UK Betting Industry and Jobs

The recent budget announcement by Chancellor Rachel Reeves has set in motion significant changes for the UK’s online gambling industry. From April next year, the remote gaming duty on online casino games will increase to 40 percent from the current 21 percent. In a further step, a new remote betting rate will come into effect in April 2027, lifting the level at which online sports betting is taxed from 15 percent to 25 percent, excluding horse racing. These measures are forecast to bring an additional £1.1 billion to the Treasury annually by 2029 to 2030.

Major operators have responded with warnings of both financial hardship and job losses. Flutter, the world’s largest online betting company operating brands such as Betfair and Paddy Power, estimates a reduction in its underlying earnings by approximately 320 million dollars in 2025 to 2026 and 540 million dollars by 2026 to 2027. The company has outlined plans to reduce costs and cut back on promotion and marketing expenditure in attempts to offset some of these losses, aiming to mitigate the hit by as much as 40 percent by 2027.

Evoke, the parent company of William Hill, will initiate immediate reductions in UK investment. The company expects to face additional annual costs ranging between £125 million and £135 million from 2027 as a result of the tax changes. Thousands of jobs are at risk and the company has abandoned its medium-term financial targets. Investec analysts suggest that Evoke could make cuts through procurement savings, lower marketing spend, selected store closures and possible decreases in average payouts. Asset sales could also be reviewed to enable faster debt reduction if required.

Entain, owner of Coral, Ladbrokes and PartyPoker, forecasts an adverse impact on adjusted profit of £100 million in 2026, rising to £150 million in 2027. The group’s chief executive, Stella David, has pointed to the risk that increased taxes could push customers towards unregulated markets, introducing further dangers.

Industry suppliers also expect notable profit reductions. Playtech, a gambling software firm with around 16 percent of revenues stemming from the UK, anticipates a negative effect of up to the high teens in millions of euros on its 2026 adjusted profit. Rank, which owns Mecca Bingo and Grosvenor Casinos, has estimated a £46 million annual increase in costs from the new tax regime, overshadowing a £6 million benefit gained from the abolition of bingo duty.

The Government has decided not to increase taxes on shop-based betting or to adjust duties on horse racing. Bingo duty has been removed altogether, offering some consolation to certain operators. However, the overall reaction from the sector remains negative, with widespread concern over the long-term effects on employment, investment, and the competitive landscape. Analysts agree that companies with strong retail operations or significant scale may have more capacity to weather the impact and could potentially strengthen their market positions in the new environment.