In April, the UK online gambling market faced a dramatic shift when the Remote Gaming Duty (RGD) was increased from 21% to 40%. This change, announced during the 2025 autumn budget, marks the largest single tax rise for online gambling in the country’s history.
For operators, the ramifications are significant. With tighter margins, businesses are reassessing their promotional strategies, and some are reconsidering their presence in the UK. Already, two operators have exited the market, and larger enterprises are projecting additional costs that could reach nine figures.
However, the impact of this tax hike extends beyond operators; B2B gaming suppliers are also navigating a challenging strategic landscape. It’s not just that operators have reduced budgets; the criteria for spending are shifting, which compels suppliers to rethink their marketing strategies.
Historically, suppliers had an easier time selling their products based on innovation and features, such as advanced platforms and engaging content. But as operators begin to lose a substantial portion of their margins, they’re forced to ask tougher questions: “What commercial value does this actually create for us?”
As operators seek to cut costs and boost efficiency, industry observers note significant changes in areas like promotional spending, affiliate commissions, and the product mix. This evolving environment is prompting a thorough review of supplier relationships, as well as a heightened scrutiny of new investments.
A central theme is that “we have a great product” is no longer a compelling selling point. Suppliers must now connect their innovations directly to measurable business outcomes. Long viewed as key marketing terms, concepts such as innovation in platforms and content only hold value when they address significant commercial challenges operators face.
Consequently, operators are likely to probe deeper into how solutions impact crucial metrics like player lifetime value, retention, and operational costs. Questions about the return on investment will dominate discussions, with operators wanting to know the consequences of inaction.
This shift means that B2B gaming suppliers need to transition from merely touting product features to demonstrating the business benefits of their offerings. Therefore, the narrative has to evolve from “Our AI-powered platform delivers X, Y, and Z” to “We help operators enhance retention and lifetime value in a challenging market.”
Simultaneously, operators are experiencing not just the tax hike, but tighter promotional regulations, including a 10x wagering limit and restrictions on promotional methods. In this tighter market, supplier selection takes on a heightened significance.
Despite budget constraints, operators don’t entirely halt investments. Instead, they become more discerning, choosing to back investments that yield the highest returns. This creates opportunities for suppliers who can clearly articulate their value in terms of measurable impacts. The emphasis shifts from "Why should you buy our solution?" to "Why is investing in our solution strategically important right now?"
Ultimately, B2B gaming suppliers must position themselves not just as technology providers, but as partners who understand operators’ business pressures. The focus must pivot from product specifications to solving critical business issues. As the market evolves, operators are looking for suppliers who can genuinely contribute to navigating these complexities.
The current scenario presents a marketing capability challenge for suppliers. Many marketing teams excel in execution, but the pressure to understand the underlying commercial strategy has never been greater. Marketers must now address questions about their target audience, the problems being solved, and the commercial relevance of those problems.
While the 40% RGD increase introduces constraints, it also creates opportunities. Some operators may scale back their investment or withdraw from the UK market entirely, while others will seek to capture market share from those retreating. Analysis indicates that the market is beginning to split between those making defensive cuts and those strategically positioned to capitalize on changing dynamics.
The best-performing suppliers in this new landscape will be those who can showcase their relevance and clearly connect their offerings to the key commercial priorities of operators. This requires not only superior campaigns but also refined positioning, enhanced customer insights, and compelling storytelling that underscores their value.
