Nearly a year ago, the UK gambling landscape experienced a significant shake-up when then-Chancellor Rachel Reeves announced a major increase in remote gaming duty (RGD) during her Autumn Budget. This decision, effective from April 1, raised RGD from 21% to 40%. Alongside this hike, a new general betting duty rate for remote betting was introduced, moving from 15% to 25%, set to take effect in April 2027. The heightened tax burden has since had notable repercussions on the industry, prompting job cuts and consolidation among major operators as they adjust to this new reality.
As the sector braces for a potential increase in machine games duty (MGD) in the upcoming Budget, which current speculation suggests could rise from 20%, discussions are underway about the effects of these adjustments on UK operators. The initial impact of the RGD hike has been mixed. Data from the Gambling Commission indicated that as of March 31, 2026, there were 2,154 licensed gambling operators in the market, marking a 1.1% decrease from the previous year. However, this figure shows an improvement compared to ongoing annual declines since 2017. Despite the tax increase, total gross gambling yield (GGY) climbed 4.4% to £17.5 billion, with remote casino, betting, and bingo seeing a 6.9% boost.
Ed Birkin, Managing Director at H2 Gambling Capital, remarked that the full effects of the RGD elevation are still unfolding. He believes that operators are vying for market share in spite of the tax rise: “I don’t think it’s having a material impact yet,” he noted regarding its impact on gross gaming revenue (GGR).
Nonetheless, the landscape has shifted with significant cost-saving moves. Noteworthy among these was Flutter’s recent announcement of a restructure in the UK and Ireland, which could result in up to 1,400 job losses. Similarly, Evoke closed approximately 200 William Hill shops, and Betfred plans to close up to 132 stores, impacting over 600 employees. Bet365 also revealed plans to cut about 340 jobs, highlighting the stringent cost controls operators are implementing in response to the tougher tax environment.
Concerns are growing regarding the future of the regulated industry. Steve Donoghue, CEO of Gambling Consultant, warned that the industry could face drastic reductions, predicting that Flutter’s layoffs could herald further job losses across the sector. He emphasized that higher taxes might push consumers towards unregulated operators, thereby exposing them to increased risks and diminished consumer protections. Donoghue attributed the push for higher taxes to a politically charged atmosphere: "Populist left wing puritanism is resurgent as we see in many forms."
The retail sector appears particularly vulnerable. The number of gambling premises in Great Britain dipped 2% to 8,081 between April 2025 and March 2026, with retail GGY falling 3.3% to £2.4 billion. The continued wave of closures could further worsen this situation before the Gambling Commission’s next annual report.
As the Autumn Budget approaches, some Labour MPs have urged Chancellor John Healey to increase MGD, with fears of potential increases looming. Jenningsbet’s CEO, Greg Knight, warned that a doubling of MGD could close 100 shops, while Betfred’s Fred Done argued that retail betting could face extinction by 2030, a sentiment echoed by the Betting and Gaming Council, which referenced EY’s modeling predicting losses of nearly 1,500 betting shops and 16,000 jobs if MGD reaches 40%.
The emphasis has shifted towards larger operators who are expected to navigate the evolving tax structure more adeptly. Entain’s third-quarter results indicated a 14% year-on-year increase in online net gaming revenue within the UK and Ireland, positioning them favorably should MGD rise. Flutter’s UK and Ireland CEO Kevin Harrington remarked on their potential for market share gains, solidifying the stance that big businesses can manage the new landscape better, as highlighted by Richard Clarke from Flutter’s betting brands.
As the industry shifts due to ongoing tax changes and structural transformations, operators continue to brace for the implications of Chancellor Healey’s forthcoming Budget, which may delineate the next phase in this turbulent landscape.
