UK Gambling Tax Move Could Prove a Costly Mistake
Highlights
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The Autumn 2025 Budget raises gaming duty from 21% to 40% starting from April 2026.
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Small operators would take the biggest hit due to the reform change.
Chancellor Rachel Reeves’ Autumn 2025 Budget hits out massively by increasing the gaming duty from 21% to 40% which will come into effect from April 2026. On the other hand, it has been decided that the sports betting duty will rise from 15% to 25% in 2027.
Officials are said to collect around £ 1.1 billion annually by 2029-30. The huge levy also put the regulated industry at significant risk of extinction. With reference to PwC studies, gaming duties above 25% of GGR can restrict market growth and make the black market more competitive.
Operators like Flutter and Entain have flagged a £300 million to £500 million loss in annual earnings, with thousands of jobs being cut and investment being reduced.
The massive tax rise could incentivize businesses to move their operations to lower-tax jurisdictions like Malta (5-15%) or to further offshore locations, thereby downsizing the UK’s £11.5 billion market. The well-established firms can stay and find ways to cut costs. But it is most likely to have a repelling effect on small operators.
For more insights, Refer Here!
Officials are said to collect around £ 1.1 billion annually by 2029-30. The huge levy also put the regulated industry at significant risk of extinction. With reference to PwC studies, gaming duties above 25% of GGR can restrict market growth and make the black market more competitive.
Operators like Flutter and Entain have flagged a £300 million to £500 million loss in annual earnings, with thousands of jobs being cut and investment being reduced.
The massive tax rise could incentivize businesses to move their operations to lower-tax jurisdictions like Malta (5-15%) or to further offshore locations, thereby downsizing the UK’s £11.5 billion market. The well-established firms can stay and find ways to cut costs. But it is most likely to have a repelling effect on small operators.
For more insights, Refer Here!
