UK proposes single tax for remote gambling despite opposition

The UK government has launched a public consultation on major changes to the taxation of online gambling, proposing to replace the current multi-tax system with a single Remote Betting & Gaming Duty (RBGD).

This rethink comes at a time when online gambling has exploded in popularity. Remote gambling alone now pulls in a Gross Gambling Yield (GGY) of £6.9 billion ($9.2 billion) a year, which is a 200 per cent increase over the past decade.

However, Britain’s Betting and Gaming Council (BGC) has warned that it would be “self-defeating” for the government.

UK government calls for ‘simplification’ of tax system for remote gambling

“The time has come to consider moving to a single tax for UK-facing remote gambling,” said James Murray MP, Exchequer Secretary to the Treasury. “A single duty will provide tax certainty and increase simplification for remote gambling.”​

According to the consultation document, the new RBGD would combine the existing General Betting Duty (GBD), Pool Betting Duty (PBD), and Remote Gaming Duty (RGD) into one. It would apply to all forms of online betting and gaming, providing “a simpler, streamlined system that is easier for operators to navigate.”​

Right now, different tax rates apply. General Betting Duty (GBD) and Pool Betting Duty (PBD) are both set at 15 per cent of gross profits, while Remote Gaming Duty (RGD) is charged at 21 per cent. But the government says these differences no longer match how the gambling industry really works today.

“As remote gambling has matured, these distinctions in tax treatment are less reflective of real-life distinctions in customer experience of the products,” the proposal document states​.

The proposed RBGD would stick with the “place of consumption” model, which means taxes will be based on where the gambler is, not where the gambling company is based. The government also said it plans to use the current legal definitions of “remote” gambling to help future-proof the new system.

‘Fairness and greater simplicity’

Murray stressed the goal of fairness and modernisation: “I believe that this change will help bring fairness and greater simplicity to the remote gambling sector in the long-term. It will create a modern and coherent tax system that is simpler to use for the UK-facing remote gambling industry.”

Statement from our CEO Grainne Hurst following the launch of HM Treasury's consultation 'The Tax Treatment of Remote Gambling'. pic.twitter.com/85RMlxunAb

— Betting and Gaming Council (@BetGameCouncil) April 29, 2025

However, the BGC responded to the consultation, calling it a “mockery” of the government’s current growth strategy. In a statement posted on X, CEO Grainne Hurst added: “Raising taxes further now on regulated betting and gaming through a new single tax would be utterly self-defeating for the Government, while making a mockery of their growth strategy.

“Any potential further increase in taxes on our members, so soon after a White Paper which cost the sector over a billion pounds in lost revenue, will not raise more money for the Treasury. If General Betting Duty is raised to the same level as Remote Gaming Duty under one new tax, it would be catastrophic for Racing’s fragile finances.

“It will also likely force businesses to push investment and jobs overseas, while making their products more expensive for UK customers, driving them to the growing unsafe gambling black market online.”

The government is asking for feedback on a range of details, including how free bets, freeplays, and prizes should be handled, along with how the new tax will be managed and enforced. They are especially focused on making sure that free betting incentives and bonuses are treated consistently across all types of remote gambling.

The consultation will run for 12 weeks and closes at midnight on Monday, 21 July 2025. If the proposals go ahead, the new tax could start as early as October 2027, although that will depend on how long the legislative process and IT system updates take.

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