The United Kingdom government has formally confirmed that it will increase taxes on online gambling, backing recommendations made by the Treasury Committee and setting out changes first announced in Chancellor Rachel Reeves’ Autumn Budget. Ministers said the decision reflects concerns about the growth of digital betting and its associated harms, while deliberately shielding traditional forms of gambling from higher duties.

According to the government’s response published on the UK Parliament website, the revised tax framework is expected to generate more than £1 billion a year once fully implemented. The measures focus on remote betting and online casino-style games, which ministers and MPs have linked to higher risks of addiction and social harm. By contrast, activities such as horse racing, in-person gambling, and bingo will either avoid tax rises or, in some cases, benefit from lower charges.

Tax changes target remote betting and online casino games

Under the confirmed plans, remote gaming duty, which applies to online casino operations, will rise sharply from 21 percent to 40 percent. This increase will take effect on April 1, 2026. Remote sports betting will also face higher taxation, with the duty rate set to climb from 15 percent to 25 percent starting on April 1, 2027.

The government has made clear that these changes are designed to distinguish between different types of gambling based on their impact. Bets placed on UK horse racing will not be affected, and in-person gambling venues will continue to pay the same rates as before. Bingo halls are set to see the most favorable treatment, as bingo duty will be abolished entirely from April 2026.

Ministers said the approach follows the Treasury Committee’s view that gambling taxes should better reflect the level of harm associated with specific activities. The committee first outlined this position in a report published on November 7, 2025, arguing that online gambling had expanded rapidly and now represents a much larger share of the market than it did a decade earlier.

Committee rejects industry claims on social harm

The Treasury Committee’s recommendations were shaped in part by its rejection of evidence from the gambling industry that online betting does not cause social harm. During hearings last October, Betting and Gaming Council chief executive Grainne Hurst denied that gambling creates “social harm,” a position that drew strong criticism from MPs.

In its statement confirming the tax increases, the government said its support for the committee’s conclusions “comes after the committee rejected testimony from the industry that this type of betting causes no social ills.” Dame Meg Hillier, chair of the Treasury Committee, was particularly critical of those claims and questioned their credibility.

“I find it staggering that the industry can make the boldfaced claim that its activities do not cause harm,” Hillier said previously, adding that online platforms were “extracting huge amounts of money from people who have been funnelled into the most addictive, harmful corners of the industry via their love of sports, or the occasional game of bingo”.

Hillier has consistently argued that while parts of the gambling sector contribute economically and culturally, certain online products pose clear risks. In response to the Budget decision, she said: “The decision by the Chancellor to use her Budget to increase taxes on online gambling is a victory for common sense. The Chancellor has made the right decision in agreeing with my Committee that the tax rate for remote betting, including highly addictive casino games, should reflect the harm it inflicts.”

Revenue expectations and broader policy aims

The government expects the new tax regime to raise more than £1 billion annually for the public purse, despite evidence from countries such as the Netherlands suggesting that higher online gambling taxes can sometimes lead to lower overall receipts. Officials said the package forms part of a wider effort to create what the Treasury described as a fair, modern, and sustainable tax system.

Analysis by the Treasury Committee showed that remote gaming’s share of Gross Gambling Yield rose from 12 percent in 2013/14 to 44 percent in 2023/24, a shift MPs linked to the spread of high-frequency gambling products on smartphones and other digital devices. The committee concluded that many of these products offer limited benefits to individuals and communities while increasing the risk of harm.

At the same time, MPs emphasized that many people in Britain gamble responsibly. They pointed to seaside arcades, local racecourses, and bingo halls as examples of traditional activities that are often enjoyed without serious negative effects. The government said its response reflects that distinction by protecting those sectors while placing higher taxes on digital operators.