New remote betting and gaming duty on the cards as HMRC eyes gambling tax overhaul
The UK government has launched a major consultation on a proposed overhaul of remote gambling tax, aiming to simplify the framework by replacing three existing duties with a single unified system.
The HM Revenue & Customs (HMRC) consultation, open until midnight on 21 July 2025, invites technical feedback on the planned introduction of the Remote Betting and Gaming Duty (RBGD). If implemented, it would merge remote gaming duty, general betting duty, and pool betting duty into one single tax, which would be applied consistently to all remote gambling activities under a point-of-consumption model.
Why a single duty is now being considered
The remote gambling sector has surged to £6.9 billion in annual Gross Gambling Yield (GGY), outstripping the traditional premises-based sector. However, HMRC says the current tax system no longer reflects the technological convergence between online betting, casino games and bingo.
Under existing rules, operators must register and submit separate tax returns depending on the product offered, with varying rates applied. The government currently charges Remote Gaming Duty at 21 percent of gross profits, while General Betting Duty is 15 percent for fixed-odds bets.
Rolling everything into one duty could flip the board for remote operators, with betting shops used to softer blows suddenly feeling the full weight of gaming-level taxes. Some stakeholders have already warned of potential ripple effects, with sectors like horse racing voicing concerns over funding impacts.
Simplification aims to support a modern gambling industry
According to HMRC, the new RBGD would allow operators to register once, submit a single quarterly return and work under a harmonised set of rules, drastically reducing the compliance burden.
The government insists that the consultation will not decide the actual tax rate for RBGD at this stage. The government will decide the tax level separately during the budget process after reviewing consultation feedback.
The scope of the new duty would be broad, covering all remote betting and gaming activity accessed via the internet, telephone, television or any other electronic communication method. Spread betting is also under review for inclusion, although it may retain a separate place-of-supply basis.
HMRC is closely monitoring industry concerns about unintended consequences, including market distortion and shifts toward unlicensed gambling operators. Warnings about the silent rise of the black market have already surfaced, with pressure growing to ensure reforms do not drive players underground, as explored in a recent SIGMA News exclusive two-part series about the UK black market in 2025.
Consultation process and next steps
The government stresses that the goal is to create a gambling tax regime that is “modern, resilient and agile” while protecting revenues and ensuring fairness across the remote sector.
HMRC invites stakeholders to respond via an online form or by email to [email protected]. The full consultation document detailing the proposed changes and open questions for feedback is available .
Subject to the responses received, legislative changes could be introduced in the Autumn Budget 2025, with the new Remote Betting and Gaming Duty taking effect as early as October 2027.
The message for operators and stakeholders across the gambling ecosystem is clear: change is coming, and the time to engage is now. Still, this is not just about engagement. It is about survival. Some sectors, like British racing, will feel the squeeze harder.
The question is will this be a fair fight? The real winners will be those with access to the right influence. Those who tighten their grip behind closed doors. The warning is simple for everyone else: if you are not at the table, you are on the menu.
