United Kingdom: A single tax for all online gambling
•
30 Apr 2025 •
Reading time: 3 minutes The United Kingdom is planning to merge the three current taxes on online gambling into a single Remote Betting & Gaming Duty in order to simplify the tax system. This reform, which is currently under public consultation until July 2025, is causing concern, particularly among the horseracing industry, which fears an increase in levies and a drop in revenue.
The UK government has launched a public consultation aimed at simplifying the tax regime for online gambling. The initiative proposes replacing the three existing taxes with a single one, to be known as the Remote Betting & Gaming Duty.
Unification of taxes: towards administrative simplification
Currently, online gambling operators in the UK are subject to three separate taxes.
- General Betting Duty (GBD): 15% on sports betting profits.
- Pool Betting Duty (PBD): 15% on pool betting stakes.
- Remote Gaming Duty (RGD): 21% on online casino gaming profits.
The draft reform proposes to merge these taxes into a single Remote Betting & Gaming Duty, applicable to all forms of online gambling, including sports betting, casino games and pool betting. This measure is intended to simplify the tax obligations of operators and to reflect the evolution of the digital gambling market.
According to James Murray, Secretary to the Treasury:
‘The tax system needs to keep pace with the developments and innovation that have seen the UK-facing remote gambling sector change significantly in recent years.’
Industry reactions: concerns for horse racing
The reform proposal has raised concerns among industry players, including the Betting and Gaming Council (BGC) and the British Horseracing Authority (BHA). They fear that the unification of taxes will lead to an increase in the tax burden for certain operators, particularly those specialising in sports betting, which is currently taxed at 15%.
Grainne Hurst, chief executive of the BGC, said:
‘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 BHA shares these concerns, pointing out that horseracing relies heavily on betting revenue to fund prizes and infrastructure. An increase in taxation could reduce investment in the sector and jeopardise its future.
Public consultation: an opportunity for dialogue
The government has opened a 12-week public consultation, running until 21 July 2025, to gather the views of stakeholders on the proposed reform. Contributions are being sought on a number of aspects, including:
- The definition of the tax base.
- The tax treatment of bonuses and promotions.
- Penalties for non-compliance.
Operators, professional associations, public health groups and the general public are invited to take part in this consultation, to ensure that the reform meets the objectives of simplification while preserving the fairness and competitiveness of the sector.