Chancellor Rachel Reeves has raised Remote Gaming Duty above its present 21% level when she announced her 2025 UK Budget today.
The tax, which affects online casino games, is one of several that Reeves had been looking at increasing as Labour have considered ways of generating Treasury funds to tackle social issues.
Plans under consideration have included replacing the present three-tier system of gambling duties and replacing them with one ‘harmonised’ tax rate.
Chanceller Rachel Reeves Hikes Remote Gaming Duty In 2025 Budget
At present, remote gaming Duty stands at 21%, Machine Games Duty has a standard rate of 20% and General Betting Duty for the likes of football, horseracing and dog racing sits at 15%.
But this new budget will see Remote Gaming Duty almost double to 40%.
The UK gambling industry has been bracing itself for some sweeping changes in the Budget after months of lobbying against any tax hikes, warning that any increases could lead to high street betting shop closures and job losses.
Leading consultation groups have supported the government’s idea of increasing gambling taxes, while the treasury has heard from leading officials within the industry speaking against change.
The British Horseracing Authority fought its own battle with separate actions to the rest of the gambling industry, including a march on Westminster.
It is believed that the BHA has been successful in arguing a case for maintaining the general betting duty for horseracing at 15%.
Chancellor @RachelReevesMP has left Number 11 to deliver her Budget to the @HouseofCommons. pic.twitter.com/Qm9bcRn0Z7
— HM Treasury (@hmtreasury) November 26, 2025
Gambling Industry Key Points From New Budget
Gambling company shares had already taken a hit ahead of the new budget.
The accidental leak of Office for Budget Responsibility (OBR) forecasts indicated big rises in online gambling duty were imminent.
The government hade hoped to raise £1.8bn by 2029/230. But it has since revised that figure down to £1.1bn, after admitting some customers were likely to bet less, while others may switch to illegal markets.
From April of next year, Remote Gaming Duty will rise from 21% to 40%.
Some in the industry have already claimed this rise will risk job losses and business collapse.
There is also set to be a new online-only rate of General Betting Duty, levied on operators’ sports betting income.
High street bookmakers will continue to pay the current rate of 15%, but online operators will now pay 25%.
What Is Remote Gaming Duty?
Remote Gaming Duty (RGD) is a tax applied to the profits that gaming operators earn from remote games played by customers who normally reside in the UK.
It follows a place of consumption model, meaning the duty is charged based on where the customer is located, not where the operator is established.
This ensures that any company offering remote gaming services to UK players is taxed in the UK, even if it operates overseas.
Since 2019, RGD has been set at 21% of a provider’s gross profits, calculated as the total stakes received minus winnings paid out.
But this new budget will see that figure nearly double, rising to 40%.
The duty applies to a wide range of remote gaming activities, including online casino games, poker, bingo, and other online games.
