The government’s plan to raise the gambling tax in UK has caused concern across the iGaming industry. Flutter Entertainment, the company behind some online casinos, said the new rules could cut its profits by hundreds of millions of dollars.
On 26 November 2025, Flutter said the rise in gambling tax in UK would reduce its earnings by about $320 million in 2026 and around $540 million in 2027 unless the company finds ways to reduce costs. The tax increase will take effect on 1 April 2026 for online casino games, slots, and other digital gaming products. Remote sports betting, except horse racing, will face a 25 percent tax from April 2027, up from 15 percent. Bingo operations will no longer pay duty from April 2026.
Flutter called the tax changes a “major blow” to the iGaming industry. The company asserted that the UK's increased gaming tax would lead players to illegal offshore websites, which do not comply with UK gambling regulations for the protection of players or contribute taxes. To decrease the impact, Flutter already plans to halve marketing and promo costs and to improve efficiency in its operations. They estimate these steps could recover around 20 percent of the lost profits in the first six months and up to 40 percent later.
Signs of stress in the UK iGaming industry are already appearing. Data from Gambler Media, a marketing company, shows that many licensed operators are reducing marketing spending or considering leaving the UK due to the higher gambling tax in UK and stricter bonus rules. Some companies have paused campaigns or plan to close UK operations entirely by March 2026.
The UK Gambling Commission will also introduce new rules from 19 January 2026. Bonus funds will be capped at ten times the bonus amount, and combined offers across products, like bingo and casino bonuses, will be banned. Regulators say this will make promotions safer and easier to understand. But operators now have fewer ways to attract new players.
Reduced wagering limits are a benefit to the players since, for example, a ten-times rollover is more approachable than the previous intricate rules, which sometimes went as far as sixty-five times. Nevertheless, the rise in operating costs makes it more difficult for the companies to keep a profitable status. Remote Gaming Duty for online casino products will rise from 21 percent to 40 percent, one of the biggest gambling tax in UK increases the sector has seen in years.
The effect of the tax hikes is already visible. Several operators have cut marketing, paused campaigns, or considered leaving the UK market. Evoke, owner of William Hill and 888, said it is considering a full sale or restructuring after the new gambling tax in UK. Other companies, like Aspire Global, have already left the UK, and PlayLuck stopped operating earlier this year. Even well-known brands like Great British Casino are reviewing their UK strategy due to rising costs.
Parliament debated the tax changes this week. Most MPs supported a higher gambling tax in UK, but some warned that large increases could push legal operators out of the market and boost illegal gambling. The chancellor has signed the decree that gaming operators who are properly licensed will be charged higher remote gaming duty and a new general betting duty.
Professionals believe that these modifications may transform the UK iGaming sector. Higher fees could restrict operators' competing power. Users might receive fewer rewards and promotions, which in turn could drive them to unregulated platforms. This shift could result in a decrease in tax income and turn users' safety into an even bigger issue.
The market of operators such as Flutter has just become challenging. The rise in UK gambling tax, stricter bonus regulations, and a few rivals going out could lead to a smaller, more concentrated iGaming industry. The businesses, including Great British Casino, will have to modify their marketing strategies, costs, and product offerings in accordance with the new rules and still remain competitive.
The government argues that these changes are intended to make online gambling safer and to introduce the gambling tax increase in UK. How operators respond in 2026 will likely shape the future of the iGaming industry and the position of brands like Great British Casino in the UK market.
