UK Betting Sector Continues to Shrink After Tax Increase

In the UK, former Chancellor Rachel Reeves announced in the autumn budget that remote gaming duty would rise from 21% to 40%. The new rate came into force on 1 April this year and triggered a strong reaction across the sector. In addition, the general betting duty rate for remote betting will be raised from 15% to 25%, and this change will apply from April 2027.

According to Gambling Commission data, as of 31 March 2026 there were 2,154 licensed operators in the market. This number fell 1.1% compared with a year earlier. Still, the decline has continued every year since 2017, and the most recent contraction has been more limited than in earlier years.

The overall picture for the sector also looks less severe than expected. Total gross gambling yield rose 4.4% to 17.5 billion pounds. Remote casino, betting and bingo activities grew 6.9%. Ed Birkin, Director at H2 Gambling Capital, says the full effect of the tax increase has not yet emerged, and that operators are competing fiercely for market share despite the heavy tax burden.

Meanwhile, many large operators have announced cost-cutting measures. Flutter has said it may remove up to 1,400 jobs in the UK and Ireland as part of a restructuring. Evoke closed around 200 William Hill shops earlier this year. Betfred plans to close up to 132 shops across the UK and make more than 600 employees redundant.