UK Confirms Higher Taxes on Online Gambling in Budget Overhaul

The UK government has announced big tax hikes for online gambling companies, after MPs and the Treasury Committee pushed for this change for months. The Chancellor’s latest Budget includes these new rules, which the Treasury now supports. Once rolled out, these measures should bring in over GBP 1 billion ($1.3 billion) for public funds.

Online Betting Faces Sharp Tax Rises as Horse Racing and Bingo Are Protected

The new system will make digital gambling pay much more in taxes, while protecting traditional betting forms. The government sees a clear difference between online products and in-person activities like horse racing and bingo. They argue that digital gambling has a bigger social impact, which justifies higher taxes.

Starting April 1, 2026, the tax on online gaming, which covers online casino-style games, will jump from 21% to 40%. The next year, in April 2027, the tax on remote betting, including online sports bets, will go up from 15% to 25%. However, bets on UK horse racing will not change, and land-based gambling spots will keep their current tax rates. Bingo halls will get an even better deal – from April 2026, they will not have to pay any bingo duty at all.

HM Revenue & Customs pointed to the quick growth of online betting and rising proof of damage from easy-to-use digital products as reasons for their choice. The Treasury Committee reports that internet gambling now makes up a much bigger part of the market compared to ten years ago, driven by phones and games made to keep players hooked.

Treasury Committee Backs Higher Online Gambling Taxes Over Harm Concerns

The committee has often questioned claims from some gambling businesses that online betting causes no social issues. Last year, MPs decided these arguments lacked credibility. They cautioned that the most addictive online products offer little good to communities while putting individuals and families at risk.

Meg Hillier, who heads the Treasury Committee, backed the government’s decision to raise taxes. She said this choice shows a more down-to-earth view of how some online betting hurts people and marks a smart change in how digital gambling gets taxed.

The Treasury calls this plan part of a bigger push to create a more balanced and long-lasting tax system. They point out that many people bet, and activities like going to horse races, beach arcades, or local bingo halls do not cause as much trouble. They argue that keeping these places going helps avoid putting too much strain on businesses that matter for culture and the economy.