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UK government confirms support for gambling tax reforms
In a statement issued on January 22, 2026, the UK government showed support for Chancellor Rachel Reeves’ proposed gambling tax reforms.
The reforms will see remote gaming duty increase from 21% to 40% on April 1, 2026, and the sports betting tax rate rise from 15% to 25% on April 1, 2027.
The government agreed with the Treasury Committee’s position that taxes should increase on online gambling but spare other areas of the industry, which are less harmful. Due to this, taxes on horse racing and in-person gambling will not be increased, while bingo duty will be abolished in April 2026.
Dame Meg Hillier, Chair of the Treasury Committee, commented:
“The decision by the Chancellor to use her budget to increase taxes on online gambling is a victory for common sense. The Chancellor has made the right decision in agreeing with my committee that the tax rate for remote betting, including highly addictive casino games, should reflect the harm it inflicts.”
The UK government expects that the tax reforms will generate an additional £1 billion in tax revenue.
Hillier stressed:
“While I accept that parts of the gambling industry make an economic and cultural contribution to the UK, I am frankly flabbergasted that representatives from the betting sector could not accept that certain forms of gambling, such as highly addictive online casino games, cause social harm for some people. I don’t believe that is a defensible position.”
The comment is in response to statements made by Betting and Gaming Council (BGC) CEO Grainne Hurst in October 2025, where she denied that gambling creates any social harm.
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