UK Seeks Simpler, Smarter Remote Gambling Tax Through Single-Duty Proposal

The UK government is moving to overhaul its remote gambling tax framework by replacing its existing multi-tiered system with a single, streamlined levy to be known as the Remote Betting & Gaming Duty (RBGD). The proposed tax would unify the remote gaming tax (21%), general betting duty (15%), and pool betting duty (15%) into a single framework that would include all kinds of online gaming.

Recent history suggests that the issue extends beyond a mere tax adjustment. The region is clearly very adamant about adjusting its regulatory strategy to better reflect the size, speed, and complexity of the online gaming industry.

Why a Single Tax?

Since the introduction of remote gambling taxes, the UK gaming sector has transformed dramatically. In the past decade, the online gambling industry in the territory has more than quadrupled in size, with an annual gross gaming yield of £6.9 billion. Unfortunately, the existing tax mechanism has fallen behind, imposing disparate rates based on outdated game-type differences that no longer accurately represent how players engage with online platforms.

In particular, the government claims that it is unable to achieve its larger objectives of minimizing damage from gambling, increasing fairness, and guaranteeing strong control due to the system’s fragmentation. The RBGD aims to address legislative gaps, streamline compliance, and facilitate enforcement and oversight.

To shape the final policy, HMRC and the Treasury have launched a 12-week consultation, inviting feedback from industry players on several key aspects. These include:

• How the RBGD should be calculated
• Which gambling products should fall within its scope
• How to treat bonuses, free bets, and other incentives
• Enforcement methods and appropriate penalties for non-compliance

Details like the exact tax rate are not yet clear. The consultation will close on July 21, 2025, with final decisions expected in the Autumn Budget later this year. If approved, the RBGD could redefine the fiscal model for online gambling in the UK and offer a blueprint for other regulated markets facing similar challenges.

Broader Implications

Bettors and game providers alike might benefit from streamlined operations made possible by a single tax. Though it may increase tax liability for businesses that have profited from reduced tariff rates on certain sectors in the past, simplifying matters reduces administrative expenses and the load of compliance.

Additionally, there are strategic implications Reviewing promotional tools like free bets might prompt operators to reevaluate their marketing strategies and use funds differently. Crucially, this change might facilitate government efforts to detect and address compulsive gambling, bringing taxes in line with its public health objectives.