Chancellor Rachel Reeves has unveiled a significant crackdown on the online gambling industry, introducing steep tax hikes on remote gaming activities associated with the most significant potential for harm.
Substantial Tax Increases Announced
In her budget statement delivered on Wednesday 26 November 2025, the Chancellor confirmed that remote gaming duty will jump from 21% to 40%. Simultaneously, levies applied to online betting will see a rise from 15% to 25%.
Rachel Reeves positioned these measures as a direct response to the concerning growth in online gambling across the UK. She stated that her budget presents a 'fair and credible' plan for working people, with these specific gambling tax reforms expected to raise over £1 billion per year by 2031.
Tackling the 'Highest Levels of Harm'
The government's focus is squarely on products deemed most risky. Dame Meg Hillier, Chairwoman of the Treasury Select Committee, supported the move, highlighting that online slots and other forms of remote gaming 'can quickly drain the bank balances of vulnerable people'.
This targeted approach aims to address what the Treasury identifies as the sectors within the online gambling industry linked to the most severe financial and social consequences for users.
Industry Warns of Black Market and Job Losses
Unsurprisingly, the announcement has been met with strong opposition from betting companies and industry trade groups. They have issued warnings that such steep increases in levies could have unintended negative effects.
The primary concerns raised are twofold. Firstly, there are fears that higher regulated costs could push people towards unlicensed black market operators, who offer no consumer protections. Secondly, the industry argues that the new tax burden could threaten future investment and put jobs at risk within the sector.
This sets the stage for continued debate as the government proceeds with its ambitious gambling reform agenda.
