How is betting taxed in the UK, and what is the statutory gambling levy?
In October 2026 Paddy Power's owner said it would cut up to 1,400 jobs because of UK betting tax rises, and the government called it a commercial decision.
In the UK the tax falls on the gambling companies, not on the bettor's winnings, and it has been rising. A separate statutory , charged on operators since April 2025, pays for research, prevention and treatment of gambling-related harm.
Start with the basics. No tax is due on winnings of bets in the UK, so it is the operators that pay. "Betting " at 6.75% was applied to sports bets until 2001, when it was replaced by a 15% tax on , meaning stakes minus winnings paid. From 2019, tax on , such as online casino games, increased to 21%. Since 1 December 2014, remote gambling has been taxed where the customer is, a "" basis, rather than where the company is based.
Then came the changes announced at Budget 2025. The government said it would not proceed with a single tax on remote betting and gaming. Instead, to raise revenue and better reflect the modern nature and impacts of gambling, was to rise from 21% to 40% from 1 April 2026, a new remote betting rate of 25% is to be introduced from 1 April 2027 (with remote bets on UK horse racing staying at 15%), and Bingo Duty was to be abolished from 1 April 2026. The rise in Remote Gaming Duty took effect in April 2026, the BBC reported.
UK gambling duty rates before and after the Budget 2025 changes
| Before | After | |
|---|---|---|
| Remote gaming duty (from 1 April 2026) | 21% | 40% |
| Remote betting (from 1 April 2027) | 15% | 25% |
The is different. It is not a tax on winnings or profits to fund public spending in general. It commenced in April 2025, is collected by the Gambling Commission, and replaced the previous system of voluntary industry contributions. In October 2026, the BBC reported that Paddy Power's owner Flutter planned to cut up to 1,400 jobs, its boss saying the company "cannot fully absorb" the tax rises, while a government spokesperson called the cuts a "commercial decision for Flutter, not the UK government". Whether and how tax changes affect jobs, prices and the illegal market is a live debate that this lesson does not settle.
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Recap
Duties raise money for the government; the levy is ringfenced for research, prevention and treatment of harm.
💡 A trick to remember it · One coin to the Treasury, one coin to the clinic: two different pockets that operators pay into.
Surprising fact · Remote Gaming Duty almost doubled, from 21% to 40%, in April 2026, and bettors still pay no tax on their winnings.
Connects to
- 🏟️ How did sports betting take off in the US after the 2018 Supreme Court ruling?
- 📒 How do bookmakers set odds, and what is the overround?
- 📋 How is gambling harm measured, and what is the Problem Gambling Severity Index?
- 📶 What is the difference between a progressive tax and a flat tax?
- Sports betting
- Budget deficit
Sources (6)
No source, no claim. Every fact in this lesson (21 claims) cites at least one of these.