UK Government Suggests One Tax for Online Gambling Companies

The UK government has started a consultation on a new tax plan for online gambling, suggesting a big change from the current three-part system to a single duty. The Remote Betting & Gaming Duty (RBGD) aims to make tax responsibilities easier for online gambling companies and to better match the system with today’s digital gambling world.

HMRC Unveils Plan to Merge Gambling Duties as Online Sector Surges

The Treasury and HM Revenue & Customs (HMRC) have proposed a plan to merge the Remote Gaming Duty, General Betting Duty, and Pool Betting Duty into one tax. They say that new technology and the quick growth of online betting have made the old differences between remote gambling types out of date.

In the consultation introduction, James Murray, the Exchequer Secretary, pointed out that remote gambling has changed a lot in the last ten years, with yearly income now hitting £6.9 billion ($9.2 billion). He emphasized that the tax system needs to change to stay fair, effective, and in line with how people use gambling services now.

Right now, remote gambling is taxed depending on the type. Remote Gaming Duty slaps a 21% tax on profits, while General Betting Duty and Pool Betting Duty take 15%. The new plan wants to bring in one rate for all remote gambling. They have not decided on the exact rate yet. That will come out in a future Budget.

Single Remote Gambling Tax Proposed to Ease Red Tape Burden on Operators and HMRC

The government thinks the three tax rates the UK has now do not match up with what is going on in the industry. They reckon this change will make life easier for gambling companies. As things stand, many of them have to sign up for and file paperwork under several different systems. One tax would make things simpler, cutting down on paperwork and saving money for businesses and HMRC alike.

The consultation, which continues until July 21, 2025, asks for input from industry members, public health groups, and other interested parties. Issues under consideration include how to deal with free bets and bonuses under the new tax, whether related activities like phone betting from shops should be included, and what punishments should apply for breaking the rules.

While the government had earlier suggested the possibility of increasing gambling taxes, causing market unease last fall, the current approach instead centers on changing the system rather than hiking tax rates.

Depending on how the consultation goes and when laws are passed, the Remote Betting & Gaming Duty might start as soon as October 2027. Officials say they want to set up a system that makes sure taxes are fair and also helps create a gambling industry that is sustainable and takes social responsibility.