Gambling has long been a fixture of British life, from local high streets to online platforms that let punters place a bet from their sofa.
In her second budget as chancellor, Rachel Reeves announced major changes to gambling taxes that will affect both online and high-street operators.
Remote gaming duty will nearly double from 21% to 40%, a move the industry has called a “devastating hammer blow” that threatens jobs and risks pushing players offshore. The government frames it differently, targeting formats linked to “the highest levels of harm” while funding social priorities like ending the two-child benefit cap.
Gambling in the UK has changed rapidly in recent years, with online platforms now accounting for a growing share of play and providing players with guidance on where to find licensed online casinos in the UK. This growth has brought new opportunities and challenges for operators, regulators, and players alike, particularly when it comes to maintaining a fair, regulated market.
Beyond the headlines, gambling taxes quietly shape everything from employment and nightlife to player safety and the rise of black-market sites. In this article, we break down some of the ways they influence the UK industry in 2026.
Fuelling the Economy
Gambling taxation is a major revenue stream for the UK. Large operators, from online platforms to high-street bookmakers, pay substantial duties, corporation tax, and licensing fees.
Companies like bet365, led by Denise Coates, are among the country’s highest individual taxpayers, showing not just its importance but the transparency and maturity the industry is trying to show. That it’s grown up in many ways.
Beyond the digital world, gambling supports thousands of jobs in hospitality and entertainment. Modern casinos are no longer just gaming floors.
Many have evolved into full entertainment complexes with rooftop bars, restaurants, cabaret shows, and live performances. Betting shops, too, employ staff, contribute business rates, and help keep high streets active, especially in towns where retail options are dwindling.
The economic contribution extends beyond direct employment. Casinos and betting venues bring foot traffic to local areas, supporting nearby restaurants, pubs, and transport services. When a casino hosts a poker tournament or a live music event, it helps multiple sectors at once.
Funding Safer Gambling and Player Protection
Taxation and licensing fees directly support the UK’s safer gambling framework. Rather than abandoning players to unregulated markets, the UK model focuses on regulation, oversight, and accountability. Licensing isn’t cheap, and that’s the point.
Operators need to be financially stable, use tools to promote safe gambling, and have systems to spot harmful betting patterns.
Taxes and fees help fund monitoring and enforcement, self-exclusion schemes, affordability checks, and support services for at-risk players.
The result is a system where players can access gambling in a controlled environment, with clear protections and recourse if something goes wrong. Operators that cut corners face fines, licence suspensions, or outright bans. That accountability only exists because the regulatory framework is funded by the industry itself.
Critics argue the system isn’t perfect. Gambling harm still occurs, and some players slip through the cracks. But the alternative, an unregulated free-for-all or a blanket ban that drives activity underground, is far worse.
Taxation enables oversight. Oversight enables intervention. Intervention saves lives and helps beat addiction.
Preventing the Rise of Black-Market Sites
Attempts to ban or heavily restrict gambling rarely eliminate demand. They simply push players elsewhere. The Betting and Gaming Council has warned that steep tax rises could drive some customers toward unlicensed, offshore sites that operate outside UK law.
Black-market platforms don’t offer the same protections. Deposits aren’t safeguarded. Personal data may be at risk. Winnings may not be honoured. There aren’t any regulators to intervene if something goes wrong. Tax policy has to walk a tightrope, raising revenue without creating conditions that encourage players to drift into unsafe, unregulated spaces.
When taxes become too high, some operators may cut services, close venues, or scale back their UK operations. That doesn’t stop people from gambling, it just pushes them towards less safe options.
Black-market sites don’t offer player protection, responsible gambling tools, or contribute to the UK economy. They focus on profit and tend to grow when licensed operators can’t compete.
The Decline of Physical Betting Shops
High-street betting shops were once a staple of British towns. A familiar part of the landscape alongside pubs, post offices, and corner shops. But rising taxes, increased operating costs, and the shift to online betting have put many of these venues under pressure.
When these shops close, the impact is twofold. Loss of local jobs and business rates, and loss of community spaces that, for many, offered routine, social interaction, and a sense of place. In their absence, high streets risk becoming rows of empty units or luxury flats, spaces that contribute little to local economies or community life.
The tax increase accelerates this trend. Many shops are already close to being unprofitable. Higher duties push them over the edge. The government gains short-term revenue from online operators but loses long-term tax income from physical venues that will never reopen.
Gambling taxes in the UK are about more than revenue. They help fund regulation, support safer gambling initiatives, and contribute to the wider economy.
At the same time, they place real pressure on operators. If that pressure becomes too heavy, jobs are lost, venues close, and some businesses scale back or leave the market. Players don’t stop gambling, they simply move to less regulated spaces where protections aren’t in place. High streets feel the impact too.
The challenge now is maintaining a system that raises public funds while keeping a regulated industry in place, one that employs thousands and is built around player protection. That task has become increasingly difficult.
Read more:
From Bets to Budgets: Breaking down the role of taxes in the UK Gambling Industry