UK launches consultation on single tax for remote gambling

The UK government has unveiled a major overhaul of its remote gambling tax system, suggesting the introduction of a single tax, the Remote Betting & Gaming Duty (RBGD), to replace the current three-tier structure.

The proposed reform would apply to all forms of online gambling, consolidating the existing Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD).

The announcement came as HM Revenue & Customs (HMRC) and the Treasury launch a 12-week consultation seeking input from industry stakeholders. The government aims to use the feedback to refine its approach, ensuring the new framework meets regulatory objectives, reduces administrative burdens, and reflects the evolving digital gambling landscape.

“The tax system needs to keep pace with the developments and innovation that have seen the UK-facing remote gambling sector change significantly in recent years,” said James Murray, Exchequer Secretary to the Treasury, in the proposal document. “Since remote gambling was first developed, it has grown exponentially; the three-tax system needs to adapt to reflect the dynamic and expanding nature of the sector.”

Currently, operators are subject to varying tax rates: RGD at 21% of profit, GBD at 15% of profit, and PBD at 15% of net stake receipts. Officials said this fragmented structure no longer aligns with how consumers engage with remote gambling, particularly as the sector has undergone major transformation over the past decade.

The UK’s remote gambling market has reached a gross gambling yield of £6.9 billion (US$7.86 billion) per year— a figure that has grown by more than 200% in the past 10 years and by 20% in the last five years alone. The government contends that a unified duty would provide clarity, reduce loopholes, and better support broader regulatory goals, including reducing gambling-related harm.

As part of the consultation, the government is requesting feedback on how the RBGD should be calculated, which activities should fall under its scope, and how promotional tools like free bets and bonuses should be treated. It is also inviting recommendations on enforcement measures and compliance penalties.

The move follows heavy speculation last year that the government could impose a sharp increase—up to 50%—on remote gambling tax rates. The speculation led to a slump in gambling-related stocks, though no increase was ultimately implemented. Budget filings at the time did, however, hint at future reforms to consolidate the sector’s tax structure.

The consultation on the RBGD will close on July 21, 2025, with final decisions expected in the Autumn Budget later this year.