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UK gambling operators urged to join tax consultation to avoid unworkable rates that may harm the sector’s future viability.
As the UK government moves forward with proposed reforms to remote gambling taxation, legal experts and industry leaders are urging operators to engage in the ongoing consultation process. Their message is clear: failure to participate could result in a tax regime that threatens the long-term viability of the sector.
As tax burdens rise, some fear the resulting pressure could push operators out of the market or reduce competitiveness, ultimately affecting player experience. This could drive users, especially players looking for new no deposit bonus codes like the ones found at AussieCodes.com, toward less regulated or offshore alternatives, further complicating the sector’s regulatory and financial outlook.
A Crucial Consultation for the Gambling Sector
In April 2025, the UK government launched a public consultation aimed at overhauling its current remote gambling tax framework. The proposed reform seeks to simplify the existing system by merging three separate duties, namely Remote Gaming Duty (RGD) at 21%, General Betting Duty (GBD) at 15%, and Pool Betting Duty (PBD) at 15%, into a single consolidated rate.
While simplification is the government’s stated goal, industry insiders worry that the reform could result in a blanket 21% tax across all verticals.
The Risks of Inaction
Speaking at Bird & Bird’s global gambling webinar, Feller emphasized the importance of industry participation in the consultation process. “The more data the government collects on the conduct, the more likely it is to result in a tax that actually functions and works,” she explained.
Failure to engage now could result in poorly informed policies that don’t reflect the realities of the sector. Feller encouraged both individual operators and industry associations to submit feedback before the consultation closes on 21 July.
Complexity Behind the Scenes
According to Zoe Feller, the UK partner of Bird & Bird law firm, there are likely to be several administrative hurdles beyond this potential tax hike. For instance, a new system may require significant back-end changes, placing further operational burdens on gambling operators already dealing with a challenging regulatory landscape.
Adding to the complexity is the government’s limited scope in its proposal. For example, rapidly growing segments like prize draws remain largely unaddressed, despite their mention in last year’s gambling white paper.
Industry Leaders Voice Concern
Skepticism over the proposed tax changes isn’t limited to legal professionals, though. Betting and Gaming Council (BGC) CEO Grainne Hurst has warned that the reform could backfire economically. Describing it as a “self-defeating” move, Hurst argued that increasing taxes could undermine the government’s broader economic goals, particularly in a sector still reeling from the financial impact of recent reforms.
The Threat of the Black Market
One of the most pressing fears is that higher taxes could drive players away from regulated platforms and toward the unregulated black market. Gambling consultant Steve Donoughue has highlighted that black markets often dictate future tax policies, as players naturally gravitate toward operators offering better returns. This shift not only jeopardises consumer protection but also undermines efforts to create a fair and competitive legal marketplace.
Moving Forward: Why Stakeholder Engagement Is Essential
With the consultation set to close in late July and final decisions expected in the autumn budget, time is of the essence. Industry stakeholders must mobilise quickly to ensure their perspectives are considered. By participating now, they have an opportunity to shape a tax regime that is not only fair but sustainable for all parties involved. As the government weighs simplification against economic impact, only robust, informed feedback from key players within the sector can help strike the right balance. The future of the UK’s remote gambling industry may well depend on it.
