As 2026 gets underway, there are several reasons for the UK’s online casino industry to be worried about the next 12 months. Tax rates will be increased in April and stricter regulation is having to be faced by the industry.
This year has already seen GG BET leave the UK market. It’s believed they have made their exit because of the stricter regulation and upcoming tax rises. However, ITV will soon be entering the UK’s online casino market.
ITV Win Bingo & Spins is to be launched by the broadcaster. Bingo and top slot games will be offered by the new site. ITV has previously had an online presence that offered prize draws and competitions but this will see them hoping to secure a good market share in the UK online gambling market.
Soon after their launch the new financial year will arrive and that will begin a worrying time for the industry. Last year’s Autumn Budget saw the Chancellor Rachel Reeves announce a rise in remote gaming duty from 21% to 40% for online gambling sites, according to GamblerMedia. This wasn’t just a need to raise additional funds to boost an ailing economy but to take action against the level of gambling harm the sites cause to their customers.
The aim of the Chancellor is that by 2031, £1 billion a year will be heading to the Treasury from the increases. That’s on top of the £100 million a year that the mandatory levy introduced last year aims to raise.
Will those totals actually be received though? The combination of stricter regulation and higher tax rates has not been well received. The CEO of the Betting and Gaming Council, Grianne Hurst, has said the tax increases that have been announced are “massive” and “among the highest in the world.” Hurst added that they will be a “devastating hammer blow” to those who work in the industry and their customers.
UK gambling companies have already been speaking about making cuts and the services offered to their customers may be reduced. Those like Entain and Flutter Entertainment who also have strong overseas interests may concentrate more on those in the future.
One concern that the Treasury and the gambling industry share is that of the unregulated market. As the CEO of the BGC has said, the current stricter regulation and tax increases are great news for the unregulated sites. They do not need to comply with the new regulations and do not pay any taxes from the revenue that they are earning.
Last year saw the UK Gambling Commission publish a report that looked at the problem of the unregulated sites. It included a section that examined why players choose to play with such sites. Reasons given included better promotions, not having to comply with stake or spending limits and an absence of affordability checks.
Those playing at unregulated sites most wanted to bet on football and online slot games. The latter is important as last year saw a maximum stake limit imposed on them. Players between the age of 18 and 24 can only stake a maximum £2 per spin and it’s £5 for older gamblers. This only applies to those sites that have been granted a license by the UKGC.
Stricter affordability checks are also being made and the level of them could increase in the future. They aim to determine whether players can afford the amounts they are depositing and losing. They are not popular with gamblers and provide another reason for them to desert the regulated market.
There are also new rules for the bonuses that regulated sites can offer. The days of large wagering requirements are ending with a new maximum of 10x being put in place. Again, unregulated sites are not affected so they will prove popular with gamblers even if tough terms and restrictions are in place. It will affect ITV’s new venture as will the increasingly tougher rules being put in place over how gambling can be advertised.
The growth of the unregulated market is not just a concern in the UK. It is a global problem and affects the earnings of regulated online casinos and subsequently the amount of tax that they pay.
The Netherlands has been introducing stricter regulation for online casinos. As a result, the number of players opting to register with unregulated sites has increased. If the problem continues in the UK, then the amount of additional tax revenue that the Treasury is expecting to receive may be lower than anticipated.
2026 will therefore be a challenging year for the UK’s online gambling industry. There will be additional payments being made to the Treasury to deal with. In addition, a close eye will be kept on future plans for further stricter regulation and the rise of the unregulated market that could take away custom. Just how companies react will determine how much tax revenue is received by the Treasury.
