UK plans single remote gambling tax to simplify the system

The UK government is poised to reform the taxation landscape for remote gambling by proposing a streamlined tax structure that aims to replace the current three-tier system.

This initiative seeks input from industry experts and stakeholders regarding the consolidation of three existing remote gambling taxes into a single, cohesive framework. HM Revenue & Customs (HMRC) and the Treasury have introduced the concept of the Remote Betting & Gaming Duty (RBGD), a unified tax intended to encompass all remote gambling activities across the UK. By soliciting feedback, the government aims to ensure the proposed reform not only simplifies the tax system but also alleviates administrative burdens on operators.

Currently, the remote gambling sector in the UK operates under three distinct tax regimes:

• Remote Gaming Duty (RGD): Taxed at 21% of operator profits.
• General Betting Duty (GBD): Taxed at 15% on betting activities.
• Pool Betting Duty (PBD): Also taxed at 15%, applicable to pool betting operations.

James Murray, Exchequer Secretary to the Treasury, emphasized:

“The tax system must evolve in tandem with the rapid developments and innovations that have transformed the UK-facing remote gambling sector in recent years.”

He further noted that the existing trio of tax rates fails to align with current consumption trends and the sector’s dynamic growth. The proposed RBGD aims to address these discrepancies by introducing a single tax rate that reflects the realities of modern gambling behavior.

The consultation period for the RBGD proposal is set for 12 weeks, concluding on 21 July. Stakeholders are encouraged to participate actively, as the government aims to finalize its decisions in the forthcoming Autumn Budget 2025. This reform has the potential to reshape the tax landscape, making it more adaptable to the evolving needs of both operators and consumers in the gambling industry.

By fostering an open dialogue with industry leaders, the UK government aims to modernize its tax approach and enhance the sustainability of the gambling sector. Engaging with stakeholders not only ensures that the new tax structure is equitable and efficient, but it also positions the UK as a leader in regulatory reform within the global gambling industry.