HM Treasury has opened a consultation on the tax treatment of remote gambling (Consultation), with the key proposal being the introduction of a single remote gambling duty to replace the current system for online operators, as part of its spring 2025 update. Under the new system, a single duty would apply to all remote gambling activities targeting UK customers, while land-based gambling taxation would remain largely unchanged.

The caveat to simplification is that taxpayers must be afforded the opportunity to feed into the changes and genuine engagement is required by the Treasury and Stakeholders.

What is the current tax structure?

The taxes to which remote gambling operators are subject in the UK are:

• General Betting Duty (GBD)* – 15% (for most bets)
• Pool Betting Duty (PBD)^ – 15% (for most bets)
• Remote Gaming Duty (RGD)+ – 21%

This structure has remained since 2014.

What does the Consultation propose?

The Consultation proposes to “harmonise these to a single rate,” namely, the Remote Betting & Gaming Duty (RBGD), payable by businesses providing remote betting and gaming services. It is envisaged that RBGD would be introduced in October 2027 or later, so there should be a window for operators to get on top of the new system, provided of course that taxpayers receive sufficient notice and detailed guidance for correct implementation from HMRC/HM Treasury.

The scope of the duty is led by existing legal definitions of remote gaming under s154 Finance Act 2014 and s4 Gambling Act 2005 (the Act).

The reason given for the removal of the difference in rate between types of remote gambling is that “given the common features across remote forms of gambling there is no longer a strong rationale to maintain this historical distinction.”

Another aspect which is dealt with in the consultation document is consistency in the treatment of free bets, freeplays, and prizes. In particular, the government considers that the introduction of RGBD provides an opportunity to review the rewagering exception, as this may have become an avoidance opportunity for some to reduce their tax liability with ‘contrived arrangements’.

What would it mean for remote operators?

The Government states that “it is beyond the scope of this consultation to determine what that specific rate ought to be. Should the government proceed with RBGD, the rate will be set as part of the Budget process.” In this sense, whilst it is unclear whether the change would represent an overall increase or decrease in tax burden for operators, it is important that the government takes a holistic approach to these changes, considering other corporate taxes/duties operators may be subject to, in order to maintain the UK’s competitive tax landscape.

The Treasury suggests the RBGD will “provide tax certainty and increase simplification for remote gambling,” given that around 50% of overseas online operators and around 25% of all online operators are registered for more than one of the remote gambling taxes detailed above.

A possible benefit of the reform would be the reduction in administrative burden. The Consultation proposes that the RBGD would fall under a single registration and be singularly reported to HMRC.

For example, an operator based overseas providing UK customers with remote sports betting, pool betting and casino games would have a third of the number of rules to follow. Such a business would also only have to register once for the tax and submit four (rather than twelve) quarterly tax returns each year.

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The Consultation will run for 12 weeks, closing on 21 July 2025. The government invites operators’ views on the proposals, especially encouraging views on the appropriateness of the reform and how the tax might work in practice. Stakeholders’ responses can be submitted via online form or e-mail.

The Wiggin team remain on hand to answer any questions you might have about the possible implications of this potential new tax on remote gambling businesses.

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* GBD is payable on fixed-odds bets, on sports and financial spread bets, bets made through a betting exchange, and on pool bets on horse and dog racing

^ PBD is payable on bets not at fixed-odds apart from on horse and dog racing

+ RGD is payable on provision of online gaming to a UK customer