UK Gambling Sector Contracts in Retail and Jobs After Remote Gaming Duty Doubles

Eleven months after the announcement of higher remote gaming duty, the UK operator landscape shows clear signs of adjustment. The tax change has prompted cost reductions at major firms and accelerated retail contraction, even as overall sector revenue has grown.

Quantifying the Impact Since the Rate Change

Then-Chancellor Rachel Reeves raised remote gaming duty from 21% to 40%, effective 1 April this year, and increased the remote betting duty rate to 25% from 15%, set to take effect in April 2027. As of 31 March 2026, the Gambling Commission reported 2,154 licensed operators, a 1.1% drop from the prior year. Total gross gaming yield rose 4.4% to £17.5 billion, with remote casino, betting and bingo activity up 6.9%.

Operators have moved to manage costs. Flutter announced a UK and Ireland restructure that could cut up to 1,400 jobs. Evoke closed around 200 William Hill shops, Betfred plans to shutter up to 132 stores and reduce headcount by over 600, and Bet365 is cutting around 340 positions. Retail premises fell 2% to 8,081, while retail gross gaming yield declined 3.3% to £2.4 billion.

Betting and Gaming Council CEO Grainne Hurst called the increases “excessive” and a potential “devastating hammer blow.” H2 Gambling Capital Managing Director Ed Birkin told iGaming Business the full effect on gross gaming revenue “has yet to materialise,” adding, “I don’t think it’s having a material impact yet.” Steve Donoghue, CEO and founder of Gambling Consultant, warned the industry could be “decimated” with “thousands” more jobs lost and customers pushed toward unlicensed operators.

How Scale Shapes the Next Phase

Online performance at larger groups points to relative resilience. Entain posted a 14% year-on-year rise in UK and Ireland online net gaming revenue in its Q3 results. Entain CEO Stella David said the company would be a “relative winner” from any machine games duty increase and would gain retail market share. Flutter’s UK and Ireland CEO Kevin Harrington stated the firm remains “well placed to benefit from share gains given our position as the largest scale operator in the UK.”

An upcoming rise in machine games duty, currently 20%, now appears likely in the new Chancellor John Healey’s first Budget. The Social Market Foundation has advocated doubling it to 40%. Betfred owner Fred Done warned that such a move could leave “no betting shops” by 2030. EY modelling cited by the Betting and Gaming Council projects nearly 1,500 betting shop closures, 34 casino closures and 16,000 job losses at that level.

The combination of confirmed and prospective tax increases is concentrating activity among operators with the greatest scale. Further duty changes will test how many smaller participants can remain viable inside the licensed market.

Reporting: iGaming Business (iGB)

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