As 2025 comes to a close, the UK’s online casino industry has a lot to think about. Stricter regulation and upcoming tax increases are causing companies to begin considering cutting costs and reducing their staff levels.
This year has seen the UK’s gambling industry continue to record impressive figures. Even the introduction of new maximum stakes for online slot games has not hindered their progress. However, November ended with the announcement in the Autumn Budget of big tax increases on the way. While that news is being digested, new rules regarding bonuses are being introduced on December 19, according to Agamble UK, an online casino guide.
While the Labour government seems to be doing all they can to boost growth in the UK economy, it’s an awkward situation regarding the UK’s online gambling industry. On one hand, the industry is making huge profits with an online total Gross Gambling Yield of £1.42 billion for July to September 2025. However, on the other hand is the problem presented by gambling harm.
There have been plans to reform the UK’s industry for several years. 2025 has seen plenty of action being taken against the industry, particularly the online sector. Not only has there been the introduction of the new maximum stakes for online slot games but also a mandatory levy has been placed on the industry which intends to raise £100 million a year. There is also increasing pressure on gambling adverts.
Then came the Autumn Budget and the announcement by Chancellor Rachel Reeves of rises in the amount the online industry will pay from April of next year. Remote Gaming Duty will be increased from 21% to 40%. 2027 will see the Online Betting Duty for online sports wagers (not horse racing) rise from 15% to 25%.
A double blow for the industry and one that is going to cause big problems for the industry. Reaction to the news has not been good from companies such as Evoke with concerns about how it will affect profits.
Entain, who own Ladbrokes and Coral believe the Autumn Budget contained “disproportionate tax increases.” Stella David is the CEO of Entain and she believes the rises will put jobs at risk, reduce funding for sport and generally have a “detrimental impact on the economic contribution of the gambling industry.”
According to Flutter Entertainment (owner of leading companies such as Betfair and Paddy Power), their profits will be hit by the tax increases. To reduce the impact they will make, the company is already planning to reduce their costs including promotional savings.
A major concern for their UK and Ireland CEO chief executive Kevin Harrington is how the tax increases will boost the unlicensed and unregulated black market. He has described the Autumn Budget as a “big win to illegal unlicensed gambling operators who will become more competitive overnight.” That’s because those black market sites do not make any tax payments to the treasury.
Another blow for the UK’s online casinos is the introduction of new bonus rules. The use of welcome bonuses are a way for companies to attract new customers. Once they have signed-up, more offers can be made as they seek to retain their custom.
Bonuses can include free spins on selected slot games or matched deposits. The bonuses have long been criticised both for their complex terms and conditions and the struggle it can be to actually withdraw any bonus funds from your account.
Terms and conditions are not something that players like to read. They can often be lengthy and complicated. Reading them is important though to avoid making mistakes that could result in a bonus being lost altogether. In an attempt to increase the level of clarity in terms and conditions, changes to the structure and wording of the Social Responsibility Code will be made.
Significant changes are also being made to the wagering requirements that are attached to bonuses. These can be way too high, even as much as 50x on some sites. If that level is in play, then a £20 bonus was received, £1000 would have to be wagered before a withdrawal of any bonus funds can be made.
This can make actually withdrawing any bonus money very difficult. Critics also say that it can lead to customers gambling for longer and faster (often there is a time limit on meeting the wagering requirements) than is healthy for them. The new bonus rules will see a 10x wagering requirement cap introduced.
Again the changes will not apply to the unlicensed black market. They will be able to continue offering bonuses with complex terms and conditions and high wagering requirements or other restrictions.
2026 is going to be a difficult year for the UK’s online casinos. More regulation such as tougher affordability checks on customers could be introduced. Tougher action is being planned against the black market operators in what looks like being a fascinating year.
