The UK government is seeking input from the iGaming industry on a proposal to create a one-off tax on remote gambling. Her Majesty’s Revenue and Customs (HMRC) and the Treasury have proposed the creation of the Remote Betting and Gaming Levy (RBGD).
UK Gambling Tax Rates
The UK currently has three tax rates in place:
- Remote Gaming Duty (RGD)
- General Betting Duty (GBD)
- Pool Betting Duty (PBD)
James Murray, the Treasury Secretary, said: “The tax system needs to keep pace with the developments and innovation that have seen the UK-facing remote gambling sector change significantly in recent years.”
Current tax rates on gambling are not in line with changes in public consumption. The RGD charges 21% of the operator’s profit from remote activities, while the GBD charges 15% of the profit. Finally, the PBD, in turn, charges 15% of the net participation revenue.
Government consults sector to improve gaming tax proposal
The government is seeking input from industry stakeholders on its proposed Remote Gaming and Betting Tax. To this end, it is seeking to understand how its reforms can best meet its objectives, simplifying the tax system and reducing administrative friction for all stakeholders.
“The three-tax system needs to adapt to reflect the dynamic and expanding nature of the sector,” said James Murray.
HMRC and the Treasury have reviewed the current tax framework and its objectives for the sector, such as reducing harm to gamblers, and believe there is “no longer a strong justification for maintaining” separate tax distinctions.
The RBGD consultation will run for the next 12 weeks and close on 21 July. The government is expected to present its final plans during the Autumn Budget 2025.
“Gambling is increasingly moving online, with gross revenue from remote gambling now at £6.9 billion per annum, having seen growth of over 200% in the last 10 years and 20% in the last five years,” noted James Murray.
The single tax proposal was suggested in the Autumn Budget 2024. Budget documents at the time stated that the government would consider how to consolidate the UK’s tax structure for gambling.
