The UK’s New Gambling Tax Changes: What They Mean for Online Gaming, Affiliates, Digital Advertising and Retail Bingo
The UK Government’s new gambling tax package has triggered the biggest structural shift the sector has seen in years. While much of the conversation has centred on online casino and sports betting, the impact stretches far wider touching affiliates, digital advertising, retail bingo, Horse Racing and the broader media ecosystem.
This article breaks down what’s changing, why it matters, and how operators, affiliates and publishers can prepare for what now looks like a very different future.
Overview of the Tax Changes
The Government has confirmed three major tax adjustments due to take effect over the next two years:
1. Remote Gaming Duty rises to 40% from April 2026
Online casino, slots and other interactive gaming products will now be taxed at nearly double the current 21%.
2. Remote Betting Duty increases to 25% from April 2027
Online sports betting will move from 15% to 25%, with one key exception: Remote bets on UK Horse Racing remain at 15%, protected by the existing Levy.
3. Bingo Duty abolished from April 2026
In an unexpected move, the Government has scrapped Bingo Duty widely seen as a critical lifeline for the retail bingo industry and high-street venues.
What This Means for Operators
The new tax structure delivers direct margin compression across the online sector. This vaults the UK into one of the highest-taxed online gambling jurisdictions in the world. Operators have already begun outlining their projected hits:
- Flutter: $320m EBITDA impact in 2026, rising to $540m in 2027
- Entain: ~£200m
- Evoke: £125m–£135m
- Rank: ~£40m net annual impact even after Bingo Duty removal
- Super Group: 6% 2026 EBITDA headwind
- Intralot (Jackpotjoy owner): €95m based on current figures
Operator Mitigation Strategies
Operators are already preparing for major restructuring:
- Reductions in marketing and advertising budgets
- Supplier renegotiations and platform cost efficiencies
- Customer proposition changes
- Potential retail shop closures in certain cases
- Executive-level oversight of acquisition spending
This is not a temporary adjustment it signals a strategic reset.
A Shrinking Market - By Design
The Treasury's own modelling suggests that the government expects significantly reduced online GGR as a result of these changes. While headline rates imply £1.6bn in extra revenue, the Treasury forecasts just £1.1bn.
That £500m difference signals their expectation that:
UK iCasino GGR will fall by £1bn–£1.2bn due to the tax increases.
This is one of the clearest official acknowledgements yet that the UK online gambling market will contract.
What This Means for Affiliates
Affiliates sit directly in the path of these changes, as they are tied to operator acquisition budgets. As margins are squeezed, expect:
1. Reduced UK Acquisition Budgets
Operators will prioritise only the highest-value channels and partners.
2. Changes in Commercial Deals
Expect downward pressure on:
- CPA rates
- Hybrid deals
- Revenue share percentages
- Tenancy and sponsorship budgets
3. Higher Standards on Traffic Quality
With growing political and financial scrutiny, operators will increasingly demand:
- First-party data
- Better age-gating
- Safer gambling-aligned content
- Proof of value and retention
4. Consolidation Across the Affiliate Sector
Larger affiliates with compliance teams and diversified GEOs will thrive. Smaller UK-only publishers risk being priced out.
Impact on Digital Advertising & Media Buying
The UK gambling sector is a major buyer of digital media across Search, Social, Programmatic and sports publishing. These tax shifts will have a significant effect on media spend:
1. Reduced Paid Media Budgets
Expect tightening across:
- Google Ads
- Meta
- Programmatic display
- Native advertising
- Content marketing
- Sponsored placements with sports publishers
2. Tougher Performance Expectations
Brands will look for fast payback, strong retention and proven incremental value.
3. Budget Migration to Other Markets
Lower-tax regions, LATAM, parts of Europe, Africa and Asia are likely to benefit from reallocated investment.
For UK publishers and affiliates, the battle for shrinking budgets will intensify.
Retail Bingo: The Surprise Winner
The abolition of Bingo Duty is a rare bright spot for the sector. Retail bingo has taken a beating from rising costs and post-pandemic footfall decline.
This tax cut:
- Gives operators breathing room
- Helps protect jobs and community venues
- Enables reinvestment into hospitality and in-venue entertainment
- Re-establishes bingo as a viable high-street leisure category
It’s arguably the only segment of the gambling ecosystem to receive a clear positive outcome.
Horse Racing: Protected but Not Immune
Although remote betting on UK Horse Racing maintains its 15% duty, there will still be knock-on effects:
- Reduced operator marketing budgets
- Fewer sponsorships and media deals
- Conservative investment around racing campaigns
The Levy continues to provide support, but operator behaviours will shift.
Industry Reaction: Operators Under Strain
Unsurprisingly, the financial markets reacted strongly. Share price declines for several UK-exposed brands highlight investor concern around regulatory unpredictability and shrinking margins.
Some analysts suggest this may accelerate consolidation, but others point out that political risk now makes the UK less attractive for M&A than ever.
A View From Inside: Evoke’s CEO Responds to the Tax Shock
Among the operators most affected is Evoke plc, parent company of William Hill and 888. CEO Per Widerström addressed the situation directly in an internal statement, which is reproduced exactly as written:
**“evoke One Company Call – Mobilising for Change
On Wednesday, the UK Government announced a substantial increase in taxes on the gambling sector. For regulated operators like evoke, the implications are significant.
My immediate concern was to explain to our fantastic people here at evoke about what this means for our industry and for our business. So yesterday, my executive team and I hosted a One Company Call. Over 2,000 colleagues joined a record turnout.
I explained the background and expressed my disappointment that the Treasury chose such an aggressive approach to gambling duties, despite clear evidence supporting a more balanced path.
I acknowledged that this is a challenging moment for us all. But I also made one thing very clear: we will not be defined by this challenge. Our size in the UK market makes us resilient and our international business provides diversification. So, we must continue to deliver for our customers - while also re-evaluating our strategy to reflect this new reality.
The executive team and I are absolutely united. We are mobilised, focused, and determined to navigate this turbulence and secure a great future for evoke. This is our moment to demonstrate the strength, unity, and resilience of the great people of evoke.
I have committed to keeping our colleagues updated on our next steps, and I look forward to coming together again in December to do just that.
Wish you all a great weekend.”**
Per Widerström, CEO, Evoke plc
Final Thoughts
By Toby Oddy
Having worked across global and UK-facing igaming markets for more than two decades from founding and scaling Digital Fuel to supporting operators, affiliates and suppliers worldwide. I’ve seen how quickly regulation and taxation can reshape an entire ecosystem.
This latest UK tax overhaul is more than a financial challenge; it marks a structural shift that will force every business in the value chain to rethink how it operates. For affiliates, media owners and suppliers, the message is clear: diversification, audience ownership, data maturity and agility are now essential. The businesses that adapt early, protect their margins and expand beyond a single GEO or vertical will be the ones that thrive.
It’s a moment that calls for strategy, resilience and creative thinking. And while the environment has undoubtedly become tougher, I’ve learned over the years that well-run, adaptable businesses don’t just survive these shifts they find ways to lead through them.