Revamped: Proposed Changes to UK Online Gambling Taxes by Zak Thomas-Akoo, Next.io
UK initiates discussion on simplifying tax structure for online gaming industry
Check out this article The UK government's got some juicy news for the online gambling world! They've spilled the beans on planning to shake up the country's digital gambling tax system.
The Treasury and HMRC have teamed up and rolled out a joint consultation, laying out their game plan to ditch the current three-tier tax regime for remote gambling in favor of a simplified, unified Remote Betting & Gaming Duty (RBGD).
Why the change? Well, it's all about riding the wave of a decade-long growth spurt in digital gambling, which now flaunts a whopping 44% share of the total gross gambling yield (GGY) in the UK. This move also follows through on a promise made back in October's budget to simplify the tax situation.
According to the consultation deets, remote gambling GGY clocked in at a cool £6.9bn during the year ending March 2024, marking a 200% increase over the past ten years, and a snappy 20% jump in the last five. [1][2][3]
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The Gist:
Proposed Tax Reform
The UK government's gunning for a major modification in online gambling taxation, with the possibility of implementing a single tax rate for all remote gambling activities, baptized as the Remote Betting & Gaming Duty (RBGD). This reformation aims to abolish the existing three-tier system—which consists of varying tax rates for Remote Gaming Duty (RGD) at 21%, General Betting Duty (GBD) at 15%, and Pool Betting Duty (PBD) also at 15%—by replacing it with a unified tax structure [1][2][3]. Alas, the consultation document remains cryptic about the potential RBGD rate, with the government welcoming industry input to help determine a suitable rate [2][3].
Current Rate and Future Progress
As things stand, the RBGD rate remains undisclosed, as the consultation endeavors to collect valuable feedback in order to establish an appropriate rate. This process will unfold over a 12-week period, with announcements regarding final plans expected during the Autumn Budget 2025. If all goes to plan, the new unified tax rate could swing into action as early as October 2027, contingent upon the results of the consultation, ensuing legislative adjustments, and more [1][3].
In the interim, the UK has ushered in a mandatory gambling levy with graduated rates reaching 1.1%, targeting funds towards NHS treatment, prevention programs, and gambling research-related initiatives [5]. This levy bears no connection to the proposed RBGD, focusing solely on simplifying the tax structure.
- The UK government is considering the implementation of a single tax rate for all remote gambling activities, which they've named the Remote Betting & Gaming Duty (RBGD).
- This proposed tax reform aims to abolish the existing three-tier system of Remote Gaming Duty (RGD), General Betting Duty (GBD), and Pool Betting Duty (PBD) with varying tax rates.
- The consultation document regarding the RBGD remains unclear about the potential rate, and welcomes industry input to help determine a suitable rate.
- The new unified tax rate may come into effect as early as October 2027, following a 12-week consultation period, legislative adjustments, and final announcements during the Autumn Budget 2025.
