- Remote Gaming Duty, the tax on online casino profits, doubled from 21% to 40% on 1 April 2026 - the steepest single increase in British gambling tax history.
- The Office for Budget Responsibility forecast operators would pass roughly 90% of the increased cost to players.
- Welcome bonuses, free spins and loyalty rewards are already being scaled back across the UK market as a result.
Licensed casino sites are cutting back welcome bonuses, loyalty rewards and free spin offers following the most significant tax change in the history of British online gambling.
And feedback sessions with OLBG members showed that many are already noticing the difference, with offers becoming noticeably less generous since April.
Remote Gaming Duty, the tax charged on every pound of profit generated by online casino operators in the UK, doubled from 21% to 40% on 1 April 2026.
My View
The rate had sat at 21% since 2014. The move, announced in the Autumn Budget 2025, is expected to raise over ÂŁ1 billion a year for the Treasury.
It's the steepest single-step increase in British gambling tax history.
The tax applies to gross gaming yield - the difference between stakes received and winnings paid out - across all online casino products. That includes live dealer games and game shows.
The Office for Budget Responsibility forecast that operators would pass on roughly 90% of the additional cost to consumers - and that's now happening.
| What's changed | What it means for players |
|---|---|
| Remote Gaming Duty rises from 21% to 40% | Operators pay nearly twice as much tax on every pound of profit generated from UK players |
| OBR forecasts 90% of costs passed to consumers | Welcome bonuses, free spins and loyalty rewards are being reduced across the market |
| Mixed-product bonus ban (January 2026) | Casinos can't require a sports bet to unlock a casino bonus |
| Wagering requirements capped at 10x | Any bonus still offered must be playable at 10 times the bonus value or less |
| Smaller operators under most pressure | Consolidation is expected - some brands may exit the market or be acquired |
Welcome bonuses are being scaled back, loyalty programmes are being restructured, and free spins offers that were standard six months ago are either smaller or gone entirely.
Mid-sized and smaller operators are feeling the pressure most acutely.
Larger platforms can absorb the margin compression more effectively, which may lead to further consolidation in the market over the coming months.
New bonus rules that came into force in January 2026 are compounding the effect.
Mixed-product offers are now banned, and wagering requirements are capped at 10 times the bonus value.
Both changes, taken together with the tax rise, are reshaping what casino sites can afford to offer at the point of registration.
One finding came through clearly in member feedback: players aren't just noticing fewer offers, they're questioning whether it's worth registering at new sites at all.
That makes the quality of a site's core product - its withdrawal speed, verification process and customer support - more important than ever.
OLBG's Casino Content Manager David Coleman believes the tax change is the most significant shift UK players have faced in over a decade.
He said: "The 40% rate isn't a tweak. It's materially changed the economics of running a UK casino site, and players are starting to feel that.
"Smaller bonuses and fewer promotions are the most visible effect. But the more important point is that none of this changes the fundamentals of choosing where to play. A UKGC licence, clear deposit limits, and a site that pays out what it owes remain the starting point.
"My reviews of Los Vegas, MrQ and Midnite are all fully current. Each holds a UKGC licence and I review them against the things that actually matter, regardless of what the promotional market is doing."
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