A Tale of Gambling Duties in the UK: The New State System
United Kingdom's Gambling Regulatory Body Discloses Tax Rates for State-Sanctioned Gambling Operations
Published on: 14.04.2025, Updated on: 24.04.2025.
- April 6, 2025, marked the arrival of the state gambling duty in the UK
- Funds generated will be allocated towards combating gambling-related harm
- Online gambling is heavily taxed under the new system
The state gambling duty, mandated for all gambling providers (symbol image), became enforceable from April 6, 2025. The British government had outlined this regulation in the 2023 Gambling Act White Paper.
Government expects the duty to yield £100 million annually
Following a voluntary levy that saw little utilization, the British government is hopeful that the new duty will aid in countering problematic gambling and gambling-related harm. Funds collected from the duty will be diverted towards:
"Our relentless pursuit of reducing gambling-related harm is a cornerstone of our commitment to promoting healthy and extended lives. The duty will amplify funding for the NHS and enable a more robust research program and preventative measures." - Andrew Gwynne, former Health Minister, gov.uk
According to studies, problem gambling in the UK seems to be on the rise. A research conducted in February 2025 found that participants in the study used gambling as a means to evade everyday life pressures.
Online gambling under heavy scrutiny
Online gambling operators are faced with disproportionate taxes (symbol image). ©AidanHowe/pixabay.com
The state gambling duty will inflict particularly high taxes on online gambling. A duty of 1.1% will be applied to nearly all forms of online gambling, including online casinos, online sports betting, and online bingo.
The tax rate has been calculated based on a combination of gross gaming revenue and the profits retained by providers. It's essential to submit accurate data to the gambling authority, with false declarations potentially being met with criminal consequences.
While online gambling is burdened with the highest tax rates, land-based gambling taxes will be significantly lower, with the following percentages applying:
- Land-based slot machines: 0.1%
- Land-based bingo: 0.2%
- Arcades: 0.2%
- Land-based sports betting: 0.5%
- Land-based casinos: 0.5%
In addition, a 0.1% duty will be levied on companies with a lottery license, affecting both land-based and online lottery providers.
Researchers and health professionals express concern
Although experts in the healthcare sector welcome the new duty, some have raised concerns regarding research funding. A panel of renowned gambling-related harm specialists recently expressed apprehension that research might decline funding from the gambling sector.
Many researchers have been hesitant to accept funds generated by the gambling industry in the past. Such funds have reportedly been passed over from charitable organizations to other entities, leading to a research gap in the UK gambling field.
"In my opinion, the lack of high-quality research in recent decades is primarily due to the reluctance of many ethical researchers in the gambling field to accept this money." - Sam Chamberlain, Professor of Psychiatry at the University of Southampton, parliamentlive.tv
Payment deadlines approaching
Though the duty commenced from early April, gambling businesses have a breathing period before making the first payment. The initial duty payment will be due on September 1st, with invoices being dispatched to gambling providers on that date. The deadline for payment is September 30th.
Subsequently, the duty will need to be paid annually, calculated over a 12-month period. Failing to meet payment obligations may result in the revocation of a provider's license.
The UK's new gambling duty system establishes varying rates across online and land-based gambling activities to strike a balance between revenue generation, industry growth, and consumer protection. It marks a significant development in regulating the gambling sector and addressing gambling-related harm in the UK.
- The state gambling duty, as outlined in the 2023 Gambling Act White Paper, became enforceable on April 6, 2025, and it will be applied to all gambling providers.
- The duty aims to yield £100 million annually and will be used to counter problematic gambling and gambling-related harm, as funds will be directed towards research programs, preventative measures, and the NHS.
- The new system imposes particularly high taxes on online gambling, with a duty of 1.1% being applied to online casinos, sports betting, bingo, and other forms of online gambling.
- The first duty payment by gambling providers is due on September 1st, 2025, and the deadline for payment is September 30th, 2025. Failing to make the payment may result in the revocation of a provider's license.
