The UK online casino industry is still enjoying great financial success. Will things continue like this in 2026 with stricter regulation and significantly higher taxes from April?
Since the COVID pandemic, the UK Gambling Commission (UKGC) has been publishing data covering gambling industry revenue figures. The latest figures come from September last year. A comparison is made between the results for the second quarter of fiscal year 2025-26 and the same period 12 months earlier.
An additional interesting aspect of the data was that this was the second quarter since there was a major change in the online sector of the UK gambling industry. Maximum stakes for online slots were introduced in April and May. Players aged 18 to 24 can now bet no more than £2 per spin, with the limit increasing to £5 for older players.
Total online gross gaming revenue (GGY) was £1.42 billion. That was 8 percent more than in the same period last year. GGY for live event betting also increased with a total of £508m, up 12 per cent on the previous year.
Despite these new betting limits, online slots GGY rose 9 percent to £747 million. The number of spins increased by 4% to 24.4 billion. Both totals were record levels for the second quarter in a row. Apparently, fears that the new operating limits could have an impact on financial results have not materialized.
A big concern for UK operators in 2026 is the impending tax rises. The remote gaming tax will increase from 21% to 40% in April. It’s a move that has been heavily criticized by gaming companies and there has been talk of future cuts. This can not only involve staff layoffs, but also smaller bonuses for customers.
Another problem for British gambling companies this year will be new rules for bonuses and promotional codes, according to the gamblermedia website. A new maximum of 10x wagering requirements comes into effect in January. Promotions that cover more than one area of an online site are not permitted. Therefore, the offer of a casino bonus is stopped after a certain number of sports bets and vice versa.
A new compulsory tax was introduced last year. The aim is to raise £100 million a year, which will be used for treatment and research into gambling harm. Betfred has already discussed potentially closing some of its brick-and-mortar betting shops. Figures for the year to March 30, 2025 showed gross profit of £1bn, up from £673m a year ago but up from a reporting period of 53 weeks.
Many UK gambling companies also operate in other global markets. Betfred has exited nine US states and Spain in recent years. Selling companies that were considered “unprofitable” improved their financial position. A profit was made on the sale of its Spanish assets. Their main foreign market is now in South Africa. This country could be given more attention if the UK’s tax increases and stricter regulations do too much damage to their profits.
Last March bet365 reported turnover of £4 billion. The balance sheet for the 2024/25 financial year shows that sales increased by 9 percent. A key factor was a 25 percent growth in their online casino. While its revenue increased, its profit before tax fell by £147 million compared to the previous financial year.
The fall to £349m was due to costs incurred in entering new markets in the US and South America, as well as new tax payments and reorganization costs. Total profit for the financial period fell to £338.5m, down from £506.5m in the last financial year.
The increased tax payments in the UK will hit them, but the company says they will continue to expand in other markets. They will “prioritize the markets that deliver long-term sustainable revenue.”
Flutter Entertainment owns companies like Paddy Power and Betfair (which they merged into one company) and Sky Bet. They have also expanded into other global markets in recent years. The US was important to the company and FanDuel was hugely successful with sales of over £2.4 billion. They are successful not only with sports betting but also with their online casino business.
It’s not just in the United Kingdom that gambling taxes are rising. The same situation exists in Brazil, where there is a lot of interest in Flutter. The company expects to cut its marketing budgets in the UK to mitigate the impact of tax increases.
2026 will be a key year for online gambling companies in the UK. In addition to the tax increases, stricter regulations are expected. It could well be that there will be cuts and a greater focus on other markets in order to keep sales and profits at a high level.
