As 2025 draws to a close, the UK online casino industry has a lot to think about. Stricter regulations and impending tax increases are causing companies to consider cutting costs and reducing their workforce.
This year the UK gambling industry continued to post impressive numbers. Even the introduction of new maximum stakes for online slot games has not hindered their progress. However, November ended with the announcement of major tax increases in the autumn budget. While this news is being processed, new rules for bonuses will be introduced on December 19th, according to Agamble UK, a guide to online casinos.
While the Labor government appears to be doing everything in its power to stimulate the growth of the UK economy, the situation regarding the online gambling industry in the UK is difficult. On the one hand, the industry is making huge profits with a total online gross gambling revenue of £1.42 billion in the period July to September 2025. However, on the other hand, gambling harm is also a problem.
There have been plans to reform British industry for several years. In 2025, numerous measures were taken against the industry, especially the online sector. Not only have new maximum stakes been introduced for online slots, but a mandatory levy has also been imposed on the industry, which aims to raise £100 million a year. The pressure on gambling advertising is also increasing.
Then came the autumn budget and Chancellor Rachel Reeves’ announcement of an increase in the amount the online industry will pay from April next year. Remote Gaming Duty increases from 21% to 40%. In 2027, the online betting tax for online sports betting (excluding horse racing) will increase from 15% to 25%.
A double blow to the industry that will cause major problems for the industry. Reaction to the news was not positive among companies like Evoke, citing concerns about the impact on profits.
Entain, who owns Ladbrokes and Coral, believes the autumn budget contained “disproportionate tax rises”. Stella David is CEO of Entain and believes the increases will put jobs at risk, cut funding for sport and generally have a “detrimental impact on the economic contribution of the gaming industry”.
According to Flutter Entertainment (owner of leading companies such as Betfair and Paddy Power), their profits will be hit by the tax increases. To reduce the impact, the company is already planning to reduce its costs, including advertising savings.
Kevin Harrington, chief executive of the British and Irish company, is concerned about how the tax rises will boost the unlicensed and unregulated black market. He described the autumn budget as a “big win for illegal, unlicensed gambling operators who will become more competitive overnight”. This is because these black market sites do not make tax payments to the state treasury.
Another blow to UK online casinos is the introduction of new bonus rules. Using welcome bonuses is a way for companies to attract new customers. Once they have signed up, further offers can be made to retain their customers.
Bonuses can include free spins on selected slot machines or corresponding deposits. The bonuses have long been criticized, both for their complex terms and conditions and the difficulty of actually withdrawing bonus funds from your account.
Players don’t like reading terms and conditions. They can often be lengthy and complicated. However, it is important to read them to avoid mistakes that could result in a bonus being lost entirely. In order to increase the level of clarity of the terms and conditions, changes will be made to the structure and wording of the Code of Social Responsibility.
Significant changes are also being made to the wagering requirements associated with bonuses. These can be way too high, even up to 50x on some sites. When this level is in play a £20 bonus has been received, £1000 would need to be wagered before a withdrawal of the bonus funds can be made.
This can make it very difficult to actually withdraw bonus money. Critics also say it can cause customers to play longer and faster (often there is a time limit for meeting wagering requirements) than is healthy for them. The new bonus rules introduce a cap on the 10x wagering requirements.
Again, the changes do not apply to the unlicensed black market. They can still offer bonuses with complex terms and conditions and high wagering requirements or other restrictions.
2026 will be a difficult year for online casinos in the UK. More regulations could be introduced, such as stricter affordability checks for customers. In what appears to be a fascinating year, tougher measures are planned against black market operators.
