UK Gambling Tax Receipts Rise 19% After RGD Hike

UK betting and gaming tax receipts reached £1.933 billion between April and July 2026, an increase of £309 million, or 19%, from the same four-month period a year earlier, according to HM Revenue & Customs.

The total is equivalent to approximately €2.28 billion and covers the first four months of the 2026/27 financial year.

The increase follows the government's decision to raise Remote Gaming Duty from 21% to 40% on April 1. RGD applies to profits from remote casino gaming supplied to UK customers and does not cover conventional sports betting.

HMRC said the higher RGD rate is expected to have contributed to the increase in gambling tax receipts, particularly from July onwards.

Remote Gaming Duty Generated Half of Receipts

RGD accounted for 50% of all betting and gaming tax receipts collected between April and July, making it the largest individual source of gambling duty revenue.

General Betting Duty was the second-largest category at 16.6%.

For April through June, RGD generated £376 million, approximately €444 million, up £67 million or 22% from the equivalent period in 2025.

The increase came despite the headline tax rate rising by substantially more than 22%, meaning the change in receipts cannot be interpreted simply as a proportional response to the higher rate.

Tax payment schedules also affect when revenue appears in HMRC's monthly statistics.

July Drove Most of the Overall Increase

The four-month headline figure masks a much weaker increase during the first quarter of the financial year.

Total betting and gaming receipts for April through June were £985 million, only £3 million, or 0.3%, higher than during the same period a year earlier.

July then produced £948 million in receipts, pushing the year-to-date total to £1.933 billion.

The July result was approximately £306 million higher than the £642 million recorded in July 2025 and represented the highest monthly betting and gaming receipts in HMRC's published series beginning in April 2017.

This timing is consistent with HMRC's assessment that the RGD increase would become more visible in receipts from July onwards.

Early Data Show No Immediate Fall in Tax Revenue

The figures provide the first indication of government revenue under the higher remote gaming tax rate.

Before the increase, gambling companies and industry groups warned that sharply higher taxation could reduce investment in the regulated sector, weaken licensed operators and encourage some customers to move toward unlicensed gambling sites.

The first four months do not show an immediate reduction in overall gambling duty receipts. Instead, government revenue is materially higher year on year.

However, the figures alone cannot establish whether the tax increase has affected the size of the licensed market or accelerated movement toward unlicensed operators.

HMRC's data measure tax receipts rather than customer activity, channelisation or operator profitability. A higher tax rate can increase Treasury receipts even if the underlying taxable gaming base grows more slowly or contracts.

A longer period of Gambling Commission market data will therefore be needed to assess the wider commercial impact of the 40% RGD rate.

Further Gambling Tax Changes Remain in Focus

The April reform is only one part of the government's changes to gambling taxation.

From April 2027, a new 25% Remote Betting Rate is scheduled to apply to most remote betting within General Betting Duty. Remote bets on UK horse racing will remain at 15%, alongside several other excluded categories.

Attention has also turned to Machine Games Duty, which currently applies at rates of 5%, 20% or 25% depending on the type of machine.

Industry discussions ahead of the next Budget have included the possibility of increasing the standard 20% rate on gaming machines to 40%.

Such a change has not been confirmed by the government, but bookmakers have already warned that doubling the rate could put betting shops and jobs at risk.

The latest HMRC figures are likely to become part of that debate. They show that gambling tax receipts have risen strongly following the RGD increase, but they do not yet provide enough evidence to determine the longer-term effect of higher taxation on regulated gambling activity or the unlicensed market.