Reeves Faces Pressure Over UK Gambling Tax Fallout

Warnings Appeared Before the Budget

Officials raised concerns months before the government confirmed the tax changes. Internal messages suggested higher duties might not raise the expected money. Some officials also warned the move could push players to offshore casinos.

Nevertheless, the government approved the policy in November’s Budget. The plan raised taxes on several forms of online gambling. Key changes include:

• Remote online gaming duty rising from 21% to 40%

• Online sports betting tax increasing from 15% to 25%

• Horse racing betting tax changes starting in 2027

The higher rates will fully apply in April 2026. Ministers described the move as balanced — raising revenue while protecting horse racing.

Major Operators Report Financial Pressure

Large companies already report financial effects from the tax decision. Entain, owner of Ladbrokes and Coral casinos, recently revealed a sharp annual loss.

The company posted a £681 million loss for 2025. A £488 million impairment charge linked directly to the tax changes. Despite the loss, Entain still generated £5.26 billion in yearly revenue. That figure increased three percent from the previous year.

Executives say the tax changes are reshaping the UK gambling market — forcing companies to adjust spending and strategy. The company expects the new policy could add around £200 million in yearly costs. 

Another Operator Signals Strategy Changes

Another major company has already changed its plans. Evoke, owner of William Hill and 888 casinos, withdrew its financial outlook for 2026. Executives said the UK tax increase forced a major rethink of company strategy.

The firm estimates the new policy could add £125 million to £135 million in yearly taxes. About £80 million of that cost may arrive in 2026 alone.

Industry Groups Warn About Jobs

Industry groups believe the impact could spread beyond company profits. The Betting and Gaming Council says the tax package could put many jobs at risk.

The group estimates nearly 17,000 positions could disappear if companies cut costs. Higher duties may also push billions of pounds in bets toward offshore casinos.

Government Faces a Difficult Decision

The government now faces a difficult choice — keep the policy or reconsider its effects. Supporters say higher gambling taxes help public policy goals.

Critics argue the economic risks could grow over time. For now, the tax increases remain in place — and the full impact may only appear after 2026.