Remote Gaming Duty Set at 40% According to Leaked OBR Statement

Leak Points to a Much Higher Rate

The leaked papers say the remote gaming duty will rise to 40%, which is far above the rate many expected. Firms had feared a jump to 35%, yet the new number goes even higher. The change may start in April 2026, giving operators limited time to adjust.

This duty plays a key role in how the state taxes online betting. A higher rate may bring more money into public funds — yet it could also squeeze companies that already face cost issues. Some leaders had warned that a large rise could slow growth and cut future hiring.

Major Firms Expect Tougher Conditions

Large operators began reviewing their numbers soon after the leak surfaced. Their notes show weaker profit forecasts, tighter budgets, and plans to control spending. One group said a rise of this size could lead to several thousand job losses — a worry shared by others who fear a long chain reaction across the sector.

Another firm said the duty reduces the reason to invest in the UK, since higher taxes may shrink returns. The same group warned that UK sports — especially horse racing — may lose support if companies scale back sponsorships.

Entain issued its own warning. The company said the new duty could remove around £150m in profit by 2027. 

Why the Government Stands Firm

The chancellor seems steady in her position. She said online betting links to higher harm and that stronger tax rules are needed. Her view suggests the state will not shift even if operators raise concerns about user behavior or market risks.

Land-based sites face their own set of changes. The bingo duty will fall to zero, but other sites expect losses if users keep moving online. Critics say the mixed approach — lower duty for bingo yet higher duty for online play — may still lead to job cuts across the supply chain.

What the Sector May Face Next

Companies now study how to respond. Some may enter new markets, while others may cut or change products to deal with the new rate. A few leaders warn that offshore sites — already strong in parts of Europe — may grow if licensed operators pull back.

The leaked note adds tension. The months ahead may show how the industry prepares for a remote gaming duty set at 40% — and whether the market can absorb a shift of this size.