UK Online Gambling Sector Shrinks as Operators Pull Back

Clear pressure builds on licensed casinos

Marketing data and company updates suggest the market is under strain. Some licensed casinos have reduced advertising. Others have paused new user campaigns. A few are preparing to shut UK operations by March 2026.

The pressure follows new Gambling Commission rules starting on 19 January. These rules cap bonus wagering at ten times the bonus amount. They also ban mixed offers across products — such as combining bingo and casino deals.

Regulators say the changes protect users and make offers clearer. That aim is widely accepted. Still, licensed casinos now have fewer tools to attract players.

Taxes rise and costs climb fast

Another major challenge arrives in April 2026. The Remote Gaming Duty on online casino games will jump from 21 percent to 40 percent. Online bingo taxes will also increase.

Together, these changes represent one of the sharpest cost increases the sector has faced — and many firms are reassessing plans.

Evoke, owner of William Hill and 888, said in December it was reviewing its future. The move followed renewed concerns about UK tax pressure. Reports also pointed to possible asset sales.

Flutter Entertainment issued its own warning. The group lowered earnings forecasts after the budget. It expects the tax rise to cut adjusted EBITDA by $320 million in FY2026. The impact could reach $540 million in FY2027.

Signs of exits and pullbacks

Several companies have already adjusted their strategy. Casinos linked to Aspire Global have withdrawn from the UK market. PlayLuck stopped operating earlier this year.

Others are taking quieter steps. Marketing firms report partners scaling back activity or freezing expansion plans — a signal of caution spreading across the sector.

Some operators are responding in several ways:

• Cutting marketing budgets aimed at UK users

• Pausing new account offers and promotions

• Reviewing whether to keep UK licences

Black market worries increase

The Gambling Commission has warned repeatedly about unlicensed casinos. These sites lack consumer safeguards and operate without UK oversight. They still promote high bonuses and combined offers.

Industry groups fear licensed exits may push users toward those sites. The Betting and Gaming Council has been outspoken.

Chief executive Grainne Hurst said the tax plans could cost thousands of jobs. She added the black market appears to be the only winner — benefiting from weaker licensed competition.

A market at a turning point

The next few months will be decisive. Some operators may adapt. Others may leave.

Beyond tax and rules, trust remains central. A regulated market works only if licensed casinos can compete. For now, uncertainty hangs over the sector — and more exits remain possible.