UK remote gaming duty

What UK remote gaming duty is

Known as RGD, remote gaming duty is a tax on the profits operators make from remote gaming with UK customers: online casino games, slots and, since bingo duty was scrapped, online bingo. It is administered by HM Revenue and Customs and goes to the Treasury. It is separate from the UK statutory levy, which is a small, ring-fenced charge for tackling gambling harm, and from Gambling Commission licensing, which is covered on our UK casino bonus rules hub.

The government's gambling duty changes (opens in a new tab) publication confirmed the increase to 40% from 1 April 2026. Because the duty is charged on profits, it falls on the operator's side of the ledger: the player's stake, the game's RTP and any payout are untouched by it.

UK remote gaming duty rates and dates

Machine Games Duty, which applies to physical gaming machines, keeps its existing bands; the government's guide to Machine Games Duty rates (opens in a new tab) lists them at 5%, 20% and 25%. The government expects the package of changes to raise over £1 billion a year.

How UK remote gaming duty is worked out

In broad terms, the profit that the duty is charged on is what UK customers stake minus the prizes paid back to them over an accounting period. Because a slot's house edge means the operator keeps a share of stakes over time, that kept share is the base for the tax.

1. Add up the stakes UK customers placed on remote games in the accounting period.
2. Subtract the winnings paid out to those customers.
3. The result is the operator's gaming profit for the period.
4. Apply the rate: 40% for profits from 1 April 2026, 21% for earlier profits.
5. The operator files its return and pays HMRC; players are not involved.

A simple worked example, using a slot with a 96% RTP:

The player's side of that table doesn't move. On average £960 of the £1,000 comes back as winnings in either year, and the duty is paid out of the operator's £40. Real sessions vary widely around the average, which is why house edge is a long-run idea rather than a prediction for any one evening.

Accounting periods that straddle 1 April 2026

Operators don't all have accounting periods that start neatly on 1 April. For a period that straddles the date, the higher rate applies only to profits made from 1 April 2026; profits from before then stay at 21%. If an operator made £300,000 profit in March 2026 and £300,000 in April 2026 within one period, the duty would be £63,000 on the March share and £120,000 on the April share, £183,000 in total, rather than £240,000 at 40% on the lot.

Do players pay remote gaming duty?

No. The duty is a tax on the operator's profits, and in the UK players don't pay tax on gambling winnings. If you win £200 on a slot, £200 goes to your balance and can be withdrawn under the usual withdrawal rules. There is no deduction at the cashier and nothing to declare on a tax return; see our gambling winnings tax page for the detail.

The same is true of bonus payouts. Winnings from no-wagering free spins are paid as cash, and once a deposit bonus has met its wagering, what is left is yours to withdraw. Neither is reduced for duty. Our questions on whether casino bonuses are taxable and whether a bonus counts as income cover the common worries.

Does remote gaming duty affect casino bonuses?

Indirectly, perhaps; directly, no. Nothing in the duty rules mentions bonus size, wagering or free spins, and no Commission rule changed because of the rise. Promotions are still governed by the 10x wagering cap in force since 19 January 2026, the ban on mixing products, and the requirement for clear terms. What the higher rate does is raise operators' costs. Industry groups warned before the Budget that higher duty could mean less generous offers, but each operator decides its own promotions, and there is no reliable way to tie a particular offer to the duty.

What can be said with confidence is how to value whatever is on offer. The table below uses our partners' published terms (checked 5 October 2026):

Those figures are the same whatever the operator pays in duty. Our expected value of a casino bonus guide explains the method.

Why remote gaming duty was raised to 40%

The increase was announced in the Autumn Budget on 26 November 2025, following a consultation on the tax treatment of remote gambling. The government chose not to merge remote betting and gaming into a single duty and instead set separate rates: 40% for remote gaming from April 2026 and a new 25% remote betting rate from April 2027, with UK horse racing bets kept out of the new rate. Online casino products carry the higher figure.

For scale, the Commission's industry statistics for April 2025 to March 2026 (opens in a new tab) put online casino games' gross gambling yield at £5.7 billion, of which online slots made up £4.8 billion. Gross gambling yield is a regulator's measure and not identical to the profit figure used for duty, but it shows why online gaming is a large tax base.

Remote gaming duty vs the statutory levy

Both sit with the operator. Neither changes the odds of a game, the RTP shown on its help screen (see RTP information rules) or a bonus's terms.

Remote gaming duty myths and facts

• Myth: casinos take 40% of your winnings. Fact: the 40% is charged on the operator's profit, not on your payout. Your win is paid in full.
• Myth: slots now pay back less because of the tax. Fact: duty doesn't alter a game's maths. A slot's RTP is set in its design and published before play; check the game's help screen for the figure.
• Myth: free spins winnings are taxed. Fact: UK players don't pay tax on gambling winnings, including from free spins or bonuses.
• Myth: the rise applies to sports bets too. Fact: remote betting gets its own 25% rate from 1 April 2027; the 40% is for remote gaming.
• Myth: the duty pays for gambling support. Fact: that is the statutory levy; duty goes to the Treasury.

What remote gaming duty doesn't cover

• Players' winnings, which are not taxed in the UK.
• Remote sports betting, which falls under General Betting Duty and its new remote rate from April 2027.
• Land-based casinos, which pay a separate gaming duty on their own profits.
• Gaming machines in pubs, arcades and bookmakers, which pay Machine Games Duty.
• Bonus rules and game design, which come from Gambling Commission rules such as the slot game design rules, not tax law.

UK remote gaming duty timeline

For how the tax changes fit with the promotion and safer gambling rules, see our bonus rules timeline.

Partner offers after the remote gaming duty rise

Our three closest partner offers were all live on their published terms when last checked on 5 October 2026, six months after the 40% rate started. Each is a no-wagering spins offer, so the value is simply spins × 10p. 18+ only, and terms apply.

• Coral: new players deposit (some methods excluded) and bet £10 on slots to receive 100 free spins at 10p on selected games. Accept within 48 hours; the spins last 7 days; winnings carry no wagering. Neteller, PayPal, Paysafe, Skrill, prepaid cards and certain debit cards don't qualify. More on the Coral casino bonus page.
• Ladbrokes: new customers deposit and play £10 on slots for 50 free spins a day across 10 days, up to 500 at 10p. Claim each day by 23:59; each batch lasts 7 days; no wagering. Deposits by prepaid card, PayPal, Paysafe, Neteller, Skrill or Moneybookers don't count. More on the Ladbrokes casino bonus page.
• PlayOJO: first deposit of £10 or more for 80 free spins on Big Bass Bonanza at 10p, winnings paid as cash. Not available in Northern Ireland; only through the designated offer link. More on the PlayOJO casino bonus page.

Offers can change at any time, so read the current terms on each promotion page before you deposit.

18+. Gambling should be entertainment that costs money, not a way to make it. Decide a budget before you play: set a budget. Free, confidential help: National Gambling Helpline 0808 8020 133.