Is the U.K. Market in Crisis?

The United Kingdom is often heralded as the most mature gambling market in the world. But there are undoubtedly questions over its future.

Looking ahead to 2026, perhaps the most pressing issue for the U.K. is the seemingly inevitable rise in tax rates, with the Labour government consistently making noises hinting this will happen.

At of this writing, taxes remain the same. But with the Autumn Budget having been due on November 26, the chance of that being the case going forward seems unlikely.

U.K. Chancellor Rachel Reeves has said the government will ensure gambling operators pay their “fair share” of tax, with the Social Market Foundation suggesting that the remote gaming duty be raised from 21 percent to 50 percent.

The licensed sector responded furiously to that, with the Betting & Gaming Council warning gambling tax hikes could result in up to £3.1 billion ($4.1 billion) being lost from the economy, as well as 40,000 jobs.

It could have a catastrophic impact on the already struggling retail sector, with Betfred owner Fred Done stating any tax increase to the 40-50 percent range would lead to the company closing its brick-and-mortar stores, with around 7,500 job losses.

The publication of the government’s Gambling Act reform white paper in April 2023 has played a key role in the U.K.’s tightening, and the impact of its recommendations have really come into view in 2025.

As part of these recommendations, the regulator has vastly restricted marketing across multi-product promotions. Starting next year, operators will be prohibited from cross-selling players between verticals, and players will need to opt in to receive multi-channel marketing. 

Also incoming are mandatory player deposit limits. Already in place are financial vulnerability checks, triggered when players reach a net deposit threshold of £150 or above within a calendar month. 

Statutory Levy & Gambling Reform Pushback

Another recommendation was a statutory levy, which took effect in April, replacing the previous voluntary system. License-holders in Britain had to make their first statutory levy payments by October 1, with the Gambling Commission warning they could have their authorization revoked should they fail to adhere.

The government is hoping to raise £100 million from the measure for gambling-related harm prevention, though some gambling harms researchers have raised concerns about the industry’s potential influence on the research funded by the levy.

The levy has been hailed as a positive move by gambling reformers including high-profile politicians Lord Foster of Bath and former Secretary of State for Work and Pensions and Conservative Party leader Iain Duncan Smith. They campaigned (successfully) for funding for gambling-harms research and treatment to be taken over by a faction of the government-run health service, instead of being operated by independent charities.

GC’s Tougher Stance on Suppliers

Elsewhere, the future of supplier compliance in Great Britain is surrounded by unanswered questions, as recent moves by the Gambling Commission suggest it is taking a much harsher stance on supplier licensing. 

The commission commenced a review of European games supplier Evolution last December after it discovered the supplier was providing games to unlicensed operators in the U.K.

GC CEO Andrew Rhodes had previously warned operators to increase their due diligence against supplier partners to ensure they aren’t supporting the black market. Evolution has been expecting the commission to provide an update on its review in December.

Meanwhile, in October the Gambling Commission suspended Aviator crash game developer Spribe’s U.K. software license, requiring it to obtain the necessary license for it to support hosting activities. 

With suppliers the size of Spribe and Evolution under regulatory pressure, it seems likely the commission will continue its clampdown on such companies in 2026. These are uncertain times for the U.K. gambling sector. While it may not be in crisis yet, the waters could get even more turbulent moving forward.