Since 2014, UK-based remote gambling has been taxed through a combination of General Betting Duty (GBD), Pool Betting Duty (PBD), and Remote Gaming Duty (RGD). Each applies to different activities and at different rates, creating a complex landscape for operators. The government has consulted on a significant reform that could replace these existing duties with a single, consolidated Remote Betting & Gaming Duty (RBGD).
What this article is about: This article explains the background to the proposed RBGD, why the government is considering consolidating the existing duties, what was covered in the 2025 consultation, and when changes might take effect. It also considers what this development could mean for gambling operators, particularly SMEs, in terms of compliance, tax planning, and operational readiness.
Status and process: RBGD is a proposal at consultation stage. Final scope, structure, and duty rates have not been set. Any change would require primary legislation, expected via a Finance Bill, before commencement. Until legislation is enacted, GBD, PBD, and RGD remain in force and there are no immediate changes to compliance obligations.
Timeline: The consultation ran from 23 April to 21 July 2025. Subject to consultation outcomes and HMRC’s IT readiness, the government has indicated an indicative start date of October 2027.
Practical takeaway: Operators should monitor government announcements and prepare for potential system and process impacts, but do not need to implement changes now. SMEs may benefit from engaging with trade bodies and advisers once draft legislation is published.
Section A: Current UK Gambling Duties
Since 2014, remote gambling in the UK has been subject to three separate duty regimes. Each applies to different types of gambling activity, with tax liabilities calculated on the gross profits or yield from those activities. While these duties have provided a framework for taxing remote gambling, they have also introduced complexity, particularly for operators engaged in multiple areas of betting and gaming. For the avoidance of doubt, these regimes remain in force unless and until Parliament enacts new legislation (likely via a Finance Bill) to introduce RBGD.
1. General Betting Duty (GBD)
GBD applies to bookmakers’ gross profits from general betting activities. This includes bets taken on sports and other events where customers stake money on an outcome. The duty is charged as a percentage of profits, with rates varying according to the type of bet under the current statutory framework.
2. Pool Betting Duty (PBD)
PBD applies to betting that takes place in a pool, where the total stakes are aggregated and winnings are paid out of the pool after deductions. This form of duty has historically been associated with activities such as football pools, although it now also covers certain online pool betting formats.
3. Remote Gaming Duty (RGD)
RGD is charged on operators’ gross gambling yield from remote gaming, such as online casino games and slots. Since its introduction, it has become an increasingly significant source of revenue given the growth of online gambling.
4. Complexity of the Current Framework
Although each duty was designed for a particular type of gambling activity, the expansion of remote and online gambling has blurred distinctions between betting and gaming. Many operators now provide a range of services that fall under different duties, requiring them to apply multiple rates and calculation methods. This has created administrative burdens and a lack of clarity about whether the separate regimes remain justified in the remote context.
Section Summary
The current framework for taxing remote gambling in the UK relies on three distinct duties, each aimed at a specific type of activity. However, the growth of online platforms and crossover between services has highlighted inefficiencies in maintaining separate regimes. This complexity underpins the government’s proposal to move towards a single Remote Betting & Gaming Duty. Until any new legislation is enacted, GBD, PBD, and RGD continue to apply and there are no immediate changes to compliance obligations.
Section B: The RBGD Proposal
The government has proposed introducing a new Remote Betting & Gaming Duty (RBGD) to replace the existing system of General Betting Duty, Pool Betting Duty, and Remote Gaming Duty. The consultation held between April and July 2025 sought views from industry stakeholders on the scope, structure, and enforcement of this new tax regime.
1. What is the Remote Betting & Gaming Duty?
The proposed RBGD would be a single duty applied to all forms of remote gambling in the UK. Rather than distinguishing between betting, pool betting, and gaming, the duty would tax operators on their overall profits from remote activities. This is designed to create a simpler, more coherent system that reflects the integrated nature of today’s gambling industry.
2. Scope and Activities Covered
RBGD would apply across a wide range of remote gambling activities, including:
- Online sports betting
- Online casino games and slots
- Pool betting conducted remotely
- Other forms of remote gambling offered by UK-licensed operators
By consolidating duties, the government aims to remove grey areas and ensure that all forms of remote gambling are treated consistently for tax purposes.
3. Rationale for Consolidation
The government considers that the differences between GBD, PBD, and RGD no longer have sufficient justification in the context of remote gambling. The current multi-duty framework creates unnecessary complexity for operators, requires duplication in compliance processes, and can result in inconsistent outcomes depending on the classification of a product.
By introducing RBGD, the government intends to:
- Simplify the system for operators and HMRC
- Create a level playing field across remote gambling activities
- Ensure tax revenues are maintained while reducing administrative costs
Important note: The consultation did not fix a duty rate. Stakeholders were asked whether a single rate or differentiated rates should apply across activities. Until the government publishes draft legislation, there is no certainty as to the final rate or structure.
Section Summary
The proposed RBGD represents a major reform to the taxation of remote gambling. By merging the three existing duties into one, the government seeks to simplify compliance, eliminate inconsistencies, and better reflect the realities of the modern gambling industry. The precise scope and rates will be confirmed only through future legislation.
Section C: Consultation & Next Steps
In line with its policy-making process, the government launched a consultation on the proposed Remote Betting & Gaming Duty (RBGD) between 23 April and 21 July 2025. The consultation invited responses from operators, trade bodies, advisers, and other stakeholders across the gambling sector. Its purpose was to gather views on the design, scope, and administration of RBGD, as well as on how the transition from the current system should be managed.
1. Consultation Timeline
The consultation ran for a three-month period, closing on 21 July 2025. During this time, businesses and industry representatives had the opportunity to submit their perspectives on how the new regime should be shaped.
2. Areas Under Review
The government specifically sought views on:
- The scope of activities to be covered by RBGD
- The rate or rates at which RBGD should be charged
- The calculation of taxable profits under a single duty framework
- Compliance, enforcement, and penalties
- Transitional arrangements, including interaction with existing HMRC systems
3. Government Analysis and Feedback
The consultation has now closed, and the government is analysing responses. While no firm decisions have yet been announced, the next stage will involve considering whether adjustments to the proposal are necessary in light of feedback. Key issues under consideration include whether a single rate is appropriate for all types of remote gambling and what level of compliance support will be required.
4. Implementation Target Date
Subject to the outcome of the consultation and to HMRC’s capacity to make the necessary IT and administrative changes, the government has indicated that it will seek to implement RBGD from October 2027. This timeline allows for legislative changes, industry preparation, and systems testing before the duty goes live. Any such change would require parliamentary approval through a Finance Bill.
Section Summary
The government’s consultation on RBGD closed in July 2025, with stakeholders providing input on its scope, rates, and enforcement. The government is now assessing the feedback. If adopted, the new regime could come into force as early as October 2027, replacing the current framework of GBD, PBD, and RGD. However, until draft legislation is published and enacted, operators remain subject to the existing duties.
Section D: Implications for Businesses
The introduction of a Remote Betting & Gaming Duty (RBGD) would represent one of the most significant changes to gambling taxation in recent years. Operators across the sector will need to evaluate how the new regime affects their tax liabilities, compliance obligations, and internal systems. Although the target implementation date is October 2027, businesses should begin assessing potential impacts now while recognising that no immediate changes are required until legislation is finalised.
1. Impact on Gambling Operators
For large operators, RBGD may streamline tax reporting by removing the need to account separately for different types of gambling activity. However, the precise financial impact will depend on the final duty rate and calculation method adopted by Parliament. Operators currently engaged in activities subject to lower duty rates could see higher liabilities under a single unified rate, depending on the government’s legislative choices.
2. Potential Compliance and IT System Changes
Businesses will need to prepare for system changes to ensure they can capture and report the information required under RBGD. HMRC has highlighted that its own IT systems would need significant updates, and operators may face parallel costs to align their internal reporting processes. Early planning will be critical to avoid disruption once the new duty comes into force. That said, until draft legislation is published, there is no immediate requirement to modify existing systems.
3. Industry Readiness and Transitional Considerations
The government has recognised that a long lead-in time is required. By setting an indicative implementation date of October 2027, it is providing both HMRC and industry with time to prepare. Transitional measures may be necessary to ensure a smooth switch from the existing duties, particularly for operators offering multiple gambling products across the current regimes. SMEs and larger operators alike will benefit from monitoring trade body updates and government communications as further details emerge.
Section Summary
The proposed RBGD will create both opportunities and challenges for gambling operators. While a single duty could simplify administration, its financial and operational impact will vary by business model. Preparing early for compliance and system changes will be essential for industry readiness ahead of the expected 2027 start date, though businesses should note that existing duties remain in force until any new legislation is enacted.
What does this mean for me?
For SMEs in the gambling and gaming sector, the move towards a Remote Betting & Gaming Duty (RBGD) could have direct consequences for both tax planning and compliance. While large operators may have the resources to adapt quickly, smaller businesses often face tighter margins and limited capacity to absorb additional administrative or financial burdens.
The consolidation of duties into a single regime could simplify some aspects of compliance, removing the need to differentiate between betting, pool betting, and gaming. However, SMEs should not assume that this automatically reduces their obligations. The key issues for smaller operators include:
- Tax liability changes – If the new RBGD rate is set higher than current rates applicable to certain activities, SMEs may face increased costs. The government has not yet fixed a rate, so the impact remains uncertain.
- System adjustments – Even modest operators will need to review how their reporting systems capture and classify gambling revenues to align with HMRC’s new requirements once legislation is enacted.
- Cashflow and planning – SMEs may need to reassess financial forecasts and models to account for potential changes in duty rates.
- Regulatory scrutiny – Simplification does not mean less oversight; compliance failures could attract penalties, and SMEs should expect HMRC to monitor adherence closely.
For SMEs, the practical takeaway is to monitor developments closely, engage with industry consultations where possible, and begin early planning for operational and financial adjustments. By 2027, businesses that have prepared proactively are likely to be in a stronger position to absorb the impact of RBGD.
Section Summary
For SMEs, the proposed RBGD represents both a simplification opportunity and a compliance challenge. Smaller operators should plan ahead for potential increases in duty liabilities, review their systems, and ensure they are ready for heightened HMRC oversight under the new regime. Until legislation is finalised, existing duties remain applicable.
FAQs
1. What is the Remote Betting & Gaming Duty (RBGD)?
RBGD is a proposed new tax that would apply to all forms of remote gambling in the UK. It is intended to replace the current system of General Betting Duty, Pool Betting Duty, and Remote Gaming Duty with a single, consolidated regime. At this stage, it remains a proposal and has not been enacted into law.
2. Why is the government proposing this change?
The government believes that maintaining separate duties for different gambling activities creates unnecessary complexity. By introducing a single duty, it aims to simplify compliance, create consistency across activities, and reduce administrative burdens for both operators and HMRC.
3. When would RBGD take effect?
If the proposal proceeds, the government has indicated that the new duty would come into force in October 2027. This allows time for legislation to be passed, HMRC’s systems to be updated, and operators to prepare. The timeline is subject to parliamentary approval through a Finance Bill.
4. Will RBGD increase the amount of tax operators pay?
The overall impact will depend on the duty rate set by the government. Some operators may see little change, while others—particularly those currently benefiting from lower duty rates—may face higher liabilities. The consultation included questions on whether a single rate or differentiated rates should apply. Final decisions will only be known once legislation is published.
5. How should SMEs prepare for RBGD?
SMEs should begin reviewing how their business models might be affected by a unified duty. This includes modelling the financial impact of potential new rates, assessing whether their systems can handle new reporting requirements, and keeping up to date with government announcements as the proposal progresses. Until draft legislation is available, no immediate compliance changes are required.
Section Summary
The FAQs highlight the main features of the proposed RBGD and the practical issues businesses need to consider. With implementation not expected until 2027, operators have time to prepare, but early awareness and planning will be crucial. The current duties remain legally binding until replaced by new legislation.
Conclusion
The proposed introduction of a Remote Betting & Gaming Duty (RBGD) represents a fundamental shift in the way remote gambling is taxed in the UK. By consolidating General Betting Duty, Pool Betting Duty, and Remote Gaming Duty into a single regime, the government aims to create a system that is simpler, more consistent, and better aligned with the realities of today’s gambling industry.
Although the consultation has now closed, the outcome will determine the precise scope, rates, and enforcement mechanisms of RBGD. For gambling operators, particularly SMEs, the changes could mean adjustments to tax liabilities, compliance processes, and IT systems. With implementation pencilled in for October 2027, businesses have time to prepare, but proactive planning will be key to minimising disruption.
Legislative caveat: RBGD is not yet law. Any reform will require primary legislation, most likely through a Finance Bill, before it can take effect. Until then, GBD, PBD, and RGD remain in force.
For now, operators should monitor government announcements closely, assess potential impacts on their business models, and ensure they are ready to adapt when the new regime comes into force.
Section Summary
RBGD is still at the proposal stage, but if introduced, it will significantly reshape the tax framework for remote gambling. Early preparation and ongoing awareness will be critical for businesses of all sizes to manage the transition effectively.
Glossary
| General Betting Duty (GBD) | A duty charged on bookmakers’ gross profits from general betting activities, including sports betting. Remains in force until any new legislation introduces RBGD. |
| Pool Betting Duty (PBD) | A duty charged on betting carried out in a pool, where stakes are aggregated and winnings paid from the pool. Still applies under current law. |
| Remote Gaming Duty (RGD) | A duty charged on the gross gambling yield from remote gaming activities such as online casino games and slots. Currently applies until replaced by any new legislation. |
| Remote Betting & Gaming Duty (RBGD) | The proposed new single duty to replace GBD, PBD, and RGD for remote gambling in the UK. Not yet enacted and subject to parliamentary approval. |
| Gross Gambling Yield | The total amount staked by players minus winnings paid out, used as the basis for calculating RGD and potentially RBGD. |
Useful Links
| UK Government Consultations | Official page for government consultations, including tax and gambling duty reforms. |
| HMRC Gambling Tax Guidance | HMRC guidance on current gambling tax regimes including GBD, PBD, and RGD. |
| Gambling Duties Overview | Government overview of gambling duties and how they apply to operators. |
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
