Problems Continue to Mount for UK Online Casinos
The UK gambling industry continues to face difficulties as regulation becomes stricter and financial payments rise. Online casinos are being targeted the most but land-based gambling businesses are also facing problems.
Last year saw Golden Slots (Southern) Limited attempt to open an adult gaming centre in Ashford. The prospect of this opening in what used to be Barclays Bank received many complaints. It now appears that the company won’t be going ahead with their plans.
There are many concerns over the dangers of gambling harm regardless of where players place their bets and the games they play. Results for Q3 of the 2025-26 financial year reported real event betting Gross Gambling Yield (GGY) to be £530 million. That was 18% down year-on-year with the number of bets falling by 6% according to playguy.co.uk, an online site about casino games and offers for UK players.
Recent years have seen online betting grow considerably. For Q3, the online GGY was £1.5 billion, of which £788 million came from slots. The latter figure was an impressive one amid the new rules that came into force last year.
April and May of 2025 saw maximum stakes introduced to combat concerns over the highly addictive nature of online slots. Players aged between 18 and 24 can now only stake a maximum £2 per spin with a figure of £5 for older players.
While UK online casinos still produce impressive results, there are many worries for companies. Last year also saw a mandatory levy introduced with at least £100 million a year being raised. Funds will be used to carry out research into and treatment of those suffering from gambling harm.
Further bad news was to come in the 2025 Autumn Budget. Remote Gaming Duty was increased from 21% to 40% with this coming into force in April 2026. Next year will see a rise in sports betting tax.
Currently a consultation period is taking place over plans to increase the cost of UK Gambling Commission (UKGC) licenses. This could be as high as 30% but licenses are required to be able to legally operate in the UK. The UKGC are pressing for additional funds to be raised to allow them to continue their work regulating the gambling industry and taking action to reduce levels of unlicensed sites.
The increased regulation and taxes are being introduced as the government attempts to reduce the amount of gambling harm that is taking place. However, will the measures actually result in the levels of gambling harm increasing rather than falling.
A new poll carried out by Anacta has found that 52% of gamblers believe the higher tax rates are going to make it “more likely” that players bet at unlicensed sites. 57% felt that the UK’s gambling industry is already heavily regulated with 66% of the opinion that tax rises will make betting and gaming less enjoyable.
The Chief Executive of the Betting and Gaming Council (BGC) is Grainne Hurst. Speaking about the current situation, the CEO commented: “When you tax responsible, regulated betting and gaming companies harder, you do not reduce demand, you simply drive customers towards the unsafe, unregulated black market.”
The growth of unlicensed and unregulated sites is a major concern. They do not need to make any tax or levy payments or adhere to the regulatory measures that have been put in place or are yet to come. The BGC CEO added: “If the Government wants growth and genuine consumer protection, it must back the regulated sector not make it less competitive against criminals.”
Statistics from Yield Sec research showed that last year, illegal operators accounted for 9% of the UK’s gambling market. That was a big increase from a figure of 2% for 2022. The BGC have estimated that the unlicensed market now sees around 1.5 million players placing an annual amount of £4.3 billion.
Action is being planned to ban unlicensed betting sites from sponsoring UK sports teams. At present, Bournemouth, Wolves and Everton all have front-of-shirt sponsorship from gambling companies that are not holding UKGC licenses.
West Ham United’s primary sponsors are BOYLE Sports who are licensed to operate in the UK. Their CEO, Vlad Kaltenieks approves of a possible ban, stating: “Sport should not be a promotional vehicle for operators who haven’t met the high regulatory standards that exist precisely to protect fans.”
Stella David is the CEO of leading gambling company Entain and has accused the English Premier League (EPL) of “complicity” by not enforcing their own ban. The EPL have already announced that from the 2026-27 season, clubs will not be able to have front-of-shirt sponsorship from a gambling company, licensed or unlicensed. However, LED sponsorship will still be allowed as will sleeve sponsorship and social media coverage.
There are therefore plenty of reasons for online casinos to be worried about the future. It will be difficult for them to maintain their UK profits amid higher tax rates and further regulation. Many may opt to expand into other global markets to maintain their revenue figures.