Remote Gaming Duty is paid by any gaming provider, wherever it is based, on its profits from online and other remote gaming with UK customers, at 40% for accounting periods beginning on or after 1 April 2026. General Betting Duty and Pool Betting Duty are paid by bookmakers on their betting profits, mostly at 15%, with a new 25% rate for remote betting from 1 April 2027. All three use quarterly accounting periods, with the return and payment due within 30 days of the period end.

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Which operators pay Remote Gaming Duty?

Remote Gaming Duty (RGD) is in Part 3, Chapter 3 of the Finance Act 2014 (sections 154 to 162), with HMRC’s guidance in Excise Notice 455a. Section 154 defines remote gaming as gaming in which people take part by internet, telephone, television, radio or any other communication technology. Online casino games, slots and remote bingo are typical examples.

The duty falls on the “gaming provider”, the business the player contracts with. Since December 2014 the gambling duties have worked on a place of consumption basis, so an operator based abroad pays UK duty on its profits from UK customers. Businesses that supply platforms, payment services or game content without contracting with players do not register or pay, even if they hold a Gambling Commission licence. Notice 455a gives the example of an online casino that contracts with players: it pays RGD, while the platform provider and the game studio behind the slot it offers do not.

Duty is charged on play by a “UK person”: an individual who usually lives in the UK or a company constituted in the UK (section 186). Notice 455a has force of law rules for deciding this. A customer who gives no address, or a UK address, is a UK person. A customer giving an overseas address must be checked against other data, and if two current items, such as a bank statement address, card address, driving licence address or phone country code, point to the UK, the customer is a UK person. HMRC calls this the two UK indicators rule.

How are RGD profits calculated?

Section 155 charges RGD at 40% of the provider’s profits on remote gaming for each accounting period. Profits are gaming payments due from UK customers less prizes paid on ordinary gaming. For pooled prize gaming, the amounts paid into the prize fund are deducted instead. The 40% rate, up from 21%, was set by section 86 of the Finance Act 2026. The policy paper says that where 1 April 2026 fell part way through an accounting period, only profits from that date bear the higher rate.

The main adjustments are:

  • Freeplays. A freeplay is counted at the full price the player would otherwise have paid, and withdrawable cash winnings from it are deducted. Winnings that must be wagered again before withdrawal are excluded.
  • Losses. A negative result is treated as nil and carried forward against later profits. An unused loss is never repaid, even when the business stops.
  • Bad debts. There is no relief. Gaming payments count when play begins, whether or not the customer pays.
  • Cryptocurrency. Stakes are valued in sterling at the time of each transaction, using an exchange that is not a connected company.

Illustration only. For the quarter to 30 September 2026 an operator receives £500,000 in stakes from UK customers and pays £430,000 in prizes. Customers use bonus freeplays with a full price value of £10,000, producing £4,000 of withdrawable winnings. Profits are £500,000 plus £10,000, less £430,000 and £4,000, giving £76,000. RGD at 40% is £30,400, due with the return by 30 October 2026.

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What is General Betting Duty?

General Betting Duty (GBD) is in Part 3, Chapter 1 of the Finance Act 2014 and Notice 451a. It is charged on a bookmaker’s profits, essentially stakes less winnings, on:

  • bets made in a UK betting shop, wherever the customer lives;
  • bets made by UK persons with bookmakers anywhere else, including online;
  • spread bets made with a UK bookmaker;
  • betting exchange commission charged to UK persons.

The rates for 2026 to 2027 are 15% for fixed odds and totalisator bets, 3% for financial spread bets, 10% for other spread bets and 15% of exchange commission. On course bets, where the customer and bookmaker are both at the race meeting, are outside the duty. A bookmaker that only takes on course bets need not register. Laying bets on an exchange as a business counts as off course betting, but hedging does not. The tax position of the person placing the bet is covered in tax on gambling winnings and spread betting tax.

Section 87 of the Finance Act 2026 inserts section 127A into the 2014 Act. It creates a 25% rate on remote bets for accounting periods beginning on or after 1 April 2027 and bets made from that date. A remote bet is one made by internet, phone or other remote communication. On course bets, spread bets, pool bets and bets on self service betting terminals in licensed betting premises are excluded. Bets wholly on UK horse racing stay at 15%, which the government links to the 10% Horserace Betting Levy.

What is Pool Betting Duty?

Pool Betting Duty (PBD) is charged at 15% of a bookmaker’s profits from pool bets that are not on horse or dog racing. It covers pool bets made in a UK betting shop, whoever the customer is, and pool bets made by UK persons with bookmakers anywhere in the world. Pool bets on horse and dog racing fall under GBD instead. PBD uses the same UK person rules as RGD, and HMRC’s guidance is Notice 147a.

How do registration, groups and representatives work?

All three duties are registered online through HMRC’s Gambling Tax Service. Registration is due at least 31 days before trading starts. Businesses based in the UK, the EU, Gibraltar, the Isle of Man, Norway, the Faroes, Iceland, New Zealand or South Africa have 14 days.

  • Representatives. Operators outside the listed territories that are not in a group must appoint an HMRC approved UK representative. Operators in Jersey need one, while those in Gibraltar, the Isle of Man and Guernsey do not.
  • Security. HMRC may require security of 6 months’ estimated duty, by cash deposit, bank guarantee, performance bond or joint account. This applies where a representative is needed or compliance has been poor.
  • Groups. Companies under common control can register as a group, with a group lead member that has a principal place of business in the UK. All members are jointly and severally liable, and each duty needs a separate group.
  • Changes. Report changes within one month and give 14 days’ notice to deregister.

How do returns and payments work?

The standard accounting period is three calendar months. A business can ask for non standard periods by choosing 8 period end dates, each within 16 days of the standard end date. The return and payment are due no later than 30 days after the period ends. If that day falls on a weekend or bank holiday, the deadline is the previous working day. A return is required even when no duty is due. Payments quote the 14 character reference beginning with X. Late payment carries simple interest.

Under the 2014 Regulations, an underpayment can go in the box on the next return if the original return was due less than 4 years ago, the error was not careless, and the net error is £10,000 or less, or £50,000 or less and no more than 1% of the period’s profits. Other errors must be disclosed in writing with payment. Overpayments are reclaimed in writing. Records must be kept for 4 years.

What happens if RGD is not paid?

Notice 455a says HMRC can recover unpaid RGD from the directors of a corporate gaming provider. It can also recover it from the holder of the remote operating licence for the business that provided the gaming. For serious failures to register, pay, appoint a representative or give security, HMRC can direct the Gambling Commission to revoke the remote operating licence after breach notices and a suspension stage. Without that licence an operator cannot legally transact with customers in Great Britain.

The other gambling duties work differently. Machine Games Duty is charged at 5%, 20% or 25% of net takings, Lottery Duty at 12% of ticket prices, and Gaming Duty on banded gross gaming yield from 15% to 50%. Bingo Duty was abolished from 1 April 2026.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.