UK gaming revenue jumps 7.3%, reigniting tax hike debate

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UK gaming revenue jumps 7.3%, reigniting tax hike debate

New data published by the Gambling Commission shows that gross gambling yield (GGY) in the United Kingdom reached £16.8 billion in the fiscal year ending March 31, 2025, a year-on-year increase of 7.3 percent. The figures are already being used by lawmakers and reform advocates to pressure Chancellor Rachel Reeves to include a gambling tax increase in the Autumn Budget.

Growth Driven by Online Gambling

The GGY generated by the online segment rose 13.1 percent to £7.8 billion, becoming the main driver of the market. Remote casino, betting, and bingo activities accounted for 46 percent of the total. The retail sector, which includes betting shops, bingo halls, casinos, and amusement arcades, reached £4.8 billion, equivalent to 29 percent of the market.

Lotteries, including the National Lottery and social lotteries, contributed 25 percent, with £4.2 billion. Excluding lotteries, the GGY amounted to £12.6 billion, an increase of 9.3 percent.

Political Call for Higher Tax Burden

Figures such as Iain Duncan Smith, chairman of the Parliamentary Group on Gambling Harm, and Meg Hillier, chair of the Treasury Committee, used the new data to insist that the Government must raise gambling taxes, citing an expanding market that demands greater fiscal contribution.

Licenses and Points of Sale Declining

As of March 2025, there were 2,179 licensed operators in the UK market, a 3.7 percent decrease compared to the previous year. Licensed activities totaled 3,086, down 2.3 percent.

The number of physical premises also declined: 8,234 authorized establishments, 1.1 percent fewer. Betting shops continued their structural decline, decreasing 1.8 percent to 5,825 premises, marking the eleventh consecutive year of decline.

Segment Details: Online and Retail

The £7.8 billion from remote gambling came from:

Within online betting, football generated £1.3 billion and horse racing £766.7 million.

The number of new registrations fell 4.1 percent to 34 million, while active accounts were 24.4 million. Funds held in user accounts decreased 6.9 percent to £1 billion.

In the retail sector, non-remote betting generated £2.5 billion, a slight increase of 0.7 percent. Machines outside casino premises fell 2.2 percent to £1.2 billion. Physical casinos recorded a 7.9 percent improvement, reaching £933.8 million.

Retail bingo generated £650.4 million, a growth of 3.5 percent. Amusement arcades totaled £723.3 million, an increase of 9 percent.

Lottery Performance

The National Lottery sold £7.9 billion in tickets, up 0.8 percent. It paid out £4.5 billion in prizes and allocated £1.6 billion to charitable causes, an increase of 4.5 percent.

Major social lotteries sold £1.1 billion, a growth of 4.7 percent, with higher returns in prizes and donations.

New Quarterly Statistics

The Gambling Commission began publishing quarterly reports following changes implemented in 2024. The first report shows that between April and June 2025, the GGY reached £3.3 billion, coming from 8,219 premises.

Remote gambling contributed £2.0 billion, including £1.4 billion in online casino. The retail sector generated £1.2 billion.

Tags: UK, United Kingdom, UK online gambling taxes, United Kingdom online gaming taxes