The UK online gambling market is already showing signs of contraction in early 2026, with a growing number of licensed operators cutting marketing spend or preparing to exit the country ahead of tighter bonus rules and sharply higher taxes, according to data from Gambler Media, an independent performance marketing firm, as reported by Reuters.
New rules introduced by the UK Gambling Commission, set to take effect from 19 January, will cap wagering requirements on bonus funds at 10 times the bonus amount and ban mixed-product promotions. Under the changes, operators will no longer be able to bundle offers across different products, such as combining bingo and casino bonuses into a single promotion.
While regulators say the reforms are designed to make bonuses clearer and safer for consumers, they also significantly reduce the promotional tools available to licensed operators competing in the regulated market.
Lower wagering requirements have improved transparency for players, as a ten-times rollover is far easier to understand than more complex structures that previously reached sixty-five times or higher. However, the regulatory changes come as operating costs are set to rise sharply.
From April 2026, the Remote Gaming Duty applied to online casino products will increase from 21 percent to 40 percent. The tax burden on online bingo will also rise as part of wider gambling tax reforms. Combined, the measures represent one of the largest cost increases the UK online gambling sector has faced in recent years.
Outcome of tax hike
Gambler Media said the impact is already visible across its network. Several licensed operators have reduced marketing activity, paused UK acquisition campaigns, or announced plans to leave the market entirely. Some partners have informed the firm they intend to shut down UK operations in March 2026.
In December, Evoke, owner of William Hill and 888, said it was exploring a break-up or full sale of the business after the recent rise in UK gambling taxes reignited questions over its future. There were also reports of Evoke considering the sale of its Italian operations. Brands owned by Aspire Global have already withdrawn from the UK, while PlayLuck ceased operations earlier this year.
Shortly after the budget was announced, Flutter Entertainment revised down its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for two years. The company estimated the raised online gaming taxes will hit its adjusted EBITDA by $320 million in the fiscal year (FY) 2026 and $540 million in FY2027 before mitigation.
According to Gambler Media, stricter promotional limits and higher taxation are weakening the competitive position of licensed operators, while offshore and black-market gambling sites, which are not bound by the ten-times wagering cap or the ban on cross-product promotions, continue to advertise more aggressive, non-compliant incentives to UK players.
The UK Gambling Commission has repeatedly warned that offshore gambling websites operate without consumer protections or regulatory oversight. While enforcement action against illegal operators is ongoing, industry observers say sustained pressure on licensed businesses risks pushing players toward unregulated platforms outside the UK’s regulated system.
UK tax hike ‘jackpot’ for black market: BGC
The UK’s biggest betting firms have accused the government of delivering “one of the largest tax hikes on any industry in modern times”, warning that plans to almost double online gambling duties will cost thousands of jobs, drive punters towards unregulated sites and ultimately damage horseracing, despite ministers’ claims to have protected the sport.
The Betting and Gaming Council (BGC), which represents bookmakers and online operators, said the Chancellor’s Autumn Budget had been sold as a victory for racing but, in practice, threatened the wider ecosystem that funds it.
Grainne Hurst, the BGC’s chief executive, said: “This budget means thousands of job losses – not protection for racing.” She added: “The only winner from this Budget is the black market – they’ve hit the jackpot.”
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