How the UK operators market changed after the RGD increase

Eleven months ago, then-chancellor Rachel Reeves announced in her Autumn Budget that the remote gaming duty (RGD) would rise from 21% to 40%, and the new rate came into force on 1 April 2026. The same review also set a new general rate for remote betting of 25%, up from 15%, which will take effect in April 2027. Since then, the fiscal change and industry responses have materialised in shop closures, job cuts and strategic moves by major operators.

Early effects and market figures

Data from the [Gambling Commission](/regulation) for the year to 31 March 2026 show there were 2,154 licensed operators in the UK market, a 1.1% decline from the same point in 2025. Total GGY rose 4.4% to £17.5 billion, while remote activity across casino, betting and bingo grew 6.9%.

H2 Gambling Capital managing director Ed Birkin told iGB: “I don’t think it’s having a material impact yet,” referring to the effect on GGR. Birkin added that despite the greater tax burden operators are still competing for market share and that the full influence of the RGD increase has not yet been revealed.

Corporate reactions: cuts and closures

Several UK firms have announced cost-reduction measures following the increase. Flutter disclosed a restructuring for the UK and Ireland that could translate into up to 1,400 job losses. Evoke closed around 200 William Hill shops earlier this year. Betfred announced plans to close up to 132 shops and cut more than 600 roles. Bet365 revealed plans to reduce headcount by roughly 340 positions.

Those decisions have prompted warnings of further contraction in the regulated sector. Steve Donoghue, CEO and founder of Gambling Consultant, said Flutter’s cuts will not be the last and predicted the industry would be “decimated”, with “thousands” more jobs at risk. Donoghue also warned that higher taxes could push customers toward unlicensed operators.

“excessive”, said Grainne Hurst, CEO of the Betting and Gaming Council, about the tax increases announced by Reeves, and she warned they could be a “devastating hammer blow” to the sector.

Retail: the vertical taking the biggest hit

Between April 2025 and March 2026 the total number of betting premises in Great Britain fell 2% to 8,081. Retail GGY fell 3.3% to £2.4 billion. Successive waves of shop closures announced by operators could push that figure lower when the Gambling Commission publishes its next annual report; the impact is particularly acute for the [retail](/casino) vertical.

The potential rise in machine games duty (MGD), currently at 20%, has heightened concern in the retail sector. A group of Labour MPs urged new chancellor John Healey to raise the MGD ahead of the Autumn Budget he will present on Wednesday. The Social Market Foundation proposed doubling the MGD to 40%, though increases as small as 5% are also on the table.

Jenningsbet CEO Greg Knight told The Times that a double MGD rise could lead to the closure of “100 shops”. In an interview with the Financial Times, Betfred owner Fred Done warned:

“I believe that by 2030 we will have no betting shops”.

The Betting and Gaming Council highlighted modelling by EY that estimated an MGD at 40% could cause the loss of around 1,500 betting shops, 34 casinos and 16,000 jobs.

Who may gain share: scale and agility

Recent results from some large groups show scale remains a protective factor. Entain reported in its Q3 that online NGR in the UK & Ireland rose 14% year-on-year. Stella David, CEO of Entain, said the company would be a “relative winner” and felt well positioned against an MGD rise.

Kevin Harrington, CEO of Flutter for the UK & Ireland, said when announcing the restructuring: “We remain confident that we are well placed to benefit from share gains given our position as the largest scale operator in the UK.” Richard Clarke, managing director of Flutter brands Paddy Power and Betfair, told iGB: “We’re a big business, and there are things we can do with one or two million that give us an advantage. We’d expect to take market share as a result of the squeeze.”

Ed Birkin argued that scale will be decisive, although agility will also matter; smaller operators could be disproportionately affected and the tax pressure may accelerate concentration of share toward larger firms.

What the sector expects this week

After the initial shock of the RGD, the industry faces the next chapter with new chancellor John Healey’s Autumn Budget due on Wednesday. The market is watching the MGD and other possible fiscal measures closely. Eleven months after Reeves’s Budget, the industry is still adjusting to the first fiscal shock; on Wednesday it will learn how far the next one reaches.

Gonzalo Marín, Operations correspondent.