Sports betting technology firm SOFTSWISS has released its iGaming Trends 2027 report, offering a detailed look at how two of Europe’s largest betting markets are adapting to significant tax increases and regulatory shifts that have reshaped the economic landscape for operators.
The report, published as operators assess results from the World Cup, examines regulatory developments in the UK and Netherlands, where steep tax rises have forced companies to rethink margin planning and product strategies.
UK tax burden hits online casino operators hardest
Remote Gaming Duty in Britain climbed from 21% to 40% in April 2026, while General Betting Duty is set to increase from 15% to 25% starting 1 April 2027. The government expects the gambling duty package to raise more than £1bn annually once fully implemented.
Online casino firms have shouldered most of the burden, with sports betting companies relatively spared. SOFTSWISS notes the near-doubling of Remote Gaming Duty “changes the economics of the UK online casino vertical” and affects margin planning, promotional budgets, and product-mix decisions from the second quarter of 2026 onwards.
Prime Minister Andy Burnham, who replaced Keir Starmer in July, has maintained the course on gambling taxation and is reportedly considering further increases to business rates paid by Adult Gaming Centres. Rank Group found modest relief when 10% Bingo Duty was abolished.
Advertising has emerged as another pressure point. Some operators, including Entain, have highlighted the extent of unlicensed sponsorship activity in UK sports during recent debates over marketing restrictions.
Magnho Jose, President of the Brazilian Legal Gaming Institute, warned that measures like advertising restrictions and taxation “are the measures most often discussed by lawmakers, often without sufficient data to back them,” adding that such steps risk weakening the regulated market and creating space for illegal operators.
Despite regulatory headwinds, operators continue investing in the UK market. Data from Blask estimates the country’s Competitive Earnings Baseline at $12.37bn, with 365 brands active in the market. The top five operators, bet365, William Hill, Ladbrokes, Sky Bet, and Paddy Power, dominate the landscape.
Netherlands pushes tax rate above 37%
The Dutch betting market, re-regulated under the KOA Act in October 2021, quickly became a political flashpoint over advertising concerns. Tax rates on gross gaming revenues reached 34.2% on 1 January 2025 and increased again to 37.8% on 1 January 2026.
Applicants for Dutch licenses must now submit exit plans detailing how they would cease trading if they decide to leave the market, a requirement that has become relevant as some operators have withdrawn after concluding the market is no longer economically viable under current tax levels.
Key questions answered
What are the new tax rates for online gambling in the UK?
Remote Gaming Duty increased from 21% to 40% in April 2026. General Betting Duty will rise from 15% to 25% starting 1 April 2027.
How much revenue does the UK government expect to raise from the gambling tax increases?
The government expects the gambling duty package to raise more than £1bn annually once fully implemented.
What is the current tax rate on gambling in the Netherlands?
The tax rate on gross gaming revenues in the Netherlands increased to 37.8% on 1 January 2026, up from 34.2% the previous year.
What new requirement must Dutch gambling license applicants submit?
Applicants must now submit exit plans detailing how they would cease trading if they decide to leave the market.