Betting and Gaming Council Flags Tax Pressures Fueling Offshore Betting Growth

Clara Berger · Aug 26, 2026

Betting and Gaming Council Flags Tax Pressures Fueling Offshore Betting Growth

UK gambling tax impact on betting markets illustration

The Betting and Gaming Council has highlighted how rising UK gambling taxes are accelerating shifts toward illegal offshore betting operators, with forecasts showing up to £800 million in unlicensed wagers on Premier League matches during the current season, equating to roughly £15-20 million per weekend, while annual figures could reach £1 billion starting from the 2027/28 season once a new 25% remote betting duty comes into force.

These projections build directly on earlier analysis from H2 Gambling Capital, which examined how the Remote Gaming Duty increase to 40% scheduled for April 2026, combined with subsequent policy adjustments, would likely expand the unlicensed market share over time and place additional competitive strain on regulated operators.

Details of the Tax Changes and Market Projections

Data released through industry channels indicates that the Remote Gaming Duty adjustment to 40% takes effect in April 2026, with the further 25% remote betting duty layered in from 2027/28 onward, creating a cumulative tax environment that the BGC connects to increased migration of betting activity outside licensed channels, and observers note these timelines align with the point where annual illegal market volumes could hit the £1 billion mark.

By August 2026 the initial duty rise will already be operational for several months, allowing patterns in operator behavior and consumer movement to emerge before the later duty phase begins, while the BGC ties these developments specifically to Premier League betting volumes as a measurable indicator of the broader trend.

Context from H2 Gambling Capital Analysis

H2 Gambling Capital's sizing exercise for the UK online betting and gaming gross gaming yield across 2025-31 incorporates illegal market estimates and shows how duty escalations could redirect activity, with the report serving as the foundation for the BGC's current statements on market share growth in unlicensed segments.

The full H2 Gambling Capital report details the methodology behind these projections, including channel-by-channel breakdowns that separate regulated and illegal flows. Offshore betting market trends chart

Those examining the figures find that the combination of existing Remote Gaming Duty and the forthcoming remote betting duty creates layered cost pressures, and the BGC uses these inputs to quantify risks that the regulated sector faces in retaining competitiveness against offshore alternatives that operate outside UK tax and licensing frameworks.

Implications for the Regulated Sector

Industry data points to measurable erosion of the licensed market's position when tax differentials widen, and the BGC's warning centers on how this dynamic could accelerate once both duty rates are active, with Premier League weekend volumes serving as a concrete benchmark because they represent high-visibility, high-volume betting opportunities that unlicensed sites can capture without regulatory overhead.

Figures reveal that the projected £15-20 million weekly illegal total for Premier League matches this season already reflects early movement, and the trajectory toward £1 billion annually from 2027/28 onward follows the full implementation schedule, giving operators and regulators a defined timeline to observe shifts in participation.

Timeline and Sector Response

The sequence begins with the April 2026 Remote Gaming Duty increase, continues through August 2026 when effects become observable in mid-season data, and culminates in the 2027/28 period when the additional 25% remote betting duty activates, at which point the BGC anticipates the illegal market could reach the higher annual threshold.

Regulated operators receive these forecasts as indicators of competitive challenges, and the BGC presents the information as a direct connection between tax policy changes and the growth of unlicensed betting, without introducing external variables beyond the cited duty adjustments and market sizing from H2 Gambling Capital.

Conclusion

The Betting and Gaming Council's statements consolidate existing projections from H2 Gambling Capital into a focused alert on how the 40% Remote Gaming Duty from April 2026 and the 25% remote betting duty from 2027/28 could drive illegal offshore volumes to £800 million on Premier League matches this season and £1 billion annually thereafter, supplying a clear factual baseline for tracking developments in the UK betting landscape.