Listen to this article:The recent Budget delivered by Chancellor Rachel Reeves has brought major changes for the UK gambling sector, and there was both good and bad news for the nation’s bingo operators. While bingo duty will soon be abolished, wider tax rises are set to hit digital gambling hard.
For the bingo industry, one of the most important announcements is the end of bingo duty. The current 10% levy will be removed from April 2026. Unsurprisingly, Rank Group, which owns Mecca Bingo, has welcomed the news. The business said the change will save around £6m a year and help maintain jobs and investment in high-street venues. Many clubs have struggled over the past decade, so the removal of bingo duty is a positive step that could lead to more growth in the sector. For bingo players, it could help ensure that clubs remain open in their local area.
However, the government has offset this relief with huge rises for online operations. The rate of Remote Gaming Duty (RGD), which applies to online casino and gaming products, will jump from 21% to 40% in April 2026.
Rank Group said this change will significantly increase its tax bill. The company estimates the change will cost its digital division around £46m a year before mitigation. Factoring in the benefit from bingo duty removal, the overall annual impact on the group is close to £40m.
Chief executive John O’Reilly said:
“The announced increase in remote gaming duty in the UK budget represents a very significant blow to the regulated betting and gaming industry in the UK.”
He added that while the bingo duty decision is welcome, the bigger challenge lies in maintaining online profitability. In the year to 30 June 2025, Rank Group reported a profit after tax of £44.6m and paid £188m in UK taxes. O’Reilly added:
“That burden will now increase by a further £40m, and we will look to mitigate the impact where possible.”
The business said it is reviewing its digital investment plans, profitability expectations, and competitive positioning as a result of the tax rises.
Rank is far from being the only gambling operator sounding the alarm. Other major bingo companies have warned that higher taxes will be pushed onto customers or lead to reduced marketing and bonuses.
The Office for Budget Responsibility expects gambling companies to pass on around 90% of the increases. This could mean reduced payouts, fewer promotional offers such as reload bonuses, and fewer player rewards.
Several firms have already suggested that tough decisions lie ahead. The owner of William Hill and 888, for example, said regulated online gambling will become “more expensive for consumers”.
Unsurprisingly, shares in UK gambling businesses fell after the Budget. Rank Group dropped nearly 8% after confirming the size of the profitability hit, which reversed the lift it had received following the bingo duty announcement.
However, Playtech has been more positive and reassured investors that, despite taking a hit “in the high teens” of millions of euros before mitigation, it still expects to meet full-year results for 2026.
Its confidence is the result of its strong performance in regulated markets outside the UK, which could help absorb the impact of domestic tax changes. Shares in Playtech climbed around 10% as a result.
For those who enjoy a night at Mecca or other local bingo halls, the removal of bingo duty is still good news. It supports the future of clubs in towns and cities, and will help ensure they remain financially viable and can thrive as a source of entertainment and community.
However, things are less clear when it comes to online bingo. Operators may reduce their promotions and bonuses to handle rising costs, and it is also possible that ticket prices could rise. Overall, it is a mixed bag for bingo fans; however, given the popularity of the game, both online and offline, it is unlikely that it will disappear any time soon.
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