UK Treasury’s Remote Betting & Gaming Duty What You Need To Know

We have seen a fair share of regulatory storms – but this latest proposal from HM Treasury has us genuinely concerned about where our industry is heading.

Let’s break down what’s happening and create a roadmap for how affiliates need to prepare.

The Bombshell Proposal

The UK Treasury is pushing for a consolidated Remote Betting & Gaming Duty that would essentially bundle up and increase taxes across all remote gambling verticals. This comes hot on the heels of the gambling White Paper that already cost operators over £1 billion in lost revenue.

The BGC (Betting & Gaming Council) isn’t mincing words – they’re painting this as potentially catastrophic, particularly for horse racing, which operates on razor-thin margins already.

Here’s what’s actually driving this: mobile gambling has exploded, and the Treasury sees an opportunity to tap into that revenue stream. Classic government playbook – follow the money.

What This Could Mean for Affiliates

We’ve been through enough regulatory cycles to spot the patterns, and here’s how we see this playing out for affiliates:

1. Commission Compression is Coming

When operators face higher taxation, their first move is always to review marketing spend. We saw this exact pattern after Point of Consumption Tax was introduced in 2014, when many operators slashed affiliate commissions by 15-25%.

The Formula: Expect your current CPA or Rev Share deals to potentially drop by a similar proportion to whatever tax increase gets implemented. If they raise taxes by 10%, prepare for a 10-15% commission reduction.

2. Operator Consolidation Will Accelerate

Increased operational costs inevitably trigger mergers and acquisitions. The Flutter-Stars Group merger wasn’t a coincidence – it was a direct response to tightening regulations and increased taxation.

For affiliates, this means fewer partners to work with, less negotiation leverage, and potentially having to rework terms with newly merged entities that are frantically cutting costs.

3. Compliance Requirements Will Intensify

Every tax hike comes with stricter enforcement. The UKGC has already signaled they’ll be focusing more on affiliate marketing practices.

Our Proven Template: Create a compliance calendar with monthly audits of all promotional content. Document everything. When the regulator comes knocking – and they will – having this paper trail ready can save countless headaches.

Your Survival Strategy

Consider the following shifts in your playbook:

1. Diversify Beyond UK Gambling: If 80%+ of your revenue comes from UK gambling operators, you’re in a vulnerable position. Look at expanding into regulated European markets or exploring parallel verticals like financial services.
2. Shift to Hybrid Models: Pure CPA deals leave you exposed. Push for hybrid models with a fixed retainer component plus performance-based elements. This creates a buffer against commission cuts.
3. Double Down on Value-Add Services: Basic traffic referral won’t cut it anymore. Operators facing margin pressure will prioritise partners who deliver verified, compliant players with strong retention metrics.

The Bottom Line

This tax proposal isn’t just another regulatory tweak – it’s potentially transformative for the UK affiliate landscape. The operators who’ve been crying wolf for years are actually right this time.

But remember this: regulatory challenges create opportunities for the prepared. Those who adapt quickly, diversify intelligently, and focus on delivering measurable value will not just survive but thrive in the new reality.

We’ve seen this movie before. The script changes slightly each time, but the ending remains the same – the prepared prosper while the complacent collapse.