SkillOnNet is exploring acquisition opportunities in the UK, reportedly positioning itself as a consolidator ahead of an increase in remote gaming duty to 40%. The PlayOJO operator said it expects its scale to help it absorb the higher duty.
Potential acquisitions could affect consolidation among UK online casino businesses ahead of the tax increase.
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Betfred founder Fred Done said a proposed increase in UK Machine Gaming Duty from 20% to 40% could force the company to close 495 shops within a year. He said this could put 2,575 jobs at risk and cost the Exchequer about £67 million in tax revenue; the proposal was reportedly under consideration ahead of the Autumn Budget.
Entain and Evoke reported lower profits amid the UK increase in Remote Gaming Duty, according to the companies’ statements cited in the report. Entain’s underlying profit fell 2% to £479m, while Evoke’s adjusted profit declined 10% to £150.2m and it reported £46m in additional gaming taxes during the period. The tax rate rose from 21% to 40% in April.
The Betting and Gaming Council said more than 540 betting shops had closed in Britain since last year’s Budget, with about 4,500 jobs lost. It warned that further tax increases could bring more closures and job losses; the Treasury said gambling duty rates for high-street shops had not changed.
H2 Gambling Capital has linked growth in the offshore online market to a tax increase. The consultancy estimated that onshore operators' market share declined by 5% between 2019 and 2025.
The Betting and Gaming Council warned on 1 April that Britain’s illegal online gambling market could grow as the Remote Gambling Duty rate rises from 21% to 40% of gross gaming revenue. The industry body said the higher tax could weaken licensed operators’ competitiveness and argued that proposed financial risk assessments could also push customers towards unlicensed sites. The BGC cited billions of pounds in stakes on the black market, without giving a specific total.