Selling a UK-Facing iGaming Business After the 40% Remote Gaming Duty

The UK’s 40% gaming duty and what it means for a sale

Since 1 April 2026, UK online casino profits have been taxed at 40% instead of 21%. That single change has done more to reprice UK-facing iGaming businesses than anything since the 2014 point-of-consumption rules. A second step follows on 1 April 2027, when remote sports betting duty rises from 15% to 25%.

The big operators are coping. Their UK online revenue is still growing, and they expect to win share from smaller rivals. For a small or mid-sized operator, or an affiliate that lives on UK commissions, the picture is harder. Buyers now value these businesses on what they earn after the new tax, not on last year’s accounts.

We work sell-side and buy-side deals for UK-facing casinos, sportsbooks and affiliate sites. This guide sets out what changed, what buyers are doing about it, and how to sell well in this market.

Key takeaways

• Buyers price on post-April 2026 numbers. A UK casino’s 2025 profit is no longer a reliable basis for value. Expect buyers to rebuild your P&L at 40% duty.
• Small margins disappear first. In our illustrative example below, a 19-point duty rise cuts EBITDA by about three-quarters before mitigation.
• Scale players are buyers, not sellers. Flutter, Entain and Evoke all grew UK online revenue after April and say they expect to take share.
• Affiliates feel it second-hand. Revenue-share deals often calculate commission after gaming tax, and operators are cutting marketing budgets.
• Sportsbooks have a window. The betting duty rise does not start until April 2027, so 2026 results still reflect the old rate. That window is closing.
• Preparation matters more than timing. Clean, reconciled, post-April accounts are what make a UK-facing business sellable now.

UK gambling tax and rule changes, 2026–2027

UK-facing operators now face higher duty on casino, a betting duty rise next April, tighter bonus rules and stake limits on slots. The tax is charged on where the player is, not where the operator is based, so it applies to offshore groups with UK customers as well.

The government’s stated aim for the casino rise was to discourage operators from pushing players toward products it considers more harmful. The OBR expected operators to pass about 90% of the cost on through lower payouts and smaller offers. That matters for valuation: a buyer will ask how much of the tax you can pass on before your players leave.

What has happened since April 2026

Seven months in, the large operators are growing UK revenue while their margins shrink, and some smaller brands have left. Their mitigation playbook is consistent: cut marketing, make bonuses cheaper, reduce headcount, and wait for weaker rivals to exit.

The exits came from the other end of the market. Lottomatrix told affiliates in March that it would stop real-money gaming under its UK, Irish and MGA licences. Small Screen Casinos, behind several bingo and slots sites, surrendered its licence in January. GGBET closed its UK operation ahead of the rise.

Market data points the same way. Blask’s analysis of the first post-tax quarter found casino-led brands took the immediate hit, while brands with a heavier sports mix gained a temporary edge. That edge ends in April 2027, when the betting duty rises.

For a seller, the takeaway is simple. The buyers best placed to absorb the tax are the ones already growing in the UK. They are selective, they have their own cost base, and they will value your business on what it adds to theirs.

How buyers now value a UK-facing online casino

Buyers rebuild your profit at 40% duty, then decide how much of the damage you can recover. For a casino with average margins, the duty rise alone can cut EBITDA by three-quarters, and the value of the business with it.

A worked example (illustrative numbers)

Take a hypothetical UK-licensed casino with £5.0m of annual UK gross gaming revenue (GGR). The numbers below are illustrative only. They are not taken from any real business, and your cost structure will differ.

The mitigated column assumes a 20% cut in marketing and £100k of overhead savings, with GGR held flat. In practice, lower marketing usually means slower player acquisition, so a buyer will test whether GGR really holds.

If a buyer applied the same multiple to every column, the value would fall in the same proportion. At an illustrative 3x EBITDA, £3.75m becomes £0.90m with no action, or £1.95m after mitigation. That is why sellers who show credible post-April mitigation get much better offers than those who show only 2025 numbers.

What buyers look at beyond the P&L

• Months at the new rate. Buyers want monthly results from April 2026 onwards, separated from earlier months, and reconciled to duty returns.
• Pass-through. How far have you reduced bonus cost or RTP, and what happened to deposits and retention when you did?
• Product mix. A sportsbook-heavy business keeps the old 15% rate until April 2027, but a buyer will model the 25% rate from day one.
• Player database. When profit is thin, a strategic buyer may price your active, KYC-verified UK players and brand rather than your EBITDA. That only works if the data is clean and transferable.
• Licence status. A UKGC licence does not transfer with an asset. A share deal triggers a change-of-corporate-control application to the Gambling Commission; an asset deal means moving players onto the buyer’s licence. Either route takes time and affects price.

Duty is charged on gross gambling yield, and how free bets, bonuses and promotional play are treated affects your number. Have a UK tax adviser confirm your duty position before you put figures in front of a buyer.

UK-facing affiliates: the second-order hit

Affiliates do not pay Remote Gaming Duty, but most feel it within a few months. The effect arrives through three channels: how commission is calculated, how much operators spend, and which operators stay in the market.

1. Commission formulas. Many revenue-share agreements calculate net gaming revenue after gaming taxes, alongside bonuses and payment costs. Where that is the case, a 19-point duty rise reduces your commission on the same player activity with no renegotiation at all. Check the NGR definition in every operator agreement before a buyer does.

2. Marketing budgets. Cutting marketing is the first lever operators pull. Evoke reduced marketing spend by 18.5% in H1 2026, and others have trimmed CPAs, bonuses and sponsorships. Affiliates told iGB Affiliate after the Budget that they expected operators and affiliates to shift effort toward non-UK markets with better returns.

3. Operator exits. When a brand leaves the UK, its revenue-share tail goes to zero. Lottomatrix and Small Screen Casinos both wrote to UK affiliates about their exits this year. A buyer will strip that income out of your trailing figures.

What a buyer checks on a UK affiliate site

The affiliate sites holding value best are those with diversified markets and a growing share of revenue outside the UK. If more than half of your income is UK casino revenue share, expect buyers to price that portion conservatively.

Who is buying UK-facing iGaming assets now

The UK buyer pool has narrowed, but it has not closed. The active buyers are scale operators looking for share, groups that want a UK position at a lower entry price, and B2B and affiliate consolidators. Each wants something different.

Two patterns stand out. First, the big operators say openly that they expect to gain. Flutter’s UK and Ireland leadership said it is well placed to benefit from share gains as the largest UK operator, and Entain and Evoke have made similar points. They are buyers of the right assets at the right price, not of whole businesses with high costs.

Second, the Bally’s Intralot–Evoke deal shows how UK assets are being priced at the top. It was an all-share offer worth about £243m. The 138% premium was measured against a share price already depressed by the tax announcement, and the seller took paper rather than cash.

For B2B businesses, the position is more nuanced. Duty is charged on the operator’s gaming profit, not on what it pays a studio or platform. But operators facing a 40% tax are looking harder at content and revenue-share costs, so expect buyers to test how secure your UK contracts are.

Sell now or wait? Options for UK-facing owners

There is no single right answer, but the timing logic is clearer than it looks. Sportsbook-heavy businesses have until April 2027 before their own duty step. Casino-heavy businesses are better off waiting until they can show two or three quarters of mitigated results, unless cash or licence pressure forces the issue.

Pre-sale checklist for a UK-facing business

1. Split your numbers at 1 April 2026. Present pre- and post-duty months separately, reconciled to duty returns and bank receipts.
2. Model April 2027. If you take sports bets, show your P&L at 25% remote betting duty, with horse racing at 15%.
3. Document your mitigation. Show what you changed in marketing, bonuses, RTP and overheads, and what happened to deposits and retention.
4. Audit affiliate and operator contracts. List NGR definitions, tax deductions, termination terms, and which counterparties have left the UK.
5. Confirm compliance with the 2026 rules. Wagering at or under 10x, no mixed-product bonuses, slot stake limits applied, and only UKGC-licensed brands promoted to UK players.
6. Map your licence route. Decide whether a share deal or asset deal suits a likely buyer, and what UKGC steps each one triggers.
7. Prepare your player data. Make sure KYC, self-exclusion and marketing consents are complete and transferable.
8. Market confidentially. Use a blind teaser and release identifying details only after an NDA.

This is commercial guidance, not legal or tax advice. UKGC licensing, change of control, data transfers and duty treatment need a UK lawyer and tax adviser.

FAQ: UK Remote Gaming Duty and selling an iGaming business

What is the UK Remote Gaming Duty rate in 2026?

40% of remote gaming profits for accounting periods starting on or after 1 April 2026, up from 21%. It covers online casino, slots and bingo, and applies to any operator with UK customers, wherever it is based.

When does UK online sports betting duty go up?

On 1 April 2027 the remote betting rate of General Betting Duty rises from 15% to 25%. Remote bets on UK horse racing stay at 15%.

How does the 40% duty affect the value of a UK online casino?

Buyers value the business on post-April 2026 profit. Because duty takes a much larger share of GGR, a casino with average margins can lose most of its EBITDA before mitigation, and value falls with it. Sellers who show credible cost and bonus changes, with stable GGR, recover much of that gap.

Does the Remote Gaming Duty affect iGaming affiliates?

Indirectly. Affiliates do not pay the duty, but many revenue-share contracts calculate commission after gaming taxes, operators have cut marketing budgets, and some brands have left the UK. Buyers will look at your commission trend from April 2026 and your exposure to exited operators.

Can a UKGC licence be transferred when a business is sold?

Not as a standalone asset. In a share sale, the licence stays with the company and the change of control goes to the Gambling Commission. In an asset sale, the buyer usually moves players onto its own licence. Confirm the route with a UK gambling lawyer.

Is now a good time to sell a UK-facing iGaming business?

It depends on your product mix. Sportsbooks still benefit from the 15% rate until April 2027. Casino-led businesses usually get a better price once they can show two or three quarters of mitigated results. In both cases, clean, reconciled post-April numbers matter more than timing.

Who is buying UK iGaming businesses in 2026?

Large UK operators looking for market share, international groups seeking a licensed UK foothold, B2B suppliers and affiliate consolidators. Most are selective and price carefully against the new tax.

Selling a UK-facing casino, sportsbook or affiliate?

The UK is still one of the largest regulated iGaming markets in the world, and the right buyers are active. What has changed is how carefully they price. CasinosBroker has worked iGaming deals since 2021: 110+ mandates taken, 52 transactions closed, and a network of 1,000+ qualified buyers.

If you want to know how buyers will read your post-April numbers, or you are weighing whether to sell before April 2027, email gabriel@casinosbroker.com. Everything starts under NDA.