A Rewrite Scored at Nil Decides How 40% Duty Treats Every Bonus

Both the overview and the impact note were published on 28 October 2026. The impact note states that the reason for the change is that "different interpretations have arisen regarding the tax treatment" of statutory provisions introduced by the Finance Act 2017 to the Finance Act 2014. Finance Bill 2026-27 replaces section 159A of the Finance Act 2014 outright.

The Definitions Were Written for 15p and Now Carry 40p

At the time these were introduced, Remote Gaming Duty chargeable under section 155(3) of the Finance Act 2014 was Remote Gaming Duty at 15% of remote gaming profits, raised to **21%** per the 2018 policy paper. The 2025 Budget announced an increase in duty from 21% to 40% on 1 April 2026, scrapping Bingo Duty the same day, whilst also introducing a remote General Betting Duty of 25% from 1 April 2027.

So the wording that decides whether a bonus is a stake, and whether a payout is a prize, now moves 40p in the pound rather than the 15p it was drafted against. The note calls the measure "an upstream compliance measure intended to reinforce existing policy and is therefore not a scoring measure". Its stated objective is to "provide greater certainty for operators, reduce the scope for dispute and protect future revenues".

A Bonus Won With a Bonus Gets Two Conditions

The guidance from 2017 says that if a player can only win a freeplay, this freeplay is tax-exempt when used, and the original money put in on the bet is taxed. This is also the case from April 2027, unless the operator gives players cash, credit, or anything which could be seen as a benefit in lieu of the freeplay. In this case, the freeplay won will be taxed.

A restricted play which has been won by playing another restricted play is not taxable. This is reiterated in the impact note, which qualifies that this is the case where the free play won is used to play on remote gaming, and nothing is given in lieu of the free play. If something is given instead, the freeplay will be taxed.

A Prize Now Needs Published Rules

Remote gaming profits are taxable at 40%, and they are the monies taken in less the monies paid out as prizes. Prizes are monies which are awarded pursuant to the published rules of the game. Anything which is given voluntarily would not be considered a prize, and thus would not come out of the base.

New rules on the definition of a prize will be introduced. These relate to the treatment of a returned gaming payment, "following the interruption or termination of a game". The note says the administrative cost of introducing this definition is negligible, but notes there could be a one-off cost to familiarise operators with the new definition.