The UK’s new tax regime has moved from policy debate to product-level changes. Remote Gaming Duty rose from 21% to 40% on 1 April 2026, applying to online casino products such as slots and casino games. The government said the measure was aimed at raising public revenue and discouraging operators from pushing higher-risk remote gaming products.
Tax Pressure Reaches the Slot Lobby
This increase in tax liability is having an effect on how games are offered. According to news coverage, UK operators are resorting to lower-RTP slot variants as a margin lever. From the standard RTP of around 96%, the rate is falling to 94%. In some instances, even 92% is being requested.
The RTP, or return to player, refers to the long-term share of stakes a game is designed to return through winnings. A move from 96% to 92% may not seem significant, but this change impacts the costs. At 96%, the operator’s long-term hold is around 4%. At 92%, it is around 8%.
Players May Feel It Before They Read It
What operators must be careful about is that most players do not need to study paytables to notice the effect show up. With reduced RTP, sessions may be shorter, bonus features may trigger less often, and balances may run down faster.
According to industry experts, the initial effect may be to increase gross gaming revenues. However, once it happens, players may end up playing less, switching brands, or moving outside the licensed market.
Germany Offers a Warning
Germany is one of the illustrative examples. Regulus Partners has highlighted how taxation has driven RTP in the country’s online slots market close to 90%, or even below. According to Regulus analysts, licensed slots revenue fell from about €800 million in annual revenue in 2022 to roughly €470 million by the second half of 2025. The underground sector was estimated at roughly €2 billion.
The UK is not directly comparable with Germany. It has a more extensive regulated online market and stronger consumer recognition of licensed brands. However, the trend is significant anyway. As reported by industry media in early April, operators were searching for ways to compensate for the new 40% tax duty. That included measures like marketing cuts, promotion changes, staff reductions, and adjusting their business models.
A Two-Tier Slot Market Could Emerge
The potential outcome is that of a segregated portfolio. Operators may keep hero games with high RTP visible, while the bulk of the slot library is likely to be reconfigured to lower return rates. That would let them advertise value in certain areas while protecting margins in others.
As far as the UK market is concerned, the important question is whether licensed operators can pass on the higher costs without making regulated play feel worse. If the answer is negative, the risk is that regulated sites may feel less attractive just as unlicensed alternatives remain available.
