A shadow has fallen over the gaming industry following the UK government’s recent Autumn Budget announcement. The changes, specifically a dramatic hike in remote gaming duty, are sending ripples of concern through companies large and small, forcing a reassessment of future strategies.
The most significant shift involves a leap in remote gaming duty, slated to jump from 21% to a substantial 40% by April 2026. A further alteration, a new 25% general betting duty for online gambling, is set to take effect a year later, in April 2027. These increases represent a considerable financial burden for operators.
Industry giants are already voicing their anxieties. Flutter, the powerhouse behind brands like FanDuel and Betfair, has publicly acknowledged the “very significant impact” these changes will have on the entire market. Their UK and Ireland CEO, Kevin Harrington, fears the tax increases will ultimately hinder efforts to promote safer gambling practices.
For INTRALOT, the impact is already being felt. Recent financial reports reveal a 2.9% dip in revenue for the first nine months of the year, reaching €242.5 million. While the company notes this decline is “broadly stable” when currency fluctuations are accounted for, the looming tax increases are forcing a recalibration of their growth trajectory.
INTRALOT’s CEO, Robeson Reeves, described the duty increase as “higher than anticipated,” but insists the company is prepared to implement “aggressive mitigation scenarios.” These include a focus on wager growth, reduced marketing spend, and accelerated synergy efforts to offset the financial strain.
Despite these measures, Reeves concedes the tax hikes will delay INTRALOT’s growth plan by a year. The company now anticipates its 2026 EBITDA guidance will fall within the range of €420-440 million. This adjustment underscores the seriousness of the situation and the challenges ahead.
The timing of these changes is particularly noteworthy, coming just a month after INTRALOT finalized its €2.7 billion acquisition of Bally’s International Interactive Business. The integration of this new venture, and the appointment of new directors in November, now takes place against a backdrop of increased financial uncertainty.
The industry now braces for a period of adaptation and strategic maneuvering. Companies are scrambling to understand the full implications of the new tax regime and to develop strategies that will allow them to navigate these turbulent waters and maintain a path toward sustainable growth.
