UK Gambling Market Faces Regulatory Shifts: Tax Pressure and Stricter Player Limits
Entain Warns: Tax Hike Could Hit Bonuses and Odds
Major operator Entain, which owns brands like Ladbrokes and Coral, has voiced strong concerns over the UK government’s rumored plan to raise the tax rate on online gambling. The proposed increase would affect Gross Gaming Revenue (GGR) and could, according to Entain, directly impact player experience.
The company warned that a higher tax burden would force operators to cut back on bonusing, reduce promotional offers, and worsen betting odds to maintain profitability. This, in turn, could push players toward offshore or unlicensed sites that operate outside the UK’s regulatory framework — a scenario the industry has been working to avoid since the 2014 Gambling (Licensing and Advertising) Act.
For affiliates, this could mean a shrinking incentive structure: fewer bonuses to promote, tougher conversion rates, and more competition for compliant traffic.
Deposit Limits: The Gambling Commission Clarifies the Rules
In a parallel move, the UK Gambling Commission (UKGC) recently clarified how deposit limits should be implemented across licensed platforms. The regulator emphasized that limits must be player-led, informed, and based on individual affordability, rather than imposed as rigid caps by operators.
The clarification comes after months of confusion within the industry about the interpretation of “safe gambling” measures. While the UKGC insists this update is about responsibility, not restriction, many operators worry it could increase compliance costs and add friction to the player journey — especially in competitive verticals like sports betting and casino gaming.
Affiliates should also take note: stricter onboarding processes and affordability checks could lead to lower deposit-to-active-player ratios, impacting the short-term ROI of campaigns targeting the UK.
The Bigger Picture: Balancing Regulation and Competitiveness
The UK remains one of the most mature and well-regulated gambling markets in the world, but it’s also showing signs of “regulatory fatigue.”
Over the past few years, operators have faced:
- Advertising restrictions across social media and sports sponsorships.
- Mandatory checks on players’ financial stability.
- Tougher oversight on responsible gambling tools and messaging.
Industry leaders argue that each of these steps, while well-intentioned, adds pressure to already thin profit margins. Entain’s warning about potential “unintended consequences” echoes a broader concern: as regulation tightens, players may increasingly migrate to unlicensed platforms where controls are weaker and protections minimal.
What It Means for Affiliates
For affiliates operating in the UK market, the message is clear — adaptation is key.
- Content focus is shifting from bonuses to brand trust, safety, and reputation.
- Compliance partnerships will be critical, especially as operators demand transparent player acquisition practices.
- Diversification — expanding into other regulated markets like Canada, Ireland, or parts of Latin America — may become essential for maintaining growth.
Outlook
In short, the UK market remains lucrative but increasingly complex. Tax hikes and regulatory updates could reshape operator strategies and affiliate economics in 2025. However, for those who can navigate compliance while maintaining strong engagement and content quality, the market still offers long-term stability and credibility unmatched by most regions.
