Paying Remote Gaming Duty: the rate is 40% for periods from 1 April 2026

Remote Gaming Duty applies to profits from remote gaming with UK persons under the place-of-consumption rules, including operators based outside the UK where the rules bring them into charge. Finance Act 2026 increased the RGD rate from 21 percent to 40 percent for accounting periods beginning on or after 1 April 2026, with transitional treatment for straddling periods.

The RGD rate is 40 percent from April 2026

HMRC's April 2026 gambling-duty guidance and Finance Act 2026 set Remote Gaming Duty at 40 percent of remote gaming profits from UK persons for the relevant periods. The previous rate was 21 percent.

Operators with an accounting period straddling 1 April 2026 need to follow the transitional apportionment rules rather than apply one rate to the whole period automatically.

Duty is charged on defined remote gaming profit

HMRC's Excise Notice 455a explains the calculation based on gaming payments from UK customers less qualifying prizes under the duty rules. The tax is not a percentage of every deposit entering the operator's bank.

Finance should receive a regulated duty computation from gaming data rather than infer liability from merchant settlements.

Operators normally have four accounting periods a year

HMRC's payment guidance says operators have four accounting periods annually and must submit the RGD return and pay duty within 30 days after each period ends.

If the 30th day falls on a weekend or bank holiday, payment must reach HMRC by the end of the previous working day.

Use the 14-character charge reference beginning with X

HMRC says RGD payments use a 14-character charge reference beginning with X, available through the Gambling Tax Service or relevant notice.

The reference identifies the charge, so finance should not reuse the Machine Games Duty or another gambling-tax reference simply because the same operator pays both.

Online bank payment, cards and bank transfer are available

HMRC supports online bank-account payment, debit or corporate credit card and bank transfer. Faster Payments or CHAPS can be used where appropriate, while Bacs needs more working days.

Pay in sterling and check transaction limits before the deadline, especially after the 2026 rate increase materially enlarged liabilities.

File the return even if there is nothing to pay

HMRC requires a return for the accounting period even where the operator calculates no duty or is due a repayment.

Compliance reporting should therefore distinguish "return filed, nil payment" from a missing bank transfer.

Worked example: a remote gaming operator has £5 million of duty-calculated remote gaming profit in an accounting period beginning after 1 April 2026. At 40 percent, RGD is £2 million before any detailed adjustment. The 2026 rate change therefore has a major treasury effect compared with the former 21 percent rate.

Reserve the duty progressively through the quarter. Waiting until the Gambling Tax Service return is filed can leave treasury finding several million pounds only days before the payment deadline.

Keep General Betting Duty and Pool Betting Duty separate where the same remote operator provides several activities. Each duty has its own calculation even where HMRC's Gambling Tax Service presents them through one broader operator relationship.

Worked example: an operator has £8 million of remote gaming profit in a fully post-April 2026 accounting period. At the 40 percent rate, the duty is £3.2 million before detailed adjustments. That amount is large enough that treasury should reserve duty continuously rather than wait for the return calculation at quarter end.

For an accounting period that straddles 1 April 2026, preserve the apportionment working papers showing how the old and new rates were applied. A single blended percentage without support is poor evidence for a major tax-rate transition.

Use a gambling-duty control account by duty type. Remote Gaming Duty, General Betting Duty and Pool Betting Duty can sit in the same wider operator group but should not be blended into one liability before the return.

Check bank limits after the rate change. A payment process that comfortably handled the former 21 percent rate can now face almost twice the cash amount on similar remote gaming profits.

Monitor player-fund and duty-fund liquidity separately. A gaming operator can hold substantial customer balances that are not freely available to fund HMRC. Treasury should reserve duty from the company's own economic cash, not assume all visible payment-provider balances can be used.

After the 2026 rate increase, revisit product margin and promotional economics. Free bets, prizes and customer incentives can affect remote gaming profit under the duty rules, so commercial changes should be reviewed with the tax team before launch.