The UK gambling market is growing, but not everyone is getting a slice of the action.
Online casinos are driving the industry’s latest revenue figures, while parts of the high street are struggling to keep pace. With another tax increase on gaming machines due next year, land-based operators face an increasingly difficult position.
Acting Gambling Commission Chief Executive Sarah Gardner highlighted the divide during her annual CEO Briefing on 5 November, pointing to a market where growth is far from evenly distributed.
Online casinos are doing the heavy lifting
The gambling sector in the UK generated £17.5 billion in gross gambling yield (GGY) during 2025/26, up 4.4% year on year. Remote casino, betting and bingo grew by 6.9% to £8.3 billion.
Online casinos were responsible for much of that increase, adding £736 million in GGY. For comparison, the entire gambling sector grew by £728 million. In other words, online casino growth alone exceeded the industry’s overall increase.
The picture was rather different on the high street. Land-based GGY rose by just 1.1%, with adult gaming centres recording 11% growth while non-remote betting declined. Casino growth was negligible, although bingo managed an 8% increase.
Gardner acknowledged the uneven performance, saying: “The British gambling sector clearly remains as fierce as ever, but from looking at the numbers and speaking to many of you, we can see the impact of that is felt unevenly and you are the ones feeling that pressure.”
Another tax increase adds to the pressure
Land-based operators have another challenge approaching. From 1 April 2027, Machine Games Duty will rise from 20% to 25% for machines with stakes above £1 or prizes exceeding £100.
The change will affect businesses including adult gaming centres, bingo halls, betting shops, and casinos. It comes as machine gaming GGY remains around £100 million below its level before the 2019 B2 machine stake cut.
The contrast is difficult to ignore. Online casinos are driving the industry’s growth, while some traditional operators are contending with weaker performance and rising costs. A bigger gambling market might look like good news, but it certainly isn’t translating into better fortunes for everyone.
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