In the UK, the autumn budget of 2025 introduces a significant policy of increasing gambling taxes, while Colombia simultaneously achieves growth in offline gambling public contributions and optimization of online tax systems, showing a stark contrast in policy directions between the two countries. The UK will raise the remote gambling tax from 21% to 40% (effective April 2026), and the remote sports betting tax from 15% to 25% (effective 2027), expecting to increase annual revenue by £1.1 billion by 2029-30, but the industry warns that this move could have catastrophic consequences. Colombia, on the other hand, achieves a win-win for the industry and society with a 9.3% increase in medical donations from offline gambling and reasonable adjustments to the online tax system. Comparative analysis of gambling policies and compliance cases in various countries can be referenced on the PASA official website.
UK Gambling Tax Increase: Controversial and Potentially Backfiring
The UK's tax reform policy is seen by the industry as "short-sighted," with potential negative impacts already causing widespread concern:
Core Tax Reforms and Industry Impact
Significant tax increase: Remote gambling tax doubles from 21% to 40%, and remote sports betting tax raised to 25%, far exceeding the "sustainable tax rate threshold" of 25%;
Pressure on businesses and employment: Operators like Flutter and Entain warn that annual profits could decrease by £300-500 million, potentially leading to the loss of 15,000 - 17,000 jobs, with small operators possibly exiting the market;
Market and investment contraction: The UK gambling market, valued at £11.5 billion, may force companies to relocate to low-tax areas like Malta (tax rates 5%-15%), significantly reducing investment willingness.
Chain Reactions for Players and Regulation
Player interests harmed: Operators may need to lower the return to player (RTP) from 95%-96% to maintain profitability, increase marketing efforts to compensate for lost profits, or exacerbate addiction risks;
Black market opportunities: PwC research shows that markets with tax rates over 25% see a surge in black markets, with UK players potentially turning to irresponsible gambling tools and illegal platforms without AML checks, with government actual tax revenue possibly only reaching half of expectations;
Lessons from other countries: Cases like Pennsylvania's 54% online slot tax and Delaware's 57% video lottery tax have led to rampant black markets and operator relocations, ultimately resulting in lower-than-expected tax revenues.
Colombia's Gambling Policy: Public Benefit Growth + Tax System Optimization Achieves Win-Win
Colombia achieves positive social and economic impacts through precise regulation and reasonable tax adjustments in the gambling industry:
Offline Gambling: Public Contributions Reach New Heights
Impressive medical donations: In 2025, offline casinos and bingo operators donated 378.3 billion pesos (approximately $104.8 million) to the medical system, a 9.3% increase year-over-year, accounting for 39% of the gambling industry's total revenue;
Crackdown on illegal activities: Throughout the year, 95 enforcement actions were carried out in 15 provinces, seizing 3,047 illegal gambling devices, setting a regulatory record, and creating a fair competitive environment for licensed operators;
Solid industry foundation: The country has 109,000 legal electronic slot machines distributed across more than 3,700 authorized venues, with Coljuegos Chairman Marco Emilio Hincapie stating, "Combating illegality is the core premise for public benefit growth."
Online Tax System: Reasonable Adjustments Gain Industry Approval
Key to tax optimization: The tax base for the 19% VAT on online gambling was changed from "deposits" to "total gambling revenue (GGR)," hailed as an "important progress" by the Colombian Gambling Entrepreneurs Association;
Addressing previous pain points: In April 2024, the industry warned that using deposits as the tax base led to a 30% decrease in online gambling GGR, but the adjustment effectively reduced the tax burden on compliant companies, stimulating market vitality.
Policy Insights: Balance is Key, Driven by Evidence Not Ideology
The policy directions of the two countries highlight the core logical differences in gambling regulation:
The UK's problem: Frequent rule adjustments (payment capacity checks, betting limits, increased taxes) stifle industry innovation and investment, contradicting the "sustainable tax" principle;
Colombia's highlights: Combating illegality and encouraging compliance go hand in hand, tax adjustments align with industry realities, allowing the gambling industry to continuously contribute back to society;
Industry calls: Governments should keep tax rates around a reasonable level of 25%, implement statutory harm taxes, and achieve balanced reforms in cooperation with operators, rather than simply "increasing taxes to collect wealth."
The UK's tax reform is questioned as a "lose-lose gambling" for everyone, while Colombia's practice proves that reasonable gambling policies can achieve a multi-win for the industry, society, and government.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
