Navigating the UK’s New Remote Gambling Tax: What it means for Online Gambling Software & Affiliates - Internet Cafe Soft

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admin May 5, 2025 0 Comments

Significant Tax Reform Strikes the UKs Online Gambling Industry
The UK Treasury has revealed a new Remote Betting & Gaming Duty, simplifying and expanding taxation of all online gambling websites. This has the potential to significantly impact both online gambling software providers and affiliate marketers relying on the UK market.

The news comes after the Gambling White Paper was published, already pointing toward tighter regulations and compliance checks on the sector.

Key Industry Concerns
This change, the Betting & Gaming Council (BGC) argues, would particularly harm verticals like horse racing that have extremely tight profit margins. After that threshold, though, all remote gambling operators, including those running casino sites and sportsbook software, may feel increased financial pressure.

As the UK government targets the rapidly growing mobile gambling market, operators may be forced to cut costs — and that tends to start with marketing and affiliate commissions.

What It Means for Gambling Affiliates
Historically, new taxes in the gambling sector have resulted in a cut to affiliate revenues. For example, after the 2014 Point of Consumption Tax, many affiliates reported commission cuts between 15–25%.

Now, with this new remote gaming tax plan, we can anticipate the same reductions. Affiliates that collaborate with online casino websites and bookmakers must prepare for:

More stringent compliance oversight by the UK Gambling Commission (UKGC)

Increased demand for compliant marketing practices

Potential audits and enforcement action

Pro Tips for Affiliates and Software Providers
To prosper in this new regulatory landscape, affiliates and software providers must adapt swiftly:

✅ Diversify revenue streams by expanding into emerging markets like LATAM, Asia, and Africa
✅ Adopt hybrid commission models to offer flexible revenue solutions
✅ Strengthen compliance processes and documentation for UKGC audits
✅ Deliver real value through data analytics, content support, and user engagement tools

Opportunity in the Midst of Change
Where the upcoming UK gambling tax creates issues, it also enables innovation and differentiation. The software providers and affiliates that evolve — with better tooling, crisper strategies, and wider market coverage — will have the finest opportunities to dominate online gambling’s future.

Need Help Growing Your Casino Business?
At Internet Café Soft, we offer solid online gambling software solutions to affiliates, operators, and white-label providers. Whether you’re taking your operation global or addressing UK regulation, we’re here to help your business grow.