- The UK is increasing gambling taxes and tightening advertising regulations, sparking concerns over job losses and potential growth in unlicensed markets.
- France has raised online betting taxes significantly, including a new 15% advertising levy, impacting major operators like FDJ UNITED.
- Brazil introduced an 18% emergency tax on sports betting, while Mexico plans to raise its rate from 30% to 50%, signaling a shift toward stricter regulation.
LONDON – Numerous governments in Europe and the Americas have imposed substantial tax increases on online providers, putting the gambling sector under unprecedented financial strain.
United Kingdom Signals Major Changes
In her recent announcement that gambling taxes will increase in the November budget, UK Chancellor Rachel Reeves made it clear that the industry must pay its fair share. The Betting and Gaming Council has warned about the impact on 109,000 jobs and £4 billion in yearly tax contributions, causing the announcement to send shockwaves through the legal sports betting industry.
The proliferation of advertising from operators is another issue that the UK government is planning to address. Fiona Twycross, the minister of gambling, did admit that there are real risks of encouraging customers to use black market sites, especially in places like Stoke that are known for their regional employment.
UK sports betting sites have maintained operational stability for years, but these tax increases could reshape the competitive landscape. Despite industry warnings, UK Gambling Commission data found no evidence of sustained increases in visits to unlicensed sites over 15 months of monitoring.
France Enacts Steep Rate Increases
France has already implemented substantial tax hikes through its 2025 Social Security Financing Act. Online sports betting faces the steepest increase, jumping to 59.3% of gross gaming revenue, while a new 15% tax on advertising spending adds further financial burden.
Combined tax rates for online operators rose from approximately 55.2% to nearly 60%. State-owned FDJ expects a €45 million EBITDA impact in 2025 from these changes alone.
Brazil Implements Emergency Measures
Brazil sports betting sites now operate under an 18% tax rate following an October 1 emergency decree. The increase currently functions as a provisional measure while awaiting congressional approval for permanence, with final decisions expected shortly.
Mexico Proposes Dramatic Shift
Mexico sports betting sites face potentially the most severe changes. Finance Minister Edgar Amador has proposed increasing the gambling tax rate from 30% to 50% as part of the 2026 Economic Package, framing it as part of broader healthy taxes targeting products with social risks.
Industry stakeholders warn that Mexico’s tax burden would become among the heaviest in the region if approved, with online gambling revenue projected to overtake land-based revenue by year’s end.
