United Kingdom🇬🇧: taxes and AML put pressure on the gambling market

United Kingdom🇬🇧: taxes and AML put pressure on the gambling market

The decisive factor in market consolidation may not be a higher tax burden, but anti-money laundering policies.

💧 After gambling taxes were increased from 21% to 40%, large companies expected to increase their market share at the expense of small and medium-sized competitors. Executives from the four major companies in the British gambling market —Super Group, Flutter UK and Ireland, Entain and Bally's Intralot— acknowledged the importance of competition while also noting that increased market share would benefit their businesses.

💧 Ultimately, for small and medium-sized operators, the most damaging factor was not so much taxation as anti-money laundering (AML) measures. In just a few weeks, three small operators were sanctioned by the UK Gambling Commission (UKGC) for breaches of anti-money laundering procedures.

💠 The licenses of Bet St George and BresBet were suspended for failing to comply with their internal monitoring procedures. Both companies ultimately decided to leave the market.

💠 Targetlocal, a company with more than half a century of history that operates the Ken Howells betting brand, launched an online platform in 2025 and subsequently faced enforcement action over anti-money laundering compliance. The company is still considering its options.

💧 Large companies are also dissatisfied with the high cost of compliance. Combined with higher tax expenses and insufficient clarity in regulatory requirements, these factors, according to experts, are undermining diversity in the UK gambling sector.

💧 Context: in May 2026, the government created a special group to combat illegal gambling in addition to the UKGC. This development may have been anticipated, particularly because after the "Online Safety Act" was passed in 2025, the regulator acknowledged that it was unable to assess practically anything in the illegal market.