The UK’s sweeping tax changes, heightened regulatory enforcement across Europe and a surge of crypto-focused guidance this month have combined to tighten the operating environment for online casinos, forcing operators to rethink product offerings, marketing and market access.
On January 9, 2026 the UK government announced a major increase in remote gaming duty and remote betting duty as part of the budget measures that will take effect in stages through 2027 – moves officials say aim to raise revenue and better align digital gambling with fiscal priorities. The changes, which lift remote gaming duty toward roughly 40% and increase remote betting duty to 25%, have already prompted cost forecasts and strategic shifts among major operators and suppliers, with some firms warning the measures could drive players toward unregulated offshore sites. Financial Times coverage of the budget changes has been closely followed by industry participants.
Regulation and enforcement picking up pace
Regulators across the UK and Europe have intensified scrutiny on anti-money-laundering (AML) controls, player-protection practices and sponsorship arrangements. Over the last year the UK Gambling Commission and other national authorities increased fines and imposed corrective actions on firms for failures in social responsibility and AML. High-profile legal and regulatory disputes — including court rulings this winter that upheld the Gambling Commission’s right to intervene in licensing matters — have underscored the appetite for stricter oversight and transparency.
Several markets beyond the UK are also moving quickly: Portugal opened consultations on updated online gaming rules in late 2025, Croatia’s comprehensive gambling reforms took effect around the turn of the year introducing centralized player ID and tighter advertising restrictions, and regulators in multiple jurisdictions have signaled new licensing and tax regimes aimed at curbing illicit supply and protecting vulnerable players. The cumulative effect is a regulatory patchwork that is pushing operators to re-examine where and how they offer products.
Crypto casinos, custody risk and consumer guidance
Parallel to fiscal and regulatory shifts, crypto-native casinos and fiat operators that accept digital assets are confronting rising scrutiny and practical friction. In January 2026 industry platforms and consumer-education outfits published new guidance on wallet safety and custody after a string of incidents and user losses tied to mismanaged private keys and non-custodial withdrawals. The crypto angle complicates compliance: while some offshore licenses and payment rails continue to accept cryptocurrency, operators face AML and money-transmission questions that national regulators and enforcement agencies are increasingly prepared to challenge.
Operators and payment partners are responding with mixed strategies – some pulling back from high-risk marketing and sponsorship deals, others accelerating KYC/AML investments or pausing services in markets where tax and regulatory changes make commercial models untenable. Analysts caution that heavier taxation and enforcement could expand the illicit market unless regulators pair tougher rules with practical measures to make regulated platforms more competitive and accessible.
Why this matters
For players, the near-term consequence may be changes in welcome offers, wagering limits, withdrawal processes and the availability of certain games in regulated markets. For operators, the combination of higher tax burdens, more aggressive enforcement and the complexities of crypto payments increases compliance costs and may compress margins or trigger consolidation. For policymakers, striking a balance between raising public revenue and limiting migration to unlicensed operators remains the core challenge.
What to watch next
Watch for final implementation timelines and secondary guidance from national regulators through mid-2026, operator earnings calls where firms quantify the budget impact, and any coordinated regulatory responses to crypto custody risks. Industry notices and consultations from regulators in Portugal, Croatia and the UK – and operator moves in response to the UK duty increases – will likely set the tone for global online casino strategy in the months ahead.