Sledgehammer
UK industry reels from near doubling of iCasino taxes
UK companies rail at “punitive” tax rises announced in yesterday’s Budget.
In +More: Midnite reprimand; DeWine regret.
Nevada judge reverses Kalshi injunction.
ClearStake CEO: Affordability can be a growth driver.
Yaspa is an award-winning fintech delivering personal intelligence through instant payments. Powered by open banking and AI, Yaspa’s Intelligent Payments combine Pay by Bank transactions with verified customer insights to protect players and power safer gambling. The platform also provides a full suite of payment and account verification services, using pan-operator financial insights and bank-grade security to reduce friction and fraud, strengthen compliance and improve payments performance. Yaspa operates across the UK, Europe and the US, and is regulated by the UK’s Financial Conduct Authority.
Learn more at www.yaspa.com
Shock treatment
Black day: Calling the rises in online gaming taxes a “disaster” for the UK gambling sector, Entain CEO Stella David said the company was “appalled” by the decision to increase remote gaming duty (RGD) to 40% from 25% and to also introduce a new OSB tax at 25%.
“The only winner is the black market, which has hit the jackpot,” she added in a statement to the London Stock Exchange,
Evoke said in its own stock exchange statement that RGD at 40% would mean “substantial and far-reaching changes to the entire UK operating environment for betting and gaming.”
CEO Per Widerström said the proposals were “ill-thought-through, counterproductive and highly damaging.”
Hitting them where it Hurst: Betting & Gaming Council CEO Grainne Hurst said the rises were a “hammer blow,” adding that the “excessive” tax increases will undermine jobs, investment and growth across the UK.
But questions are sure to be asked about why the industry appears to be taken by surprise by the quantum of the RGD increase given the lobbying from ex-Labour Prime Minister Gordon Brown, which had called for this level of rise.
The retail sectors can be happier with their combined efforts at persuasion given machine gaming duty was not touched and retail betting also escaped.
The deets: In the Budget announcement, the government revealed that alongside the rise in RGD, a new remote betting duty will be introduced at a rate of 25%, while retail sports betting remains at 15%.
Bingo duty will be abolished while horseracing betting – online and offline – will remain unchanged, as does machine gaming duty.
“Remote gaming is associated with the highest rates of harm,” Reeves told the House of Commons.
Impact zones: The extent of the damage done to the sector was on display via the trading statements of the leading listed players.
Flutter said that pre-mitigation it would see a $320m hit in FY26 and a $540m impact in FY27. It said it hoped to achieve mitigation of around 27% in 2026 and 37% in 2027.
Evoke said the pre-mitigation damage would amount to ~£125m-£135m on an annualized basis once fully implemented from April 2027, and for FY26 there would be ~£80m of pre-mitigation impact.
Evoke said it expected to be able to mitigate ~50% of the impact over the medium-term via supplier savings, reduced marketing, retail store closures, operating cost savings and potential changes to the customer proposition.
The company said it was withdrawing its medium-term financial targets as it “evaluates its future investment plans.”
Pain points: Entain said it expected ~£200m of pre-mitigation impact but noticeably it only hoped to be able to alleviate the pain by ~25%, adding that it expected ~£100m of impact on EBITDA in FY26 and a further ~£150m from 2027 onwards.
Win some/lose some: Rank said with the increase in RGD and the abolition of bingo duty that net-net it would suffer an annualized ~£40m hit to operating profits.
Super Group said the tax changes would provide a 6% headwind to 2026 EBITDA but that it had already put “several mitigation levers in motion.”
Lastly, Playech said it expected an impact in the “high teens” millions of euros before mitigation but it “remains comfortable” with prior FY26 expectations.
Theatre of nightmares: Regulus said the RGD hike was “self-defeating political theatre,” adding that at such high levels of tax rate “any level of generosity becomes too expensive to offer in a large unitary market like the UK.”
This hands an “enormous win” to the black market, the team added.
The analysts pointed out the government’s own calculations for the impact would suggest it believes online gaming GGR will decline by ~£1bn-£1.2bn.
“The problem is that nearly all of this fall in GGR can be explained by slashing bonuses to avoid the tax, which licensed operators will be forced to do,” the team said.
They added, though, that this appears not to factor in adequately the behavioral change the significantly reduced bonuses means for boosted black market numbers.
“The wider problem with accepting a £1.1bn net tax increase for online gambling is that the government is taking substantially all profits out of the sector as well as distorting prices by taxing non-cash bonuses,” Regulus concluded.
🎧 Are Prediction Markets the Next Big Compliance Challenge?
Prediction markets are blurring the line between finance and gambling – and regulators are taking notice.
In Vixio’s latest podcast, Vixio analysts Mackenzie Schanke and Matt Carey unpack how these markets are evolving and why they aren’t considered sports betting (or are they?).
If your business is watching the prediction markets space, this episode is a must-listen.
👉 Listen now to stay ahead of the curve.
For a deeper dive into the legal and regulatory developments of prediction markets, Vixio subscribers can also read our report: U.S. Regulatory Review: Prediction Markets.
+More
Midnite has been reprimanded by the UK Advertising Standards Authority (ASA) for an X post featuring Tottenham Hotspur’s former star Son Heung-min that referenced accumulator betting, with the regulator ruling the ad was likely to appeal to under-18s. The ASA ordered the operator to withdraw the post and avoid similar content in future.
The Victoria Gate Casino in Leeds has had its license suspension lifted after the UK Gambling Commission confirmed the operator had overhauled its leadership, anti-money laundering controls and safer-gambling procedures. The regulator said it will continue to closely monitor the venue to ensure sustained compliance.
Lawmakers from Bulgaria’s ruling coalition have proposed Gambling Act amendments that would allow the privatization of the state-run Bulgarian Sports Totalizator through a long-term concession. The measure, attached to the State Budget Law, is due for a second reading on Friday.
Ohio Governor Mark DeWine said he “absolutely” regrets signing the 2021 law that legalized sports betting, arguing recent scandals involving Cleveland Guardians baseball stars showed the risks of expanded gambling. DeWine said the “power” and “deep pockets” of sportsbook operators to drive betting behavior has made him reconsider the decision.
Technical Compliance Manager – Limassol
Head of Compliance – Dubai
Regulatory Compliance Manager – Limassol
Kalshi’s Nevada reverse
This used to be the future: A federal judge has tossed an injunction that had protected prediction market operator Kalshi from state enforcement in Nevada, sharply escalating the company’s legal exposure and undercutting its claim to exclusive federal oversight.
US District Judge Andrew Gordon ruled that Kalshi’s reliance on federal regulatory protections via Commodity Futures Trading Commission (CFTC) jurisdiction does not bar states from treating sports-outcome contracts as gambling products.
Gordon said Kalshi’s interpretation of the Commodity Exchange Act (CEA) would “upset decades of federalism” by sweeping sports wagering into a federal derivatives regime.
An April injunction shielded the platform from Nevada regulators, who issued a cease-and-desist in March for operating without a state licence.
Kalshi said it “respectfully disagrees” and will appeal to the Ninth Circuit.
This sporting life: Gordon’s U-turn hinges partly on his October refusal to grant a similar injunction to Crypto.com, finding that sports event contracts may not qualify as “swaps” under the CEA.
The court pointed to “new facts” as well, including Kalshi’s expansion into parlays and prop-style markets since the spring.
Gordon said it would be inconsistent to block Crypto.com while allowing Kalshi to continue operating, given the overlapping legal issues.
Kalshi has recent wins in California, where a judge held that the Indian Gaming Regulatory Act does not apply to CFTC-regulated markets accessed on tribal land.
Nevada regulators argue the opposite, maintaining Kalshi is “not licensed to conduct gaming” and is offering the functional equivalent of a sportsbook.
Stay another day: Gordon concluded Kalshi is “not likely to succeed on the merits,” but acknowledged the case raises “serious questions” about federal state jurisdiction.
Kalshi has asked for a temporary stay, warning of “imminent criminal enforcement” and disruption to customers with open contracts.
The judge is expected to rule on that request shortly, while the company prepares for a Ninth Circuit appeal that could set up a broader federal circuit split.
BREAKING: Separately, Robinhood has agreed to “cease offering new sports-related event contracts in Nevada” for the duration of any appellate proceedings and will work to unwind longer-duration open sports contracts in Nevada, according to a LinkedIn posting from gaming attorney Daniel Wallach.
Wallach noted the agreement goes much further than Crypto.com’s agreement with Nevada, which only required exclusion of Nevada residents (not necessarily by geofencing). Robinhood’s move is geofencing, Wallach said, adding: “Kalshi’s irreparable harm argument tied to geofencing burden [is] hanging by a thread.”
+More predictions
Polymarket has received approval from the CFTC to serve as a trading platform, which opens up the potential for third parties to operate via its platform. The move follows the CFTC clearing Polymarket’s self-certified event contracts last week.
CME has applied to set its trading fee at 1¢ per dollar on traded event contracts through its prediction market joint venture FanDuel Predicts. The filing was submitted to the US Commodity Futures Trading Commission last week, according to InGame.
Underdog is reported as having decided not to launch OSB operations in Missouri next week, with local media reporting the Missouri Gaming Commission as saying the company will be concentrating on its prediction markets offering instead.
GuardDog, powered by Underdog, is a pioneering investment fund dedicated to fostering innovation in responsible gaming.
GuardDog supports and accelerates early-stage startups focused on building new and creative solutions to address problem gaming and further responsible gaming.
Ready to be one of the underdogs of responsible gaming?
Visit to apply: https://underdogfantasy.com/guarddog
ClearStake interview
Standard raise: Affordability checks remain one of the most contentious areas of UK gambling regulation, but Martin Burt, CEO of player-protection platform ClearStake, believes they can become a “facilitator of growth” if the industry rethinks how players experience them.
Burt was speaking after the firm raised £1.5m from a group of gaming and fintech backers, including Michael Brady of Bede Gaming and Paddy Power (Flutter).
He said the new capital will allow ClearStake to “scale the UK market quicker” and accelerate its product roadmap following strong uptake of its ID by Bank system.
The platform helps operators automate financial risk checks through open banking and other verification tools while preserving a “slick, fintech-grade” customer experience.
“Affordability continues to be a moving target,” he said. “The major part of the financial-risk-assessment pilot has been regarded as a success by the [UK Gambling] Commission, particularly around passive checks.”
“But operators tell us there are still more questions than answers. Everyone’s trying to work out where the line sits between protection and friction.”
Fact or friction: Burt said the debate hinges on how far the Gambling Commission and operators are willing to accept some friction in exchange for robust protection. “If you set friction at £10,000 a month, there won’t be much friction but you’ll have people spending beyond their means,” he said.
“The right balance is where you can protect customers and still deliver an experience that feels seamless.”
He argued that the key lies in design and transparency rather than in the raw data. “It’s great to get a passive indication, but it’s hard to make real decisions from banking data alone,” he said.
“The magic isn’t in open banking itself – it’s in the platform that delivers a great experience, allows operators to analyze data, and feeds that back into the journey.”
Burt contended that players increasingly expect the same intuitive, app-like flow they get from modern fintechs.
Born slicky: “The public isn’t stupid: they know these checks have to happen. But they won’t tolerate clunky experiences. Flip that on its head, and they will tolerate slick ones.”
Ultimately, he believes affordability technology can align regulatory duty with commercial benefit.
“This is about building trust and transparency into the player experience,” he said.
“In a highly taxed, highly regulated environment, operators can achieve growth inward, by optimizing systems and redefining friction.”
Calendar
Feb 19: SBC Digital Compliance Technology, online
Apr 28-29: Ethical Gambling Forum 2026, Leeds
May 26-28: Gambling & Risk Taking Conference, Las Vegas
Increase Operator Margins with EDGE Boost Today!
EDGE Boost is the first dedicated bank account for bettors.
Increase Cash Access: On/Offline with $250k/day debit limits
No Integration or Costs: Compatible today with all operators via VISA debit rails
Incremental Non-Gaming Revenue: Up to 1% operator rebate on transactions
Lower Costs: Increase debit throughput to reduce costs against ACH/Wallets
Eliminate Chargebacks and Disputes
Eliminate Debit Declines
Built-in Responsible Gaming tools
To learn more, contact Matthew Cullen, chief strategy officer on Matthew@edgemarkets.io
An +More Media publication.
For sponsorship inquiries email scott@andmore.media.
