GG.Bet Exits UK Market as 40% Tax Sparks Operator Exodus

GG.Bet has surrendered its UK Gambling Commission license and will close all UK operations by January 9, 2026—and they won’t be the last. With the UK’s brutal new 40% remote gaming duty taking effect in April, the math has become simple: operate in Britain at a loss, or leave.

For crypto casinos operating under Curaçao licenses at effectively 0-2% tax rates, the UK’s self-inflicted exodus is about to deliver millions of displaced players.

GG.Bet’s Exit Timeline

GG.Bet stopped accepting new players on December 12, 2025, and surrendered its UK Gambling Commission licenses the following day. The company, operating under Rednines Gaming LTD, held both Casino and Real Event Betting licenses for five years before pulling the plug.

Any bets on events finishing before January 9 will be settled normally. Open wagers tied to fixtures after the shutdown date will be voided, with stakes returned to player balances before account closures. GG.Bet continues operating in other markets, including Ukraine where they launched in 2023.

The Exodus Pattern: GG.Bet Won’t Be the Last

GG.Bet is the first confirmed casualty, but the industry is bracing for a wave of exits. Sam Sadi, CEO of LiveScore Group, told reporters that “around a dozen companies are actively looking to sell, and probably another dozen who haven’t come to grips with reality yet.”

The pattern is clear: operators are either leaving the UK entirely, shedding markets elsewhere to concentrate resources, or preparing to sell. By 2026, the sector “will look very different,” with mergers, market exits, and heavy restructuring inevitable.

The Math That Makes Migration Inevitable

The UK’s 40% remote gaming duty isn’t just high—it’s the highest in the world, surpassing even heavily-regulated markets like Sweden and Norway. And online casino margins simply don’t support it.

Typical online casino profit margins run 6-8% on net gaming revenue after bonuses and operational costs. A 40% tax on GGR makes profitability nearly impossible for all but the largest operators with massive scale advantages. The government expects operators to pass 90% of the tax increase to consumers through reduced payouts—which will only accelerate the exodus to better-odds offshore platforms.

Where Do the UK Players Go?

The answer is already playing out. According to a Frontier Economics report cited by the Betting and Gaming Council, 1.5 million UK players are already using black market gambling sites, staking £4.3 billion annually. More than one in five 18-24 year olds who bet already use unregulated offshore platforms.

UK Gambling Commission CEO Andrew Rhodes admitted he initially viewed crypto gambling as a “five year problem” but now believes it’s an “18 months to two years challenge.” The Commission’s limited ability to regulate offshore crypto casinos is unlikely to change—compelling compliance from foreign-based operators requires international coordination that doesn’t exist.

The Regulatory Irony

The UK government explicitly stated the 40% tax rate targets online casino products because they’re “generally considered to have lower operating costs and to be more harmful than other forms of gambling.” The intention was to “disincentivise gambling companies from pushing consumers towards what are considered more harmful products.”

The actual result? Pushing players toward offshore crypto platforms with zero player protections.

Players using unlicensed offshore sites cannot seek redress through UK-approved Alternative Dispute Resolution bodies. Civil claims against offshore operators are unenforceable under UK jurisdiction. The “harm reduction” policy is creating a two-tier system: regulated gambling for those who can’t figure out VPNs, and unregulated crypto gambling with zero protections for everyone else.

The Statutory Levy Collapse

Here’s the part the Treasury didn’t model: in April 2025, the UK implemented a statutory levy on gambling operators to fund addiction treatment services and harm prevention research. That levy depends on a functioning licensed market.

“If there is significant displacement from the licensed market into the black market in online casino, the statutory levy that was put in place in April to fund treatment services and harm prevention will collapse.”
— Industry analyst on the unintended consequences

Analysts estimate as much as £2.5 billion in gross gaming revenue could flow into the black market. That’s £2.5 billion that won’t generate tax revenue, won’t fund problem gambling services, and won’t operate under any player protection framework.

The Bigger Picture

GG.Bet’s exit is a preview of 2026. The UK is about to learn what happens when you tax a digital industry at rates its margins can’t support: it doesn’t collect more revenue—it pushes the industry offshore.

The Netherlands already provided the lesson. Significant gambling tax increases led to market contraction, substantial migration to unlicensed platforms, and weaker-than-expected government receipts. A loss of competitiveness hollows out the regulated channel.

For the crypto gambling industry, this is opportunity. Every player pushed out of the UK regulated market is a potential customer for platforms operating under lighter-touch offshore licenses. The same government that wanted stricter gambling controls is about to create the conditions for the fastest growth in offshore crypto gambling the UK has ever seen.