The UK's mandatory gambling levy, rising Dutch GGR taxes, and increased levies across Europe are squeezing operator margins. We examine the strategies operators are deploying.
Fiscal pressure on iGaming operators reached new heights in 2025 and continues into 2026. The United Kingdom, Netherlands, Germany, and several other European markets have introduced higher taxes, new levies, and increased regulatory fees, fundamentally changing the economics of operating in mature European markets.
UK: The mandatory gambling levy
From April 2026, UK operators must contribute between 0.1% and 1.1% of their gross gaming yield to a mandatory responsible gambling levy. The rate varies by sector. This replaces the previous voluntary system and represents a significant increase in total contributions for many operators, particularly those with higher-risk product mixes.
The UK's broader regulatory environment, including enhanced affordability checks, stricter bonus restrictions, and new game design standards, has already increased compliance costs substantially. For operators reassessing their UK positioning, the combination of higher taxes and compliance costs is prompting some to shift investment toward markets with more favourable unit economics.
Netherlands: Declining performance under high taxation
The Netherlands introduced a 29.5% GGR tax when it regulated online gambling in 2021. Industry data shows the tax rate is beginning to suppress licensed market growth. The KSA has also imposed a complete ban on sports sponsorship by gambling operators from July 2025. Despite enforcement improvements, a significant share of Dutch players continues to access unlicensed platforms.
Germany: Still complex
Germany's online gambling market, regulated under the Interstate Treaty on Gambling (GlüStV), continues to be challenging. Product restrictions, including bet limits, bonus restrictions, and mandatory session limits, have frustrated operators and contributed to continued unlicensed market activity.
The operator response
Operators are responding through several strategies: geographic diversification into growth markets with lower tax rates; cost reduction through platform consolidation; and product optimisation to maximise margin within constrained regulatory environments. For operators on owned platforms, the flexibility to reconfigure product offerings without dependency on third-party platform providers becomes increasingly valuable in this environment.