British Online Casinos Seek to Offset Rising Taxes by Lowering RTP

British online casinos have begun lowering return-to-player (RTP*) rates in slot games amid rising taxes to preserve margins, industry outlet iGaming Business reported, citing market participants and analysts.

Standard RTP levels in the United Kingdom have already declined from around 96% to 94%, and in some cases to 92%. While the difference may appear minor, the impact on players is significant.

At a 96% RTP, operators retain about 4 cents from every euro wagered, compared with around 8 cents at 92%, effectively doubling the rate at which players lose money.

Lower RTP levels are also changing gameplay dynamics. Sessions are becoming shorter, and bonus features are triggered less frequently. Players may not pay attention to RTP figures, but notice that their balances deplete more quickly.

Analysts at Regulus Partners, a consultancy specialising in the gambling sector, said the impact of such measures may be short-lived. Operators may initially record higher gross gaming revenue (GGR**), but this could be followed by a decline in player activity and a decline in users.

Germany is cited as an example. Following a tax increase in 2021, RTP levels there fell to around 90% or lower. According to Regulus Partners, revenue in the regulated market declined from about 800 million euros in 2022 to roughly 470 million euros in the second half of 2025, while the illegal segment grew to approximately 2 billion euros. The share of players in the regulated market dropped below 40%.

Industry sources say a similar model could emerge in the United Kingdom, with higher RTP offered on selected popular games to attract players, while most other games operate at lower RTP levels to support revenues.

Gambling Park previously reported that William Hill would close 200 betting shops in the UK amid rising taxes.

* The percentage of total wagers that is returned to players over time in the form of winnings. For example, at an RTP of 96%, players receive 96 euros out of every 100 euros wagered, while the remainder is retained by the operator.

** A financial metric used to measure gross revenue, calculated as the total amount wagered minus total winnings paid out.