Stricter Regulation Causing Problems for European Online Casinos

The UK’s online gambling industry is likely to have welcomed the new year in with a feeling of concern. 2025 was a year of worrying announcements about stricter regulation and higher tax rates. Just how will the industry fare in 2026 and how does what is happening in the UK compare with other European countries?

2025 saw stricter regulation introduced as fears increase over the dangers of gambling harm, especially for those playing at online casinos.One area that has been heavily criticised for being highly addictive has been online slot games, particularly for younger players. 2025 saw maximum stake limits introduced and those aged between 18 and 24 can only stake a maximum £2 per spin. For older players, the maximum stake is £5.

In a competitive industry, the offering of bonuses is used to attract and then retain customers. The offering of free spins and matched deposits have long been criticised. New rules are now being put in place by the UK Gambling Commission (UKGC) that will see wagering requirements capped at 10x, which is already made major UK casinos adjust their bonus offers, as per gamblermedia.com. That means a £20 bonus would require £200 worth of bets placed before a withdrawal can be made from an account.

Another cause of concern has been cross-selling promotions. These see more than one area of an online casino being included in an offer. For example, spending £10 on a sports event can see a player receive that amount as bonus funds to use on casino games.  

Such promotions will now not be allowed under the new rules. Both the activity needed to receive a bonus and the area of the site the bonus must be used on will need to be the same unless it is an unrestricted offer being made. Even then, the customer “must have full freedom of choice” over how and where the bonus is used with no restrictions being put in place.

April will see an increase in remote gaming duty from 21% to 40%. The announcement has already caused some gambling companies to be planning cuts and GG.BET already leaving the UK market. 

It isn’t just in the UK that the gambling industry is facing problems. The Netherlands has been introducing stricter regulation but this has seen a rise in the number of players leaving the regulated sites and moving to the unregulated online casinos. There are fears that the same will happen in the UK.

Italy has the second largest gambling industry in Europe behind the UK. Statistics have shown that players lost €20bn in 2024. That’s a problem which has recently grabbed the attention of Pope Leo XIV. He talked about “the plague of gambling that ruins so many families.”

Just as in the UK, Italy’s gambling companies are having to deal with strict regulation. These are aimed to protect players and include mandatory restrictions on how long players can gamble for and how much they can spend. Financial and identification checks are also in place. 

ADM is the regulatory body in Italy and just like the UKGC, they are not afraid to issue heavy fines to gambling companies particularly in the area of advertising.. Another problem facing gambling companies in Italy is an increase in the amount that must be paid to be granted a licence. That has increased from €200,000 to €7 million.

2026 sees the World Cup being held and that event will be massive for online gambling sites. Already there are worries about how they will behave regarding the hugely popular football tournament. 

Operators in the country have been warned about the offers they will give their customers and the advertising they will carry out. How gambling is advertised is also a controversial subject in the UK.  A review of gambling advertising is also being undertaken in Romania.

It’s not just in the UK that gambling companies are worried about tax. France has already introduced higher tax rates as they try to fund their social security budget. The levy on online sports betting has risen to 59.3% up from 54.9%. 

New tax calculations came into force in Montenegro at the start of 2026. The country considers money won from gambling to be personal income. Wins up to €50 will not now be taxed but the rate for wins between €50.01 and €1,500 will be taxed at 10%. Any wins over that amount will be taxed at 15%.  The good news for those who play casino games is that they will be exempt from the new tax system. 

It is still a move that could lead to players heading for the unregulated market. If this was to happen in the UK, it would certainly be unpopular with players. The industry will be wary of just what lies ahead for them in the coming year.