Government Legislation to Result in Casino Operator Closures

by James Gibson, 9 October 2025

At least 800 casino operators predicted to close thanks to new legislation.

Legislation predicted to result in casino operator closures. © elverc117, Pixabay

Key Facts:

• BetterGambling has released a report predicting the effects of upcoming legislation
• Over 800 casino operators could be forced to close because of regulations in 2026
• It’s also predicted that fewer new casino sites will launch in the coming years

On 6 October, BetterGambling, an independent think tank for the UK’s gambling industry, released its Market Intelligence Report. In this, BetterGambling predicts that by 2027, more than 800 casino operators will have been forced to shut down.

The team that carried out the study consisted of experts in regulatory matters and former casino operators. The general consensus among them is that the British gambling industry will soon face its biggest slump.

The Reason for the Slump

According to the report, changes in legislation are to blame for the predicted slump. When new rules come into effect in 2026, it’s going to become harder for small and mid-sized companies to operate and make money.

Diana Tunsu, one of BetterGambling’s reviewers, has said the following about the upcoming changes and their knock-on effects on the industry:

We are witnessing the greatest scale of change since the Gambling Act 2005. Our analysis proves that this is not just market consolidation – it’s a structural realignment of an industry that today supports 2,262 licensed operators as of March 2024. – Diana Tunsu, BetterGambling Reviewer Comments on Report’s Findings, Yahoo Finance

The Report’s Key Predictions

While the report says over 800 casino operators could close, that number could be as low as 680 or as high as 900. Between 30% and 40% of current operators are expected to cease working in the industry.

New casino sites launch regularly, though BetterGambling believes that fewer casinos will come online. In fact, it expects the number of new online casinos to be 605 to 70% less than the number that launched in 2024.

Thanks to various compliance barriers, roughly 40% to 50% of independently operated casino sites should close. White-label operations should experience a similar closure rate of 45% to 55%.

There are between 350 and 450 white-label businesses. BetterGambling’s report suggests that by 2027, roughly 200 to 300 of these will have shut down. For the remaining ones, continuing to operate will be more challenging than it is today.

Also, it’s expected that companies will each have to invest anything from £800,000 to £2.8 million in order to meet compliance standards. This estimation is for the first year the regulations come into effect.

Technology upgrades make up a significant portion of the compliance costs. Each company is believed to need to pay between £500,000 and £2 million so that its tech meets the new standards.

This is on top of the regulatory fee that will see companies collectively pay out roughly £100 million. The £100 million won’t just be a one-off payment; it will be annual.

Bleak Prospects for Smaller Companies and White-Label Businesses

Diana Tursu has mentioned that the immediate challenges will be significant for companies with a gross gambling yield of under £3 million. Either they spend large sums on compliance or possibly even consider leaving the UK’s gambling market.

For the gambling industry as a whole, the near future is going to be tough. This is not just because of regulations that will negatively impact many areas, but also because politicians want to generate more revenue from gambling.