Introduction

2025 has been a turning point for the iGaming industry. Governments worldwide, facing fiscal deficits, have zeroed in on high-margin sectors like online gambling. The result? A sweeping tax clampdown that’s reshaping the economics of iGaming. For operators, this isn’t just a financial challenge—it’s a strategic wake-up call.

The Global Tax Squeeze: What’s Happening?

Across major markets, tax hikes are hitting hard:

• United Kingdom: The Office for Budget Responsibility confirmed that Remote Gaming Duty (RGD) will surge from 21% to 40% by April 2026. Industry giants like Evoke (William Hill) and Flutter have warned of job cuts and EBITDA hits, while Sky Bet announced plans to relocate its HQ to Malta to soften the blow.
• South Africa: Proposed a 20% national tax on online gambling to centralise revenue streams.
• Australia: Drafted legislation to block gambling firms from claiming R&D tax credits.

The old “social contract”—moderate taxes for market access—has been replaced by a sin tax model, treating iGaming like tobacco or fuel. For operators, this means shrinking margins and a renewed focus on operational efficiency.

The U.S. Angle: 2025 Tax Changes and SAFE Bet Act

The United States has introduced sweeping changes under the SAFE Bet Act and related tax reforms:

• Federal Tax Changes: Starting January 2026, gamblers can only deduct 90% of gambling losses against winnings, down from 100%. This means even a break-even year can trigger taxable income—a concept dubbed “phantom income” by industry experts. High-volume and professional gamblers will feel the biggest pinch, but operators will also face compliance challenges.
• State-Level Tax Hikes:
• North Carolina: Senate Bill 257 proposes doubling the sports betting tax from 18% to 36%.
• Maryland: Raised mobile sports betting tax from 15% to 20% in May 2025.
• Louisiana: Plans to increase online sports betting tax from 15% to 21.5%.

These changes reflect a broader trend: states are leveraging iGaming taxes to fund education, infrastructure, and public services. For operators, this means higher costs and tighter margins

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Why Payment Strategy Matters More Than Ever

When tax pressure squeezes profits, every operational cost counts. Payment processing is often overlooked, yet it can make or break profitability. High fees, slow settlements, and compliance risks can erode margins faster than tax hikes. The solution? A payment partner that delivers efficiency, compliance, and scalability.

Quadropay : Your Strategic Advantage

At QuadroPay, we empower iGaming businesses to thrive in this high-tax era with Banking-as-a-Service (BaaS) and acquiring solutions designed for high-risk industries.

What We Offer

• Multi-Rail Payment Support: Cards, wallets, crypto, and account-to-account transfers—all under one merchant account.
• Global Reach: Local payment methods for emerging markets, helping you diversify revenue streams.
• Compliance Automation: Built-in KYC, AML, and PCI-DSS adherence to keep you ahead of regulatory changes.
• AI-Powered Fraud Prevention: Real-time monitoring and risk scoring to protect your business and players.
• Scalable Infrastructure: Ready for CBDCs, DeFi integrations, and future payment innovations.