SOFTSWISS H1 2026 Regulatory Report: Major Tax Hikes, New Licensing Frameworks, and Tighter Financial Controls

Introduction

SOFTSWISS has released a mid-year update on global iGaming regulatory developments for the first half of 2026, building on its annual iGaming Trends report from October 2025. The recap identifies three dominant themes: the activation or confirmation of new licensing systems, sharp increases in gambling taxes across multiple jurisdictions, and a regulatory pivot toward payment systems, financial enforcement, advertising restrictions, and player protection.

The analysis covers legislative changes and formal milestones achieved between January 1 and June 30, 2026, while noting ongoing implementation expected in the second half of the year.

Europe

A key EU-wide backdrop is the upcoming Anti-Money Laundering Regulation (EU) 2024/1624, effective July 10, 2027, which will replace existing directive-based rules with directly applicable requirements. H1 2026 served as a critical preparation phase for operators.

Finland began accepting gambling licence applications on March 1, 2026, with a fee of €29,000. Licensed operations are scheduled to start July 1, 2027, allowing private companies to offer betting, online casino, and electronic bingo, while state-owned Veikkaus retains exclusivity over lotteries, scratch cards, land-based slots, and physical casino games. The tax rate is 22% on gambling margin, with mandatory player identification, daily and monthly deposit limits, and a centralised self-exclusion system.

Ireland transitioned from legislative reform to an operational licensing process. A commencement order took effect February 5, 2026, and the Gambling Regulatory Authority of Ireland (GRAI) opened its operator portal on February 9. The first remote betting licences issued under the GRAI took effect July 1, 2026. The Gambling Regulation Act also provides for a Social Impact Fund, a National Gambling Exclusion Register, and advertising restrictions including a broadcast ban between 5:30 am and 9 pm, though these measures were not yet fully operational by mid-year.

Malta saw further legal proceedings around Article 56A of the Gaming Act, which aims to prevent enforcement of foreign court judgments against Malta-licensed operators. On April 23, 2026, an Advocate General at the Court of Justice of the European Union issued a non-binding preliminary opinion suggesting the Court should decline to rule on procedural grounds but indicating that on the merits the provision likely conflicts with EU law. A final ruling is pending, and the European Commission opened infringement proceedings in June 2025.

Netherlands implemented a gambling tax increase to 37.8% from January 1, 2026, up from 34.2% in 2025. New Remote Gambling Policy Rules 2026 require applicants to submit exit plans and anti-money laundering risk analyses. The regulator reported stagnant GGR growth at approximately €602 million for the second half of 2025, with only 53% of online spend channelised to licensed operators, raising questions about the impact of high taxes on channelisation.

Sweden broadened restrictions on credit-financed gambling from May 1, 2026, requiring licensees to prevent gambling with borrowed funds through a broader prevention obligation. New regulations on connecting to the Spelpaus self-exclusion register (SIFS 2026:3) take effect August 1, 2026, mandating use of specific APIs for identity verification.

United Kingdom saw Remote Gaming Duty rise from 21% to 40% effective April 1, 2026, with Bingo Duty abolished on the same date. The government expects the duty package to raise over £1 billion annually once fully implemented. A 25% rate for remote betting will apply from April 1, 2027, while remote bets on UK horse racing remain at 15%. The near-doubling of Remote Gaming Duty significantly alters the economics of UK online casino operations.

The Americas

Brazil adjusted its betting revenue allocation via a provisional measure in April 2026, directing 1% to a federal police fund in 2026, rising to 2% in 2027 and 3% thereafter. A June decree empowered the Secretariat of Prizes and Betting to order financial institutions and payment providers to block accounts linked to unlicensed fixed-odds betting operators, extending enforcement to financial infrastructure.

Canada (Alberta) operationalised its iGaming framework in H1 2026. Operators and suppliers first register with Alberta Gaming, Liquor and Cannabis (AGLC), then complete commercial onboarding with the Alberta iGaming Corporation. Licensed platforms may launch from July 13, 2026, pending completed applications and agreements. A centralised self-exclusion system is included.

Chile accelerated its online betting bill (No. 14.838-03) under 'suma urgencia' but had not passed it by end of June. A technical working group was preparing amendments. The bill covers licensing, taxation, responsible gambling, advertising, and financial transparency, following a September 2025 Supreme Court order to block illegal sports betting websites.

Colombia introduced a 16% national consumption tax on online gambling via Decree 0240, effective March 12, 2026. The taxable event occurs when a user deposits funds, but the tax base declared to DIAN is GGR. Operators must hold authorisation from Coljuegos. Enforcement obligations extend to payment providers and platform companies serving unauthorised gambling businesses.

Mexico implemented a sharp increase in the Special Tax on Production and Services on games with bets, rising from 30% to 50% effective January 1, 2026. Foreign digital providers without a permanent establishment in Mexico are taxed on total amounts received without deductions for prizes, creating a materially heavier burden for offshore operators.

United States saw federal deduction limits for gambling losses reduced to the lower of 90% of losses or winnings, effective from 2026. The slot machine W-2G reporting threshold increased from $1,200 to $2,000. The CFTC filed lawsuits in April 2026 against Arizona, Connecticut, and Illinois regarding regulation of prediction markets, arguing federal commodities jurisdiction over state gambling laws.

Asia, Middle East, Oceania, and Africa

India brought the Promotion and Regulation of Online Gaming Act 2025 into force on May 1, 2026, establishing a uniform national regime that prohibits online money games. The Online Gaming Authority of India was constituted. Esports and online social games may operate under registration requirements, but money games are banned. Payment systems and financial institutions must not facilitate prohibited transactions.

United Arab Emirates updated its Civil Transactions Law effective June 1, 2026, which continues to void gambling-related agreements. However, commercial gaming is separately regulated by the General Commercial Gaming Regulatory Authority (GCGRA), which holds exclusive jurisdiction over licensing and supervision.

New Zealand enacted the Online Casino Gambling Act 2026 on April 28, effective May 1, with supporting regulations made June 2 and effective July 3. Up to 15 brand-specific licences may be issued, each valid for up to three years with one renewal of up to five years. No entity may hold significant influence over more than three licences. The framework imposes strict limits on deposits, spending, time, and advertising, and prohibits credit, autoplay, and progressive jackpots.

Kenya moved from legislation to implementation under the Gambling Control Act 2025, issuing subsidiary regulations on June 30, 2026. Online platforms must use robust geolocation technology and provide real-time monitoring to the regulator via a secure API. Player data must be stored on servers in Kenya. Operators serving foreign markets require higher capital and must prevent Kenyan residents from accessing their services.

Conclusion

Across all regions, H1 2026 demonstrated a clear regulatory trend toward higher taxation, expanded licensing regimes, and enhanced financial and player-protection oversight. The second half of the year will see further implementation milestones and legislative developments as markets continue to evolve.