SkillOnNet has revealed it is in “various discussion with multiple parties” to potentially acquire UK-facing operators following the Autumn Budget’s hike in remote gaming duty to 40%.
Chancellor Rachel Reeves sent shockwaves through the industry last month when she revealed remote gaming duty would rise from 21% to 40% next April.
The Budget also included a hike in general betting duty from 15% to 25% come April 2027.
The duty changes have led to concerns that some smaller operators may be forced to exit the market given the arduous tax burden.
Speaking to EGR, SkillOnNet senior vice-president of corporate development Maor Nutkevitch said the PlayOJO operator could act as a consolidator in the market.
SkillOnNet runs upwards of 50 casino brands in the UK, including flagship entity PlayOJO and the recently relaunched Megaways Casino.
Nutkevitch said: “We are already in various discussions with multiple parties in the UK that are reassessing their strategic position ahead of the new tax framework.
“The level of urgency differs between operators: some are considering exits ahead of April, which naturally accelerates timelines, while others are evaluating longer-term options and are not bound to the tax implementation date.
“We don’t believe every opportunity needs to close before April – some will, and some won’t. What matters is strategic fit, regulatory alignment and ensuring a smooth, responsible transition for players.
“The market is entering a consolidation phase, and we intend to engage thoughtfully rather than rush deals purely due to timing.”
Nutkevitch suggested that smaller assets, should they be acquired, could be absorbed into an existing brand such as PlayOJO.
Larger operators would more likely be retained thanks to brand legacy, with their backends migrated onto the SkillOnNet stack.
He explained: “There is no one-size-fits-all answer – the structure will follow the brand’s strength and the logic of the deal.
“We are highly experienced in operating and marketing multi-brand portfolios, tailoring the value proposition, CRM and marketing strategies to each brand’s positioning and customer base.”
Any operator with a sportsbook would likely have the proposition culled, with SkillOnNet firmly a casino-first entity.
With the operator being more exposed to remote gaming duty hikes than a mixed-product business, Nutkevitch said that past experience would allow the firm to succeed.
He continued: “Internally, the reaction was basically: this is tough, but it’s not new territory for us.
“We immediately stress-tested our UK models, re-prioritised product and marketing plans, and started looking at how we could use our proprietary platform, disciplined marketing engine and operational efficiency to protect profitability without compromising on compliance or player value.
“This was not only to safeguard the business in the short term but also to put ourselves in a position to take market share while remaining fundamentally bullish about the long-term prospects of the UK market.”
While the tax hikes provide consolidation opportunities, they will also lead to black market growth, Nutkevitch warned.
He said: “There is a very real risk of player channelisation towards black market operators that do not pay tax, do not invest in safer gambling and do not operate under Gambling Commission oversight.
“We hope the Commission will take proactive steps to limit this shift because the combination of a tax hike and a shrinking regulated market would represent a double whammy for licensed operators that remain committed to compliance.
“For SkillOnNet, our sustainable bonus philosophy is somewhat already aligned with the direction the market is moving. Combined with our platform, our long UK track record and our readiness to support responsible consolidation, we see clear opportunities to grow share as the landscape evolves.”
The post SkillOnNet exploring UK M&A opportunities ahead of online casino tax hike first appeared on EGR Intel.
PlayOJO operator says its scale and know-how will allow it to absorb remote gaming duty increase to 40%, with business positioning itself as a consolidator
The post SkillOnNet exploring UK M&A opportunities ahead of online casino tax hike first appeared on EGR Intel.