Gibraltar has warned that the UK Government's proposed gambling tax increases could have a significant impact on the territory's economy following measures announced in the Autumn Budget affecting remote gaming and online betting.
Under the new framework, Remote Gaming Duty will rise from 21% to 40% from April 2026, while online betting duty will increase from 15% to 25% from April 2027. The measures directly affect Gibraltar-based operators serving the UK market, which authorities estimate already contribute around £750m ($993m) annually in UK gambling taxes.
The gaming sector accounts for approximately 30% of Gibraltar's GDP and employs more than 3,400 people, representing one of the territory's largest industries. It generates close to one-third of total tax receipts through corporate tax, personal income tax, social insurance contributions and local gambling duties.
Nigel Feetham KC MP, Minister for Justice, Trade and Industry, said: "It is bad news. We did not ask for these measures. We lobbied strongly against them. And frankly, there was very little more that we could have done."
Modelling by industry analysts indicates that the combined impact of the changes could raise the effective tax burden on gaming operators to between 80% and 100% of profits, up from an estimated 60% to 65% previously. The increases apply exclusively to online gambling, while retail gambling tax rates in the UK remain unchanged and retail bingo duty has been abolished entirely.
Government officials said they had held prolonged discussions with HM Treasury seeking alternative arrangements or a phased implementation. However, the UK authorities reportedly justified the policy by citing higher levels of gambling-related harm associated with online betting. The Autumn Budget measures are expected to raise £1bn for public services.
The announcement places additional pressure on Gibraltar's corporate tax reform programme, following record tax revenues reported earlier this year. Officials acknowledged that replacing income from the gaming sector will be difficult in the short term, particularly after the economic impact of Brexit and the Covid-19 pandemic.
The Government said it will accelerate efforts to grow non-UK-facing gaming business and has tasked the Gambling Commissioner with pursuing opportunities to diversify the economy beyond reliance on UK-facing operators.
Gibraltar formally cautioned Platinum Gaming after a UK regulator fine, highlighting tightened cross-border compliance scrutiny.
