Gibraltar must maintain a pragmatic approach and set priorities that help companies registered in its jurisdiction withstand the impact of the UK’s new taxes on online gambling. This was the message delivered in parliament by Gibraltar’s Minister for Trade and Industry, Nigel Feetham. He also presented a preliminary assessment of how the UK’s 2026 budget will affect the British Overseas Territory.
Feetham made no bones on the significance of the increase in Remote Gaming Duty (RGD) from 21% to 40% on 1 April 2026 and General Betting Duty from 15% to 25% effective April 2027.: “This is an issue of vital importance to Gibraltar and one that may directly and indirectly affect our public revenues.”
Before the budget was published, the Gibraltar government had warned Chancellor Rachel Reeves and the UK administration about possible economic repercussions. There was also lobbying activity “clearly outlining to the UK Treasury the potential local consequences of such a decision.”
Gibraltar stressed that gambling is not a niche sector in its economy, but an industry actively developed since the 1990s. Some local companies have grown into global leaders. The contribution of gaming licences is clearly visible in Gibraltar’s budget.
Gambling licences contribution is easily viewed in the bottom-line of Gibraltar accounts as “ the online betting and gaming sector is a vital pillar of our economy. It accounts for approximately 30% of our GDP, employs more than 3,400 people, and generates around one-third of our tax receipts, through a combination of corporate income tax, personal income tax, social insurance and local gambling duties.”
The minister warned that the UK’s new tax policy will immediately reduce the margins of operators based in Gibraltar. They already pay substantial point-of-consumption taxes in the UK – about £750 million annually.
According to industry analysts, the effective tax rate on profits could rise from 60–65% to 80–100%, which would severely limit profitability and reduce the volume of corporate and PAYE taxes flowing into Gibraltar.
Feetham stated that this development “risks undoing the progress achieved” through Gibraltar’s National Tax Strategy and could impact employment levels and business investment if operators are forced to restructure.
He further urged that gambling’s central role be factored into all future economic planning, emphasising that decisions on fiscal policy, diversification, and public spending “must consider the real and immediate impact on this cornerstone industry.”
Acknowledging the scale of the challenges, Feetham admitted that Gibraltar will have to shift to a “Plan B” and adapt its online gambling development strategy. However, he noted that “no sector can replace gambling overnight” and emphasized the government’s intention to diversify risks associated with the UK market and expand its international presence.
In this context, the minister confirmed that he has instructed officials to accelerate the search for opportunities beyond the UK, strengthening Gibraltar’s status as a technologically advanced and well-regulated global hub for online gaming.
Feetham highlighted the importance of reaching consensus among parliament, regulators, and the industry regarding Gibraltar’s future direction. This includes enhanced cooperation with the Financial Services Commission (FSC) and the Gibraltar Regulatory Authority (GRA) to modernize regulation and encourage innovation.
“We must remain united, confident, and pragmatic,” Feetham said. “By focusing on innovation, skills and smart regulation, we can broaden our economic base, generate new revenue streams and secure long-term prosperity.”
The minister concluded by confirming that Gibraltar’s new Gambling Act will be a key component of its response to external tax pressure. The legislation is designed to modernize regulation, foster innovation, and increase market resilience. It will form the foundation of Gibraltar’s strategy to remain competitive.
The Gambling Bill 2025 was officially published in June 2025 and aims to update the 2005 Act, granting new powers for licensing and regulating online gambling services under a modern risk-based framework.
The law expands licensing criteria to cover key online gambling services and technologies: customer support, marketing, CRM, game providers, software suppliers, platform services, holding structures, and other segments. These changes are part of a broad reform package aimed at meeting FATF and MONEYVAL recommendations on transparency – requirements that were essential for Gibraltar’s removal from the FATF grey list in 2024.
In conclusion, Feetham described the bill as “a continuation and evolution” of Gibraltar’s regulatory framework – one that must now adapt to protect jobs, revenue, and reputation amid rising international uncertainty.
“This legislation will future-proof Gibraltar’s position as a trusted, well-regulated and forward-looking gaming jurisdiction,” Feetham told Parliament. “It will support the diversification of our markets, reinforce consumer protection, and ensure that Gibraltar continues to set the global standard for responsibility and integrity in gaming.”
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