Warnings About Tax Rise Consequences on Gibraltar Gambling

by James Gibson, 4 December 2025

Gibraltar minister expresses concerns about UK gambling tax rises and the potential effects on Gibraltar.

Calls for Gibraltar to do things differently amid UK tax rises. © lutz6078, Pixabay

Key Facts:

• UK gambling tax increases could affect Gibraltar’s public finances
• A minister has urged the Gibraltar parliament to do things differently
• There are concerns that tax rises could undo work on corporate tax reform

Nigel Feetham KC MP, who is Gibraltar’s Minister for Justice, Trade and Industry, has addressed the Gibraltar parliament with concerns about UK gambling tax rises. He’s concerned about how the increases in taxation could directly and indirectly affect Gibraltar.

UK Gambling Tax Rises

This announcement comes shortly after Chancellor Rachel Reeves unveiled the Autumn 2025 Budget. This includes an increase in remote gaming duty for online casinos from 21% to 40%, which is due to take effect in April 2026.

The budget also includes an increase in general betting duty from 15% to 25%. This change isn’t due to be introduced until April 2027. Both tax rises could have serious consequences for the gambling industry.

Many gambling businesses are already based in Gibraltar due to its more favourable corporate tax rates. However, they still pay taxes on revenue earned from people in the UK. Gibraltar-based gambling companies pay roughly £750 million a year in UK taxes.

Doing Things Differently

When addressing Gibraltar’s parliament, Feetham told officials that the British Overseas Territory should start to do things differently. This is so Gibraltar can avoid being negatively affected by the tax increases.

He remarked how Gibraltar has been an

international centre of excellence for online betting and gaming for decades, ever since the development of [its] gold standard regulatory framework for the sector in the 1990s– Nigel Feetham KC MP, Gibraltar Minister Praises Gibraltar While Discussing UK Tax Rises, FocusGN

UK gambling tax increases could have a significant effect on corporate tax reform. This is something that the Gibraltar government has been working on for the past two years and is vital for the gambling sector.

Feetham also commented on how gambling tax is charged on revenue and shouldn’t be mixed up with bottom line profit. Effective tax rates were estimated to stand at 60% to 65% for gambling companies.

Some estimations suggest that when gambling tax increases start applying, gambling companies could face effective tax rates of anything between 80% to even 100%. This could mean less money is able to go to good causes.

In Gibraltar, gambling industry revenue contributes vital sums of money towards education, healthcare and public finances. Feetham has warned parliament that gambling companies might not be able to deal with tax rises well.

He said that if companies start reducing job numbers, this could affect PAYE contributions, which in turn would have an effect on money for public benefit. Ideally, companies should be able to bear the brunt without letting staff go.

A Plan B

Gibraltar has spent the last few months lobbying UK officials about potential gambling tax increases. Now that the Chancellor has confirmed the rise in gambling tax, Gibraltar is looking for a different course of action.

Feetham said that gambling is a very important industry for Gibraltar and that it can’t be replaced quickly. Gibraltar has already had to contend with major issues, including Brexit, the COVID-19 pandemic, and the current cost-of-living crisis.

Gibraltar has made adjustments to address these challenges and, with tax rises confirmed, will do things differently simply because it has to. Feetham said the rises weren’t good news at all.

The minister highlighted a few other options Gibraltar can focus on to help it deal with the upcoming tax rises. These include offering more support for blockchain and AI services, as well as developing frameworks to foster growth in technology services.

He said that

by focusing on innovation, skills and smart regulation, we can broaden our economic base, generate new revenue streams and secure long-term prosperity for Gibraltar at a time when other areas of our economy will be impacted by the recent UK Budget changes – Nigel Feetham KC MP, Gibraltar Minister Discusses Gibraltar’s Financial Options, FocusGN

In short, Feetham believes Gibraltar should have favourable regulations in place so it can attract valuable businesses. Not just gambling ones, but businesses in various other growing sectors as well.