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UK Parliament discusses impact of gambling duty on Gibraltar
Concerns regarding the impact of the United Kingdom’s Remote Gaming Duty and the effects it is potentially to have on Gibraltar were raised in the UK Parliament, after which the UK Treasury acknowledged the issue, but did not go into much detail in its response.
The UK government has stated that those who are likely to be affected by the tax are remote gaming providers who are liable to account for Remote Gaming Duty. It stated that this duty applies to gaming over the internet, telephone, television, radio, or any other electronic communications or other technology for facilitating communication.
It continued that gambling operators who provide remote betting and are liable to account for General Betting Duty would also be affected, as this duty is charged on bets made with a bookmaker in UK premises or remotely by a person in the UK, regardless of whether the bookmaker is located outside of the UK.
Concerns regarding the impact on Gibraltar’s economy
Labour Party MP Gareth Snell asked the Chancellor of the Exchequer, responsible for the UK Treasury, what discussions had taken place with Gibraltar’s government regarding the potential impact on Gibraltar’s economy following the announcement of the Remote Betting Duty.
Exchequer Secretary Dan Tomlinson replied on behalf of the Chancellor and said that the increase in gambling duties is expected to raise more than £1 billion a year for the UK, and further confirmed that discussions with Gibraltar had occurred after the UK Budget announcement. He commented that the money raised through the increase in duties would be utilised to support public finances and forms part of the government’s “ambition to create a fair, modern, and sustainable tax system”.
“The government understands that Gibraltar has a gambling industry that faces the UK, and engaged with representatives of the government of Gibraltar following the Budget and will continue to monitor all impacts of these changes,” Tomlinson remarked.
In its description of the measure, the UK government stated that the rate of the Remote Gaming Duty is set to increase from 21% to 40% starting from 1 April 2026. It continued that a new rate of the General Betting Duty will then be introduced for general bets which are made remotely starting from 1 April 2027, where the remote rate of 25% will apply to all remote betting, with the exception of remote bets on UK horseracing. It also clarified that bets placed through self-service betting terminals on licenced betting premises will not be treated as being placed remotely, and will therefore remain subject to a 15% rate.
Why this really matters for Gibraltar
The reason why this is all so important to Gibraltar is because gaming makes up around 30% of Gibraltar’s economy, with Gibraltar’s gaming industry being particularly UK-focused. The gaming industry in Gibraltar reportedly employs over 3,400 people and generates around a third of government tax receipts, in addition to accounting for around 30% of Gibraltar’s GDP.
Nigel Feetham, Gibraltar’s Minister for Justice, Trade, and Industry, had addressed the government of Gibraltar in reaction to the UK’s decision to go forward with its increases in the gambling duties. During his address, Feetham described the matter as “an issue of vital importance to Gibraltar and one that may directly and indirectly affect our public revenues”. He added that his ministry had spent a substantial amount of time and effort lobbying in the UK and going over the potential local consequences to the UK Treasury.
Feetham remarked that Gibraltar’s gaming industry is “well-regulated and world-leading”, as he continued that businesses are dual-regulated and pay taxes in both Gibraltar and the UK. “There is no way of sugar-coating this,” Feetham said. “We did not ask for these measures. We lobbied strongly against them, and, frankly, there was very little more that we could have done.”
He said that he has been in discussion with Gibraltar’s Gambling Commissioner on how best to grow non-UK business, “both to diversify our exposure and to open new markets for Gibraltar”. Feetham commented that this work is being done so that Gibraltar can move to capture opportunities beyond the UK and therefore strengthen the gaming sector’s long-term resilience.
With that said, he stated that no new economic activity can realistically immediately replicate the success which the industry had experienced prior.
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