Gibraltar Responds to UK Gambling Tax Increase
Gibraltar is reviewing its economic strategy after the UK confirmed higher taxes on online gambling and sports betting. Officials warn that these changes may reduce fiscal stability and weaken the territory’s revenue base. As a result, the government now considers new growth sectors to limit long-term dependence on iGaming. The administration expects a challenging adjustment period as the new tax measures take effect.
UK Tax Rise Creates Economic Pressure
The UK plans to raise remote gaming duty to 40 percent in 2026 and increase general betting duty in 2027. These changes affect Gibraltar-based operators, because they pay UK tax under the point-of-consumption model. As a result, the updated rates cut into Gibraltar’s corporate tax income and reduce PAYE inflows.
Officials say this decline could weaken essential public services and create longer-term fiscal stress. Moreover, they view the updated tax plan as a structural shift that requires careful planning. Local authorities will now run new financial models to understand the full impact on the budget. They also intend to consult with affected operators to monitor business responses throughout the transition.
Government Looks for New Economic Pathways
Gibraltar’s Minister for Justice, Trade and Industry, Nigel Feetham KC, says the territory must prepare for lower gaming revenue and plan a broader economic base. Therefore, the government is assessing sectors such as AI, blockchain and digital services as potential alternatives. Feetham notes that reduced tax income may force difficult decisions, including job cuts that would further shrink the tax base.
Even so, officials see diversification as the most realistic way to avoid overreliance on one industry. The shift marks a decisive moment for the territory’s future strategy. In the coming months, decision-makers will outline proposals to guide the next stage of economic development. Authorities also plan to evaluate incentives that could accelerate investment in new strategic sectors.