Gibraltar’s Chief Minister has appealed directly to UK Treasury officials following confirmation of substantial tax increases on online gambling and sports betting. The territory warns that the new fiscal measures could significantly impact its economic stability and employment levels.
Gibraltar’s government has launched urgent diplomatic engagement with the UK Treasury following the announcement of sharp increases to remote gaming duty and general betting duty. Chief Minister Fabian Picardo met with UK Exchequer Secretary Dan Tomlinson just one day after the UK Budget confirmation, seeking measures to protect Gibraltar’s gaming sector from severe economic consequences.
Tax Changes Threaten Gibraltar’s Fiscal Base
The UK government plans to raise remote gaming duty to 40 percent in 2026 and increase general betting duty in 2027. Under the point-of-consumption tax model, Gibraltar-based operators pay UK tax on their British customer base, meaning the rate increases will directly reduce corporate tax income and PAYE revenues flowing to Gibraltar’s treasury.
Minister for Justice, Trade and Industry Nigel Feetham KC warned that the decline in gaming-related revenue could weaken essential public services and create sustained fiscal pressure. Financial modeling is now underway to assess the full budgetary impact, with consultations planned with affected operators to monitor business responses throughout the transition period.
Chief Minister Stresses Regulatory Excellence
In his meeting with Exchequer Secretary Tomlinson, Chief Minister Picardo emphasized Gibraltar’s gaming sector operates under transparent, well-regulated conditions that frequently exceed international standards. He stressed that the new tax structure could disproportionately affect Gibraltar through multiple revenue channels, including losses in PAYE contributions, social insurance payments, and corporate taxation.
“The Government will continue engaging with the UK in efforts to refine the measure and safeguard the sector’s stability and employment,” Picardo stated following the Treasury meeting.
Diversification Strategy Under Development
Gibraltar authorities are now evaluating alternative economic pathways to reduce long-term dependence on iGaming revenue. The government is assessing potential growth in sectors including artificial intelligence, blockchain technology, and digital services.
Feetham acknowledged that reduced tax income may force difficult decisions, including potential job cuts that would further contract the territory’s tax base. Officials view economic diversification as essential to building resilience against single-industry volatility.
In the coming months, Gibraltar’s government will outline formal proposals for economic development beyond the gaming sector, including evaluation of incentives designed to accelerate investment in strategic alternative industries.
Source: GBC
