Gibraltar Minister Takes UK Gambling Tax Case to Farage and Reform Ahead of Budget

^{Gibraltar's Trade and Industry Minister, Nigel Feetham, has taken his case against higher UK gambling taxes to Reform UK's leadership ahead of the 28 October Budget. (Photo: Malcolm Tredinnick / Wikimedia Commons)}

Gibraltar's Trade and Industry Minister, Nigel Feetham, has met Reform UK leader Nigel Farage, Shadow Chancellor Robert Jenrick and MP Andrew Rosindell to warn that further UK gambling tax increases would damage the gaming sectors of both Gibraltar and the UK. The talks come days before the 28 October Budget, where operators fear a Machine Games Duty rise.

Feetham Takes the Message Across Party Lines

The meeting was reported on 25 October by GBC News, Gibraltar's public broadcaster. It forms part of what the broadcaster describes as the minister's ongoing engagement with UK political parties, aimed at highlighting what higher taxes could mean for Gibraltar's gaming industry, the jobs it supports and the wider local economy.

In a statement carried by GBC News, Feetham said:

With the UK Budget approaching, I have been making the case across the political spectrum to ensure that the potential consequences of further gambling tax increases for Gibraltar are fully understood. I have a responsibility to ensure that Gibraltar's interests are represented and that our message is heard loud and clear by all political parties.

Earlier in the week, Feetham hosted a gaming breakfast in London with industry chief executives and invited MPs from the main UK parties to attend, according to the same report. A Government of Gibraltar post on LinkedIn said it was the first time representatives of all three main parties had come together to address a gaming industry audience on the tax increases. Speakers included Gareth Snell MP, Wendy Morton MP and Andrew Rosindell MP.

SBC News described Farage as a prominent ally of the industry on the issue, often repeating the argument that further gambling tax increases would damage the UK economy. The outlet reported that Reform's leader was welcomed by senior Gibraltar officials to discuss ways of limiting the impact of a possible increase.

Why Gibraltar Is Watching the Budget Closely

Gibraltar has a direct stake in the outcome. SBC News noted that several of the biggest operators active in the UK run their business from the territory, including Entain, bet365, evoke, Kindred Group and LiveScore Group. The territory has argued its case before: it warned of a heavy blow to its online gambling sector after the tax rises announced in last year's Budget.

The size of any new increase remains unconfirmed. SBC News reported that Machine Games Duty currently stands at 20% and that reports conflict on how far it could rise, with some in the industry fearing a 40% rate and others expecting an increase of about five percentage points. Nothing is settled until the Chancellor delivers the Budget on 28 October.

Pressure for a rise has also come from within Parliament. Last week, 90 Labour MPs urged the Chancellor to create a higher Machine Games Duty rate for Category B machines, the type found in arcades and similar venues.

What Is at Stake for Venues and Jobs

SBC News said a hike would hit betting shops, adult gaming centres and bingo halls hardest, with industry estimates warning of thousands of job losses and hundreds of venue closures. It added that cost cuts at operators could lead to a similar wave of redundancies in Gibraltar, where the industry supports local jobs.

The industry has been making its own case in public. The Betting and Gaming Council questioned the evidence behind a £458m Machine Games Duty rise as the Budget neared, while individual operators have warned of closures if the duty goes up.

GBC's report did not say when the meetings took place. The Budget is due on 28 October.