Gibraltar to UK: ‘Bad Policy’ Gambling Tax Will Hurt Both Economies

 _{The Rock of Gibraltar remains a critical node in the global online gaming industry, home to major operators licensed under its strict regulatory regime. (Image: Nigel Feetham/Linkedin)}

As the UK government pushes ahead with its decision to raise the remote gaming duty from 21% to 25%, officials in Gibraltar have stepped up their warnings about the damage the move could cause to one of the territory’s most vital industries.

Chief Minister Fabian Picardo, Gambling Commissioner Andrew Lyman, and Minister Nigel Feetham have all reiterated that the tax hike, announced in the UK’s Autumn Statement, threatens jobs, tax revenue, and the long-standing regulatory relationship between Gibraltar and the UK.

“Before the Christmas break, I again raised Gibraltar’s serious concerns with the UK Government regarding the Budget increase in remote gaming duty and its potential impact on our economy, employment and public finances,” Picardo said.

“We will continue to engage constructively with the Treasury and provide evidence on the effects of these measures.”

Casinos.com reported on the warnings sounded by Gibraltar in early December 2025 when Minister for Justice, Trade and Industry Nigel Feetham told Parliament the decision to raise remote gaming duty from 21% to 40% and online betting tax from 15% to 25% will have direct consequences for Gibraltar’s economy, which depends heavily on UK-facing operators.  Gibraltar Warns of Heavy Blow to Online Gambling Sector After UK Budget Tax Hike

The UK Treasury has confirmed the bill will proceed without amendments, though it says it will monitor the impact.

Officials Cite Long-Term Consequences for Both Gibraltar and the UK

Two weeks after the Autumn Statement, concerns about the policy’s effects are deepening. Gambling Commissioner Andrew Lyman said the Gibraltar government “telegraphed very clearly” to the UK that “a disproportionately high rate of remote gaming duty would have significant implications for the Gibraltar economy, both in terms of jobs and corporate tax.”

Minister Nigel Feetham KC MP, who oversees both Gibraltar’s gaming and tax portfolios, has been central in that engagement. In a statement this week, he warned that

“dramatic tax increases are bad policy, destroying jobs, growing the illicit market, and undermining the economy and tax base of Gibraltar, whilst failing to raise the levels of the revenue the UK government expects.”

Feetham emphasized Gibraltar’s economic interdependence with the UK, arguing that a shock to Gibraltar’s gaming sector will “ripple to [the] UK and will, sooner or later, be felt by the UK Treasury.”

Industry Engagement Continues as Monitoring Begins

Despite the lack of changes to the current legislation, Gibraltar’s government says it will keep tracking the effects and working with both UK officials and local licensees.

“We will also continue our engagement with regulated gaming operators in Gibraltar to inform our assessment of potential impacts,” Picardo confirmed.