An increase in UK gambling taxes could directly and indirectly affect Gibraltar’s public revenues, a government minister from the British Overseas Territory has warned.
In a ministerial statement, by the Minister for Justice, Trade and Industry, Hon. Nigel Feetham KC described the issue as being “of vital importance to Gibraltar” as the country is described as being an “international centre of excellence for online betting and gaming for decades.”
It was on November 26 when the Chancellor of the Exchequer in the UK announced the Autumn Budget which included pushing remote gaming duty to 40 per cent from the current 21 per cent, starting in April 2026. There was also the creation of a new 25 per cent general betting duty for online gambling which is to come into action from April 2027.
Now, there is concern rising in Gibraltar, which is located on Spain’s south coast. The country has its own parliament and is self-governing, but an overlap in businesses has been highlighted within the statement as the MP said “Our businesses are dual-regulated in Gibraltar and the UK and they pay taxes in both Gibraltar and the UK. This sector is a Gibraltarian success story of which we should be proud.”
How does the UK budget affect the gambling industry in Gibraltar?
Within the speech, the MP explains how gambling taxes are a top-line tax charged on revenue and stresses that it “should not be confused with bottom line profit.”
“Madam Speaker, it also goes without saying that this development impacts the vital work we have undertaken over the past two years on corporate tax reform, which we have referred to as Gibraltar’s ‘National Tax Strategy’, a strategy I have explained on many occasions inside and outside this House.”
The company’s tax revenue generated within this area helps to fund public services, health care and education, and to strengthen public finances, without increasing the burden on ordinary working people.
It has been described that the level of corporate tax and PAYE revenue at risk in Gibraltar will depend on the extent to which local operators can mitigate the increased gambling tax costs. Raising tax in the UK imposes higher costs on Gibraltar gaming businesses and reduces the amount ultimately paid in corporate tax in Gibraltar. If part of that mitigation involves reducing jobs, this would, in turn, have a direct impact on PAYE receipts.
The change in gambling tax came after the minister said they had spent months lobbying in the United Kingdom and had clearly set out the potential consequences of such a decision.
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The post Gibraltar MP suggests UK gambling tax hike could impact its online gaming sector appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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