Gibraltar’s Economy Could Suffer from Rising Gambling Taxes in the UK

^{Pictured: Andrew Lyman, Head of the Gibraltar Gambling Commission}

Andrew Lyman, Head of the Gibraltar Gambling Commission, has voiced concern over the UK government’s plans to raise taxes on the gambling industry. As a British Overseas Territory and a major hub for companies serving the UK gambling market, Gibraltar’s economy is directly affected by changes to Britain’s tax policy.

Speaking publicly on the issue for the first time, Lyman posted a statement on LinkedIn, warning that a sharp tax increase could reduce operator profits and drive some companies out of the market.

According to Lyman, any increase in the online gambling tax should be limited to 4–5 percentage points, as higher rates could have serious consequences for the sector.

The UK Treasury is currently preparing a new budget that includes plans to reform gambling taxation. The proposal would merge existing tax bands across different types of gambling and set a single rate of around 21%, up from the current range of 15–21%. Some think tanks have gone further, suggesting the government should raise the online gambling tax to 40% and the rate on gaming machines to 50%.

Lyman stressed that excessive tax increases could harm Gibraltar’s economy, where the gambling sector remains a cornerstone industry — generating a significant share of local tax revenue and employment. Major UK operators such as Betfred, BetVictor, and Bet365 are headquartered in Gibraltar and collectively contribute around £750 million (nearly $1 billion) annually to the UK Treasury.

Lyman emphasized that London’s backing of Gibraltar should prioritize maintaining stable business conditions rather than intensifying tax pressure.