UK Tax Reform Could Force Gambling Operators to Hand Over Up to 100% of Revenue — Gibraltar Authorities

^{Pictured: Gibraltar/shutterstock.com}

In an official statement published on the Overseas Territory’s website, Gibraltar’s Minister for Justice, Trade and Industry, Nigel Feetham, expressed strong concern over the UK government’s decision to significantly increase taxes on the gambling sector. According to him, the reform will have a serious negative impact on Gibraltar’s economy.

Feetham stressed that the gambling industry is a “key component” of Gibraltar’s economic model: it accounts for around 30% of the territory’s GDP, employs more than 3,400 people, and contributes roughly one-third of total tax revenues. He added that gambling companies already pay around $1 billion annually into the UK budget.

The minister noted that Gibraltar had repeatedly warned the UK side about the risks associated with pushing the market toward illegal operators and reducing the effectiveness of tax collection.

He emphasized that Gibraltar actively opposed the proposed measures and attempted to influence London’s position, but those arguments “were not accepted.”

According to Feetham, internal calculations indicate that the share of operator revenues going toward taxes could rise dramatically under the new system. Previously, companies paid around 60–65% of their revenue in taxes. Under the reformed rates, this figure could increase to 80–100%, meaning that almost the entire revenue of a gambling operator might go toward tax payments.

The minister also stated that the debate around the UK’s tax reform has “moved beyond economic logic” and taken on an ideological character driven by the perception of online gambling as a source of social harm.

Earlier, the Gibraltar Gambling Commissioner also expressed concern over the UK government’s plans to raise taxes on the gambling industry.

Gambling Park reminds readers that starting April 2026, the tax rate for online casinos in the UK will nearly double — from 21% to 40%. For sports betting companies, the new rules will apply from April 2027, with the rate increasing to 25%, up from the current 15%.