How a tax hike in the UK could hit Gibraltar’s casino and betting business

Pressure is building in the UK to raise gambling taxes again, and Gibraltar is once more in the blast radius. For high-risk operators, the point is simple: when London moves on duty rates, Gibraltar’s online gaming economy feels it.

1. A group of 90 Labour MPs has asked Chancellor of the Exchequer John Healey to raise the tax on gaming machines in the autumn Budget, due at the end of October. The proposal under discussion would increase Machine Games Duty from 20% to 40%.
2. The tax would hit machines used in betting shops and casinos, and the effect could reach large international groups that run major online gambling operations in Gibraltar while also operating betting shops and casinos in the UK.
3. The pressure comes after the previous Budget already approved a major increase in taxes on online gambling. According to reporting by GBC, the new proposals could lead to the closure of around 1,500 betting shops and 34 casinos in the UK.
4. Gibraltar’s Minister for Commerce and Industry, Nigel Feetham, said this shows how exposed the territory is to tax decisions made in London. He argued that Gibraltar needs to diversify its economy to reduce dependence on the UK market, saying he has spent significant time on international relations work to do exactly that.
5. Feetham said he will address the issue at a financial services lunch on Monday, where he plans to stress the need to strengthen Gibraltar’s ability to absorb external policy decisions it cannot control.

The broader tax package already on the table is not small. The UK government has moved the online gambling tax on remote casino and online slot profits from 21% to 40% from 1 April 2026, and online betting will move to 25% from 15% from 1 April 2027, with remote bets on British horse racing staying at 15%. The government says the reforms will bring in more than 1.000 million.