UK gaming tax rise puts ‘considerable pressure’ on Gibraltar operators, says GBGA 

The Gibraltar Betting and Gaming Association (GBGA) has warned that a sharp increase in UK remote gambling taxes will place “considerable pressure” on Gibraltar-based online operators and could drive customers towards unregulated markets.  

The association was reacting to the UK Government’s decision, announced in the Budget on Wednesday, to significantly increase Remote Gaming Duty and General Betting Duty for online operators. 

The GBGA said its earlier public statement ahead of the Budget had highlighted the risks that substantial tax increases would pose to Gibraltar’s remote gambling sector, including pressure on margins, investment decisions and staffing, as well as the risk of customer displacement to unregulated operators. 

“In our public statement ahead of the Budget, we highlighted the risks that substantial tax increases would pose to Gibraltar’s remote gambling sector,” it said in a statement on Wednesday. 

“We noted that such measures would directly affect margins, investment decisions, and staffing, and that they carried clear risks of displacement of customers towards unregulated markets.” 

“Those concerns were justified.” 

The GBGA said operators had modelled a range of scenarios but that “the final package announced today is more severe in its practical impact than many had anticipated”. 

“The combined effect of increased duties across online gaming and betting will require Gibraltar-based operators to reassess their UK-facing cost structures and operational plans.” 

According to the association, the implications for Gibraltar are significant, with the new duty levels placing “considerable pressure” on UK-facing operators headquartered on the Rock. 

It said reduced UK profitability would “inevitably feed through into Gibraltar”, with companies revising operational budgets, investment plans and staffing requirements, while smaller and mid-sized operators might face particular challenges as they assess the commercial viability of their current structures. 

Suppliers, technology partners and marketing channels are also expected to feel “downstream effects” as operators adjust their cost bases. 

The GBGA Board met on Wednesday to review the implications of the tax changes and coordinate next steps. 

“Members confirmed that the impact is substantial,” the association said. 

“Operators will now undertake detailed reviews of their UK-facing business lines and make the adjustments required.” 

The GBGA also pointed to the Office for Budget Responsibility’s acknowledgement that substantial increases in effective tax rates can lead to displacement towards unregulated operators, describing this as “a serious concern for the regulated market and for consumer protection more broadly”. 

“We will continue to update members and stakeholders as the situation evolves,” it added.