UK Govt pressed again in Commons on Gib impact of new gaming tax 

The UK Government was pressed again this week on the impact of new gambling taxes on Gibraltar’s economy. 

Chancellor Rachel Reeves announced a steep increase in online gambling tax last November, targeting a sector she said was associated with the “highest levels of harm” to consumers.   

In a Budget statement that month, Ms Reeves said she was reforming gambling taxes in response to the rise in online gambling, announcing an increase in remote gaming duty from 21% to 40% and on online betting from 15% to 25%. 

The decision was met with grave concern in Gibraltar, amid fears the UK increase could impact the Rock’s UK-facing gaming sector disproportionately and have a devastating effect on the local economy.   

On Thursday, Labour MP Gareth Snell asked the Chancellor what discussions she had had with the Gibraltar Government about the impact of the UK tax hike on Gibraltar, an issue that Nigel Feetham, the Minister for Justice, Trade and Industry, has raised on numerous occasions in recent months both with UK ministers and MPs. 

The response from Dan Tomlinson, the Exchequer Secretary to the Treasury, was non-committal. 

“Increasing gambling duties will raise over £1 billion per year to support the public finances and forms parts of our ambition to create a fair, modern and sustainable tax system,” Mr Tomlinson said. 

“The Government understands that Gibraltar has a gambling industry that faces the UK, and engaged with representatives of the Government of Gibraltar following the Budget and will continue to monitor all impacts of these changes.” 

The response in the Commons came in a week when William Hill and 888 owner Evoke said it had moved “quickly and decisively” to offset the recent budget changes through shop closures and cost cuts as it continued to look at a possible sale of the group. 

The company, which launched a strategic review in December after Ms Reeves announced tax hikes for online gambling firms, said it had taken action to mitigate the hit from the November budget, including shutting retail betting shops and group-wide cost savings. 

Debt-laden Evoke said last year that changes to online gaming duties and a new online sports betting tax would see its duty costs rise by up to £135 million a year from 2027. 

Evoke previously said it expects to offset around half of the impact of the tax increases through store closures and also measures including potential “changes to the customer proposition” and supplier savings. 

“We were very disappointed with the outcome of the UK budget in November that dealt a significant blow to both Evoke and the wider regulated industry,” said Per Widerstrom, chief executive of Evoke. 

“We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market.” 

“As a result of these significant UK tax increases, the board is assessing its strategic options, with a resolute focus on maximising shareholder value.” 

 “We have moved quickly and decisively to execute on our mitigation plans including the closure of retail stores that are no longer sustainable as well as broader cost savings, and we will update shareholders on our progress and updated strategic plan in due course.”