Gib faces £40m hit due to UK’s increased online gaming duty 

The Gibraltar Government “conservatively” estimates that changes to UK online gambling duty could impact “at least” £40m of Government revenues in the 2026/7 financial year, the Minister for Justice, Trade and Industry, Nigel Feetham, said last week. 

Speaking on GBC’s Viewpoint, he said the new gaming duty, which came into effect on April 1, was expected to have a “significant” impact on Gibraltar. 

“Now, how significant is significant?” Mr Feetham said.  

“I think a conservative estimate, and this is certainly the estimate that we're working on, both as the Tax Ministry, the Gambling Commission, is that we expect, conservatively, to have an impact of at least £40 million of Government revenues.” 

Mr Feetham also revealed that when the Government closed the 2025/6 financial year on April 1, tax revenues were £252m, up from £212m in the preceding year which at the time was described as “exceptional”. 

“That is truly exceptional and that was not by accident,” Mr Feetham said. 

“That was an implementation of a carefully executed tax strategy.” 

Speaking on the same programme, GSD MP Roy Clinton, who shadows the public finance portfolio, noted the minister’s comments on the anticipated shortfall and said Gibraltar could face a problem because “the level of revenue is not guaranteed”. 

Mr Feetham, while highlighting new investments and potential for growth, said he was nonetheless concerned, especially should the UK look to introduce further tax changes. 

“I am concerned that the UK government might come back for more,” he said. 

“I am concerned that, you know, that they do come back for more and if they do come back for more, that that clearly causes an issue for Gibraltar.” 

“But let me say that, behind closed doors, I have made it absolutely clear to the UK Treasury that Gibraltar is in no position whatsoever to be able to take a second knock of the kind that we took in relation to the gaming sector.” 

“You can rest assured that we will fight Gibraltar's corner robustly.” 

The UK last year increased remote gaming duty from 21% to 40%, affecting online slots and roulette. Online sports bets will be subject to rates of 25%. 

The package of gambling tax changes announced in the UK Budget late last year is expected to raise about £1 billion for the UK public purse.