CM presses UK minister over ‘gold standard’ gaming industry after tax rise 

Chief Minister Fabian Picardo used a meeting at HM Treasury with Exchequer Secretary Dan Tomlinson to advocate for Gibraltar’s “gold standard” gaming industry after the UK Government announced that it will increase duty on remote gaming from 21 to 40 percent.  

Mr Picardo thanked Mr Tomlinson for agreeing to meet less than a day after the UK Chancellor confirmed the increase, and for holding earlier discussions with the Minister for Justice, Trade and Industry, Nigel Feetham, in the build-up to Wednesday’s UK Budget. 

The Chief Minister said Gibraltar had already gone further than required on transparency and regulation, but warned that although the measure also affects other jurisdictions, the impact could fall disproportionately on the Rock through reduced PAYE, social insurance and corporate tax revenue. 

During their meeting, the ministers noted that some campaigners, including former UK Prime Minister Gordon Brown, had been calling for an even higher tax rise, that share prices in major gaming companies had recovered after an initial drop, and that industry publications were quickly highlighting the risk of job losses. 

“I’m glad I was in London for the Joint Ministerial Council with Nigel Feetham and was able to see Exchequer Secretary, Dan Tomlinson,” Mr Picardo said. 

“I shared with him the concerns of HM Government of Gibraltar in respect of the increased tax on online gaming companies.” 

“We discussed the concerns of the Gaming industry, including the fear that the measure will push many people in the UK to the unregulated online gaming sector.” 

“We agreed to continue speaking to HM Treasury and, if necessary, I hope to be able to convince His Majesty’s Government in the UK of the need to improve the measure, as announced.” 

“I want to also acknowledge the excellent work done by Nigel Feetham in the run up to the Budget announcement and which has undoubtedly been one of the factors that has resulted in a lower rate of tax/duty being imposed than some campaigners were seeking, which was in the region of 50%.”