Gibraltar Looks Beyond UK as Rising Gaming Taxes Increase Pressure

Gibraltar is stepping up efforts to attract gaming companies serving international markets as rising gambling taxes in the United Kingdom put increasing pressure on operator profits, employment and government revenues in one of the territory’s most significant economic sectors.

More than 75% of Gibraltar’s gross gaming yield is generated by business connected to the UK market, leaving the territory particularly vulnerable to regulatory and tax changes introduced by the British government. Gibraltar’s government has previously estimated that the latest UK gambling tax reforms could eventually reduce the territory’s corporate tax receipts by approximately £40 million (US$53.8 million).

The pressure intensified on April 1, when the UK increased Remote Gaming Duty from 21% to 40%. A new 25% Remote Betting Rate is also scheduled to apply to most online sports betting from April 2027.

Gibraltar’s Minister for Justice, Trade and Industry, Nigel Feetham, said the territory had warned the UK government that the tax changes would have consequences on both sides of the border.

Feetham said the initial effects were already beginning to appear, although the full consequences were expected to become more evident later in the financial year, when declining operator profitability begins to affect corporate tax receipts.

In response, Gibraltar is expanding its international engagement and looking to attract gaming businesses with a larger proportion of their revenues coming from markets outside the UK.

Feetham recently travelled to Alberta, Canada, where he met with government officials and regulators to discuss areas including gaming licensing, access to regulated markets and cooperation between regulatory authorities.

Alberta launched its competitive online gambling market for private operators in July, becoming the second Canadian province, after Ontario, to establish a regulated framework allowing multiple operators to compete in the market.

The Alberta visit is part of Gibraltar’s broader effort to deepen relationships with international regulators, gaming operators and technology companies while reducing the territory’s reliance on gaming activity linked to the UK.

Gibraltar continues to be one of the established global centres for online gambling and hosts a range of major international operators and industry suppliers. The gaming sector is also a significant contributor to employment and public revenues, meaning any deterioration in operator profitability could have broader economic implications for the territory.

UK-listed gambling companies have already started responding to the higher tax burden by cutting costs, reducing marketing spending and undertaking restructuring programmes.

Evoke, the owner of William Hill and 888, reported that gaming duties increased by £46 million ($61.9 million) year on year during the first half of 2026. Other operators have also warned that the financial strain could increase further once the new remote betting rate comes into effect next year.

The growing tax burden is consequently encouraging Gibraltar to accelerate its efforts to develop a more internationally diversified gaming industry, with the aim of generating a larger share of revenues from markets outside Britain.

With the possibility of additional UK tax increases remaining a concern, Gibraltar’s strategy is likely to become increasingly important as the territory seeks to safeguard jobs, attract investment and protect government revenues from the impact of changes in the British gambling market.

By fLEXI tEAM