Alex Brookes and Callum Murphy: The UK gambling tax rise is economic self-harm – and Gibraltar is paying the price
Nobody voted for this.
Alex Brookes is Conservative Friends of Overseas Territories Director of External Affairs and Engagement. Callum Murphy is Conservative Friends of Overseas Territories Director of Campaigns.
The UK’s decision to dramatically increase gambling duties may be presented as a tidy fix to a domestic political problem. In reality, it is a textbook example of economically short-sighted policymaking – one that risks serious harm to Gibraltar, weakens the UK’s own tax base, and exposes a worrying lack of strategic thinking in Labour’s approach to the Overseas Territories.
Under the new regime, Remote Gaming Duty will rise from 21 per cent to 40 per cent by April 2026, with Online Betting Duty following shortly after. For a sector already subject to significant regulatory and fiscal pressure, this is not a marginal adjustment. It is a near doubling of costs, imposed with little regard for how the industry actually operates – or where it might go next.
That matters because Gibraltar is not a peripheral player in the UK’s online gaming market. It is central to it. Around 75 per cent of Gibraltar’s gaming sector is UK-facing, and through place-of-consumption taxes, Gibraltar-based operators already contribute approximately £750 million a year to the UK Exchequer. That is before accounting for wider economic activity, supply chains, or UK-based jobs supported by firms headquartered on the Rock.
Gaming is also fundamental to Gibraltar itself, accounting for around 30 per cent of GDP and 10 per cent of total employment. For a small, highly specialised economy, shocks of this magnitude are not easily absorbed. Jobs lost cannot simply be replaced overnight, and diversification – something successive UK governments have encouraged – takes time and investment.
Yet the policy seems blind to these realities. By sharply increasing duties on a compliant, well-regulated sector, the UK risks pushing activity offshore – not back to Britain, but into an unlicensed black market in less transparent jurisdictions, beyond UK regulatory reach. The tax rise risks empowering the worst actors in the market while weakening the best. The likely outcome is fewer protections for consumers, lower overall tax receipts, and a weakened position for the very standards ministers claim to support.
This is where the Government’s argument collapses. Gibraltar’s gaming sector is internationally recognised as a “gold standard” regulator. Its legal framework, consumer protections, and anti-money laundering standards are closely aligned with the UK’s own.
The 2025 Gambling Act further strengthens player protection, enforcement powers and regulatory transparency. Industry bodies such as the Gibraltar Betting & Gaming Association have invested heavily in responsible gaming initiatives, …
Nobody voted for this.
Alex Brookes is Conservative Friends of Overseas Territories Director of External Affairs and Engagement. Callum Murphy is Conservative Friends of Overseas Territories Director of Campaigns.
The UK’s decision to dramatically increase gambling duties may be presented as a tidy fix to a domestic political problem. In reality, it is a textbook example of economically short-sighted policymaking – one that risks serious harm to Gibraltar, weakens the UK’s own tax base, and exposes a worrying lack of strategic thinking in Labour’s approach to the Overseas Territories.
Under the new regime, Remote Gaming Duty will rise from 21 per cent to 40 per cent by April 2026, with Online Betting Duty following shortly after. For a sector already subject to significant regulatory and fiscal pressure, this is not a marginal adjustment. It is a near doubling of costs, imposed with little regard for how the industry actually operates – or where it might go next.
That matters because Gibraltar is not a peripheral player in the UK’s online gaming market. It is central to it. Around 75 per cent of Gibraltar’s gaming sector is UK-facing, and through place-of-consumption taxes, Gibraltar-based operators already contribute approximately £750 million a year to the UK Exchequer. That is before accounting for wider economic activity, supply chains, or UK-based jobs supported by firms headquartered on the Rock.
Gaming is also fundamental to Gibraltar itself, accounting for around 30 per cent of GDP and 10 per cent of total employment. For a small, highly specialised economy, shocks of this magnitude are not easily absorbed. Jobs lost cannot simply be replaced overnight, and diversification – something successive UK governments have encouraged – takes time and investment.
Yet the policy seems blind to these realities. By sharply increasing duties on a compliant, well-regulated sector, the UK risks pushing activity offshore – not back to Britain, but into an unlicensed black market in less transparent jurisdictions, beyond UK regulatory reach. The tax rise risks empowering the worst actors in the market while weakening the best. The likely outcome is fewer protections for consumers, lower overall tax receipts, and a weakened position for the very standards ministers claim to support.
This is where the Government’s argument collapses. Gibraltar’s gaming sector is internationally recognised as a “gold standard” regulator. Its legal framework, consumer protections, and anti-money laundering standards are closely aligned with the UK’s own.
The 2025 Gambling Act further strengthens player protection, enforcement powers and regulatory transparency. Industry bodies such as the Gibraltar Betting & Gaming Association have invested heavily in responsible gaming initiatives, …
Alex Brookes and Callum Murphy: The UK gambling tax rise is economic self-harm – and Gibraltar is paying the price
Nobody voted for this.
Alex Brookes is Conservative Friends of Overseas Territories Director of External Affairs and Engagement. Callum Murphy is Conservative Friends of Overseas Territories Director of Campaigns.
The UK’s decision to dramatically increase gambling duties may be presented as a tidy fix to a domestic political problem. In reality, it is a textbook example of economically short-sighted policymaking – one that risks serious harm to Gibraltar, weakens the UK’s own tax base, and exposes a worrying lack of strategic thinking in Labour’s approach to the Overseas Territories.
Under the new regime, Remote Gaming Duty will rise from 21 per cent to 40 per cent by April 2026, with Online Betting Duty following shortly after. For a sector already subject to significant regulatory and fiscal pressure, this is not a marginal adjustment. It is a near doubling of costs, imposed with little regard for how the industry actually operates – or where it might go next.
That matters because Gibraltar is not a peripheral player in the UK’s online gaming market. It is central to it. Around 75 per cent of Gibraltar’s gaming sector is UK-facing, and through place-of-consumption taxes, Gibraltar-based operators already contribute approximately £750 million a year to the UK Exchequer. That is before accounting for wider economic activity, supply chains, or UK-based jobs supported by firms headquartered on the Rock.
Gaming is also fundamental to Gibraltar itself, accounting for around 30 per cent of GDP and 10 per cent of total employment. For a small, highly specialised economy, shocks of this magnitude are not easily absorbed. Jobs lost cannot simply be replaced overnight, and diversification – something successive UK governments have encouraged – takes time and investment.
Yet the policy seems blind to these realities. By sharply increasing duties on a compliant, well-regulated sector, the UK risks pushing activity offshore – not back to Britain, but into an unlicensed black market in less transparent jurisdictions, beyond UK regulatory reach. The tax rise risks empowering the worst actors in the market while weakening the best. The likely outcome is fewer protections for consumers, lower overall tax receipts, and a weakened position for the very standards ministers claim to support.
This is where the Government’s argument collapses. Gibraltar’s gaming sector is internationally recognised as a “gold standard” regulator. Its legal framework, consumer protections, and anti-money laundering standards are closely aligned with the UK’s own.
The 2025 Gambling Act further strengthens player protection, enforcement powers and regulatory transparency. Industry bodies such as the Gibraltar Betting & Gaming Association have invested heavily in responsible gaming initiatives, …
