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UK Gambling Tax Rise Costs Gibraltar £40m in Revenue

Gibraltar’s government expects to take a £40 million hit to public finances following the UK’s increase in online gambling duties from 21% to 40% on the 1st April 2025. Minister for Justice, Trade and Industry Nigel Feetham spoke on GBC’s Viewpoint, describing the impact as ‘significant’. He said officials were working on a ‘conservative’ estimate of at least £40 million in lost government revenues during the 2026/27 financial year.

Claudia Hartley
Claudia Hartley
Betting & Casino Writer
Chad Nagel
Sports Betting & Casino Editor

2 minread

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UK Gambling Tax Rise Costs Gibraltar £40m in Revenue

UK Gambling Tax Rise Costs Gibraltar £40m in Revenue

£40m Revenue Impact From UK Duty Changes

‘Now, how significant is significant?’ Feetham said during the programme. ‘A conservative estimate… is that we expect, at least, an impact of £40 million on government revenues.’

The projected figure follows the UK’s decision to increase remote gaming duties, affecting many gambling companies based in Gibraltar, but operating in the UK market.

Despite the anticipated loss, Feetham said Gibraltar’s finances remain strong, with record tax revenues helping offset the immediate impact.

Record Revenues Help Offset Loss

While £40 million is undoubtedly a large tax bill, government revenues for the 2025/26 financial year reached £252 million, up from £212 million the previous year. This was an exceptional year, and Feetham explained that it did not happen ‘by accident’ but was rather a very carefully executed tax strategy.  

However, concerns remain about Gibraltar’s reliance on the online gambling sector and the stability of future revenues. With so much of Gibraltar’s industry relying on an industry that’s taken such an increase in tax, there could be trouble on the horizon.

Concerns Over Further UK Tax Changes

Opposition GSD MP Roy Clinton, who shadows the public finance portfolio, warned that Gibraltar could face difficulties if revenue declines further.

Feetham said that he was ‘concerned that the UK government might come back for more’. Though explained that Gibraltar has already communicated its position to UK authorities.

‘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,’ Feetham said. ‘You can rest assured that we will fight Gibraltar’s corner robustly.’

Claudia Hartley
Claudia HartleyBetting & Casino Writer

Claudia Hartley is a versatile content writer and editor with a strong footing in digital publishing, particularly within the iGaming and affiliate space. With nearly a decade of experience, she has built a reputation for producing clear, engaging, and well-researched content that connects with readers while meeting SEO goals.

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