UK gambling tax reforms deliver significant blow to Gibraltar

In today’s UK Budget the Chancellor announced an increase in Remote Gaming Duty from 21% to 40% and a new Remote Betting Duty of 25% to replace the existing General Betting Duty at 15%.

This will impose hundreds of millions of pounds of costs on Gibraltar businesses, having a devastating impact on profits, jobs, and local tax payments that fund public services.

This is a severe overreach of the UK Government on Gibraltar and will have a severe and disproportionate impact on the territory. Remote gaming and online betting are sectors that make up a substantial part of Gibraltar’s modern economy.

There is no indication that the Government has considered how these decisions will affect the Overseas Territories.

Gibraltar’s government and experts related to the subject have been warning the UK Government for months on the impact these changes will have.

They have repeatedly highlighted the risks to employment, business stability and long-term investment should the UK proceed without appropriate carve-outs or mitigations. Despite this detailed and constructive engagement, Gibraltar’s concerns do not appear to have been reflected in the final package of reforms.

This week, London hosts the UK Overseas Territories Joint Ministerial Council where the leaders of the Overseas Territories will be watching with horror the precedent this overreach is setting.

James Lunn, Chief Executive of FOTBOT, said:

These tax changes have been developed with no serious considerations on how they will impact Gibraltar - these changes will severely impact Gibraltar’s flourishing economy.

Gibraltar has trusted and worked in good faith with the UK through the Brexit process and supported the Chagos Islands surrender - only for them to be betrayed through this severe overreach.

How many times can our Overseas Territories turn a blind-eye whilst being undermined by the UK Government?

We urge the government to honour the spirit of its commitment to Gibraltar, which was reiterated last week by Europe Minister Stephen Doughty, who talked of “a new course [for Gibraltar] with huge benefits”.

Friends of the British Overseas Territories urges the UK Government to immediately drop these changes which will damage not just Gibraltar’s economy but undermine the long-standing relationship between the UK and its Overseas Territories.

ENDS