Nigel Feetham, Gibraltar’s minister for justice, trade and industry, has labelled the new UK gambling tax hikes as “bad news” for the British Overseas Territory.
Speaking in the Gibraltar parliament, Feetham explained that despite intense lobbying, the British government had pushed had with raising remote gaming duty from 21% to 40%.
General betting duty will also jump from 15% to 25%, with a carve out for retail and horseracing.
Gibraltar has been a gambling hub since the 1990s, with Feetham noting the sector accounts for around 30% of Gibraltar’s GDP and produces a third of tax receipts.
A range of major operators are based in Gibraltar, with the industry employing more than 3,400 people on the Rock.
Feetham noted that “market consensus” was that RGD would not move above 30%, although he said he had fears as the argument became “ideological”.
The move has already seen listed UK-facing operator announce mitigation plans to offset duty increases, including shop closures and slashed investment.
Feetham added the compounding factors of Brexit and the battle to remove Gibraltar from the EU’s grey list meant the challenge from the tax hike will be difficult.
The minister said: “Others locally have spoken about the need for a ‘Plan B’. But let us be clear: replacing an industry as significant to our economy as gaming cannot happen overnight, particularly after we have already had to recalibrate our economic model following Brexit, endure the impacts of Covid and navigate the subsequent cost-of-living crisis.
“Yet adjust we must, and that means doing things differently and seizing new opportunities for Gibraltar as they arise. But there is no way of sugar-coating this.
“It is bad news. We did not ask for these measures. We lobbied strongly against them. And, frankly, there was very little more that we could have done.
Feetham continued: “This is not the time to talk Gibraltar down. We do so at our own economic peril. Any further erosion of confidence would only compound the challenges we face and could inflict far greater damage on our economy.
“It has taken decades to build the strength of our economy, but it could be damaged in a fraction of that time.”
The post Gibraltar trade minister: UK gambling tax hikes are “bad news” first appeared on EGR Intel.
Nigel Feetham admits finding a Plan B will be difficult for the British Overseas Territory, with igaming employing more than 3,400 people on the Rock
The post Gibraltar trade minister: UK gambling tax hikes are “bad news” first appeared on EGR Intel.