Gibraltar Trade and Industry Minister Nigel Feetham has intensified lobbying in the UK ahead of the 28 October Budget, warning that further gambling tax increases could affect operators based in Gibraltar as well as the territory’s employment and tax revenues.
As reported by Gibraltar Broadcasting Corporation (GBC), Feetham met Reform UK leader Nigel Farage, Robert Jenrick and Andrew Rosindell MP as part of a wider effort to raise the issue across the political spectrum. Earlier in the week, he also hosted a gaming breakfast in London attended by industry executives and politicians from several parties.
“With the UK Budget approaching, I have been making the case across the political spectrum to ensure that the potential consequences of further gambling tax increases for Gibraltar are fully understood. I have a responsibility to ensure that Gibraltar’s interests are represented and that our message is heard loud and clear by all political parties.”
Machine Games Duty Remains a Key Concern
Industry attention is focused on the possibility of another increase in Machine Games Duty.
Earlier speculation suggested the current 20% rate could double to 40%, although more recent expectations have pointed to a smaller rise to 25%.
A higher rate would affect betting shops, Adult Gaming Centres and bingo halls in Britain. Industry warnings have focused on possible job losses and venue closures if operating costs increase further.
Gibraltar is closely exposed to those decisions because several major gambling companies with UK operations also maintain a presence in the territory, including Entain, bet365, evoke, Kindred Group and LiveScore Group.
Feetham has previously argued that higher UK gambling taxes can reduce the amount companies ultimately contribute in Gibraltar if operators respond by cutting staffing or other local costs.
“Raising taxes in the UK imposes higher costs on Gibraltar gaming businesses and reduces the amount ultimately paid in corporate tax in Gibraltar. If part of that mitigation involves reducing jobs, this would, in turn, have a direct impact on PAYE receipts.”
The online betting and gaming sector accounts for about 30% of Gibraltar’s GDP, almost one-third of its tax receipts and more than 3,400 jobs, according to Feetham.
Concerns over employment have also been sharpened by Flutter’s plan to cut 1,400 jobs across the UK, Ireland and continental Europe following earlier tax increases.
Political Support Remains Divided
Farage has previously spoken against further gambling tax rises and warned about the impact on high-street bookmakers.
“What I would say about the high street is that one of the things that does still survive is the bookmaker shop – which actually, for a lot of lonely people, is a place they can go in and meet people,” said Farage in November 2025.
“There are 22 million people a week who have a bet of some kind in this country. Yes, there are a few problem gamblers, but there are problem drinkers, there are problem drug takers, there are problem everythings.”
Support for higher taxes remains stronger among parts of Labour. A group of 90 Labour backbenchers led by Alex Ballinger MP has called for Machine Games Duty to rise to 40%.
Labour MP Gareth Snell took a different position at the gaming breakfast, where Conservative MP Wendy Morton and Rosindell were also present.
“I would encourage all of you to use every aspect of your voice and your ability to shout proudly about the benefits of this sector because we should not be shy about the fact that what it produces, the jobs it creates, and the tax it pays. You have my support, but please shout more loudly.”
Gibraltar Awaits Budget Decision
Feetham has argued that additional gambling taxes could reduce investment and employment while also encouraging some customers to move toward unregulated operators.
His latest meetings continue a campaign that began before last year’s increase in remote gaming duty.
The 28 October Budget will show whether the government intends to raise Machine Games Duty again and by how much.
For Gibraltar, the decision matters because of the scale of the gaming industry in the territory and its links with operators serving the UK market. Feetham’s lobbying has therefore focused on ensuring that those cross-border effects are considered before any new tax measures are confirmed.