Gibraltar to Implement Gambling Reforms Amid UK Tax Increase

(AsiaGameHub) –   Following the first reading of the 2025 Gambling Bill, the legislation will indeed be a major pillar of Gibraltar’s overhaul of its gambling regulatory framework. 

The law reflects post-Brexit changes in the EU gambling environment and, notably, the expanded network of B2B suppliers. Additionally, it strengthens the enforcement powers of the Gibraltar Gambling Commissioner.

The bill, which has been under ministerial consultation since May 2022, comes to the fore as the UK nears implementation of an online gambling VAT increase from 21% to 40%—a move set to negatively impact most operators and suppliers with offices in Gibraltar.

Publicly, Gibraltar’s Minister for Justice, Trade and Industry, Nigel Feetham, has voiced his dissatisfaction with the UK tax hike. He highlighted that the local gambling sector contributes around 30% to GDP, directly employs approximately 3,400 people, and generates roughly one third of total tax revenue.

During the bill’s first reading, Feetham stated:

We are working intensively and at speed to bridge, as far as possible, the gap created by the recent UK tax decision. While corporate tax revenues lost due to the UK tax changes cannot be fully restored this year by new entrants alone, the ongoing growth of the sector will generate important future revenue streams.

Additionally, he expressed deep appreciation to the ministry’s civil servants for their unwavering dedication and for their engagement with the UK Treasury throughout the process.