Gibraltar, October 22, 2026. Gibraltar has warned about the economic impact of another gambling tax increase in the United Kingdom after 90 Labour MPs called for doubling the Machine Games Duty from 20% to 40% on certain gaming machines. The proposal could put up to 16,000 jobs, 1,500 betting shops, and 34 casinos at risk, according to estimates by EY released by the Betting and Gaming Council (BGC).
The initiative, promoted on October 16 by Alex Ballinger, Labour MP for Halesowen, was addressed to UK Chancellor of the Exchequer John Healey, ahead of the budget announcement scheduled for October 28, 2026. Gibraltar's Minister for Justice, Trade and Industry, Nigel Feetham, warned of the consequences for international operators with land-based businesses in Britain and digital operations in Gibraltar.
Grainne Hurst
Online gambling accounts for approximately 30% of Gibraltar's GDP, supports more than 3,400 jobs, and contributes nearly one-third of the territory's tax revenue. Companies including Entain, bet365, Betfred, Evoke, and William Hill maintain licensed entities in Gibraltar. BGC Chief Executive Grainne Hurst warned that the increase could reduce UK tax revenue by up to £124 million, driven by business closures and industry contraction. In contrast, Social Market Foundation estimates project additional annual revenue of between £275 million and £458 million.
The pressure follows previously approved tax reforms: Remote Gaming Duty increased from 21% to 40% in April 2026, while the tax on certain remote betting activities will rise from 15% to 25% in April 2027, under UK tax legislation. The Gibraltar government, led by Chief Minister Fabian Picardo, is pursuing economic diversification to reduce its dependence on the British market.
Regulatory and tax oversight falls under HM Revenue & Customs (HMRC) and the UK Gambling Commission, within their respective jurisdictions, while Gibraltar maintains its own regulatory framework under the Gambling Act 2025. The proposed increase has not yet been approved. HM Treasury must determine whether to include it in the budget, while operators and industry associations assess its financial implications.
