The UK Parliament has taken parliamentary oversight a step further in the ongoing debate over remote gaming and remote betting duty increases by tabling an amendment in the Finance (No. 2) Bill that would require the Chancellor of the Exchequer to conduct an impact assessment on the potential effects of increased gambling duties on the economy of Gibraltar. The debate reflects mounting concerns about the broader implications of the UK’s tax reform on regulated gaming hubs outside the UK, particularly Gibraltar, whose economy is heavily linked to remote gambling services.
New Clause 9: A Call for Economic Impact Assessment
The amendment, known in parliamentary terms as New Clause 9, was tabled during consideration of the Finance Bill and would obligate the Chancellor to lay before the House of Commons, by 1 April 2027, a detailed assessment of how the implementation of gambling duty changes, including remote gaming duty and general betting duty increases, could affect the Gibraltar economy.
This follows the UK’s broader announcement in the 2025 Autumn Budget that the Remote Gaming Duty, a tax on online slots, poker, bingo and similar games, will rise from 21% to 40% starting 1 April 2026, and that a new 25% remote betting duty will be introduced in April 2027.
The amendment’s sponsor argued that while Treasury has decided on the tax changes, Parliament needs independent evidence on their potential unintended consequences, particularly for Gibraltar, which remains economically tied to the UK gambling market through dual‑regulated operators and cross‑border activity.
Gibraltar’s Gaming Sector at the Heart of the Debate
MPs speaking during the debate highlighted the significant role that remote gaming and online gambling play in the Gibraltar economy. According to parliamentary speakers and Gibraltar commentators, the online gaming sector accounts for roughly 30 % of Gibraltar’s GDP and represents a major source of employment and tax receipts for the territory.
One member of Parliament emphasised that increases in UK gambling duties could have knock‑on effects on Gibraltar’s ability to sustain public services and corporate tax receipts, raising questions about economic stability and future investment decisions.
Gibraltar’s Minister for Justice, Trade, and Industry has reportedly stressed that Rock needs stability and certainty as online gambling tax changes are implemented, given how intertwined its gaming businesses are with regulations and tax regimes in both Gibraltar and the UK.
Why This Matters Beyond Gibraltar
The UK’s decision to significantly raise taxes on remote gaming and remote betting has been controversial within the broader gambling and iGaming policy community. Critics argue that higher taxation could incentivise players to seek unregulated or offshore platforms, potentially pushing gamblers into the black market, where protections and responsible gaming safeguards are weaker.
Such concerns reflect wider trends in European regulation, where authorities focus on both harm reduction and market integrity and often coordinate on information sharing and enforcement with neighbouring jurisdictions. These collaborative efforts aim to counter unlicensed operators that target consumers across borders but evade local regulation and oversight.
Balancing Tax Policy and Market Health
Supporters of the duty increases argue that higher taxes on online gambling products, especially those associated with greater harm, can be justified to fund public services and align the tax system with modern gambling activity. Opponents counter that without robust impact data, policymakers may underestimate the economic consequences for dependent jurisdictions like Gibraltar and the behaviour of players and operators in response to tax policy changes.
The proposed impact assessment in the Finance Bill, if adopted, would provide clearer evidence to inform future decisions and could shape ongoing debates about tax fairness, cross‑border market dynamics, and the sustainability of regulated gaming sectors.