Key Moments:
- Andrew Lyman, Gibraltar’s Gambling Commissioner, has warned that large UK gambling tax increases could harm both the UK and Gibraltar economies.
- Lyman cautioned that a Remote Gaming Duty approaching 30% risks causing “irrecoverable damage” to the regulated gambling sector.
- Gibraltar-based operators contribute approximately £750 million annually to the UK exchequer.
Commissioner Expresses Serious Concerns
Andrew Lyman, who serves as Gambling Commissioner for Gibraltar and as Non-Executive Director of the Independent Betting Adjudication Service (IBAS), has issued a public warning about the possible consequences of steep increases in UK gambling taxes. He stated on LinkedIn that “the idea that the industry can absorb significant top-line tax rises and not suffer wider structural impact and loss of bottom-line profit is disingenuous.” Lyman acknowledged that a modest uptick in Remote Gaming Duty, up to four or five percentage points, might be sustainable, but described any move towards a 30% rate as potentially catastrophic, noting the chance for “irrecoverable damage to the sector.” He concluded: “Once the regulated industry falters, it’s gone.”
Proposed Tax Changes Spark Industry Anxiety
The Chancellor, Rachel Reeves, is widely expected to address gambling duties in the upcoming November 26 budget, fueling widespread speculation. One proposal under consideration is to harmonize various duties – Remote Gaming Duty (21%), General Betting Duty (15%), and Pool Betting Duty (15%) – into a single 21% rate. However, advocacy organizations such as the Social Market Foundation (SMF) and the Institute for Public Policy Research (IPPR) have advocated for much higher taxes, including a Remote Gaming Duty of 40% and a Machine Gaming Duty of 50%.
Gaming industry leaders have cautioned that these potential increases could lead to closures, job losses, and shrinking revenues, referencing the Netherlands as an example where similar tax hikes triggered growth in black-market gambling and market exits. Despite this, some politicians have dismissed these concerns as “scaremongering.” Lyman asserted that the risk posed by the unregulated market is “real and apparent,” highlighting that nearly 10% of UK gambling volume is already routed through unlicensed operators.
Gibraltar’s Economic Reliance on UK-Facing Operators
Gibraltar’s economy faces significant exposure to UK gambling policy shifts, as the territory is home to major operators including bet365, BetVictor, and Betfred Online. These companies, which are dual-regulated, collectively provide approximately £750 million per year to the UK treasury. With Gibraltar’s economy deeply reliant on the remote gambling sector, the upcoming UK tax decision holds considerable stakes for the territory.
Lyman noted, “I am commenting because disproportionate UK tax rises have the capacity to harm the Gibraltar economy.” He added, “UK political support for Gibraltar is best expressed by creating conditions that allow the Gibraltar economy to be self-sustaining.”
Broader Implications for Fiscal Policy and Regulation
As both the UK and Gibraltar await the outcome of the budget deliberations, Lyman’s intervention spotlights the far-reaching effects of any change in gambling tax structure. The impending decision promises to test the delicate interplay between fiscal objectives, economic health, and effective regulation.
| Duty Type | Current Rate | Proposed/Higher Rate |
|---|---|---|
| Remote Gaming Duty | 21% | 21% (unified proposal), 40% (advocacy proposals) |
| General Betting Duty | 15% | 21% (unified proposal) |
| Pool Betting Duty | 15% | 21% (unified proposal) |
| Machine Gaming Duty | Not specified | 50% (advocacy proposals) |
- Author
Daniel Williams
