Gibraltar Gambling Industry Faces Economic Headwinds
Recent news of job cuts has cast a shadow over the Gibraltar gambling industry. Several major operators have announced redundancy consultations, affecting staff in the key iGaming jurisdiction. These include Lottoland, which cited significant regulatory and commercial challenges impacting profitability.
Additionally, Entain is pursuing a plan to reduce its workforce by 400 to 500 roles across various markets. More recently, bet365 put approximately 40 roles in Gibraltar and Malta at risk as part of 340 proposed job cuts across its business. These developments have raised questions about the long-term stability of the sector on the Rock.
Pressure Points: UK Taxes and Industry Modernization
A primary factor contributing to these restructurings is the UK's increased Remote Gaming Duty. The tax on online casino games is set to rise sharply from 21% to 40% in April 2026, while the tax on online betting will increase from 15% to 25% in April 2027. This has forced operators to re-evaluate their cost structures.
However, Gibraltar's Gambling Commissioner, Andrew Lyman, noted that these tax changes are not the sole cause. He emphasized that operators are also accelerating efficiency drives through increased automation and the implementation of AI in an increasingly competitive global market.
“The cumulative impact of media stories about multi-jurisdictional redundancies in the sector can cast a cloud over the Rock, but from my position I do not share the same views of others who see a downward trend in employment numbers as a terminal decline,” Lyman stated.
A Resilient Outlook and New Opportunities
Despite the challenges, Andrew Lyman expressed strong confidence in the Gibraltar gambling industry. He insists the territory's igaming model is “far from spent” and that the new Gambling Act has not harmed its competitiveness. Lyman believes Gibraltar remains an attractive licensing hub with several unique selling points.
Demonstrating its adaptability, Gibraltar is also exploring new sectors for growth. The jurisdiction has begun licensing prediction market platforms, becoming the first in Europe to do so. After granting a license to ADI Predictstreet, the government published a dedicated regulatory framework for these platforms under the new Gambling Act 2025, creating a distinct authorization category.
UK's New Statutory Levy System Now in Action
While Gibraltar adapts to external pressures, the UK is implementing a new funding model for responsible gambling initiatives. The UK gambling harm charity, Young Gamers and Gamblers Education Trust (Ygam), announced the successful inaugural meeting of its Prevention Delivery Network. This initiative brings together organizations commissioned to deliver prevention activities under the new UK statutory levy.
The network aims to foster collaboration, identify common challenges, and improve the collective impact of levy-funded programs. Quarterly meetings are planned to ensure ongoing communication and strategic alignment among participants.
Understanding the Levy's Framework and Funding
The UK statutory levy replaces the previous voluntary system of industry contributions, ensuring consistent and continuous funding for research, prevention, and treatment. The levy is imposed on gambling operators with collection rates varying by sector. This new structure is designed to provide stable resources for gambling harm prevention.
| Sector | Levy Rate |
|---|---|
| Online Operators | 1.0% |
| Land-Based Operators | 0.4% |
| Bingos and AGCs | 0.1% |
Funds collected annually by October 1st are allocated with 30% dedicated to prevention, 50% to treatment, and the remaining 20% to research. This allocation ensures a comprehensive approach to addressing problem gambling across the UK.
Emily Tofield, CEO of Ygam, commented on the new network: “By working together, we can learn from one another, strengthen delivery and maximise the collective impact of the investment being made in prevention.”
