Gibraltar may be looking to a new avenue in a bid to secure growth amidst headwinds caused by the UK’s decision to hike gambling taxes.
Nigel Feetham, the British overseas territory’s Minister for Justice, Trade and Industry, informed parliament that it had licensed a company from the prediction markets sector and described the vertical as a ‘substantial area of potential growth’ for Gibraltar.
Gibraltar’s government lobbied vehemently against the UK’s decision to hike online gambling tax, arguing that doing so would directly impact tax receipts and have an impact on the economy of the island.
However, UK Chancellor Rachel Reeves announced an almost doubling of remote gaming duty to 40%, beginning today (1 April). From April 2027, a new general betting duty rate for remote betting will be introduced at 25%.
Feetham said: “Since the introduction of the recent UK gambling duty increases, I have taken a more direct responsibility for promoting Gibraltar’s regulatory offering.
“There is no room for complacency and no room for unnecessary delay in enabling responsible economic activity in these important sectors. We must continue to adapt decisively to a changing global economic environment. This aligns with the government’s strategic objective of diversification.”
Although Feetham has not yet named the company in question, Predict Street Ltd has been added as a betting intermediary to the official list of approved licensed operators on the government of Gibraltar’s website.
According to Predict Street’s website, it serves as the official prediction market partner of the upcoming 2026 FIFA World Cup and is set to launch on 9 April.
Prediction markets companies such as Kalshi and Polymarket have swept through the US, offering an alternative to online sports betting in states where the traditional vertical is currently prohibited.
However, the rise has been met with controversy as opponents have argued that the platforms are illegally facilitating betting.
Meanwhile, outside of the US, nations across the world, including the likes of New Zealand, Australia and the Netherlands, have explicitly banned prediction market operators.
Gibraltar, therefore, stands out as one of the few jurisdictions that appear to be receptive to the potential of fostering a home for prediction markets outside of the US, emphasising the potential economic benefits.
According to Eilers & Krejcik, prediction markets could trade a trillion dollars in volume annually by 2030, underscoring why Gibraltar is interested in being open to the sector.
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