Unless you live on another planet, you are aware that in 2016, the United Kingdom’s citizens voted in a referendum to leave the European Union. It has caused most punters and gamblers concern about how this will possibly affect their gambling, primarily because Gibraltar is crucial for regulation and licensing. This article discusses the effect of Brexit on online gambling and casinos.
Most gambling firms have their head offices located in Gibraltar. Any company that can afford it chooses Gibraltar as its head office location without hesitation.
First of all, a significant number of people work in the gambling sector. It means that there is a vast number of people who are skilled in working at gambling firms. The taxation rate is another most appealing reason. In Gibraltar, gambling firms pay much less tax and have a method of ensuring they pay minimal.
Gibraltar remains a section of the United Kingdom, and the Gibraltar population still votes heavily to ensure they are still a section of the United Kingdom. It appears that it will remain this way for some time. But, Brexit can present numerous problems.
The government of Spain may opt to eliminate the free movement between little rock and Spain. It is a significant move since more than 50% of the staff who work in Gibraltar’s gambling firms commute each day from Spain.
It can make bookmakers feel compelled to change their headquarters’ location. Ireland’s most ideal online casino options are run by firms situated in Gibraltar: Bet 365, Boylesports, Betvictor, etc. These firms may decide to relocate to another place.
It is hard to predict whether the taxation rate will remain the same. Spain may decide to raise the tax rate or even lower it if there is a cause.
Suppose gambling firms are compelled to move elsewhere; in that case, the couple of impacts that gamblers will possibly experience are:
- A few gambling firms declaring bankruptcy.
- Possibly, fewer good offers since the chances are that companies will not offer them. In the same way, gambling firms may shift to a different tax haven.
Regulation and licensing
The good news for British gamblers is that as far as regulation and licensing such as online casinos, sports betting, etc., the UK has always operated separately from the rest of the EU. For instance, in the UK, you can register on an online casino using just a photograph of legal identification and proof of address; however, in numerous EU states like France, you receive a letter at home to set up your account.
Because of this, gambling firms will experience a minimal change in regulation and licensing. The companies in Europe and Britain may continue conflicting more and more, and it will become impossible for gambling firms in the UK and EU to interact.
The effect on any gamblers will likely be unnoticeable. If the European Union takes a sterner stance about gambling and the US retains the same gambling principles they presently have, the UK may become an ideal area for all types of gambling globally.
Possible other exits
A likely result of Brexit is it presents an example to other states. If an influential country like the UK with its economy can depart from the EU and thrive, other states may do the same.
If it occurs, then every country will possibly have its gambling legislation and licensing. British punters will not be significantly affected; but, it will make it hard for gambling states’ different firms to coordinate. It signifies as well that the only gambling firms available are national ones. However, the UK presently has several firms operating.
It is impossible to state for sure how the gambling industry will be after Brexit. Gibraltar will likely experience the most impact, and it is expected to lose a lot of firms that would leave since Gibraltar would cease being a good area to operate a gambling firm from.
A regular gamer will not experience much short-term change since licensing has always been important in the UK, which is a plus. In the future, competition may lessen, and promotions may decrease, although it has not happened yet.