Impact of Brexit on Online Casinos

Despite all that has happened in 2020, the UK is still destined to leave the EU on December 31st 2020, which will be the culmination of the process that begun back in 2016. The process has seen three Prime Ministers chop and change to get Brexit right and now we are in the final countdown to Brexit. Many gamblers are concerned about the potential consequences of Brexit could be to their gambling lifestyle, especially because of the importance of the British territory of Gibraltar for regulation and licensing. In this article, we will investigate how Brexit will affect gambling and online casinos going forward.

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Gibraltar

Gibraltar is host to a number of gambling companies’ head offices. This mainly due to financial reasons as it is cheaper to have offices there than in London for example.

The taxation rate in Gibraltar is also a major factor in choosing there as their HQ as they are taxed a lot less in Gibraltar than in the UK. Gibraltar is apart of the UK and many people in Gibraltar vote in UK issues but Brexit could make things hard over there. The Spanish government could end the free movement of people between the Spanish mainland and the island. This could be an issue as over half of the employees of gambling companies commute from mainland Spain. This could lead to companies changing the location of their HQ.

The taxation benefit could also change depending on the stance Spain take.

This upheaval of gambling companies could lead to some going out of business or a major reduction in the number of offers that companies do offer players.

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Regulation and Licensing

Thanfully for UK based gamblers, the UK has always been removed from the EU when it comes to regulation and licencing. Very little is going to change once Brexit has come into force when it comes to regulation and licensing. The only thing that will really change is the relationship between UK gambling companies and EU gambling companies. Any interaction will be pretty and impossible but in all honesty, gamblers will hardly notice any difference in their playing experience.

This is one area that Britain could benefit from Brexit as the EU is starting to become stricter on their gambling rules and regulation and if the USA keeps the stance they have at the moment then then UK could be one of the best gambling location in the world.

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Future European Exits?

A consequence of Brexit, that has been rumoured for a while now is that the UK is gonna convince other countries to follow them in leaving the EU. If a country the size and economy of the UK can leave the EU and get stronger then other nations may follow their lead.

If this does happen then it is likely those countries would have their own rules and regulations on gambling. This should not have any effect on British gamblers but it could make coordination between companies a bit more difficult.

In summation, it is tricky to a for sure what is going to happen once Brexit has been completed. Gibraltar will be the most affected by any changes due to their close connection to the Spanish mainland and the island could see a lot of companies move to a more cost-effective and less hassle base of operations.

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