The one thing that came with Brexit is uncertainty. Not just in the gaming industry but every industry and individual in the UK. Online gambling is one of the major industries in the UK, raking in billions in taxes alone. Nearly half the population in the UK engage in some form of online gambling; therefore, there are a lot of speculations as to what will become of them after Brexit. No doubt, it will most definitely change the whole business landscape of UK Casinos both positively and negatively. Here are some possible effects of the Exit from the European Union when it comes to gaming.
1. Rules and Regulations
The UK has strict laws for gambling sites operating in the UK, which are quite different from those in the European Union. Brexit may make it harder for UK casinos to penetrate the European market since there is the formation of new trade agreements. Some gaming sites may decide to stay in the UK since the industry is more developed there. For those wanting to explore new markets in Europe, they may feel a severe pinch of having to pay higher fees to operate there.
2. Change in the Single market
The single market operated across Europe and gives gambling companies access to more than 500 million people. The situation changed significantly once the UK left the European Union since the access is blocked. Moreover, some gaming sites have to relocate to other areas, especially those located in Gibraltar. Gambling companies acted accordingly to their situation to secure a future in the industry.
3. Effect on Players
Since the rules and regulations governing the industry are bound to change, this trickles down to the players as well. Firstly, without the EU’s overall control, different regions will set up their regulations. Many foreign companies may end up rejecting them and moving out to other areas leading to decreased competition. As a result, the promotional features and bonuses reduce. Another thing is that the UK casinos may impose restrictions to non-UK players.
4. Rise of unregulated activities
The rules set up by the EU protected players from fraudulent activities, black markets, and other criminal activities. They had strict laws concerning money laundering and such. Post- Brexit may render the UK vulnerable to such threats.
5. Change in the tax system in Gibraltar
Over the years, Gibraltar attracted over 30 top gambling companies due to their low tax rates at 1% of the total casino turnover. For most of these companies, it was quite profitable to stay in Gibraltar as compared to going elsewhere with higher tax rates. The tax rates are about to be re-evaluated after Brexit to go even higher.
6. Impact on New Casinos
As much as Brexit holds a lot of uncertainty for UK casinos, the industry has seen a rise of new ones. Many more companies are coming up with bases in London and Gibraltar, and it is likely to grow even more.
In conclusion, Brexit is one of the most impactful events in Britain’s economy, and online gaming is one of the most affected industries. However, most UK casinos have made preparations and are ready to take the necessary steps to ensure their continuity, whatever the outcome.
