Online gambling makes up a large part of the entire British economy. Many studies have actually shown that almost half of Britain's population plays online casino games and engages in gambling online each year. However, with Brexit happening it left an impact on the gambling industry and many are wondering how will Brexit determine their gambling habits, taxes, regulations, and licenses.
Regulations and LicensesEver since gambling started in the UK, they have kept a close eye on the industry, and gambling is heavily regulated. However, many believe that Brexit will not have a major impact on the gambling services operated 'outside" Europe. However, before the gambling act of 2014, online casino operators were not obligated to have licenses from the UK Gambling Commission, but ever since the act came to be operators had to obtain those licenses in order to operate inside the UK. This is a good thing, both players and operators are safe due to these regulations, and if you'd like to place your bets on secure sites, you can check out casino-bros.com.
However, there is a catch with this act. After Brexit, it may become difficult for players to play games at their favorite existing and new online casinos if the sites now require to get new gambling licenses approved in order to operate in the UK. However, there are other jurisdictions that are allowed by the UKGC, including Malta, Gibraltar, and the Isle of Man.
GibraltarBrexit might affect how Gibraltar and its gambling regulations stand in the future. This country has been the subject of dispute between the UK and Spain, and with Brexit happening the situation becomes more complicated. Many big online casinos are actually based in Gibraltar, and since Gibraltar is classed as part of the UK, it may have to leave the EU together with the UK. This can become a huge problem for people who live there in terms of crossing the border to go to work in Spain. Also, another issue impacts the gambling industry since about 60% of its staff lives in Spain and commute to work there.
The Question of TaxesThe reason why many gambling companies are seated in Gibraltar is because of its low taxes. Gibraltar holds over 30 gambling companies, including bingo, casino, and sportsbook operators. The fixed odds of such operators there were taxed at just 1% of turnover before 2014, so many of them decided to stay in Gibraltar instead of relocating. However, ever since the gambling act of 2014 most companies were forced to move into lines with Britain, and consequently their taxes became higher. Plus, they have to acquire licenses. But, as Brexit happened, it looks like it is in companies' best interest to stay in Gibraltar for a bit longer.
How Does This Affect Players?Brexit may require online casino sites to obtain new licenses for operating to get approval in order to keep operating in the UK. This may present an obstacle with players who are looking into sites to gamble on. Another problem is that many people may relocate in order to still keep working in the industry if Gibraltar stops being attractive to companies due to changes in taxation.
But these are not the only concerns here. With the UK exiting the EU it may encourage other countries to do the same. This will majorly affect the gambling industry because the EU is currently the one responsible for control over its member countries to keep the industry safe. Without the EU controlling them, each state may come up with its own set of rules and acts to regulate gambling and it may potentially lead to those countries rejecting foreign gambling operators. This can severely restrict game and site options for players. Plus, with lower competition, the commodities for players, such as promotions and bonuses will decrease. NOt to mention that the illegal operations may increase since regulations will be different, which leaves players vulnerable to exploitation.
