How #Brexit will affect the gambling industry

The impact that Brexit could potentially have on the gambling industry has been widely speculated and discussed. Within Britain almost 50% of the population engage in some form of gambling, whether this be playing slots at a mobile casino on their phone, placing a bet on their favourite sports team or having a go on the roulette wheel at their local casino.

Before the Gambling Act of 2014 gambling operators were not required to have a license granted by the UK Gambling Commission, however since it came into operation anyone wanting to operate in the UK, even if they have servers located outside the country must have this license. This may mean that Brexit could result in it being harder for players to play at both new and existing casinos; if sites need to get new gambling licenses to operate in the UK. This however, will not impact on established UK based and licensed brands, so mobile casino operator mFortune will have no concerns going forward. Overall, in the EU legal framework in relation to gambling is pretty loose. The UK does operate on a license basis, but there is no official EU wide legislation that affects all members. Therefore, as most gaming legislation within the UK is controlled by the UK government it is unlikely Brexit will have too much impact.

Probably the main concern of what will happen to the gambling industry in relation to Brexit is what will happen to Gibraltar. The island currently shares sovereignty with Spain, but is classed as part of the UK, so will leave the EU when the UK does. This could have a major impact on Gibraltar as around 60% of the gambling industry staff actually live in Spain and commute to Gibraltar for work. So really much of the future of the gambling industry in Gibraltar will rely on the approach of the Spanish government and whether they want to make it more difficult to cross the border and this could impact many staff and the industry as a whole.

As a result of Brexit, gambling sites may then need to obtain new licenses in order to operate within the UK. Plus many existing workers in the industry may need to relocate, alongside possible changes in taxation in Gibraltar; something which makes it currently very attractive for gambling companies to base themselves. These are just some of the ways in which Brexit could have an impact on the gambling industry if it goes ahead.

Full Brexit is not expected to happen until 2019, but it is important for online gambling companies to be up to date on any potential changes in legislation, but as most of the gambling legislation is not directly tied to the UK there shouldn’t be any massive reforms in this area post-Brexit. So even though there are some effects of Brexit that need to be considered, namely potential issues with those that work in Gibraltar and the ease of being able to operate within the UK, the gambling industry doesn’t need to be overly worried about the impact of Brexit.

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