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The effects of #Brexit on the European #gambling industry

Henry St George

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The online gambling industry in the UK and Europe may look different next year as the UK, and Gibraltar-registered casinos no longer have access to the single market.

The Brexit Withdrawal Agreement has been approved, and now both parties sit in limbo thrashing out a trade deal before the transition period is due to end. There is no doubt this will affect several industries and sectors in both the UK and Europe. Therefore, it is no surprise that many in the gambling industry believe it will be affected by the UK's departure from the EU, but what will the effects be - and can we really know for sure?

Online casinos may operate over both territories offering gambling services within the UK and one or more EU nation. Most of these online casino brands are registered in EU countries such as who have followed many others by registering in Malta. At the same time, UK-owned Gibraltar is usually the registered home of UK online casinos.

Why Do UK Casinos Register in Gibraltar?

By registering in Gibraltar, these online casinos can pay lower taxes, which may be looked down on by some individuals. However, through paying fewer taxes, these companies are also able to offer more employment in the UK – and it fuels their ability to offer gambling services in EU countries because of the pre-Brexit free market.

Because the UK may not have access to the free market anymore once Brexit is finalised, these casinos may not be able to quickly offer their services to a French, Spanish, Italian or the newly opened German online gambling markets. However, this cannot be known for sure until the trade deal has been finalised and the details released.

Could UK-Based Online Casinos Get Around It?

Online casinos that have been registered in an EU state such as Malta such as the aforementioned MrGreen Casino and others like Bet365 will still have access to the EU market because they are technically still within the EU. It is those gambling companies that are registered in Gibraltar that may face more difficulty, although the situation regarding the island is not straight forward.

Some casinos are now planning or in the process of relocating their business to an EU country. A reaction that underlines the fears that Brexit will take jobs out of the UK. It may come apparent that many companies close shop in Gibraltar and set up shop in Malta in the coming months. They would have until the end of December 2021 to get this done.

Could Casino Users Be Affected?

Gibraltar has a lower tax rate than any of the EU alternative, meaning any relocating casino would then have to pay more to offer their services. This could have an impact on players because they may start to see fewer appealing odds or fewer bonuses and promotions. Yet, as competition drives the best services and the gambling markets are so competitive, this may not come to fruition.

There is also the possibility that a saturated EU market drives advertisements and could spell a review of legislation to keep players protected. All of these potential outcomes will depend on how casinos act during the Brexit transition period and the type of trade deal that is agreed between the UK and the EU.

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UK sends two navy boats to Jersey after France threatens blockade

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The Mont Orgueil Castle is seen behind an island flag at Gorey Harbour in Jersey, in this February 26, 2008 file photo.  REUTERS/Toby Melville

Britain is sending two navy patrol boats to the British Channel Island of Jersey after France suggested it could cut power supplies to the island if its fishermen are not granted full access to UK fishing waters under post-Brexit trading terms, write Richard Lough and Andrew Macaskill.

Prime Minister Boris Johnson pledged his "unwavering support" for the island after he spoke with Jersey officials about the prospect of the French blockade.

Johnson "stressed the urgent need for a de-escalation in tensions," a spokesperson for Johnson said. "As a precautionary measure the UK will be sending two Offshore Patrol Vessels to monitor the situation."

Earlier, France's Seas Minister Annick Girardin said she was "disgusted" to learn that Jersey had issued 41 licences with unilaterally imposed conditions, including the time French fishing vessels could spend in its waters.

"In the (Brexit) deal there are retaliatory measures. Well, we're ready to use them," Girardin told France's National Assembly on Tuesday (4 May).

"Regarding Jersey, I remind you of the delivery of electricity along underwater cables ... Even if it would be regrettable if we had to do it, we'll do it if we have to."

With a population of 108,000, Jersey imports 95% of its electricity from France, with diesel generators and gas turbines providing backup, according to energy news agency S&P Global Platts.

Jersey's government said France and the European Union had expressed their unhappiness with the conditions placed on the issuance of fishing licences.

Jersey’s external relations minister, Ian Gorst, said the island had issued permits in accordance with the post-Brexit trade terms, and that they stipulated any new licence must reflect how much time a vessel had spent in Jersey's waters before Brexit.

"We are entering a new era and it takes time for all to adjust. Jersey has consistently shown its commitment to finding a smooth transition to the new regime," Horst said in a statement.

The rocky island sits 14 miles (23 km) off the northern French coast and 85 miles (140 km) south of Britain's shores.

The French threat is the latest flare-up over fishing rights between the two countries.

Last month, French trawlermen angered by delays to licences to fish in British waters blocked lorries carrying UK-landed fish with burning barricades as they arrived in Boulogne-sur-Mer, Europe’s largest seafood processing centre.

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Brexit barriers in focus as Northern Ireland's DUP kicks off leadership contest

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Democratic Unionist Party's (DUP) Edwin Poots makes a statement to the media outside Stormont Castle in Belfast, Northern Ireland June 28, 2017. REUTERS/Clodagh Kilcoyne/File Photo

Northern' Ireland's biggest party was set for its first ever leadership election after its Westminster chief Jeffrey Donaldson threw his hat into the ring, promising to focus on the divisive issue of post-Brexit trade barriers.

Donaldson will stand against Edwin Poots to lead the Democratic Unionist Party at a time of heightened instability in the British province and unionist anger over the installation of a customs border in the Irish Sea.

Both Donaldson and Poots, Northern Ireland's agriculture minister, stopped short of making detailed campaign promises. But Britain, Ireland and the rest of Europe will be watching for any hardening of stances on Brexit or social issues including abortion that could alter the political balance ahead of elections next year.

The DUP currently leads Northern Ireland in a power-sharing government with its Irish nationalist rivals Sinn Fein.

Donaldson or Poots will take over the leadership from Arlene Foster who announced last week she was stepping down as Northern Ireland's First Minister at the end of June, bowing to pressure from party members unhappy at her leadership. Read more

Her departure has added to instability in the region, where angry young pro-British loyalists rioted in recent weeks, partly over the barriers that they feel have cut them off from the rest of the UK.

"I will develop and swiftly implement an agreed programme of meaningful reform and clear policy direction on key challenges like the protocol," Donaldson said in a video announcement, referring to the post-Brexit trading arrangements.

Like Foster, Donaldson, 58, is a former member of the more moderate Ulster Unionist Party. He was part of the negotiating team that stuck a deal to prop up the government of former British Prime Minister Theresa May in 2017.

Once the DUP's support was no longer needed, May's successor Boris Johnson broke the party's "blood red line" and agreed to erect the trade barriers.

Poots, 55, is one of a number of DUP ministers who have protested against the Brexit arrangements by refusing to attend meetings with Irish counterparts established under the 1998 peace deal that ended 30 years of violence in Northern Ireland.

Poots, a young earth creationist who rejects the theory of evolution, announced he was standing last week.

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Statement by Commission Vice President Maroš Šefčovič following the conclusion of the EU-UK Trade and Co-operation Agreement

EU Reporter Correspondent

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European Commission Vice President Maroš Šefčovič warmly welcomes the ratification of the EU-UK Trade and Co-operation Agreement, which will now be fully applicable as of 1 May 2021. This comes after an overwhelming vote of consent by the European Parliament on 27 April and subsequent Council decision today, thereby concluding the ratification process. The EU and the UK will exchange letters to that effect.  

"The ratification of the Trade and Co-operation Agreement is good news for European citizens and businesses. It provides a solid foundation for our longstanding friendship, co-operation and partnership with the United Kingdom on the basis of shared interests and values.

"In practice, the Agreement helps avoid significant disruptions, while protecting European interests and upholding the integrity of our Single Market. It also ensures a robust level playing field, by maintaining high levels of protection in areas, such as climate and environmental protection, social and labour rights, or state aid. Moreover, the Agreement includes effective enforcement, a binding dispute settlement mechanism and the possibility for both parties to take remedial measures.

"Democratic scrutiny will continue to be key in the implementation phase of the Agreement in order to ensure faithful compliance. Unity among EU institutions and member states will remain a cornerstone during this new chapter in our EU-UK relations." 

Vice President Šefčovič reiterates that the European Commission looks forward to a strong, constructive and collaborative partnership with the United Kingdom, based on mutual trust and respect. We have far more in common than that which divides us. He will reach out this week to Lord David Frost, co-chair of the EU-UK Partnership Council, to prepare the launch of its work, including the work of Specialized Committees.  

Finally, the Commission will continue to work tirelessly for joint solutions so that the Withdrawal Agreement, and the Protocol on Ireland / Northern Ireland in particular, is also fully implemented and works for the benefit of everyone in Northern Ireland.

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