The effects of #Brexit on the European #gambling industry

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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