Gibraltar Gambling Industry Post Brexit
The uptake of online gambling in the British market has been significantly high. The aftershocks of Brexit are being felt across a number of industries in Britain, notwithstanding the gambling industry. The impact of Brexit brings speculations and uncertainties, especially with regard to tax revenues generated from the industry.
Gibraltar is a go to home for British casino owners because of the favourable taxation laws. This position may change, and indeed is being change due to Brexit. The long-standing relationship between Gibraltar and Britain, has begun to shift and some of the casualties are the British casino owners. Of intrigue in this changing landscape is that Gibraltar is one of the principle staying purposes of the EU arrangements, especially with Spain. With the troublesome progressing Brexit measure, the gambling industry is having a genuine and critical impact on the connection among Britain and the EU.
Point of Consumption Tax
The UK’s gambling structure is relatively complex. This is partly due to the various independent jurisdictions that regulate online betting. The UK Gambling Commission (UKGC), for instance is responsible for the United Kingdom. So far, simple enough. However, the UK is made up of several territories, which each have their own regulatory bodies:
- The Gibraltar Regulatory Authority
- Alderney Gambling Control Commission
- Jersey Gambling Commission
- Guernsey Gambling Control Commission
- Gambling Supervision Commission (IoM)
On the off chance that an organization has British players, the entity will be required to have an approved UKGC licence. Companies must also pay a 15% tax at the point of consumption. Brexit will likely have a disruptive effect on this structure. The impact may not be discernible for players who tend to bet with familiar names such as Ladbrokes, but if one is accustomed to placing bets with an EU operator, regulations may cause a few hiccups in the usual betting experience. In the worst-case scenario, service may be disrupted or altogether impossible for British players.
The Flipside – Are Companies Moving to Malta?
This means there is a need to change base of operations for the British casino owners. Malta has come up as a viable option for this industry. With Brexit hypothesis making huge name gambling organizations apprehensive, some have chosen to make the pre-emptive advance of moving to Malta. Bet365, for example, moved its activity to the island nation, referring to its craving to keep up admittance to the EU market. In addition, Bet365 felt that the vulnerability around Brexit constrained it to make the move sooner than it might have something else. Other betting entities have either additionally taken action accordingly, or as of now have a base in the jurisdiction.
The Effects of Covid-19 and Brexit in the Gambling Industry
The gambling industry is currently undergoing a heavy hit due to Covid-19. Gamblers in the UK and EU alike are often attracted to placing a bet on their favourite sport that are not happening like before. The strain on the gambling industry and the economy at large may force negotiators to take a more lenient approach to what are currently strict regulations. Considering the industry is responsible for what will be much-needed tax pounds and euros, we may expect to see some changes to eventual agreements.
Post-Brexit Landscape Is Still Unresolved
Eventually, this conversation is still to some degree restricted by the moderate and complex cycle of Brexit. Unravelling the UK from an organization it has formed a key part of for almost 50 years is not a straightforward task. At this stage, it’s difficult to say what precisely will happen for definite. Nothing is guaranteed, especially considering the slow negotiation between the EU and Britain. One thing is for certain, however: change is coming.