Online gambling operators from the UK and Ireland are to remain in the business, despite the uncertainty around Britain’s withdrawal from the European Union.
The uncertainty surrounding Brexit lingers on jurisdictions such as Gibraltar and the Isle of Man. The border between Ireland and Northern Ireland, which is also expected to be much affected by the UK leaving the EU, also remain questionable, with neither one of the two countries being able to settle until the final decision on the withdrawal is reached.
According to expectations of the industry, gambling operators and their operations in the region would be one of the most affected companies, as the UK withdrawal could create bureaucratic chaos in terms of operating licences, regulation, applicable gambling legislation, etc. It is also expected to bring certain changes to the tax regime regarding the gambling sectors of the UK and Ireland.
Still, iGaming operators are hoping that the online gambling industry would turn out to be large enough to endure the massive blow that an EU withdrawal would inflict. The consequences are expected to be severe, as the UK and Irish gambling industry are highly profitable, and if Brexit is finalised, changes to the gaming tax laws in the UK could turn the country’s gambling sector into a problem area for investors.
Some iGaming Operators Have Already Moved Operations Elsewhere
The overall value of the gambling market of the UK and Ireland surpasses £14 billion.
Online gambling has become one of the largest revenue generators for the two countries, as it currently accounts for a large amount of gambling tax proceeds for both the UK and the Irish Governments.
Apart from that, there are currently a large number of iGaming operators in the UK, thanks to the fact that the jurisdiction also provides strict control and monitoring of such operations and provides players with a safe environment. Unfortunately for the local online gambling sector, many of the online gambling websites and companies have their headquarters situated at places which are set to be directly affected by the expected negative consequences for the business if Brexit is finalised – the UK, Gibraltar, the Isle of Man and Ireland.
The uncertainty and stricter regulation have already pushed several online gambling companies which operate on the territory of the UK to set up headquarters in other jurisdictions, including the Isle of Man, Gibraltar and Malta. However, it still remains unknown how Brexit would actually affect that, as there is a chance that such operators are forced to either move their headquarters directly into the UK or entirely stop offering their services in the country in case that local gambling laws become stricter.
On the other hand, online gambling companies which almost exclusively operate in the UK and Ireland have preferred to move their headquarters to Malta, a country which has lately become increasingly popular as a destination for iGaming operators due to its more relaxed regime. For the time being, the online gambling sector in Malta employs more than 10,000 people alone.
- Author
Olivia Cole
