Last week, a Gambling Commissioner for the Government of Gibraltar, shared an opinion that the British overseas territory would keep its status of a prominent gambling hub despite the difficulties that have been faced by the local gambling sector as a result of Brexit.
At the time when the cabinet of British Prime Minister Boris Johnson highlighted the UK’s willingness to pursue no regulatory alignment with the business policy, worker protections, competition rules, industry subsidies and immigration standards followed by the European Union (EU), Andrew Lyman said in an interview for SBC News that the exodus of the UK from the EU would hardly affect the gambling industry in Gibraltar.
For the time being, the status of Gibraltar as a British overseas territory following Brexit is believed to be one of the most complicated arrangements, especially considering the fact that financial services and online gambling businesses are widely present there. Regardless of the uncertainties regarding the outcome of the negotiations, Mr Lyman shared that Gibraltar is expected to keep its industry presence stable, no matter what outcome would follow.
He noted that gambling operators in Gibraltar had already made contingency arrangements, including licensing agreements and corporate structuring, in order to make sure they would retain their access to EU markets, while at the same time maintain their substantial presence in Gibraltar.
Government Commissioner Remains Positive about Gambling Sector’s Future in Gibraltar
As explained by Commissioner Lyman, his department is not considering the exodus of the UK from the European Union as a terrible case scenario, as they have already accepted the fact that the business relationship of Gibraltar will be different with EU counterparts after Brexit.
On the other hand, reaching a mutual agreement with Spanish counterparts would remain one of the top priorities of the Gibraltar Government in case the UK and the EU are unable to reach a trade agreement. The local Government is willing to maintain the free passage of people through the border, as many of the people who are employed in the local gambling industry travel through the border on a daily basis.
As mentioned above, Gibraltar gambling companies have already reached contingency arrangements in order to be sure they would still be able to access EU Markets even in case the two parties fail to reach a deal on the issue. Mr Lyman also confirmed that the Government of the British overseas territory remains focused on developing reciprocal arrangements that would maintain the status quo even if no free trade deal between the UK and the EU is secured, or in case online gambling is treated as what he called a “reserved industry outside a free trade agreement”.
The Gibraltar Government Commissioner spoke about the future of the local gambling sector beyond Brexit. He explained that the authorities are still focused on the development of effective regulatory frameworks in order to deal with the sustainability complexities within the sector. Furthermore, Mr Lyman confirmed that gaming licence applications were still being received by the Government of Gibraltar and his department is currently working on some gambling legislation changes that are set to ensure better flexibility regarding IT infrastructure.
Last but not least, Mr Lyman revealed that gambling in Gibraltar still has cross-party political support, despite it remains a somehow controversial topic in the UK.
Gibraltar Wants to Retain an Open Market to Keep Status Quo as Leading Online Gambling Hub
Speaking about the UK and European online gambling sector, Mr Lyman shared his belief that the industry will continue to be maintained by the jurisdictions of Malta and Gibraltar, even at a time when some operators have undertaken certain structural adjustments. He also rejected the rumours about any disagreements between the two aforementioned jurisdictions that have been reported to be competing to attract gambling operators after Brexit.
What Gibraltar wants is pretty simple. The British overseas territory is willing to have an open market but the Government is fully aware that the recent exit of the UK from the European Union could pose some challenges for the gambling sector. Having this in mind, local authorities remain hopeful that Gibraltar would sustain its position as a leading gambling hub in the UK, alongside the development of some new market opportunities.
As previously reported by Casino Guardian, the Government of Gibraltar has shared some concern with the prospects of a no-deal Brexit and the negative effects such an exodus from the EU would have on the British overseas territory. For the time being, about 12,000 workers in the local gambling industry cross the territory’s border with Spain every day, so a no-deal Brexit would undoubtedly have a serious negative impact on the sector.
In any case, the Government of the British overseas territory remains calm and positive about Gibraltar’s future as a major gambling hub both in the UK and Europe. It remains to be seen whether these expectations are about to change or not.
- Author
Olivia Cole
