Will it take effect on online casino?
People who enjoy getting a little flutter online are worried about how their gaming enjoyment will be affected by Brexit. The fact of the matter is that there are many online casinos headquartered here in the UK; casinos like Coral, Paddy Power and William Hill just to mention a few.
The UK is one of the world’s biggest and most competitive marketplaces for online gambling. The business was worth more than£ 85-million back in 2015, of which £ 3.6-million were from UK gamblers alone.
The fear though is that the post-Brexit market may not be as competitive as that.
Fear concerning online gaming site head quarter in off-shore locations
The biggest fear is of the online casinos located off-shore. Of note, Gibraltar has recently been in the news because the residents are strongly opposed to Brexit. Around 25 per cent of the GDP of Gibraltar comes from gambling. It hires about 3,400 online gambling employees.
Most of these workers live in Spain, and are legally able to travel as EU citizens to and from the British overseas territory.
If Spain decides to close the border, the effect will be felt by many employing online gambling industry. If you’re wondering how this will affect, it could be important as some of the big boys, such as Bet365, William Hill, and 32Red, include the 30 online gambling sites that operate out of the territory. Those companies would face the prospect of relocating their operations elsewhere.
Brexit will not be beneficial for the overall online gambling industry
There is consensus that Brexit isn’t going to be good for the online gaming industry. It will almost certainly have an adverse effect on our image as well as making it harder for UK businesses to take on employees from outside their borders. Not only will this have a detrimental effect on employment if the economy dips, it will also make people warier spending their disposable income on things like gambling.
Online gambling of course includes all kinds of games, including poker, slots, roulette and bingo. While many people don’t think about playing gambling on bingo sites, that’s why so many gaming sites remind punters of the importance of playing gambling responsibly (in this case playing bingo).
In areas like Gibraltar, many of the online gaming platforms that we all know and love are located outside of the UK. Many people probably don’t know about this, and indeed, why should they be before the results of the Brexit vote. But all of that changes with the “out” test.
Potential taxation changes will cut profits.
The likely change relates to taxes. By global standards, the UK tax rules and regulations are quite stringent. Headquartering online gambling sites in offshore locations means companies can circumvent strict tax laws from the UK. Nevertheless, post-Brexit could shift and the concern is that most companies will be forced to rethink their choices or pay more to the taxman until the specifics are worked out in the talks triggered byArticle-50.
Many of the online bingo sites people use at the moment are actually based in Gibraltar. By going to the bottom of the landing page, and reading through the small print, you can usually find where the website you are using is based. If this is one of the bingo sites that have offices overseas, you may be justified in worrying.
The weakness of the £
Another concern about Brexit’s impact (not just on online gambling businesses but any general business that trades globally) is the pound’s weakness. If punters gamble in £ s sterling, it means owners of online gambling websites overseas are getting less money in terms of their local currency. This means they’re making less income–another big drawback.
It’s not yet all doom and disaster
In general, the UK Government has a track record of enabling sectors impacted by economic changes to have a say on the matter. The gambling industry is certainly a major contributor to the UK economy, so they’re sure to have a voice if everything goes well with the Brexit talks, or not depending on your point of view, by the end of March 2019 the UK will be leaving the EU. In other words, there is still plenty of time to go before any substantial changes are made and who knows, they could be yet another vote on the results of the talks.