BREXIT, ECONOMY, AND GAMBLING

In the wake of the British exiting the EU to operate as an independent economy, it has left us wondering what that means for the gambling industry. After many trials of trade agreements, proposals, contracts, and deadline extensions, the UK seems adamant with its mission to leave the European Union leading to economic strains between both of them. So, what does that hold for UK online sport bookmakers as www.novibet.co.uk/sports

Licensing

The UK has always regulated gambling since time immemorial with the legalization of gambling in 1960. Since then, the UK's gambling industry is the most regulated globally with a strict framework that regulates both locally based and international casino operators. The UK Gambling Commission requires every operator to acquire a Gambling Commission License in the UK despite their location or whether they operate online or offline. That is, according to the UK Gambling Act of 2014.

While the UK's gambling market is doing well with a generation of 15billion euros yearly, the EU gambling space is doing better. According to sources, the EU gambling market contributes to about half of the entire global gambling economy. Even though the most significant part of the EU's gambling economy is associated with large gambling regions such as Malta and Italy, the UK's exit has brought many uncertainties.

Before the 2014 legislation, operators didn't have to obtain the UK Gambling Commission License. With the new legislation, players cannot play at some international casino sites after Brexit since every operator needs the approval to operate in the UK. On the other hand, since there is no agreement regulating the gambling space across the economic line, states can develop new license and regulation laws; therefore, Brexit could unlikely impact the gambling space.

Gibraltar's future

One main concern of the UK gambling industry concerning Brexit is what that means for Gibraltor and other British territories. As of now, there are 14 British overseas territories. Even though not part of the UK on paper, they remain to be affiliates of the UK. Some of the territory regions such as Gibraltar and Alderney are gambling social hubs that will most likely be affected by Brexit.

For instance, Gilbrator is home to many gambling operators who take advantage of the flexible tax regulations and access to the EU's single market. If the Brexit succeeds, Gilbrator will have to pull out of the EU's single market, which means operators cannot access the EU's market. It will hugely impact Gilbrator since most of the 60% of their gambling industry lives in Spain and only crosses the border for work.

So, the Gilbrator gambling market depends on Spain's approach to the issue. They could make it challenging to cross the border to and from Spain, which means that Gilbrator will not have access from both sides; therefore, the gambling industry's jobs will be negatively affected.

Taxation

All UK gambling operators are required to pay a percentage of consumption tax form the revenue they earn from UK customers, set at 15% of their total revenue. Even though post-Brexit nothing is expected to change immediately, the UK could increase the taxes later on.

That's because, in 2018, there was a proposal by the Gambling Commission to increase the consumption tax rate from 15% to 21% to compensate revenues lost after a decrease in betting limits on fixed-odds terminals.

Post-Brexit, UK could choose to earn more resulting in higher taxes for EU-based gambling companies.

The final take

Even though many things will change post-Brexit, the gambling industry might not practically be affected much, but the issue is worth attention to see how things will unfold.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes