How will Brexit affect online gambling operators in the UK

The much anticipated Brexit has turned into a tedious affair that has no clear end in sight and brings up more questions than answers. With the United Kingdom set to exit the European Union, there are many changes expected and the gambling industry is unlikely to remain unaffected. As the two parties involved strive to make sure that the transition will be as smooth as possible, there are still many lingering doubts about the process. The good news is that online casinos catering to British players and the ones who enjoy their services don’t have serious reasons of concern.

The UK gambling market is already segregated

Online gambling is regulated in the UK by the United Kingdom Gambling Commission, which is the authority in charge of licensing casinos. This is one of the strictest regulatory bodies in the world, so those who apply for a license here need to meet the highest standards. Since Internet gambling operators need such a license to provide their games to UK residents, many of them have already secured one. This is a trend that will likely continue, regardless of how the Brexit ends up shaping the relations between the United Kingdom and the European Union.

Most players from European countries can play mobile slots online licensed by the Malta Gaming Authority, but also the United Kingdom Gambling Commission. Furthermore, many of these casinos have also applied for licenses in each European country and they won’t be affected by the Brexit process either. In regard to the payment methods currently available to punters, this is also unlikely to change for the worse. That’s because international payment operators are already invested in providing the best services to residents of all European countries, including the United Kingdom.

More gambling taxes at the horizon

As far as online gambling operators are concerned, the biggest threat for their business doesn’t come from outside forces, but from within. Those who have applied for a license issued by the United Kingdom Gambling Commission are also subject to British taxes. These happen to be some of the highest in Europe and over the last couple of years, the trend has imposed some worrisome signs. The introduction of the point of consumption tax in 2014 was regarded as a major blow to the gambling industry. Eventually, online casinos have found ways to cope with this new tax and still be profitable.

All decisions regarding taxation are taken by UK authorities and the inevitable Brexit won’t change this at all. In theory, the fact that the United Kingdom will severe most of its ties with the European Union, will give it more freedom in proposing an enforcing new taxes. Looking back at what has happened over the last few years, this is simply going to mean that the status quo will be preserved. While there are many questions and assumptions that can be made about what the future will bring, the only certainty is that with or without Brexit, gambling taxes will increase to 21% in October 2019.

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