The Impact of Brexit on Online Bingo
June 7th, 2016
As the EU referendum grows ever nearer, the possibility of ‘Brexit’ is the hot topic on everyone’s lips. Gibraltar currently sits in a very precarious position, thanks to its special relationship with Britain. As many of you know, a huge number of popular gaming operators hold their gaming licenses in Gibraltar. So, how will Brexit affect online bingo?
Gibraltar is famed for its flourishing gambling industry. At present, Gibraltar is part of the EU as it is considered to be British territory. Therefore, it is not a member in its own right. If Britain leaves the EU, so does Gibraltar.
Gibraltar currently benefits from low tax rates, accounting for its popularity amongst UK gambling operators. Firms pay just 10% company tax at present, whilst sales tax is not levied at all. Both of these mean that Gibraltar’s economy has flourished as part of the single market.
Many of the 30 gambling companies which exist in Gibraltar hire from across the border in Spain. If Gibraltar becomes cut off as a result of the referendum, it will be far harder to hire and retain staff. Gibraltar-based employees could require a visa to travel to and from Spain, making it less attractive to work within the Gibraltar-based gambling industry.
Spain has had a long-standing campaign to regain sovereignty over Gibraltar. They have made no secret that they will up their efforts, should Brexit go forward. If Britain loses control of Gibraltar altogether, it will have massive repercussions for the online gambling industry.
In short, Brexit would change the face of online bingo as we know it. It is almost certain that those hailing from Gibraltar will be praying that the UK chooses to remain as part of the EU.