Two weeks on from the UK referendum on leaving the EU and even if it is difficult
to have a precise idea of how the iGaming industry will be affected by this big change,
experts started giving their point of views on this regard.
The big issues are:
Taxes, Regulation, direct or indirect consequences
for areaslike Gibraltar and Malta.
The consequences of Brexit at
the moment seem to be:
  • games increase in price in UK
  • global games and media companies will no longer set up their global or European HQ in London
  • the longer the uncertainty continues, the more economic damage the UK - and its related igaming actors
  • are likely to suffer as bettors keep hold of their wallets, unsure about the future.
Possibility of recession in UK,
what about gambling?
In the immediate future not much is likely to change, but if in the next 2 years UK will have a recession, gambling will be hit. Probably the online gaming and betting industry would have a “minor impact” compared with offline sector thanks to its broader and more affluent demographic. But experts are convinced that an economic decline would force cuts in people’s benefits, leisure and probably lottery and bingo (as seen in the past recession in 2008-2009).
What will happen to the gaming
companies based in Gibraltar?
Do they still continue having
the legal right to provide their
services to the EU market?
The local gambling commissioner, Phill Brear, stated Brexit will have more severe implications for this area than for UK.The combination of low corporate taxes (1% cap) and Gibraltar’s full membership to the EU have seen the UK independent territory become the operational home to more than 30 online licensed B2B and B2C gambling companies and involves 4,000 industry employees making the online gambling sector its largest employer. The gaming sector in the area accounts for an estimated 20-25% of GDP.Gibraltar would prefer to remain in the EU, especially because the freedom of movement of people is a huge benefit and because of the right to operate legally in the EU market. According to the experts, the most likely destination for relocation will be Malta.