Brexit: What are the consequences for the gambling industry?
Hardly a decision has been made since Creation of the European Union has been debated for as long as the UK's recent secession. As of January 1, 2021, the Kingdom of Great Britain and Northern Ireland is officially no longer part of the EU. This inevitably has an impact on economic relations, which will face an enormous challenge in the future. But does this also affect companies from the gaming industry?
Gambling in Europe: A Give and Take
About Over the years, the relationships between the European partners have continued to strengthen. With the United Kingdom leaving the EU, these relationships are likely to be put to the test for the time being. Almost all sectors of the economy are affected, including gambling, of course. Both parties haveclosely cooperated in this regard over the years. Many major gambling groups in the European market are based in the UK. Many companies based in EU countries are in turn active in the British market.
What is certain is that something about the license terms will change. The UK Gambling Authority is currently revising the Gambling Act. However, it is not yet known what effects this will have on licensing. It is currently possible for both British companies and European companies to make their services available in Great Britain. This could change. It is considered likely thatMalta licensed gambling operators will require a separate license for the UK market in the future. The situation is different with the licenses from Alderney and the Isle of Man. These companies, whose licensors are in UK territory, will presumably be allowed to continue operating in the UK as usual.
Gibraltar is facing special challenges
The gambling companies that have their license from Gibraltar are likely to play a special role in the future. Gibraltar is a British Overseas Territory. Great Britain's decision also affects the small country south of Spain. For a long time, Gibraltar had resisted the exit being “towed” by Great Britain and wanted to at least strengthen its own position in its own negotiations and benefit from the advantages of the European Union. Now, however,Gibraltar is mostly directly affected by the exit. For the local gambling companies and their employees, this could mean horrendous challenges.
Many workers regularly commute between their home in Spain and work in Gibraltar. So far, this has been possible without any problems thanks to the open EU borders. However,Visas may be required to enter the EU and vice versa. The bureaucracy increases enormously. In addition, there is a risk that visas will be rejected for whatever reason. In the worst case, this could result in the loss of a job or place of residence for individual employees. Another problem: Gibraltar no longer benefits from the EU's freedom to provide services. The companies with a license from the small country will no longer be able to make their offers available in European countries without further ado. If this was possible in Kenya for a long time in the form of a legal gray area, companies would now slip completely into illegality if they violated the law.
Does the “Danish example” set a precedent?
How exactly the license conditions will be regulated in the future is likely to remain one of the most exciting aspects of cross-border gaming. AThe Scandinavian country Denmark has already taken an interesting path. The responsible gaming authority was already dealing with the exit and the impending consequences for the European gaming market at the beginning of December. Denmark also decided early on to ban the granting of licenses to companies based in Gibraltar or Great Britain. Companies within the EU, on the other hand, can continue to apply for a license in the country as usual. In general, it is advisable to play in acasino with a European license.
For British companies this should only be possible in the future ifsome kind of authorized representative for the authorities is available. This should be, for example, a person or a company based in Denmark or other EU countries. Only then is there a chance that gambling can also be offered with a place of business outside the EU.
Corporations already active on other "construction sites"
Since the exit of the kingdom took place after long discussions, the companies naturally had enough time to prepare for this. It was therefore already apparent in the past few months that theBritish groups are increasingly looking for other markets. The market in the USA has become particularly interesting for many companies. This has been growing steadily for more than a year, and some British companies are already getting involved with their own licenses from overseas.
This trend is likely to intensify in the coming months. After all, the home market in Great Britain is extremely competitive andin view of the large number of companies almost oversaturated. Establishing stable business here alone is likely to become increasingly difficult in the coming months.