How will Brexit affect online gambling in the UK?

Back in June 2016, the United Kingdom voted to leave the European Union. After several years of protracted negotiations and fraught politics, this vote was finally followed through on 31 January 2020, with the ‘transition period’ ending on 31 December.

Brexit’s impact on life in the UK is hard to overstate and few industries in the country have not been affected by the change in regulations. However, the gambling sector is one of the exceptions. The list of UK online casinos is long, which means that any changes to the way it functions could have a significant effect on the economy as a whole. Fortunately, early signs suggest that Brexit is set to have a comparatively minimal impact on the industry.

Saying that, there is likely to be some small changes. In this article we will speculate about exactly how the severing of ties with the EU could affect British gambling companies in the future.

Increased difference to the EU

Unlike many other industries, gambling has never been centrally regulated by the EU. Because of this, Brexit is unlikely to have much of an impact on online casinos and sportsbooks in a legislative sense.

Currently, gambling operators must receive a license from the UK Gambling Commission. This scrupulous body ensures that all operators are operating both safely and fairly and it is in no way tied to the EU. Because of this, the only impact that Brexit is likely to have on UK gambling is to further differentiate it from how other countries on the continent operate.

What is certain to affect the sector in the near future is the upcoming review being undertaken by the Commission. This is the widest sweeping report that has been conducted in the country’s gambling laws in recent memory and reports suggest that the recommendations will be far reaching.

Number 10 are likely to back the report, with Boris Johnson thought to be a personal supporter of revised gambling regulations.

Talent drain

Indirectly, the UK’s exit from the European Union may have an impact on the gambling industry by leading to a talent drain. Brexit has ended freedom of movement across the EU in Britain with all immigrants now required to accrue a certain amount of points in a Australian style system, in order to be eligible for a working visa.

These added restrictions to the movement of labour could dissuade the brightest workers in Europe from coming over to the UK to work — driving down industry standards in the process.

Gibraltar could be affected

Another key talking point regarding Brexit and the UK Gambling industry is the uncertain status of the UK’s overseas territory, Gibraltar. The Rock is home to a significant number of online casinos and gambling companies, thanks to its attractive tax rate.

However, a significant amount of the workers in the industry actually commute to the Island from Spain. This practice could be disrupted if Gilbraltar’s freedom of movement is curtailed due to Brexit. It goes without saying that this would have a drastic, knock-on effect on the UK’s gambling industry.