Regulatory

Mentioning “Brexit” is a surefire way to start an argument at the pub on a Friday night—and possibly get kicked out. Calling it controversial is putting it mildly.

💔 These international shifts have divided the nation, impacting numerous businesses and industries.

The gambling industry has seen a few changes, too. For many, what was once a leisurely hobby has experienced a shift, leaving gamblers with new rules and accessibility.

In this article, we’ll explore all the ways that Brexit has affected the UK gambling scene and what to expect for the future.

What is Brexit?

For those living under a rock, Brexit is a combination of the words ‘British’ and ‘Exit’.

It’s a referendum that was introduced to separate the UK from the rest of the European Union — mostly for political reasons.

It’s affected many sectors and industries, and in many ways, it has also changed the lives of residents both in the EU and in the UK.

Post-Brexit access and availability

Understandably, British users are curious about how Brexit has impacted the online casino landscape.

Reputable casino sites began assessing the upcoming changes back in 2020. According to JohnSlots, UK casinos would struggle to access the European market post-Brexit, which has since impacted access to betting activities.

😟 Given that many people spend their money on this entertaining pastime, it's only natural that concerns about its future have arisen.

Brexit has restricted online betting between the UK and the EU, with casinos now facing higher licensing costs for cross-border gambling. As a result, EU players may lose access to UK-based casinos without the proper international licenses, reducing options for both EU and UK citizens.

New regulations have also affected casinos and users, limiting payment options and promotional offers like bonuses.

Whilst it may seem minor, these changes could drive away even the most loyal players.

Casino regulations and licensing

Licensing is a must when it comes to online casinos.

👉 Prior to Brexit, the UK had to operate under the EU’s gambling regulations, but now they have their own set of betting rules and legislation.

• For example, for a UK-based online casino to operate across the EU they’re now required to obtain licensing for each country in the EU if they want to operate in these areas.
• This requires more time and more money than ever before, which is forcing many smaller platforms to limit their player base to local users.
• New tax regulations have also been introduced in the UK and whilst gambling winnings are exempt from tax in the UK, this won’t apply to some EU countries where they are still subject to taxation.

Whether a UK-based platform faces taxes depends on the European country it's licensed in, adding complexity and making it harder for gamblers to keep most of their winnings.

Consumer protection for gamblers

The EU has developed safety regulations for casinos and gamblers alike to follow. These regulations remain consistent across all European countries, which used to include the UK.

Since the separation between these two entities, the UK has developed its own set of regulations to ensure safe betting and consumer protection, mostly for the better.

This has led to stronger and more secure practices that are focused on individuals who have gambling addictions in the UK, which is a positive step.

However, it does make it a bit harder for the EU and UK consumer safety regulations to work together in harmony.

Whilst this may not seem like a big deal, it does have an impact on the decisions that consumers make in their choice of online betting platforms.

This has decreased the number of foreign players using cross-border gambling services, which has led to a shrinking target market and overall profit margins.

Currency and payment processing

One of the biggest areas of impact from Brexit has to be the currency exchange.

Since leaving the EU, the UK has had to change from European payment providers to UK ones instead. This has made trading and transfers more expensive, with extra costs and bank charges, whilst longer processing times can be frustrating for players.

Also, now that the EU and the UK are separate from each other, the unpredictability between the Great British pound (GBP) and the euro (EUR) has increased.

This makes it that much more difficult for players to manage their funds, as bets, winnings and fees have all been affected by these changes.

Visas and immigration

The Brexit debate often raised questions about immigration and citizenship.

The UK once had many EU citizens as its residents, but the referendum has since changed the path to citizenship in several ways.

These changes have resulted in a greatly decreased workforce for many casinos in the gambling industry. 👎 Whilst larger entities have remained, many smaller casinos have had to search for greener pastures elsewhere.

Simply put, the need to apply for a working VISA for workers outside of the UK has made it difficult for existing casino companies to attract more talent.

Relocations from Gibraltar

Perhaps one of the more “interesting” discussions about Brexit in the gambling industry is Gibraltar.

After all, this territory has long been in dispute between the UK and Spain, which happens to be a member of the EU. Brexit has only escalated the tensions even further. For now, Gibraltar remains part of the UK, but mostly just on paper.

• Gibraltar is considered a self-governing country, with the UK’s legislative powers mostly reserved for matters of national defence.
• The country left the EU with the UK in 2020, but Spain still claims sovereignty over the territory, which had interestingly been left out of the Trade and Cooperation Agreement.
• As it stands, Gibraltar currently hosts around 60 major online casino companies that have remained in the country due to its lucrative taxation policies.
• About 60% of casino workers on the island actually live in Spain and commute across the border every day.
• It’s not hard to see how any changes to the current referendum will affect the gambling industry in Gibraltar. New, less lucrative tax laws may force casinos to change their locations.
• Restricting the movement between Gibraltar and the rest of the EU could lead to many workers seeking alternative employment.

Conclusion

Brexit has already had a significant impact on the UK gambling industry, forcing casinos to rethink their strategies and policies to adapt to the new changes.

For some, these changes are only thought of as a slight inconvenience, whilst for many it has been game changing and has altered things in a negative way.

Only time will tell if we can embrace these changes. Let’s see what the next four years bring for this non-stop industry.

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