Will Brexit Affect the Gibraltar Online Casino Industry?

The climate in Europe is a bit uneasy at the moment, and much of it has to do with the consequences of Brexit. This scenario will undoubtedly have an effect on the economy, and is bound to include online casinos operating in the UK. Internet gambling operators find themselves in a complicated situation that goes beyond black or white decisions. To avoid problems of jurisdiction and regulations, many online casino operators are opting to hold licenses from the UK Gambling Commission and the government of Gibraltar. Despite the rough anticipated transition, these companies have put their interests in a good position for the future.

Gibraltar is no stranger to online casino applications. The region has been used as a means for online casinos to operate because it offers low taxes. In addition, casino sites with a license from Gibraltar can sometimes provide products and services on an international level. An issue facing Gibraltar is that it is technically a part of the UK, but also shares a border with Spain. The effects of Brexit puts the region in a strange position. However, there have been plenty of talks regarding giving Gibraltar the access it needs to both markets. Nothing official will happen until the year 2020.

Both the UK and Spain want to lay claim to the region of Gibraltar, its gambling market being one of the sticking points. The United Kingdom has claimed sovereignty for Gibraltar over the past 300 years, but the country of Spain is pushing for a dual governance. This uncertainty may impact the willingness of new online casino operators to enter the market. The silver lining is that nothing will change for another two years. Hopefully, a new and favorable deal can be reached by then. Spain is not making it easy, though. The country is threatening to veto a Brexit deal and halt the process.

Gibraltar can almost be seen as the child in the midst of a bad divorce. Ultimately, the loss of revenue from online casinos is a scary situation for the small peninsula. As the home to numerous headquarters for gambling operators and software developers, Gibraltar enjoys an economic boon. Many residents of the region are also employed by these companies, and their future is equally uncertain. The government in the UK is doing everything in its power to temper those fears and assure Gibraltar continued prosperity. Once Brexit is completed, a much clearer picture of the online casino industry will emerge.