UK’s withdrawal from the European Union will enter the next phase on the 30th June, which marks the potential end of the transition period. With Brexit growing nearer, there are still many concerns regarding the UK gambling industry, which is estimated at £15 billion annually.
One of the main complications that might occur is the gambling regulatory framework as companies licensed in the UK and its overseas territories are among the most popular in the EU. At the same time, many EU companies with the UKGC license offer their services to UK punters and pay 15% point-of-consumption tax. Analysts are warning that after the UK leaves the EU, there might be some disruptions in accessing certain brands.
Other potential issues are overseas territories such as Gibraltar, which is home to a great number of gambling companies, due to favorable taxation laws. The gambling industry produces as much as 25% GDP (Gross Domestic Product) in some territories, but Brexit could cause a great exodus of gambling firms.
One of the biggest British gambling companies, bet365 have already moved their operations to Malta, explaining how they wish to maintain access to the bigger EU market.