First it was David Cameron, then Teresa May followed, and finally the UK’s conservative party started to negotiate the terms for Brexit with Boris Johnson. With Brexit deals splashed across the table, Johnson was given the green light by the British voter, but how will this impact business and dealing the UK has with the rest of the world?
Brexit will undoubtedly force a new way of business, a new norm if you will. Import, export will all be jammed with taxes, strings attached and more.
One of the biggest sectors the UK will need to address is the UK betting sites, online casinos and sports betting havens. Will it be impacted or not? This is the question on each gamblers mind. If yes, how. Many questions remain unanswered, in the meantime, let’s lay all our cards on the table and delve into the matter.
Let’s talk Regulations.
If you have a reputable betting site, you will most probably have a UK Gambling Commission License, if not, today would be a great day to get one!
The UK’s gambling industry is one of the biggest across the world, and the UK gambler is by far one of the most prominent key figures in gambling today. Having said that, Brexit will come along with new imposed taxes, higher if you will. This is not the ideal scenario for UK based punters and bookies alike. Or is it?
The positive aspect to this coin toss, is of course the regimented and stern rules that the UKGC imposed for any sites seeking a gambling license. There is no grey territory with the UKGC, there are strict rules that one needs to follow to uphold a gambling license, and honestly …this is music to the gambler. More regulations and a UKGC gambling license translates to monthly, annual and even random audits to uphold your license. In common terminology, if you are a gambler, this is what peace of mind and certainty looks like. Rejoice is the word you are looking for.
Operator profits could be hit hard
The EU and the UK would have a good bone to pick between them. And the gambling industry will be affected. The trade with a single EU market had ample advantages that the gambling sphere has adopted for decades. Betting operators had invested in countries with more lenient tax brackets along with lower labor costs.
This is how the gambling world maximized on profits margins when the UK and the EU where on the same page, however Brexit will introduce a new medium, and it is not a happy medium.
With new taxes introduced to UK companies based in Gibraltar or Malta, the cost effectives is throw outside of the window and the cost saving from EU deals and labor costs will direct their way to new tax brackets and higher stakes. This new way of talking gambling will have a ripple effect, starting from the operator and evidentially a negative impact on the punter’s pocket.
The decline of the British Pound.
The UK’s economy has continually constructed its figures on the strength that the British Pound has in the financial world. Throughout the years the British Pound has lost its strength, its credibility if you will, and a decline from 2016 to today has dropped significantly in terms of exchange rate to Euros. Unfortunately, a decline is foreseen further when Brexit take full effect. And yes, betting companies will pay the price.
We have seen many companies like the Stars Group, Betsson and more laying off people, and Brexit and the new era of gambling will affect more jobs, more lives, more families. Along with the loss of business, the loss of jobs and the loss of business, come along the loss of credibility and respect that the gambling industry offers. And this may translate into the shutting of businesses, sites and operational stamp for some betting sites.
Will the pound survive Brexit following the conservative win in the latest UK General Elections? Different people offer different perspective, we just need to hang and see.
Brexit already impacting the UK betting landscape
Brexit and also other very stringent UK regulations are already impacting the gambling market. Lovers of Royal Panda can no longer opt to use the playground to as from 2020. This is what Brexit is all about.
A few years back, we all celebrated the deals and ties that Royal Panda (part of the Leo Vegas group) had with the UK sports and gambling scene. Million Pound marketing strategies and even football endorsement followed. Fast forward to 2020 and the same firm is asking all its UK gamblers to withdraw its cash asap, or lose all the rights to it?
This is the real impact that Brexit is having across the gambling industry in the UK, and unfortunately, other companies will follow suit.
The future of the gambling industry after Brexit
What does the future hold after Brexit? We do have doubts and so does the gambling industry. Taxes, jobs, businesses, it is all up in limbo as we stand.
What we know so far is if more companies withdraw from the UK gambling market, this translates in less competition and a less competitive choice a few of market for the gamblers.
Having said that, we would need to re-visit this after Brexit has taken full force, and hope that some of us are still soldering on, and still standing.
