The Malta Effect

Is the Malta Effect the new Butterfly Effect, which we know from Chaos Theory, that which ties the butterfly's wing flapping to greater changes in the atmosphere? The passing of the Gambling act in the UK is showing its effect in Malta.

With the legalizing of online casino operations that are based in the UK or in the greater European Economic Area, companies that were previously based elsewhere in the world are moving closer. If the Act was designed so to draw casinos to the UK, it is pretty much a failure; with a 15% tax on casinos' gross profits in the UK, it is not an attractive option.

Malta on the other hand is quite attractive, namely with its 2.5% tax rate. InterCasino and InterPoker are only the latest of dozens of companies to have moved their operations to the small country.

A progressive policy is proving a smart economic choice, in the case of Malta and possibly other countries too. Proximity, inclusion and a low tax rate are a winning combination for the companies and for the hosting country as well.

The Gambling Act may turn out to be a positive development for English gamblers, and even for the English economy. But it is clearly, already at this point, proving beneficial to other economies, or perhaps should be viewed as a positive development for the global economy.