Gibraltar Insulates Against Brexit, Calming Industry ConcernsPublished July 8, 2016 by Lee R
The EU policy regulation does not supersede local licensing requirements.
In Gibraltar, the industry trade association Gibraltar Betting and Gaming Association (GBGA) recently took measures to reassure operators and stakeholders within the so-called British Overseas Territory after Brexit.
The announcement that the Gibraltar authority remained “strongly committed” to maintaining its present industry operations and framework was a defiant response to numerous industry commentators predicting that Gibraltar would be significantly impacted by the small scale economy's loss of EU/EC laws and business provisions.
The shift in regulation could understandably necessitate adaptation; however, as long as the GBGA welcomes operators and sustains the current open market conditions for iGaming, there is no reason for any significant disruption in activity.
This announcement comes on the spurs of the Gibraltar's initial dissent with Brexit. The British Overseas Territory came out as the first UK region to declare its referendum results, revealing a 94% tabulation in favour of remaining in the EU.
Gambling Industry Threatened?
Concerns over Brexit opposition likely stem from the prominent place gambling holds in the small scale economy serving a population of 30,000, with over 4000 industry employees making the online gambling sector the Rock's largest employer.
Gibraltar Benefits of EU
Special benefits of EU participation to the region included low corporate taxe rates (1% cap) and full membership status for Gibraltar in the EU.
The iGaming rich environment hosts over 30 online operators including top industry stars such as bwin.party, BetVictor, 888 Holdings and 32Red.
Message of Hope
The GBGA delivered the message of hope via communication with all Gibraltar operators and stakeholders, and explained the reasons why the Brexit impact would nonetheless remain minimal:
“At the moment and for the foreseeable future there is no change to the existing legal and political framework that our operators work within. We also note that European countries already have widely different regulatory regimes and many require our operators to have local licences – the impact on our members is therefore likely to be minimal.”
In other words, any GBGA members operating in other EU countries were subject to the licence requirements of the respective national regimes. In kind, the security of licenced operations in the free-market jurisdiction of Gibraltar can remain “Rock” solid as well, as the elimination of greater EU jurisdiction, as it were, will not subject Gibraltar licencees to direct changes.