Great iGaming industry players including the Bwin party and Ladbroke Coral have already sensitized its customer of the possible shifting from the Isle of Man to the United Kingdom. The shifting which is set to affect most of the gambling business is in the effect of the possible conducive environment available in the United Kingdom.
The two operators who are owned by the famous GVC Holding have clearly stated that the shift meant to increase the efficiency by allowing key meetings to be held close to their readily available large market of UK.
Similar shifting has been experienced in Gibraltar where the main cause is the Brexit plan that is set to affect a number of businesses. The effect has seen several casinos and sportsbooks operators start to relocate to Malta just before the Brexit deadline. Among the well-established operators in Malta include Bet365 who has a huge task force that is readily available to meet your gambling needs.
The Regulations in the UK
Indeed, the regulations in the UK are much more forgiving when we compare it to some of their neighbors. For example, Norway and other Scandinavian countries have more complex regulations when we talk about the iGaming industry. Logically, after Brexit, some of the amendments need to adapt to the current situation. They need to be made to the regulatory framework to better accommodate the shrunk market.
In other words, taxes and license payments will slowly start to increase. This might cause a huge number of problems for UK operators. However, we will see how things are going to change in the future. Some people predict there will be a lot fewer casinos in this country. On the contrary, some believe the regulations will start to be more operator-friendly. Yet, getting out of the EU won’t pass without any influence on the iGaming industry.
Taxes and License Payments: Will They Increase a Lot?
Well, we do not want to be negative here. We are only following the current situation. This will have a huge influence on many UK industries. Getting out of the EU will have a hit to their profitability. Logically, because of that, all tax laws will have to adjust to the current situation.
For example, the license payments already increased and some of them are probably going to increase in the future. Indeed, less trustworthy jurisdictions are going to start vying for a position in the UK market.
Yet, we believe that UK gaming companies still have a chance to remain competitive. The reason for that is simple. It is true that the United Kingdom now functions as a single country. However, a large part of its population is a huge fan of gambling. Because of that, if the laws truly adapt to the current situation in the right way, this market will remain a magnet for any company in the world including iGaming companies.
GVC Moves Tax Residence from Gibraltar to the UK
GVC Holdings, the main player in the iGaming industry of Europe has taken a move to relocate to the UK as said iGamingBusiness so as to effectively manage the changing environment in the European gambling sector. As a way of widening the scope of the market, the great industry players have noted that the move shall greatly help in reducing costs in different ways and provide a chance to hold full board committee meetings in the UK.
The shifting which is set to see the GVC Holding move from the Isle of Man to the UK has no effect whatsoever to the staffing or the operational side of the business. This implies that there is no significant effect on the tax bill or the tax rates instead the business is set to continue in the usual manner. However, the online gambling business shall continue to run from Gibraltar and UK markets.
Is it a Brexit Impact?
All these could be as a result of the Brexit plan which has affected many gambling companies either directly or indirectly. All gambling operators who work under the strict regulations of the UKGC have no option but just to shift to the UK where their license and market have a wider market scope. Although the GVC Holding previously insisted that the move was only meant for market efficiency, the same efficiency could mean relocating as a result of tight measures put by the license holders.
The strict gambling rules placed by the UK Gambling Commission are there to ensure that both the customers who are the bettors or the gambler and the operators are well protected from criminal related practices. This also means better protection against gambling compulsive behavior via the self-exclusion system. However, according to NonStopCasino, there are some casino operators not on Gamstop where Brits could make their bets. The possible Brexit plan will make Malta a gambling destination for many as most of the casinos and sportsbook operators have been seen establishing the gambling business all over the country.
The move by most gambling companies to move to the UK will ensure a better gambling future as the gambling market will already be established. Gibraltar which also has a huge number of gamblers is also set to consider the plan that will affect the gambling business. It may result in loose of the market to most of the countries they do not adequately prepare for the effects of the Brexit plan.
Will BREXIT influence Malta IGaming Industry
Well, Gibraltar was one of the favorite destinations for entrepreneurs from the iGaming Industry. However, many of the UK businesses from this industry have also been stationed in Malta. Because of that, BREXIT will have a huge impact on the Maltese iGaming industry.
First of all, this is not a problem only for entrepreneurs. The UK operators that are stationed in this country are also bringing too much workforce with them. Until this moment, the relocation of the UK iGaming companies was of the best interest to British-based gambling companies. The Maltese laws offer a lot more business-friendly environment. However, the more important parts were the fact that Malta has a more tax-efficient framework.
Yet, things are going to change now. If the UK needs to transition over World Trade Organization terms, it will no longer have frictionless access to the Single Market. This might bring a huge number of tax and law problems for UK operators.
To capture a wider market, most of the great operators who are working in Europe are required to ensure that their license holders are part of the UK just in case the Brexit plan wins the voting. The situation was also described at TheLeader’s discussion about Brexit.
This is because the UK shall only recognize licenses from the UKGC who are the main gambling regulators. It is our hope that the required measures shall be enhanced by the gambling companies so gambling develops into a more useful activity for the economy rather than a criminal activity that evades tax thereby derailing development.
So, what do you think? Will the iGaming industry survive the changes that will happen soon? Will the UK remain one of the favorite markets for iGaming companies? Share your comment below!