The government’s representative in Gibraltar has confirmed that the remote gambling industry will not be under threat after the Brexit.
It is said the industry is “strongly committed” to keeping its online gaming operations in the British Overseas Territory, after speaking with every gambling operator having a presence on the island, as well as the Gibraltar Gaming and Betting Association.
William Hill, Ladbrokes and Bwin.party are just some of the gambling companies that base their online operations on the island.
Over 30 groups moved their online base here before the United Kingdom’s point-of-consumption tax was introduced two years ago.
Before the UK tax was introduced, firms were taxed depending on where they were based, although they are now taxed on where their customers are located. Online gambling has become on of the pillars of the tiny outpost’s economy.
The government’s representative said: “HM Government of Gibraltar will continue to work with HM Government UK to ensure the best possible outcome from the ongoing discussions in the expectation that there will be little or no change to the current arrangements for those who live and work in or travel to Gibraltar, and all the indications are that it really will be ‘business as usual.”
“In the past weeks, various operators have confirmed their intention to continue with their expansion plans in Gibraltar including increasing or leasing new office space in Gibraltar, relocating parts of their existing business from other jurisdictions to Gibraltar, and ensuring recruitment continues apace.”
Several days ago, the affiliated industry group Better Collective warned that the matter has the ability to affect the betting industry more than the shock Brexit result and the plummeting British pound.
Better Collective attributed this to local operators struggling without an EU licence, though there have also been fears that Spain will spark a fresh sovereignty claim on the island.
