The ballot boxes have been stuffed and results have now been counted, with the UK making the brave decision to leave the European Union. Given that this is the case, the online casino industry has been forced to sit up and take notice of matters. While at this point nobody truly knows what the future holds for iGaming in Europe, there are certain assumptions that can be made.
Point of Consumption Tax
What is widely considered to the biggest news to come out of the Brexit result relates to the widely questionable point of consumption tax. Many believe that with the UK now heading towards the EU exit door, it could lead towards UK based gambling operations being able to cast the unpopular tax measure to one side. Currently a noted EU compliance measure, what it has related to is an increase in business operation costs, something that many companies have questioned the validity of.
Another matter that will change in the UK relates to regulation, as the UK market will now have increased control with regards to how the industry operates. Moving forward adaptation will be required, which will see new regulations presented, of which many feel will be favourable to the industry. The UK has a thriving gambling industry and given such popularity, new regulations that are more favourable to nationally based brands could help boost industry performance further.
The decision to vote leave has certainly come along and ruffled feathers, with many bookmakers labelling “Brexit” as a major political upset. With that in mind, the overall impact of the decision on the online casino industry should prove to be minimal, with it quite possibly favouring British based gambling brands from a taxation and regulation standpoint.