As the UK and Spain battle over Gibraltar in Brexit negotiations, the online gaming industry based on the small territory is left waiting to see the outcome.
Brexit negotiating guidelines published by the European Union said that no Brexit agreement between the EU and UK could apply to Gibraltar without agreement between Spain and the UK. That led UK officials to say they will defend their interests in Gibraltar, with some even invoking the country’s defense of the Falkland Islands in the 1980s.
British Prime Minister Theresa May said that she would “never” allow Gibraltar to slip from British control against the wishes of Gibraltarians.
Gibraltar’s gambling industry employs about 3,000 people, with another 1,000 indirectly depending on the sector for employment according to a report in the Racing Post. Many of the employees live on the Spanish side of the border. The territory has attracted many online gaming companies due to its low tax rate.
While the UK and Spain are being contentious, bookmakers in the territory are trying to stay above the fray.
“I think the hyperbole has got a bit out of hand and when things go into proper negotiations it will be handled sensitively on both sides, but obviously, it’s something we continue to monitor,” William Hill director of communications Ciaran O’Brien told the Post.
Ladbrokes’ Director of Media David Williams also said in a press release that he expected business to carry on as normal.
“We’ve had operations in Gibraltar for many years and look forward to sustaining that presence for many more years to come,” he said.
In the meantime, Spain has said it will not close its border with Gibraltar after the UK leaves the EU.
