Online companies based in Gibraltar remain committed to staying on the Rock despite the UK’s vote to leave the European Union, according to the territory’s Minister for Financial Services.
Speaking to local media, Minister for Financial Services and Gaming Albert Isola said he has spoken personally with every gambling company based in Gibraltar and that they have all indicated they will remain fully committed to the local remote gaming industry.
“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’,” the Ministry said in a later press statement. “In the past week, 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.
A lot of concern over the effect in Gibraltar’s gaming industry was leveled after the UK voted to leave the European Union. That led to concerns over whether the companies would be licensed to operate in EU countries after the exit, as many European markets are strictly regulated. There were also concerns over whether Gibraltar-based employees will be allowed free movement into Spain, where many live.
Isola said business will continue as usual in Gibraltar.
“The Gambling Act Review published earlier this year and now in the consultation stage will definitely be proceeded with and further expanded to ensure that our regulatory, licensing and tax regimes remain fit for purpose having regard to any new arrangements that Gibraltar may enjoy in the future,” the statement said. “While this Government and others believed that staying in the EU was the better choice for economic development and growth, any move away from the EU will provide new and different opportunities for our economy and we will ensure these are available to all our commercial sectors and Gibraltar remains a great place to locate a business.”
More than 30 gambling groups have online gaming operations in Gibraltar including bwin.party, William Hill, and Ladbrokes.
There has been speculation that another EU haven for online gambling companies, namely Malta, will benefit from the Brexit and attract companies now located in Gibraltar.
A recent 2015 financial report by the Malta Gaming Authority shows the island is already seeing healthy growth in both land-based and online gaming.
According to the report, total revenue for 2015 reached €60.9 million, for an increase year-on-year of 4.3 percent compared to 2014. The Maltese government brought in €55.8 million in tax revenue for 2015, up from the 2014 total of €53.2 million.
The figures show more than just growth, but are also benchmarks in a three-year strategy launched by Malta gaming officials in 2014, designed to establish the autonomy of the Malta market and regulation model despite the turbulence of the EU market, which has just been made more turbulent by the Brexit.
