The Impact of Brexit on UK Online Casinos

Table Of Content:

Brexit has caused a major shake-up in many sectors in the UK. The globally respected UK gambling industry is one example that has already felt and is still feeling the full weight of this impact. Even though the decision to leave the EU was taken almost nine years ago, the gambling industry is still trying to piece together what this means for them. The main question that arises is whether this impact is positive or detrimental - a topic we will explore in depth here. Let’s get started without wasting any time!

The Impacts Of Brexit

Couple years ago it was enough to just type find UK casino sites on Google, but with Brexit this has changed a little bit. Brexit has had many impacts on the UK gambling industry, but none more dramatic than the changes in regulation. In the past, being part of the EU meant that both the UK and other European countries operated under a set of laws that facilitated trade between them, including those related to gambling. However, with the UK's departure from Europe, companies are now bound by two different sets of rules, leading to further complications and costs for those firms trying to navigate their way through compliance. As a result of this change, many companies have opted to move their operations to other parts of Europe where they can easily operate under familiar regulations; this has seen new online casino operators emerge in regions such as Malta and Gibraltar. The appeal of these two regions as favourable bases for UK-based gambling firms looking forward to expanding into the EU market has been further enhanced by their popularity due to the easy accessibility located south of the Spanish coast. So, what happened after these regulations?

After The Regulations

While the above has implications for UK-based operators wishing to operate on EU territory, it has had little impact on those that are entirely focussed on the UK gambling market. Since the majority of players in UK casinos reside in the region, the UK's gambling laws have traditionally been localised. This makes it routine for operators to comply with the regulations set by the UK Gambling Commission. On the flip side, this also gives players the assurance that they are subject to one of the strictest gambling jurisdictions globally, which is not something that comes easily and comes with regular audits. Rather than focusing on increasing revenue through more gamblers or higher stakes, they prefer to gather feedback on what their customers want more of. One positive post-Brexit outcome for operators based in the UK is reduced competition, as many EU-based gambling companies will withdraw from operating in the UK, either voluntarily or due to circumstances beyond their control, driving players away from online casinos where they used to bet or wager.

Payment Methods

Brexit has cast its long shadow over yet another area of the UK gambling world. Player payment methods. With the UK's farewell to the EU, the dynamics of transnational payments underwent a metamorphosis, the repercussions of which reached the corridors of online gambling. One of the biggest obstacles that has emerged is the facilitation of transactions through EU-based payment providers. In response, numerous UK online casinos have had to switch to local payment facilitators, a strategic move aimed at ensuring a seamless flow in transaction processes. However, this transition has not been smooth; the implementation has led to delays, with ancillary costs that both casinos and players have had to bear.

The online gambling industry has seen a shift towards using cryptocurrencies as payment methods. Cryptocurrencies operate outside the realm of normal payment regulations, making them more attractive to certain gambling firms and patrons. This flow has been accelerated by post-Brexit regulatory changes; cryptocurrencies as a digital alternative may help to overcome some of these rising hurdles.

Yet, interestingly, convoluted tax laws linked to cryptocurrencies have left the UK Gambling Commission apprehensive about issuing licences to UK casinos transacting via crypto payments - this hesitation stems from precisely this convolution. It is indisputable that Brexit has significantly impacted the UK gambling sector, leading to structural changes in the way players pay, as well as in the rules and regulations governing the operation.

The emergence of new online casinos on the EU market has led to increased competition and diversity of gaming products - a blow to UK online casinos and the services they offer to players. Despite the steps taken, there have been difficulties, especially with payments processed through EU payment service providers. But indeed, Brexit has cast a long shadow over the UK's online gambling industry. How long the effects of this shadow will last is a mystery. But still, it is possible to have a pleasant time with quality casinos.