If you haven’t considered it yet: Brexit has its influences on the online casino market. The practice of online gambling has been well established in the UK. Two of the most respected gambling licenses come from the UK Gambling Commission and the tangentially related Malta Gambling Authority. Not only that, even the overseas territory Gibraltar is a hotspot for gambling related businesses because their tax rates are incredibly inviting. With the UK leaving the EU, the established EU-law no longer applies to our country. How does the online casino market deal with this split between long time partners?
International Gambling Laws
There is no international law that has been established about online gambling. Most countries still rely on their own courts to formulate what is allowed and what isn’t. In a market that has no set boundaries because it offers its services online, that leads to many blind spots and gray areas. That has most recently been proven by the implementation of a new gambling law in Germany.
Up until now online gambling has been entirely forbidden in Germany. But with it being a part of the EU there were more things to consider than German law. In fact, the EU-law contradicted Germany’s rules for a long time. According to the EU, online gambling is allowed, as long as the provider has a gambling license that has been issued by one of the EU-Members. Pre-Brexit UK online casinos were able to offer their services in Germany and point to the EU-law while it was still, according to German law, technically illegal.
Since the German law changed in July 2021, online gambling is officially allowed. When you think that makes things easier, you are mistaken. With the legalization there came a new set of rules. Namely: You have to have a German gambling license to offer your services in Germany. The problem for many online casinos being that the German licensing regulations are rather strict.
If you are unsure, whether a casino has a license and what its legal status in your country looks like, you can rely on online gambling communities like Casinomeister. They have reviews of the most important online gambling websites and include all the necessary information on a casino, their website, and their regulations.
Relevant Laws Post-Brexit
Online Casinos that want to offer their website in the UK are looking at a similar situation. They, too, have to get a UK-Gambling license to be allowed to operate here. Some casinos who have had a gambling license issued by the UK Gambling Commission have to reapply to it now, which causes them to have to halt their business in the UK and lose out on some profits.
Many casinos got lucky. It was decided that Gibraltar would not be affected by the Brexit changes. After years of fights over the sovereignty of the overseas territory, they moved away from the UK influence and remained part of the EU. EU-based online casino providers can remain there, thanks to the many partnership deals between EU-states, and profit from the economic advantages of being a registered company in Gibraltar.
The Downsides of Brexit in Online Gambling
In its many years of existence, the EU has established countless trade and cooperation agreements between its members. Whatever kind of business or plan you had; it was made easier by removing obstacles when you would:
- sell goods or supply services to or from a different EU-country
- move goods through other countries
- use materials or goods to trade under preferential schemes with partner countries
- cross-country borders
- work for another country
- move to or live in another country
As a result of the UK leaving the EU, you now have to deal with all kinds of additional formalities and transaction procedures. For businesses that means trouble with laws, custom declarations, licenses for import and export and the providing of security and safety data whenever a cross-border transaction happens.
For online businesses like online casinos, the whole customs part of Brexit won’t be a problem. But there are still things to keep in mind, like generally more effort to be allowed to offer your services in another country, whether you have to deal with restricting laws or licenses you will have to apply for.
Without an international online gambling law, there will always be rules you’ll have to look out for when offering your services in another country. Being a part of the trade agreements between EU-members has made that a little easier. After Brexit there is now a short period of rearrangement. Licenses have to be renewed or applied to; laws have to be considered.
If you are a gambling enthusiast, chances are you won’t notice much of the existing problems, except maybe a little pause in operations in your favorite casino while it deals with the bureaucracy. If you want to make sure things will be fine, keep up to date with gambling news via an online gambling community.