After an ever-rising and almost never-ending uncertainty, the UK finally left the EU. Many uncertainties remain, and more will likely arise during the next few months. However, for most EU gamblers, Gibraltar is an issue of much concern.
Gibraltar is an attractive business zone for many reasons. Among these is the region’s leniency on taxation. Workers pay a 25% work tax in Spain, but only 10% in British territory. This leniency has resulted in many workers living in Spain but working in the UK.
Today, many gambling experts call Gibraltar home. Gibraltar has the highest concentration of gambling firms worldwide. The gambling industry is driven by thousands of EU and British gambling enthusiasts.
However, with Brexit, many things have to change. Many industries must make significant adjustments.
What are the Brexit Concerns for Organisations Based in Gibraltar?
To begin with, the movement of goods, services between Gibraltar and Spain will likely be restricted. It’s even possible that a territorial border between Spain and British territory will emerge. These restrictions will pose a lot of challenges for the thousands of Gibraltar’s Spanish workers.
Gibraltar’s economy is founded on the service industry, and gambling activities lie at its core. It is, therefore, understandable why Brexit is an issue of much concern within gambling circles. Luckily though, Spain and the British have reached an agreement that benefits both sides. Most likely, the impending changes will benefit the Gibraltar gambling industry.
Gibraltar Will Join the Schengen
The 11th-hour agreement between the two states will likely result in the British territory becoming a Schengen zone. Essentially, Gibraltar will become part of an area controlled by 26 countries with unrestricted movements. The Gibraltar agreement forms a political framework that is separate from the EU-Britain Brexit treaty.
For the Gibraltar gambling industry, the removal of movement restrictions means its workers’ commute remains unaffected. Entry into the Schengen will also mean a relaxation of Spanish control over the territory. This independence will likely catalyse an extensive expansion of the gambling industry.
The increased border fluidity will enable gambling operators to employ and retain cross border personnel. Increased movement in and out of Gibraltar will increase its attractiveness to entrepreneurs and gaming executives.
Gambling Will Continue to Thrive
The inclusion of Gibraltar in the free movement area is a resounding victory for Spain and Gibraltarians. It guarantees continued prosperity for the more than 15,000 Gibraltar workers who reside in Spain.
This agreement also means that EU citizens from any other Schengen state will avoid passport checks. However, since the UK is not part of the Schengen, its citizens will still need passport controls.
A Review of the Gambling Act
Presently, gambling activities in Gibraltar are managed by the territory’s betting and gambling association (GBGA). Brexit changes necessitate the need to address GBGA’s agenda. The UK will likely pass a new gambling act for Gibraltar.
A critical agenda of the new law will be to regulate and address the territory’s unique privileges. Regardless of the impending changes, the Gibraltar gambling industry will quickly adapt and even excel in the future.
Thanks to Olivia Smith for the contribution to the article. Don’t miss out on checking her blog about new online casinos in the UK.
