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In the last week of this summer month, we would like you to have a great start to your casino week...
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Unless you have been living under a rock for the last few months, you will be well aware that on June 23, 2016 the people of the United Kingdom marginally voted to leave the European Union and regain its independence. But what exactly does the Brexit vote have to do with iGaming and Gibraltar?
Located on the southern tip of Spain, Gibraltar is an oversees territory which is technically a part of the United Kingdom. The Mediterranean region is self-governed and is a real melting pot when it comes to the iGaming industry. Making up around 25% of Gibraltar’s GDP, there is some 30-online casino and iGaming companies based on this small peninsula.
The small oversees territory voted in its numbers in favour of staying a member of the EU and is now faced with the prospect of being hauled out with the rest of the United Kingdom.
With Gibraltar being connected to the southern tip of Spain, the businesses situated in this state rely heavily on workers crossing the border from Spain every single day. Some 4000 commuters make the trip on a daily basis and if/when the United Kingdom leave the European Union, it will become more difficult to cross the border between the two countries.
With so many different possible destination around the world to set up a business, why do more and more iGaming companies choose Gibraltar as their location of choice? Well, one of the reasons that the small isolated slice of the United Kingdom has become such a hub is because Gibraltar has a 1% cap on corporate taxes.
With Brexit well and truly here to stay, where would be the next destination of choice for iGaming businesses? For companies who are based within Europe, the most likely country of choice would be Malta. Based off the southern coast of Sicily, Malta is already a world hotspot for iGaming thanks to its preferential tax rates and if Gibraltar loses it free movement of labour in and out of Spain, you could see a real shift towards the small Mediterranean island.
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