Gibraltar is the heart of gambling headquarters in the EU. It still is unclear which party will yield in the Brexit negotiations about Gibraltar borders, Britain or Spain. That’s why many scenarios regarding Gibraltar’s gambling business after Brexit could unfold.
The Rock of Gibraltar is home to 30 of the world’s biggest gambling operators. One third of Europe’s gambling income was accounted with online gambling in Gibraltar in 2016. The amount was approximately 15 billion Euros and expected double in the near future. Everything was on the right track until Brexit came along. Sooner than later, changes in Gibraltar’s gambling business after Brexit are inescapable.
The Relationship Between Britain, Spain and Gibraltar
Located on the Southern tip of Spain, but part of the British Empire, Gibraltar is in a complicated political situation. Centuries ago, Spain lost the territory to Britain during the 1700s. Now, Brexit has opened up doors for Spain to negotiate the control of Gibraltar, a very strategic economic location.
According to online gambling news, Spain is given the power to veto Brexit negotiations by the EU. If Britain refuses to cease control of Gibraltar, the exit process could be further halted. In the end, Gibraltar’s gambling business after Brexit is going to be affected whether the territorial control belongs to Britain or Spain.
Gibraltar’s Gambling Business after Brexit
Should Brexit negotiations succeed, Gibraltar would most likely lose access to 500 million people in the EU market. The free trade agreement would not support Gibraltar’s gambling business after Brexit. On the up side, Britain has agreed to extend Gibraltar’s access to the UK market until 2020. The UK online gambling market is one of the biggest and the oldest.
At the moment, most gambling operators have decided not to leave Gibraltar. However, the possibility for them to move base to Malta is also high. There is no guarantee what they will do. Only time can tell how this situation will play out.