Latest statistics indicate that British bookmakers could suffer a considerable loss if the Brexit referendum ends with departure from the EU.
While the British are voting on the Brexit referendum, deciding their further “stay or go” status within the European Union, GamingZion’s interest is certainly focused on the consequences of Brexit on the European Gambling market. Online gambling news in UK announced so far only some rough scenarios whose plausibility is still questionable. However, the latest information say that if the country decides to leave, the betting companies will be the first to directly suffer a considerable loss.
The rationale behind the Brexit referendum idea
The idea about Britain exiting the European Union dates way back before the current migration crisis and the economic crisis of the past decade. The old arguments for exit are nowadays more frequently than ever being repeated in different forms in British media. According to them the exit will first of all provide more independence in the law making process, creation of independent trade agreements which ultimately will lead to enhanced job creation.
- Britain decides its future in the EU
- Brexit to shake the betting market in UK
- Warnings for possible negative consequences of leaving the EU
The British have so far said several big “NO“s to the European Union. The first “NO” came in the time of policy making concerning the adoption of the euro as a currency. The British decided then to stay with their pound. The second “NO” affected the opening of the borders within the Union. The British imposed some restrictions in these case by not accepting to “erase the borders” between the members of the Schengen Zone.
A few days ago Phillip Inman in The Guardian gave an elaborate picture of how British business would be like after Brexit. One of the most probable scenarios is that the pound will drastically sink, somewhere between 20-30%. The need for importing food after the leave will also increase the costs for the consumers and food manufacturers. And big multinationals such as Rolls-Royce already announced that Brexit puts their annual plans at serious risks.
The Brexit referendum polls
However, the betting action around the Brexit referendum in getting an even more intense dimension. On one side, there are claims that the betting around the referendum is getting in many respects equal popularity as the current EURO 2016 betting. Others claim that this referendum is the greatest money-spinner ever for the betting companies in the country.
The bets so far go in favor of the decision for Britain to stay within the 28-members European Union. This tendency provoked a slight lowering of the odds for Britain to extend its participation in the EU. According to Ladbrokes’ bookmakers around 95% of the bets from Monday favor the decision to stay in the European Union.Thus, the greatest British betting companies rank pretty high the “staying” outcome, giving 3 to 1 odds against leaving. When we consider the whole amount of money that is at play we come to sums of millions of pounds. As gambling news report, in case the Brexit referendum decides that Britain leaves the European Union, the bookmakers are risking to lose big.
However, they will not be the greatest losers. When money are concerned the situation with the whole banking sector will be set in a risky position, especially with the currency market. Several bunks such as HSBC already announced that they will need to rethink their attachment to the UK and that they will probably need to move more than 1,000 jobs in other banking centers like Paris.
Regardless of all the speculation many things could be seen much clearly after today’s referendum. Online gambling sites in the UK are awaiting the results also from other reasons which are the consequences of the possible exit for the whole gambling industry in Britain. So far, expect the direct loss that the betting companies an suffer from an exit, the bigger picture remains pretty blurry.