The Unknown Future for Gibraltar’s Gambling Business

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A part of Britain’s overseas territory, Gibraltar is a region famous for its successful gambling sector, offering a tax haven of 10% corporate tax rate; considerably low when in comparison to Spain’s 25%.

As explained by Monster Casino Bonus, through such favourable tax conditions, the British overseas territory Gibraltar has therefore become an area flourishing with across the border business potential, taking in a daily amount of 10,000 employees traveling from Spain to work in its gambling sector.

In addition to this, the region has become a place preferred by many of the big names within the British gambling community, including William Hill and Ladbrokes, reaping the benefits from being a member of the European Union (EU) through its extensive across the border affairs.

However, with the upcoming arrival of Brexit this March, the future of Gibraltar’s prosperous gambling industry has become uncertain. As Gibraltar is part of British overseas territory, this means that the area will also have to leave the EU, even though the region voted remain in the 2016 vote for Brexit. Leaving the EU will mean relinquishing all of the benefits that come with being a member state of the European Union; benefits that greatly contributed to the success of Gibraltar’s gambling industry.

Although the issue of Brexit has become a concerning factor for Gibraltar when considering the future success of its gambling sector, options to alleviate its impact on this have been suggested, including other countries proposing that the overseas British territory should be given privileged access to the EU and its single market. Spain has been one of the main advocates for this, also believing that the country should have a co-ruling over Gibraltar along with Britain.

Although in theory following Spain’s suggestions would lessen the potential damage done to Gibraltar’s thriving gambling business, the reality of this is a little more complicated. This is not the first time that Spain has attempted co-sovereignty over Gibraltar, with the British overseas territory having a say in any changes to the area’s rule, and in the past rejecting all suggestions of Spanish power over the area. This in combination with the upcoming Brexit deal means it is difficult to estimate how likely co-sovereignty would be.

What can be said for sure is that the future for Gibraltar’s gambling business is uncertain, and that without granted access to the European Union’s single market, Brexit could have a defining impact on the fate of this now booming gambling industry.

  

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