With Brexit looming in the not so distant future, numerous different issues are arising which has rendered this gambling and tax haven uncertain of its future with business from across the borders.
Gibraltar is part of the British overseas territory, renowned for its thriving gambling industry; with favourable taxing conditions, offering a 10% corporate tax rate compared with that of 25% in Spain, it is no wonder that Gibraltar has become the destination for the gambling industry. In addition to this, the region is furthermore an area of widespread movement from across different borders, with 10,000 workers from Spain traveling to Gibraltar daily for work within its gambling sector.
Gibraltar has become the place to be for many of the big names in British gambling such as Ladbrokes, William Hill and Casino Market. and takes full advantage of the many prosperous benefits that Britain, through its title as a European Union (EU) member state, has to offer. However, with Brexit looming in the not so distant future, numerous different issues are arising which has rendered this gambling and tax haven uncertain of its future with business from across the borders.
Although Brexit has become a cause of concern for the future of Gibraltar’s successful gambling industry, there is however a possibility that the region will be granted privileged access to the EU. Though Britain’s position on Brexit is that the entirety of the country, including all overseas territory, will have to leave the EU; other countries, such as Spain, feel that Gibraltar should be granted privileged access to the European Union and European single market regardless of its departure from the EU and the EU’s gambling laws.
In addition to its position on the country’s accessibility within the European Union, Spain also believes that it should have co-sovereignty over Gibraltar for, at the very least, the duration of Brexit’s transition period. Gibraltar had voted to remain in the EU during the 2016 Brexit vote, however was also willing to stay part of the Britain, and has had a history of rejecting any sovereignty the Spanish have tried to obtain over the country. The government of Gibraltar still has the power to reject any and all attempted changes to the area’s sovereignty, making it ever more uncertain as to the fate of both Gibraltar and its thriving gambling industry.
The aftermath of Brexit could be a lethal blow to Gibraltar’s, and further Britain’s, lucrative gambling industry. However, this can be prevented if privileged access to the EU single market and customs union is granted to British overseas territory. Whether access will be granted is yet to be determined.