Even before the whole thing with Brexit and all the worries and adjustment that it brought, online gambling sites have long taken a base of operations outside of the United Kingdom–for many good reasons. One of the most popular choices for online gambling companies to be their headquarters in Gibraltar.
Why choose Gibraltar?
Gibraltar is a small territory that is located on the southern part of the coast of Spain. Although it is closer to being Spanish when it comes to its immediate vicinity, the place is a British territory. Among other good reasons, most people who work there chose to be there due to Gibraltar being more lenient with tax. In the territory, work tax is only at 10%. On the other hand, Spain has a 25% tax imposed. This is why a lot of people who work at Gibraltar work there but live in Spain.
However, with the UK now out of the European Union due to Brexit, things have changed. A lot of things have changed and a lot of industries have to make huge adjustments but on the part of online gambling in the UK that was based in Gibraltar, preparations have begun several years ago, as early as 2019.
How would Brexit affect the operations of these companies? For one, the movement of people, goods, and services between Gibraltar and mainland Spain would be very strict and extremely hard now, and the possibility of having a territorial border is even not far off the table. This poses a lot of challenges for workers living in Spain but has work or business in Gibraltar.
This is where Malta comes in.
The move to Malta
One of the things that online gambling company owners consider in choosing their bases for operation is the predictability of the gambling laws in the country they are looking at. With that in mind, Malta has long been one of the countries that are on the tip list for owners, with The Malta Gaming Authority being firm, transparent, and consistent with their gambling laws.
Simply put, Malta makes online gambling companies feel safer, as they are sure that the law would allow them to operate peacefully, and without the possibility of getting outlawed with just one ordinance or resolution.
Just like in Gibraltar, owners flock to Malta because of its reasonable taxes. A small difference in the percentage of the tax imposed could mean millions of revenues lost to tax, which is a big deal for companies from any industry.
Now, you must understand that Brexit was not the start of online betting sites moving their operations to Malta. The country has long been a favorite, along with Gibraltar and New Jersey. However, why is Malta the go-to choice for the move?
Aside from its stable and consistent laws, and the lower taxes imposed on businesses, the standard of living in Malta is significantly lower as compared to New Jersey. Although New Jersey also has “friendly” laws when it comes to gambling, it is common knowledge that the standard of living in the United States is high.
Brexit is not an easy shift–both on the end of consumers and customers, as well as business owners. However, when it comes to online gambling, there is nothing to worry about–if you are in the UK, you may continue to open your app or go to your site as you usually would. After all, online casinos are moving their entire operations to a country like Malta–and for several good reasons.