As the Brexit impact remains speculative, 888 Holdings is considering looking for an alternative base for its operations, should the Gibraltar be affected by the UK move. The FTSE250 operator will switch to this option if the decision surrounding Brexit turns out to pose devastating effects on British overseas. The stakeholders are the first in the industry to express fear over the potential risk that such a decision could put across. In its annual report for 2016, 888’s governance stated that the contemporary licensing for Gibraltar would continue to be unclear, as far as servicing European jurisdictions is concerned.
888’s CEO, Itai Frieberger, emphasized the necessity for growth in the markets regulated by the European authority. Itai said last month that this would be a significant move for the firm if it were to secure the safety of its strategy and corporate value. It is not as if the Gibraltar option may be as feasible. It is speculated that the Remote Gambling License may not fully cover the operator’s regulatory strategy. The main worry here is that some EU members may look down upon Gibraltar’s administrative capacity as insufficient in the case the UK declares its official exit from the European Union.
On January 2016, the European Court of Justice passed a rule that Gibraltar and the UK should be treated as one entity, concerning the freedom for any of them to offer business services. This could be good news, as it is possible that it will likely play a role, which will prevent the EU from putting exemptions on Gibraltar’s opportunity to access the union’s common market.
The 2016 report also states that 888’s possibility to count on the union’s freedom services in operating within the EU will be derailed. This will result in case the operator chooses to hold onto its registration, licensure, and operations in Gibraltar.
The ideal business environment has made the territory become a preferred field for betting operators. The availability of low corporate taxes, which capped at 1%, as well as Gibraltar’s full membership to the European Union, has made the United Kingdom’s autonomous region become one of the most preferred go to grounds for over 30 online betting operators. These include BetVictor, GVC, 32Red and 888 Holdings, to mention but a few. The online gambling business has become a large industry in Gibraltar, thanks to its more than 5000 sector employee capability. This has made gambling industry the Gibraltar’s biggest employer, especially considering that the territory has a population of only 32,000 people.
As the Brexit uncertainty continues to taunt many organizations caught between the turmoil, it is possible that Gibraltar will be affected if things do not work out positively. However, 888 Holdings will probably announce its decision with time as the results of the suspense unfold. Some of the most expected developments include the declarations on the clarity of the issues the firm says remain unclear for now. Only time will tell what follows after the UK move from the European Union common market if this turns out to be the case eventually.
