Effects of Brexit on Online Gambling in Ireland

Ireland has been at the forefront of the tech sector for many years now. The country’s reputation for innovation precedes it when it comes to virtual gambling as well. Although Ireland’s laws weren’t up to date concerning online casinos when they first became popular, the 2015 Betting (Amendment) Act fixed that. Now the number of gambling websites has proliferated in Ireland. Could Brexit throw a wrench into this rapidly growing industry?

Online Casinos in Ireland and Brexit  

A report from the Irish government has stated that Ireland’s GDP stands to fare worse than the UK’s after Brexit. The expected dip is between 2 and 7 percent for Ireland. The actual number depends on the nature of the exit – hard or soft. A hard exit, reverting the UK to the WTO trading rules, would result in more serious consequences than a soft exit. 

The same government report announced that the industries hit the hardest would be food, pharmaceuticals, chemicals, retail, and web businesses. The possible impact on web businesses has sent up a red flag for online casinos in Ireland. Do virtual gaming companies have cause for worry?     

The Effects of Brexit  

Online gambling is a huge market in the UK. Many foreign companies from across the EU – Ireland included – have set up shop in Britain. Web-based gambling is a well-regulated industry in the UK and foreign companies must register with the UK Gambling Commission in order to operate. Britain’s exit from the EU and the severing of trade ties wouldn’t have much effect, then. For companies wanting to continue to run in the UK, it would be necessary to have to reapply for a license. Given the lucrative British gambling market, it’s thought that most companies would be willing to follow this procedural step.     

There is also the argument that a tighter overall economic climate could discourage companies from setting up new online casinos and inhibit people from using disposable income on this form of entertainment. The direct effects of Brexit on the Irish virtual gambling industry could be negligible in the short term. But, like many sectors of the economy, web-based betting could suffer indirectly and long-term following Brexit.

Ireland at the Advantage  

Ireland is poised to reap the potential benefits of Brexit on the online betting industry. A golden opportunity for Irish virtual gaming companies presents itself across the pond, where recently passed US legislation allows individual states to set their own regulations on virtual betting. Many states are jumping at the chance to soften their rules, potentially opening lucrative markets for new businesses in this niche. A hard hit from Brexit could be offset by investing in the US.

What’s more, due to its access to Britain and its leading position in the tech sector, Ireland could make itself a gateway between EU companies and the British gambling market. Luring foreign web businesses to Ireland could be one way for the country to mitigate any potential negative effects from Brexit.

Summary  

The effects of Brexit on the Irish online gambling industry will likely be negligible. This is due mainly to the UK’s specific regulations on foreign gambling companies operating in Britain. Ireland’s online casino industry could even turn Brexit to its advantage, positioning itself between the UK and the EU, or by heading to the emerging markets in the US.

 

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