Online gambling companies could leave the European territory over the potential impact Brexit could have in their operations.
Gibraltar.- 888 Holdings has recently announced that the company is considering stopping its operations in Gibraltar because of the potential risks that Brexit could have. Operators have expressed that Brexit could represent a future risk to the operations in the European territory.
888 revealed in the 2016 annual report that the licensing scheme is still unclear regarding the compliance with the local jurisdictions. Itai Frieberg, CEO of 888 holdings, announced last month that the growth within European markets was very important for the company’s expansion strategy as well as corporate value. “The proposed status of Gibraltar in relation to the United Kingdom as a result of ‘Brexit’ is at present unclear. If 888 were to remain registered, licenced and operating in Gibraltar in these circumstances, its ability to rely on EU freedom of services/establishment principles in supplying its services within the EU will be limited,” said the report.
The Gibraltar Remote Gambling License could be incompatible to the online company as some members of the EU consider the UK’s laws ineligible once it leaves the union. Back in January, Maciej Szpunar, Advocate General for the Court of Justice for the European Union (CJEU), said that Gibraltar and the UK should be treated as one entity to provide their services. Analysts estimate that 90 percent of the times, the European Court of Justice (ECJ) follows Szpunar’s recommendations.