888 re-assessing Gibraltar operations because of potential Brexit impact

Holdings is currently considering alternatives to Gibraltar for its operational centre, should ‘The Rock’ be negatively affected by Brexit. The FTSE250 operators were the first stakeholders in the industry to publicly view Brexit as a ‘future risk’ to its operations. In its 2016 annual report, the company detailed that Gibraltar’s licensing remit remains ‘unclear’ regarding compliance with European gaming jurisdictions. 888 CEO Itai Frieberger outlined last month the importance of growth within European regulated markets as a key dynamic of 888’s ongoing strategy and corporate value. This means that a Gibraltar Remote Gambling Licence may not be enough to fulfil 888’s regulatory strategy, as certain EU member states could consider Gibraltarian regulatory provisions as ineligible once the UK leaves the European Union. Last January, the European Court of Justice ruled that the UK and Gibraltar should be considered as a ‘single entity’ in their freedom to provide business services. This makes it unlikely that the EU will provide any exemption for Gibraltar to access the EU common market. 888’s 2016 annual report explains the position: “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, licensed 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.” The combination of Gibraltar’s full membership to the EU and low corporate taxes, capped at 1%, have seen the independent territory become operational home to more than 20 online betting companies, including; BetVictor, 32Red, GVC and 888 Holdings.