Brexit Could Significantly Impact 888 Holdings
One of the biggest brands in casino and online gambling business, located in Gibraltar, 888 has made a decision to relocate its headquarters to Malta.
Such a step has been taken in order to acquire iGaming license and to protect the company from the negative impact of the United Kingdom’s exit from the European Union.
Gibraltar is a British Overseas Territory and it falls under the British jurisdiction and legislature, so its economic and business future will be directly affected by Brexit.
In addition to that, many of the world’s leading sports betting firms are located in Gibraltar, including a number iGaming companies.
The biggest problem could be the movement restrictions across the border that separates Gibraltar and Spain since the majority of Gibraltar workforce comes from this country. The loss of free-border movement of workforce, goods, and services could significantly impact Gibraltar’s GDP.
At this moment, 25% of the territory’s total GDP comes from the gambling and betting industry.
888 has recently announced its plans for the coming period and explained that the application process for a Maltese license was a backup plan.
According to available information, the company’s focus is to continue to offer its services in the European market, which is the main reason that 888 has established a server farm located in Ireland.
Affecting The Economic Conditions
Apparently, 888 is concerned about the effects surrounding Brexit, since it could affect the market and economic conditions in the UK and its territories, thus leading to a limited scope of operation by the companies which are located in Gibraltar.
888 has also released its financial data for 2017 and made a comment that EU principles were a foundation for the 888’s strategy when it comes to the majority of EU markets.
888 is operating on markets in both Europe and the United Kingdom, and no one at the company likes the idea it may have to choose just one of the mentioned markets.
Brexit will definitely affect the business and economic situation in the UK, so the company’s best shot is to try to diversify its offer and become more flexible in order to face any challenges that may arise in the future.