This June the so-called Brexit will take place where the UK is going to vote on the leaving the European Union.The number of those who want to stay is 10 points higher than those who prefer to leave. But how this could influence the business in the UK in general and the gambling market in particular? It is better to remain in the UK. The EU simplifies trading, preventing the countries from imposing high tariffs around their countries. But this does not prove the necessity of the EU for free trade flowing.
Barriers in trading lead to wars, which have a negative impact on business. If the UK leaves the EU, it is quite possible that these barriers will be raised, as every member of the EU must pay £50 million a day as a membership fee. So as long as the fee is paid, no barriers will be erected.
If the UK leaves the EU, they will become £50 million a day richer and it is hardly ever possible they will proceed trading with the same level of free trade with the rest of the EU. Other EU countries might pass a tariff or introduce some other measures against the UK.
As to UK bookies, they are very interested in free trade, as they receive good income from Europe. For instance, Ladbrokes has 10,5%, William Hill – 3% from Spain and Italy, Rank Group – 5% from Belgium and Spain and Paddy Power has a certain interest in France and Italy.
In the past, the EU prevented the UK operators from coming to European gambling market. This happened to Ladbrokes and William Hill. So, if the UK leaveы the EU, they will have a chance to enter European market now, which can lead to a trade war. So it is evident that the staying is better.
From the point of view of taxation and regulation perspective, the situation seems even more unclear. Nigel Farage, who supports gambling and even teamed up with Paddy Power in 2014 to promote the Ryder Cap, is for the staying, as he thinks that this will give a chance to expand free market policies.
His opponent, George Galloway, dreams about freedom to manipulate the UK economy by regulation, jacking up welfare and nationalization of major industries. He belongs to the politicians that think about gambling as avice more damaging than heroin.
If the voting will end with the decision to stay, it might be good for the UK bookies to stay in the EU, but it is still blurry. It is certainly better than overcoming some economic measures imposed by Europe. If they vote for leaving, the UK stock can fall temporary.