Why New EU Gambling Rules Still Matter for the UK Post-Brexit

Brexit may have officially separated the UK from the European Union, but EU gambling regulations still have a significant impact on the British market. Despite the political divide, UK gambling operators remain closely linked to their European counterparts, creating a complex regulatory environment that isn’t likely to change anytime soon.

The interconnected nature of gambling
The UK is home to one of the largest and most influential gambling industries in the world. As a result, many UK operators continue to provide services to customers across the European Union, making them subject to a patchwork of EU regulations. In fact, several of the best online EU casinos rely on UK-based technology providers, gaming software, and payment processors to deliver their services.

As long as these operators continue to serve users within the EU, they must comply with a range of regulations, including the General Data Protection Regulation (GDPR). This means they face complex compliance challenges, which can significantly impact their UK operations as well.

Brexit has introduced new economic challenges for the UK gambling sector, including increased operational costs and more stringent regulations. In some cases, this has forced operators to pull out of the UK market entirely, as the cost of maintaining separate compliance structures for UK and EU markets becomes unsustainable.

Stricter regulations for the UK operators
The EU’s Technical Regulation Information System (TRIS) now requires all EU member states to notify the European Commission of their national gambling laws before they are enforced. This transparency mechanism is designed to allow operators and stakeholders to review and comment on new regulations, reducing the risk of market fragmentation and trade barriers within the EU.

The impact of this rule on member states is immediate, with countries like Lithuania having issues with gambling laws. On the other hand, the UK is not required to follow this new law. The regulators can have more control over their own rules, including stricter consumer safeguards and tighter gambling limits that meet their domestic needs.

This works well for the country after Brexit, but it doesn’t come without a price. Now, all UK operators need to comb through the EU gambling rules. It is now more difficult to provide services to their neighbours on the continent. Trading is now more expensive than ever, making some operators pull out.

So far, the UK Gambling Commission has gotten stricter with compliance rules. Recently, it fined an operator €1.70 million for anti-money laundering and social responsibility violations. When the UK was still in the EU, its gambling laws were similar to those of the region. This split now means operators must follow two sets of laws.

For example, a business in the EU needs to get a UK gambling licence to operate in the UK. UK gambling companies also have to set up companies in Malta and Gibraltar and get licences from the countries to operate.

What to expect in the future
Looking ahead, the TRIS procedure will continue to shape the regulatory landscape within the EU. Member states are required to apply this system consistently to ensure compliance with EU-wide laws while pursuing their national policy goals. For UK operators, this means navigating an increasingly complex web of overlapping regulations if they want to maintain a presence in the lucrative EU market.