Brexit Could Impact Canada More Than You Think
After 52% of the British population voted to exit the European Union back in June 2016, countries around the world have been bracing themselves for the repercussions. Still, over a year after the initial vote negotiations between the United Kingdom’s government and the 27 remaining EU countries continue, with few solid deals coming to fruition. The only thing that does seem certain at this point is that Brexit will impact almost every country on Earth, including Canada.
There are various reasons for this, with the first being that the UK’s decision will inevitably have a huge effect on the world’s economy. Specifics may not be certain as of yet, but as British trade deals with European nations will probably change or disappear completely in the near future, the UK government will attempt to create new deals with other countries. This means that Canada and the UK may soon have an entirely new set of trade deals and market dynamics, which will no doubt impact the economy here.
However, countries that exist outside of the European Union and have a base with the UK may have to start paying more taxes. You see, countries like Canada that have headquarters in the UK have benefited from numerous EU-regulated tax breaks for many years, but these may soon disappear. Instead of paying more taxes, companies will probably look for alternative locations within the remaining EU states, which will be problematic for Canadian companies with close links to the UK economy. These companies include Concordia Healthcare Corp, AimiaInc and Blackberry, though there is another entire Canadian industry that may be impacted significantly by Brexit.
Throughout Canada there is a large community of online casino players who will be subject to ramifications once Brexit becomes official. This is due to the fact most iGaming operators possess licenses issued by the small state of Gibraltar. Although the land is situated off the southern coast of Spain, it has actually belonged to Britain since 1713 following the Anglo-Dutch alliance in the War of Spanish Succession.Centuries later, Spain continues to try and reclaim Gibraltar, despite the fact that its people have voted twice to remain under British rule. Unfortunately, once the UK leaves the EU, Spain is expected to make things difficult for online casinos with roots in Gibraltar.
For instance, GVC Holdings PLC – the company behind big Canadian iGaming companies like Party Casino and others at CanadaCasino.net – have a lot of staff situated in Gibraltar who commute from Spain. Right now, these employees are granted free fares between the mainland and the island, but this could all change once Brexit happens. If companies like GVC Holdings PLC are forced to move from Gibraltar, players are sure to feel the consequences though we’re sure well-regulated casinos like Party Casino will attempt to keep their customers in focus.
Of course, the negotiations are still not complete and are sure to go on for a little while longer so all we can do for now is speculate. As things become clearer we’ll make sure to keep you up to date on how Brexit will affect our homeland of Canada.