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The effects of Brexit on sports betting in the UK

David Prior by David Prior
May 28, 2024
Reading Time: 2 mins read
The effects of Brexit on sports betting in the UK
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Britain’s exit from the European Union was always a huge step which was going to touch every aspect of the economy. And sports betting, which is a big player in the UK economy, was going to have its fair share of challenges, from business entities and their operations to individuals and potential limitations. In this article, we shall be discussing the various effects of Brexit on the industry.

The UK sports betting industry before Brexit

The UK sports betting industry is by some distance the most prominent in the world. With the UKGC (UK Gambling Commission) as its governing body, the UK has the strictest gambling regulations anywhere in the world. A UKGC licence is difficult and expensive to procure and is only offered to those who meet the rigorous criteria. Prior to Brexit, both local and international sportsbook companies could operate in the region as long as they gained approval from the Gambling Commission. There was a large variety of betting providers to choose from, which contributed to the UK’s status as a global industry leader.

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How Brexit affected the industry

One of the major effects of Britain’s exit from the EU is less competition from European operators who have had to pull out from the market. Foreign operators who wished to continue operating within the UK had to apply for a new license. This meant costly and complicated processes for operators who already had a presence in the UK.

The effect of Brexit is fairly minimal for sports betting companies like Bet365, which offers a bonus code for UK users and is domiciled in the country. Local operators just simply need to continue to adhere to the regulations set out by the UKGC. However, they face a similar reality outside of the UK since they also need to apply for an EU licence to continue operating within the European Union. 

The loss of competition, which was more of a win for UK operators, was less so for bettors who now had limited options. Individuals who lost their favourite operators as a result had to look for alternatives. This meant fewer operators to choose from. Another effect on bettors is the loss of several payment solutions which used to be available to UK users. The subsequent pullout of EU payment providers owing to high cost and increased transaction time has left users with much fewer options when funding or cashing out from their respective sportsbook accounts.

As one of the biggest industries in the country, Britain’s exit from the EU in 2020 was felt across the entire spectrum of the sports betting market. And there is some growing belief that the effects will still be felt for a while into the future. The good news is that the UK betting industry has a strong foundation and well-regulated environment that, despite the current challenges, is poised to foster more growth in the long run.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

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