Regardless of which way you voted during Brexit, as Matched Bettors you may find yourself wondering how this will affect Matched Betting. You are most certainly not alone in asking this question. The Bookmakers themselves are also debating how and who will be affected by this change.
Is Matched Betting going to disappear? No, absolutely not. The Bookmakers will always rely on attracting new and existing customers with lucrative offers and bonuses. Will it affect us Matched Bettors in any way? Maybe, but even if it did, the impact would be negligible.
There is, of course, the possibility that any new legislation, which affects Bookmakers and their net profit, could slightly reduce the value of offers they promote to new and existing customers. We have already seen this slowly occurring in the last year, due to the existence of Matched Betting businesses like Heads&Heads. What we must keep in mind is that Bookies are businesses – and profit hungry ones at that. If net revenue starts to fall as a result of reducing the value of their offer bonuses, most will select the lesser of two evils (in their eyes) and increase the value of their offers once more.
So how might the bookmakers be impacted by Brexit. Well, the biggest concern at the moment is that they will no longer be allowed to have their headquarters in countries were taxation is slightly more lenient. Nearly all bookmakers have their HQs in countries such as, Malta, Gibraltar, The Isle of Man, Jersey and Guernsey. Whilst the UKGC (UK Gambling Commission) do require these Bookmakers to have an office in the UK to comply, the Bookies are spared additional tax by being allowed to operate from outside of the UK. Because the UK will no longer be within the EU (in terms of legislation), it may (though highly unlikely) result in new laws which force the Bookmakers to be based in the UK and thus be affected by taxation that they previously avoided.
Additional taxation on bookmakers, may lead to reduced profit, reduced profit may lead to a decline in Bookmaker offers. At Heads&Heads we view this rhetoric, as well as the idea of Spain taking back Gibraltar and forcing bookmakers out, as scare mongering. In all likelihood it will be years before the UK even starts the process of officially leaving the EU. On top of that international deals around Gambling are not going to evaporate overnight.
Even the Bookmakers seem to be relaxed about the possibilities. The CEO of 32Red recently declared that they foresee no ‘changes to the level of promotion and bonuses offered to players because of Brexit’.
So will you, the Matched Bettor, be affected by Brexit? As things stand, no. If you are still concerned, then all the more reason to sign up to Heads&Heads and start snapping up the Bookmaker offers now!