The effects of Brexit on the UK online gambling industry
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When all is said and done about Brexit, no matter on which side of the decision you sit, it may well be time to consider the implications for some of the United Kingdom's favoured pastimes.
This includes participation in online casino games, which many Brits take part in daily, weekly, monthly and yearly.
In doing so, they trust that their privacy and data is being protected. The recent decision, after the UK's choice to exit the European Union, though, has also seen the UK exit the EU's General Data Protection Regulation (GDPR) program. This isn't necessarily a cause for concern, as the same top-notch cyber-security will be available, but it could be a big talking point among online casino fans and other iGaming participants.
Secretary of State for Digital, Culture, Media and Sport (DCMS) Michelle Donelan recently said: "I am announcing that we will be replacing GDPR with our own business and consumer-friendly, British data protection system.
"Our plan will protect consumer privacy and keep their data safe, whilst retaining our data adequacy so businesses can trade freely."
How the UK's system holds up in comparison to that of the EU's remains to be seen, but Donelan moved to assure one and all that the UK can protect data amid strict regulations around the world, including New Zealand and Japan.
She also insisted the decision could make things easier for operators, even if - on the face of it - it looks like businesses that serve the EU will need to fall in line with two different sets of rules.
"Our plan will protect consumer privacy and keep their data safe while retaining our data adequacy so that businesses can of course trade freely," added Donelan.
"I can promise to you here today that it will be simpler, it will be clearer for businesses to navigate - no longer will our businesses be shackled by lots of unnecessary red tape. Our new data protection plan will focus on growth and common sense, helping to prevent losses from cyber-attacks and data breaches, while protecting data privacy. This will allow us to reduce the needless regulations and business stifling elements, while taking the best bits from others around the world to form a truly bespoke, British system of data protection."
Whether Donelan and team's plans materialise, especially after the resignation of British prime minister Liz Truss, remains to be seen.
The EU introduced the GDPR in 2016 and, earlier this year, economists from the reputable and renowned Oxford University economists reported on its commercial impact.
“We find that enhanced data protection had the unintended consequence of reducing the financial performance of companies targeting European consumers. Across our full sample, firms exposed to the regulation experienced an 8% decline in profits, and a 2% reduction in sales," read an extract from their findings.
An exception is large technology companies, which were relatively unaffected by the regulation on both performance measures. Meanwhile, we find the negative impact on profits among small technology companies to be almost double the average effect across our full sample.”
