How Brexit impacts U.K.’s $3.83 billion gaming industry

The United Kingdom is the sixth-largest market for game spending in the world. It’s ahead of countries like France and Canada as well as all of Southeast Asia put together. But now, following Britain’s stunning decision to exit the European Union (a move most people refer to as “Brexit”), the United Kingdom’s position as a gaming leader is under threat.

The British pound’s value compared to the United States dollar has crashed to $1.36. That matches its lowest value during the darkest days of the 2008 global financial collapse brought on by U.S. banks selling toxic mortgage-backed securities to investors around the world. Overnight, the pound dropped to $1.33, which is its lowest point in more than 30 years. But a depreciating pound is only one concern. Prior to the British referendum, companies like Rolls Royce and JPMorgan warned the country that leaving the EU could lead to job losses as companies avoid investing in a region embroiled in uncertainty.