Major UK gaming companies heading offshore

[The Buzz]

Reports surfaced over the weekend that two major UK bookmakers, William Hill and Ladbrokes, might be heading to off-shore tax havens.

According to RecentPoker.com, "William Hill chief executive Ralph Topping has repeatedly voiced the opinion that it is is difficult to compete with offshore-based Internet gambling operations due to the heavier UK tax burden."

Topping says William Hill is paying the UK tax rate of 15 percent, but his Gibraltar-based rivals only pay 1.5 percent.

The Financial Mail and several other major newspapers report that Topping is expected to confirm that he is moving the online sports and phone betting operations of Will Hill to Gibraltar when the company reports interim results on Tuesday. The bookmaker already has a division based there for online casino-style gambling and has apparently been relocating staff in anticipation of the move.

[JonOfFinsbury]

The UK press stories were rubbish - just repeats of the previous story in the Financial Times. However it's still likely that WH could make the move - and where they'll lead, Ladbrokes will follow: http://www.egrmagazine.com/news/indu...iam-hill.thtml

[JonOfFinsbury]

This is the original William Hill story: http://www.egrmagazine.com/news/indu...ss-hints.thtml

[JonOfFinsbury]

Here's what he had to say by way of explanation:

http://www.egrmagazine.com/news/indu...n-gaming.thtml

[Anthony]

Looks like they are going to take some the money they are saving in taxes an use it to expand their brand.

So the UK said we are going to be the safe haven for online gaming, base your business here. Then once you get them, raise the taxes!

[JonOfFinsbury]

But Ladbrokes is a little more forgiving: http://www.egrmagazine.com/news/indu...s-attack.thtml

[TheBoyMitchell]

Will Hill *is* moving its online gaming to Gibralter and Israel.

[JonOfFinsbury]

....who's followed William Hill?

http://www.egrmagazine.com/news/indu...ver-down.thtml

[Anthony]

I wonder if we are going to see the same thing happening in Costa Rica, now that they increase taxes?