Ladbrokes Sports to follow William Hill to Gibraltar

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Created on Monday, 17 August 2009 09:30

Gaming giant Ladbrokes has announced that it will be moving its onlinesports betting operations to Gibraltar in order to avoid higher rates of UK gaming tax. Ladbrokes already run their online casino operations from the territory on the south of the Iberian peninsular.
The decision by Ladbrokes copies the move made by rival William Hill, who announced last week that they would be moving their online sportsbook operations to Gibraltar, saving an estimated £10m per year in tax and racing levy deductions.
"The company confirmed this morning that, like rival bookmaker William Hill, it will defy a "gentleman's agreement" to keep running its internet operations in the UK,” Ladbrokes Chief Executive Christopher Bell told The Guardian.
Mr Christopher Bell blamed "intense competitive pressures" for the decision, which industry experts had widely expected following the move by William Hill.
Ladbrokes is the third sports book provider to make the more to Gibraltar this year, where a corporation tax rate of 1.5% compares with the 15% rate levied in Britain. It’s expected that the combined loss to the UK Treasury could amount to as much as £45m per year.
Of the operators with any major high-street presence, only Coral Group remains based in the UK whilst betting exchange Betfair has also aired discontent that its main rivals will be at a significant advantage. But givien that betfair is mulling over a float on the stock exchange, this move may be delayed.