William Hill is known for their delivery of high-quality gaming and betting, be it online, mobile or whatever mode a gambling player could dream of. Their customer service and dedication is exemplary and they constantly strive to keep their customers content, while increasing share holder value. William Hill and Ladbrokes, UK’s biggest names in gaming, have recently taken a decision to move offshore operations to Gibraltar, a well known offshore base for online gambling operators. The tax percentage of 15% currently being levied on UK gambling operators as opposed to 3% in Gibraltar was a major deciding factor for this move.
This announcement came like a ‘bolt from the blue’ and UK officials are of the opinion that this move will have its own repercussions not only on the online casino gambling industry but on the online casino industry as a whole. The economy too could have an impact as huge profits were generated by these two gambling ‘Goliaths’. William Hill had recently stated that they paid a whopping £300m in taxes at the moment, and this move would facilitate a huge tax saving besides other benefits. They were also concerned about their 16,000 employees who were currently on a pay freeze.
Gordon Brown who was instrumental in implementing this tax structure on the gaming industry felt that this could lure more gambling operators into the UK, on the contrary big players are finding their way to greener pastures and William Hill and Ladbrokes have taken the lead. Despite the cost of losing Ladbrokes and William Hill, UK is not taking any initiative to change the tax structure for the gaming industry.
However, Ladbrokes have categorically stated that they have no plans to move their sports-book offshore as UK would definitely stand to lose a great deal. So while its good news for Gibraltar who are expecting an increase in profits of £4m this year by way of gambling and which is likely to soar to £10m in 2010, it’s not so good for the gaming industry in the UK, we hope that the decisions taken will be in the interest of all.