First they threatened, then they hinted, then they said it was happening. Now William Hill find themselves defending their move to Gibraltar.
The UK betting giant has been for some time been engaged in talks with the UK Government over gaming taxes applied to their UK based operation. They and other UK major betting shops apparently had a gentleman's agreement with UK authorities to support the newly introduced online gambling friendly licensing regime and be the cornerstones of Government plans to grow the UK into the world's premier internet gambling centre.
The only problem with this vision is that present UK taxes are significantly higher than those levied in other white list jurisdictions. William Hill pay 15 percent on gross gaming revenues and a 10 percent levy on all UK horse racing bets...significantly higher than the taxes paid by offshore licensed bookmakers. And in an industry that is so competitive, higher taxes are crippling William Hill and hamstringing initiatives to grow market share.
So, in an 'if you can't beat 'em join 'em' move, sportsbetting and wagering operations are being moved to Gibraltar, alongside the companies existing online operation, William Hill Online (internet casinos and poker joint venture with Playtech).
CEO Ralph Topping yesterday released a raft of statements explaining the rationale for the move.
'...it was simply impossible for us to compete from the UK, as the current 15 percent gross profits tax regime and 10 percent levy on all UK horse racing bets accepted discriminates against onshore operators. Existing offshore operators don’t have those costs, giving them more capital to invest in growing their businesses...the decision to move was one we could no longer avoid making.'
In response to local authority claims that the move will open the door to betting fraud, Topping wrote:
'As for those who have claimed that moving offshore will increase the risk of match-fixing or corrupt betting, bookmakers are the ones that suffer if fraudulent bets are placed. They have no interest in lowering their guard when it comes to monitoring these criminal activities.'
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