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Ladbrokes Confirms Offshore Move - 08-11-09 |
 August 11 - The UK gambling market received another blow this week following an announcement by Ladbrokes gaming giant that it, too, will be shifting its online operations to Gibraltar.
Ladbrokes said that it should have completed the move by the end of this year.
The group's announcement follows the decision by William Hill to move to the tax haven of Gibraltar, blaming "intense competitive pressures".
Both groups are making the move over growing frustrations that they are obliged to pay high taxes to the UK government, whereas those operators situated offshore only have to pay a fraction of the obligatory 15%.
In a statement, Ladbrokes said: "Operating from the UK has become unsustainable and we will relocate by the year end."
While Ladbrokes did not specify exactly how much it will be saving by making the move, analysts predict that the move will save its rival William Hill around GBP 7 million each year.
Ladbrokes did say that the move should "materially improve the competitiveness and operating margin" of its internet division.
The Chief Executive Officer of Ladbrokes, Christopher Bell, said that the pressure in the market had forced the company to break a "gentleman's agreement" that it had in place with the UK government in order to keep its operations on UK soil.
Read the Ladbrokes online casino review.
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