Online casino industry has been through an accentuated growth and development during the past few years in the UK. Two of the biggest and mostly acknowledged gaming companies in the UK are known to be Ladbrokes and William Hill. These two companies are leading the online casino industry for years being on the top in the UK.
That is why their recent decision about leaving the UK and taking their business offshore to Gibraltar struck all the representatives in the online casino industry. This way, the UK online casino industries will not only loose two of its major gambling companies, but this move will also affect severely the rest of the gaming companies.
Of course the reasons were having financial base. William Hill was the first who decided to center their operation in Gibraltar, this way instead of paying a fifteen percent tax; they will be paying 3 percent. Only a few weeks later, Ladbrokes also announced following William Hill offshore to get a kinder tax regime found in Gibraltar. Chris Bell, CEO of Ladbrokes confirmed that by making this step the company will save up 7 million GBP.
Other online gambling groups such as Betfair, Tote and Gala Coral have not yet made public their consideration about moving offshore in order to compete more effectively, but they are keeping this option open.
Without these two major companies UK might suffer a great revenue loss and the online gambling industry blames the UK for turning its back to the industry. Bad feelings are about UK pushing out these companies from the country, this way leaving no chance for the remainders to compete with an offshore operator business.
The plan of Gordon Brown has backfired; he introduced the fifteen percent tax in order to attract more gaming companies in the UK, but as the current case of Ladbroke’s and William Hill getting offshore to Gibraltar shows, he only managed to ruin the industry urging the companies to follow these giant companies’ example.