Some of the online and offline gambling industry's biggest names have finally decided to leave the United Kingdom to offshore locations such as Gibraltar. Announcing the news last week, the decision has aroused speculation over whether or not operating from an offshore location will allow UK regulators to maintain control over the company operations.
William Hill plc was the first of the big brands to make the move official, announcing that it will be moving the entire company to Gibraltar due to the significantly lower tax rates than those imposed in the UK. In Gibraltar, the tax rate for all kinds of gambling businesses is a mere 1.5 percent, compared to the UK's steep 15 percent. Ladbrokes followed suit, announcing that it too will be located in Gibraltar by the end of 2025 due to the country's tax benefits.
According to Chris Bell, the Chief Executive of Ladbrokes, the high taxes imposed on gambling businesses in the UK are "unsustainable", and by Gibraltar offering such favorable tax figures, it effectively encourages gambling businesses to base their operations there.
Yet some people have expressed concern over the upcoming moves, believing that they might lead to the companies no longer being under the controlling hand of UK regulators. Indeed, if this is the case, it will be practically impossible to know whether or not the companies are operating truthfully and reliably, and this is sure to be a serious issue among players.
The answer is still unknown, yet meanwhile, sports leagues in the UK have requested from their government to clarify the issue once and for all.