William Hill 'moving online gambling to Gibraltar'
Posted by Bev Freeman on 04 Aug 2009 at 14:08
Bookmaker William Hill is set to announce a move to Gibraltar for its internet betting arm in an effort to save millions in tax.
The Times reports the predicted move comes after Ralph Topping, the firm's chief executive, made clear his frustration over the UK government's approach to gaming duty.
Current UK laws mean offshore-based firms can give up as little as 1.5 per cent of their profits to tax, while land-based casinos operating in the UK pay 15 per cent.
The issue has been a bone of contention in the industry and onshore companies have said the rules put them at a big disadvantage.
Ladbrookes and Coral, two other big UK bookmaking companies, are also affected by the laws.
The Times report also said Ladbrookes may make a statement on the subject when it records its half year figures.
The paper also noted that if all three bookmakers moved off the UK mainland, the government could lose around £50 million in taxes, although they would all still pay duty in the UK on their betting shop businesses.
According to the Times, William Hill also faces the prospect of a court case thanks to a lawsuit from 32Red, based in Gibraltar.
The claim alleges trademark infringement in connection with William Hill's 32Vegas, a site it bought last year.
The Times says 32Red has said the site is confusing for customers and should be shut down.
Furthermore, 32Red has claimed it has faced loss and damage because of the name and wants compensation.
Quoted by the Times, a William Hill spokesman said of the dispute: "This is the kind of claim that is made regularly between businesses. We have been advised that this is not an issue for us and are confident of our position. We will defend our legal rights."
Experts have said figures may show William Hill is currently doing better than Ladbrookes. The Times says analysts at Barclays Capital think William Hill will demonstrate net revenues are up six per cent, while Ladbrookes will remain on a plateau.
The paper added that in a bid to "dig in" during the recession Ladbrookes may cut its dividend. A cut in the amount of payout to investors may be on the cards, the Times added.
Elsewhere, the Times also added that mobile poker operator Cecure has collapsed. Administrators have been appointed and a buyer is being sought, with 888 Holdings thought to be interested.
The company was backed by an American investment firm, Bessemer Venture Partners, and World Poker Tour Enterprises.
