Betting firms look to relocate offshore to save money

30/06/2009

Ministers are growing increasingly alarmed at the prospect of UK-based bookmakers moving their firms abroad but many are threatening to do just that as the UK’s tax environment makes it increasingly expensive to base a gambling business in the UK.

Bet65 is the latest betting firm mulling over a move of its company registration offshore, claiming there are no longer any benefits to keeping the firm registered in the UK.

Many online gambling and gaming firms already operate in Gibraltar, which offers a much more favourable tax regime. Recent increases to UK tax on upper-level earners have made it even less affordable to stay registered in the UK.

Alan Coates, the CEO of Bet65, the Stoke-based employer of 900, says he is very aware of what it would take to move offshore as its gaming business is already based in Gibraltar.

Coates says, "being based in the UK, from a tax perspective, is very expensive.” When asked by the Financial Times what the benefits are to keeping its base in the UK, he replied, "there isn't a great advantage, no. There are highly skilled workforces all over the world."