Citing increased frustration at the government's attitude on gambling duty,
the Chief Executive of William Hill, one of the UK's biggest bookmakers,
has said that the group will be shifting its internet betting operations
offshore.
The group is expected to make a final announcement on the move when reporting
its interim results this week.
If William Hill confirms its move offshore, it is believed a large number of
rival companies will follow suit in a bid to save themselves millions of pounds
of taxes each year.
UK bookies have been complaining about what they call the government's unfair
policy for a long while now, whereby offshore based groups pay as little as 1.5%
in taxes, while those based in the UK have to fork out 15%.
Despite the group's best attempts to address the issue with government
officials, their efforts have led to nowhere and William Hill has now become the
first of the Big Three, including Ladbrokes and Coral, to threaten to take its
internet betting operations offshore.
If all three companies settle in Gibraltar, the UK Treasury could lose up to
£50 million.
In anticipation for the interim results announcement on Tuesday, analysts
predict that William Hill will show its stronger position over Ladbrokes.
The same analysts believe that William Hill will report net revenues that are
up 6%, while Ladbrokes will have a static performance growth.
