The giant betting exchange group, Betfair, will not be moving its
operations offshore for the time being, it was learned this week.
The group's Chief Executive Officer, David Yu, used the company's latest
numbers release as an opportunity to speak against the UK government's taxation
policy, and said that the 15% tax levied on local gambling operators was "not
ideal".
Betfair will suffer from a huge disadvantage now that some of the top names
such as William Hill and Ladbrokes announced their intention of moving to the
offshore tax have on Gibraltar. "It does not put us at a competitive advantage,"
said Yu.
Betfair issued a thinly veiled threat to the United Kingdom government that
while it is remaining put for the time being, a move offshore to Malta is not
something that has been ruled out.
The group said that if the laws stay the same, a move could be imminent.
The numbers released by Betfair last week looked promising. Operating profits
were up 29% to £ 72 million, while revenues have doubled in a space of three
years to £ 303 million.
"We are delighted that our three year investment plan has been successful,"
said that the group's Finance Director, Steven Morana. "In that period, the
business has doubled in size. We believe our strong balance sheet, with no debt,
makes us very well positioned to take advantage of further opportunities as they
arise, in particular our US TVG venture and planning towards World Cup 2010."
