Are UK betting groups seeing one step ahead and choosing to settle
their online division offshore for other reasons, besides tax related?
Analysts are pointing out that the UK betting operators, such as William Hill
and Ladbrokes, who announced that they were moving their bases from the United
Kingdom to Gibraltar, may be eyeing the US gambling market, and the potential
changes to be had.
Nobody is denying that there are exciting winds of change in the United
States. Major efforts are picking up to have the industry legalized and
regulated by a number of top politicians.
Poker groups are enjoying success on the lobbying side and many believe that
it is only a matter of time before offshore groups will be allowed to enter the
market and offer their services to US players.
When that happens, the UK groups will want to be ready to give it all they
have to make a profit from an open US market, and they believe that removing
themselves from the expensive taxation system in their home market is the first
step.
"If these companies continued to pay the exorbitant UK tax, they would be
unlikely to find a profit in the US after adding likely US taxes," said one
observer.
By shifting their operations to Gibraltar, these groups drop their tax rates
from 15% to a more affordable 1.5%.
Both William Hill and Ladbrokes have said that their moves were regrettable
but necessary to sustain operations.
