Ladbrokes moves online gambling operations offshore

Ladbrokes has announced that it is moving its online gaming arm to Gibraltar. The news comes just days after William Hill announced it will be doing the same. Ladbrokes has supposedly broken a ‘gentleman’s agreement’ to keep its online operations in the UK, and the UK Treasury will lose millions of pounds as a result of the move.

Chief executive Christopher Bell blamed “intense competitive pressures” for the move, stating that the situation in the UK was “unsustainable”. Ladbrokes said that the move will “improve the competitiveness and operating margin” of the company.

The change is set to occur before the end of the year, and savings of more than £7 million a year could be possible. When it moves its operations offshore it will only have to pay 1.5% in tax, whereas keeping them in the UK would mean paying 15%.

The company revealed that it has been operating in harsh trading conditions since May. The move comes after a 6.6% drop in revenue in the six months to the end of June. The betting company also revealed that less people have been placing bets at its shops, of which it currently owns over 2,300.

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