Online Casino Operator Betfair Says UK Tax Unfair
Betfair, one of the largest online casino operators, reacted to decisions by competitors to move out of UK territory by criticizing the tax placed upon online gambling sites based in the UK. The company's CEO, David Yu, noted that offshore gaming operators only paid a tenth the tax imposed on companies based inside the UK.Both William Hill and Ladbrokes announced this week they are moving their online casino operations to Gibralter, where taxes are far more lenient. Ladbrokes said the move by Hill forced its response to stay competitive.
Yu said Betfair had no immediate plans to relocate, but would not promise the company would remain in the UK if conditions stayed the same. Betfair already uses Malta as a base for non-UK business.
Online casinos had been warning UK regulators that the disparity in taxing could lead to this situation. The Gambling Commission has suspended White List approval for new offshore online casinos, while preparing to review the tax problem, but it may be a case of locking the barn after the horse is gone.
The predicament tempers happiness over Betfair's fine quarterly performance, which showed a 29 percent increase over the same quarter in the previous year.
