Online Casinos Fleeing UK Taxes
William Hill is set to move its operations from the UK to Gibralter, beginning a potential exodus of online casinos based in the UK. Taking advantage of current British law, the online gambling sites will pay only a fraction of the tax they presently incur once they are established offshore.The UK government is already preparing to examining the inequalities in the existing tax structure, but it may be too late. The transfer of registration by Hill is leading Ladbrokes and other competitors in the online casino industry to follow suit, unable to sustain such a disadvantage.
William Hill has completed transfer of its online division into a partnership with Playtech, which is based in Gibralter. Taxes there are expected to run only 10 percent as what Hill was paying in the UK.
"Our preferred position is to remain in the UK but we have to remain alert to competitive developments," a Ladbrokes spokesman told the Daily Mail. Ladbrokes has said it will leave the UK if Hill does.
Government observers are pointing out the end result of the onerous tax on gambling and online casinos is resulting in a situation under which almost no tax will be collected. By trying to be greedy and maximize revenue, the government has instead chased jobs and revenue offshore.
