William Hill Confirms Offshore Move

William Hill plc confirmed Tuesday that it will be moving its online betting services and online fixed-odds games from the United Kingdom to its headquarters in Gibraltar.

The move, which had been public knowledge for some time, could be the start of a trend, with Ladbrokes and other major British bookmakers expected to follow suit in the near future.

William Hill said the transfer was part of the ongoing integration of William Hill Online, which was created last December through the merging of the company's interactive business with assets it acquired from Playtech Limited.

As part of the deal, William Hill launched the talked about William Hill Casino Club.

William Hill chief executive Ralph Topping has long expressed his dissatisfaction at the fact that his company pays a 15 percent betting tax while offshore rivals pay only 1.5%.

"We are ambitious for William Hill Online to be a successful online betting and gaming business on the international stage," Topping said after Tuesday's announcement.

An announcement is expected from Ladbrokes following their board meeting Wednesday.

British racing officials expect a loss of around 30 percent of their income if other leading bookmakers join William Hill in moving offshore, British newspapers reported recently.