Questioning UK Gambling Tax

While the 2005 UK Gambling Act has done wonders in regulating the online gambling market, and legitimizing the industry as a whole. British television can now watch gambling ads, companies can feature on Google like other industries, and more.

But it seems that the Act is flawed in some ways, one of which surfaced earlier this week.

William Hill plc
In a press conference following the release of William Hill plc's latest financial results, CEO Ralph Topping had apparently hinted at the possibility that the UK gambling group would relocate part of its operation to Gibraltar.

Topping merely stated that the company regularly considers such moved. "It's reviewed every year," he said. But describing the tax policy in the UK as "absolutely dopey" has directed some attention at the current tax regime.

Tax disparity
British-based Web operations such as William Hill Online pay a 15% gross profits tax; offshore operators pay only 1.5%.

In fact, Topping said that the company was already relocating 90 jobs in its online sportsbook operation overseas, mainly to Gibraltar. It remains to see whether William Hill plc will ship the rest of its online operations to Gibraltar (or elsewhere), and whether other companies will follow suit.