Online gambling company Ladbrokes confirm move to Gibraltar
Ladbrokes have confirmed that they will be joining rival bookie William Hill in a move off-shore to avoid paying high taxes that are associated with being a registered company of the UK.
Ladbrokes have announced that their new home will be in Gibraltar where many of the big online gambling companies already operate from to avoid losing cash to high tax rates.
CEO, Christopher Bell has said that the competitive pressure have forced them to break a “gentlemen’s agreement” they had with the UK government to stay registered in the UK but with William Hill moving earlier this week Ladbrokes had to follow suit.
Bell plans to have completely moved their operation to Gibraltar by the end of 2009. It has been estimated that William Hill would save nearly £7 million a year after moving – it has not been predicted how much Ladbrokes would save.
Back in 2001 bookies agreed to return their operations to Britain after the 9p levy on bets was dropped by the government.
The announcement of the move has encouraged a raise by 2.5% in Ladbrokes shares.