Betfair announce Gibraltar switch
Betfair is to save millions of pounds on taxation payments by moving to a Gibraltar licence.
The betting exchange giants currently operate under a UK licence, meaning they pay 15% tax on gross profits. The switch will allow them to avoid this level of taxation, leading to potential savings of around £18.5 million a year. The company did not reveal the exact amount it would save in tax but did state that it expects profits to increase by £10m in 2012, adding that its 1,200 UK-based staff will not to have to move to Gibraltar as part of the change. Fellow bookmakers William Hill and Ladbrokes have previously moved elements of their online operations to the British-owned territory.
Betfair also moved to reaffirm its commitment to paying the British horse-racing levy, with an interim management statement saying: "Betfair will continue to support British horse racing by committing the same amount of money to the sport that the company has been paying via the statutory levy for the remainder of the 49th Levy Scheme and on the terms set out for the 50th Levy Scheme.”