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Major UK Gambling Companies Heading Offshore

Comments by senior executives and industry speculation earlier this year that major UK gambling companies may be headed to kinder tax climes appear to have been confirmed over the weekend with reports in several major UK newspapers.
 
The reports, which received widespread publicity, suggest that two of the biggest Brit bookmakers, William Hill and Ladbrokes, are expected to unveil plans to shift their online sports and phone betting operations to offshore tax havens.
 
William Hill chief executive Ralph Topping has repeatedly voiced the opinion that it is is difficult to compete with offshore-based Internet gambling operations due to the heavier UK tax burden, quoting the UK rate of 15 percent against that of Gibraltar-based rivals which pay only 1.5 percent.
 
The Financial Mail and several other major newspapers report that Topping is expected to confirm that he is moving the online sports and phone betting operations of Will Hill to Gibraltar when the company reports interim results on Tuesday. The bookmaker already has a division based there for online casino-style gambling and has apparently been relocating staff in anticipation of the move.  

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Ladbrokes has been less vociferous, although company sources admitted it would have to respond to any move by William Hill. Ladbrokes will report its interim results on Thursday.
 
The horseracing industry has already expressed fears that such a move by major gambling groups will have a serious impact on the racing industry, with millions of pounds lost from the racing levy while millions more in tax will be lost to the Treasury. Industry bodies have suggested that the government consider moves on offshore operations targeting Brit punters as one way to level the playing field (see previous InfoPowa report).
 
In related news, This is Money reports that William Hill is facing a lawsuit from the Gibraltar-based online gaming company 32Red, which has launched a claim against it, alleging trademark infringement.
 
William Hill runs an online service called 32Vegas, one of a number of websites it acquired in a deal last year with Playtech. But 32Red claims the site is confusing for its customers and wants William Hill to close down the operation. It says it has suffered “loss and damage” as a result of the rival company and hopes to recover funds to compensate for this.
 
A spokesman for William Hill played down the dispute. He said: “This is the kind of claim that is made regularly between businesses. We have been advised that this is not an issue for us and are confident of our position. We will defend our legal rights.”
 
However, William Hill does appear to be taking the 32Red claim seriously. According to the Affiliates United website the company is re-branding 32 Vegas as "...our new, improved and revamped casino brand, 21nova. The launch of 21nova, on August 3rd, will mark a new era in online gaming where the focus of play shifts back to the most important element in online gaming; the player.

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"We have taken our trusted 32Vegas brand and enhanced it to include a second to none game selection, improved around the clock customer support in a variety of languages and a loyalty program which rewards the player for every single wager made. All of these elements combine to pave the way for a new name: 21nova – the New Star in Online Gaming."

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Gambling News :

Is Gibraltar Out of Luck in US Tax Challenge - Gibraltar's challenge to the UK 15 percent point-of-consumption tax on online gambling operator revenues has already failed in the UK High Court, and it looks as if it may be rejected by the European Court of Justice too.

Quickspin are now available in Denmark - #quickspin The roll-out strengthens the long-standing partnership between the supplier and the operator, with Quickspin games already available on Vera&John’s websites around the world.

UCypher Launches - Indian entertainment and media entrepreneur Ronnie Screwvala has announced the formation of UCypher, an eSports tournament in which ten teams will compete.

Extreme Live Gaming In deal With Betsson - Extreme Live Gaming, a subsidiary of the Novomatic Interactive group, has announced a live dealer product deal with the Betsson online gambling group, with an initial launch planned for Betsson.com, followed by other brands in the Swedish group's portfolio.

Expansion Mode For BoyleSports - The Bambury premises are situated in Kildare, Meath and Dublin and will be refurbished and rebranded after acquisition, with the total of 31 staff remaining in employment..

Safecharge Q4-2016 - Online e-cash processing firm Safecharge, where Playtech's Teddy Sagi is a majority shareholder, released a trading update on its Q4-2016 performance Thursday, flagging record transaction processing volumes and revenues.

ASA Most Controversial Ads of 2016 - Paddy Power's penchant for advertisements that cause a stir saw the betting company mentioned twice in the Top Ten most controversial adverts of 2016 released by the Advertising Standards Authority in the UK Thursday.

Yggdrasi To Enter Italian Gambling Market - Yggdrasil’s Italian offering will include the company's collection of in-game promotional tools, BOOST, improving gamification, and the social sharing tool, BRAG. The company’s mobile product will also be available on its HTML5 iSense 2 platform.

888sport is the latest to join sports betting integrity body ESSA - Major operator 888sport is the latest to join sports betting integrity body ESSA with the company adding its customer base and betting market platforms to ESSA’s global anti-fraud alert and reporting system.

First partypoker live event to be held in Russia - Partypoker’s new live tour will kick off in Russia on March 24, 2017 at Sochi Casino and Resort in association with Club Poker Management. Online Day 1’s will start on partypoker on March 12, 2017.

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