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COULD WILL HILL MOVE TRIGGER AN ONLINE EXODUS
Yesterday's announcement that the William Hill plc group is to move its online betting operations to Gibraltar continued to excite speculation today (Wednesday) with mainstream media all commenting on the possibility of an exodus of other gambling groups seeking a more benevolent tax regime.
The Guardian newspaper reported that Britain's biggest online bookmakers are drawing up plans for a mass exodus from the country to gambling-friendly tax havens such as Gibraltar, Malta and the Isle of Man.
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Other publications commented on the impact of a general move on government tax and horseracing levies, speculating that major gambling groups like Ladbrokes, Gala Coral and even government owned the Tote must be weighing their options if they wanted to remain competitive following William Hill seizing the initiative.
Ladbrokes has already commented that it would obviously have to consider the implications, although no decision has yet been reached. The company is due to release results tomorrow (Thursday) which many observers feel would be a convenient time to announce its own plans, if any, to move offshore.
The Tote, presently owned by the government, has acknowledged that its position is complicated but that it would not want to be left as the "last man standing", paying UK betting tax at 15 percent of gross profits if its rivals were paying 1.5 percent offshore.
Betfair's reaction will also be watched with interest when it releases its annual results later today (Wednesday).
More departures could be embarrassing for the government, which is already engaged in a review of the Gambling Act. The Guardian points out that bookmakers were granted significant tax breaks eight years ago in a "gentleman's agreement" under which major chains pledged to repatriate their embryonic offshore internet and telephone betting businesses and pay UK taxes on them.
A Treasury spokesman said: "We recognise that this is a commercial decision for William Hill but we are very disappointed."
William Hill chief executive Ralph Topping remained unrepentant, suggesting that technological advances had in effect left the deal unsustainable. "The people who shook hands on that deal lacked the foresight to see how the internet would develop," he told The Guardian. William Hill's telephone betting unit had lost out to offshore rivals and could be forced to close one of two British call centres, he said. "By being loyal to the UK we have seen our telephone business destroyed … We are not hanging around to see if the same will happen to online."
Yesterday the firm posted another double-digit rise in gross win from its controversial touch-screen roulette machines in betting shops for the first half of 2008.
Roulette machines were made viable for bookmakers by the 2001 Treasury pact and provided an unexpected eight-year gold rush for William Hill and others. For the first six months of the year machines accounted for 41 percent of William Hill's betting shop gross win — GBP 161 million — with their contribution to profits thought to be far greater.
Danske Spil Bingo Moves to Microgaming -
The national lottery of Denmark, Danske Spil, is live on the Microgaming Bingo Network. Danske Spil, the Danish national lottery, is live on the Microgaming Bingo Network following a change to its licence conditions.
Quickfire live on Strendus -
Quickfire powered by Microgaming is extending its reach in the LatAm region with the signing of Strendus. Strendus is the online division of Logrand Entertainment Group. The group comprises several companies that operate gaming and entertainment establishments in Mexico, running 14 land-based casinos in total.
Quickfire content live on BetatHome -
Online gaming and sports betting company bet-at-home was founded in 1999. Today the company has 4.8 million registered customers around the world, offering sports betting, casino, live casino, Vegas games, poker and virtual sports.
Microgaming has donated £30,000 between four charities -
Gift of Giving provides Microgamingís customers the opportunity to vote for one of several charities in their region. In lieu of Christmas gifts, £30,000 is split equally between four global regions: Isle of Man, UK and Europe, Africa, and Rest of the World.
Entertainment Betting Odds: 90th Academy Awards -
The Shape of Water leads Sundayís 90th Academy Awards (8 PM ET, ABC) with 13 Oscar nominations, but when it comes to Best Picture, this highly-acclaimed film is a +140 second-favorite behind Three Billboards Outside Ebbing, Missouri at Ė115.
Fair Play Bets and QuickFire in Deal -
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Cavaliers Aim to Take Down Wizards on 2/22/18 -
The Cleveland Cavaliers have looked like a different team since making their moves at the trade deadline. The Washington Wizards are up next for the Cavaliers, who will be at home after the All-Star break.
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