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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.

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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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