Ladbrokes: we could move offshore with William Hill

LADBROKES has said it may not wait for the results of a government review into remote gambling tax rules to move offshore if rival William Hill announces tomorrow that it is to move its online operations away from the UK.

Responding to claims in the Sunday Times yesterday that William Hill is to reveal the move of its online operations to Gibraltar when it releases its half-year results, a Ladbrokes spokesman said that although the company’s preferred position is to stay in the UK, “any decision we make will be influenced by them.”

“The competition is very intense already, and if it changes any further, we would have to look at it. The board would want to move quickly. We are now in August, the DCMS review will kick off in September. That’s going to take a minimum of three months and then it’s got to get into the legislative timetable, so it would be very tight,” he said.

With the Treasury set to lose up to £45m a year in tax if the big three UK bookmakers, Ladbrokes, William Hill and Coral, relocated online and telephone operations offshore, the Department of Culture, Media and Sport (DCMS) has announced a review to ensure a more level playing field between British betting businesses and their foreign competitors.

However, William Hill has dismissed as “speculation” the claims in the Sunday Times it will jump the gun and announce the offshore move during its half-year results tomorrow.

A spokesperson said no comment had been made since chief executive Ralph Topping suggested to the Financial Times in late June that William Hill could no longer bear the burden of a 15% tax, when rivals such as Paddy Power were paying just 1.5%.

“It’s certainly not coming from us. We haven’t commented to anyone since Ralph made those statements several months ago,” the spokesman said.