Fears to UK gaming as companies move offshore

The recent relocation of William Hill and Ladbrokes has caused serious concern amongst experts in the gaming industry. William Hill and Ladbrokes, two of the leading lights in the gaming world, moved their operations to Gibraltar earlier this year in a bid to avoid exorbitant taxation which they claimed was compromising their business. Experts are suggesting that the move will be extremely damaging to other companies remaining in the UK and have warned that the situation is almost certainly untenable.

The decision by William Hill and Ladbrokes to move abroad was prompted by significant tax advatanges available to offshore companies. Corporations now face 3% tax as opposed to the prohibitive 15% they would encounter in the UK. The 15% taxation was originally introduced by Gordon Brown with the intention of generating additional revenue by bringing more companies into the UK. Far from achieving its aim, the taxation is now responsible for harming the industry it set out to safeguard. Critics are claiming that the taxation is to blame for declining UK operations.

John Coates, Chairman of the Remote Gaming Association, said that the UK is effectively ousting these valuable businesses and has "turned its back on the industry". He noted that UK operators will find it "almost impossible" to compete with those located offshore. Many now feel that the UK is moving towards a similar situation as the US. Whilst no legal operators exist within the US itself, US users conduct their activity via offshore operators. With such excessive taxation in place, all members of the gaming community will no doubt be wondering whether a similar fate is in store for the UK sector.