William Hill moves to Gibraltar to escape taxation

William Hill, has announced its move to Gibraltar in a bid to avoid heavy government taxation. A spokesman for the company said that the group had finally joined its internet casino, poker and online teams which are already situated in Gibraltar. The island will now play host to 100 employees making for a total increase of 25%.

The move follows a string of previous complaints levelled at the UK Gambling Commission regarding the unfair advantages enjoyed by offshore casinos. William Hill revealed that a total of £300 million was paid to the government last year, a cost which they claim puts the company at a significant commercial disadvantage. Ralph Topping, chief executive, argued that the move represents an important step in the development of the firm. "We are ambitious for William Hill Online to be a successful online betting and gaming business on the international stage," he claimed. "Having acquired European-focused websites, global marketing and multi-lingual customer services capabilities, this is the next logical step." The company is hoping that major reorganisation will help them recuperate the losses incurred due to the limited success of its online channel. They claim the latter was inhibited by the restrictions imposed by a stifling IT infrastructure.

In addition, many are now seeing the company's independence from UK taxation as a move towards entering the US market. Gaming observer, Ryan Costigan, said that without exemption from exorbitant UK tax, "they would be unlikely to find a profit in the US after adding likely US taxes". The relocation indicates, he suggests, intended designs on a potentially massive and lucrative new market.