William Hill Justifies Gibraltar Move

October 01, 2009 | News Category: Online Casinos

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When William Hill, the giant gambling group from the United Kingdom, announced that it was moving its interactive unit to Gibraltar, it was met with a lot of criticism from a number of fronts. The UK government implied that William Hill was breaking a gentleman's agreement by shifting its operations abroad, but the company maintained – and continues to maintain – that the main reason for moving was the competitive element.

As a UK based company, William Hill was subject to high taxation, including a 15% gross profits tax system, and a 10% levy on all UK horseracing wagers.

The Chief Executive Officer of William Hill, Ralph Topping reiterated this week why the move was so imperative for the group if it wanted to stay ahead of its rivals in this cut throat business.

"Any company which wants to be a leading online betting and gaming business on the international stage has to take every competitive advantage possible," he said. "And it was simply impossible for us to compete from the United Kingdom, as the current 15 percent gross profits tax regime and 10 percent levy on all UK horseracing bets accepted discriminates against onshore operators."

"Existing offshore operators don't have those costs," he continued, "giving them more capital to invest in growing their businesses."

As a result of William Hill's move to Gibraltar, other UK groups, including its arch rival Ladbrokes, also announced that they were moving their online gaming divisions to Gibraltar.

Topping said that the UK government was constantly reminded about the tough conditions facing local gaming operators and was requested to consider changing the tough tax regime to allow these groups to compete fairly in the market. "The decision to move was one we could no longer avoid making," he said, adding that he believed that William Hill Online had a "really bright future."

A large number of employees have already relocated from the United Kingdom to Gibraltar in order to support the growing William Hill Online operations. Topping praised Gibraltar, calling it a center of excellence for internet wagering in general and his group in particular.

One of the major concerns expressed by critics of the move was that an offshore transfer left the industry unprotected from corruption and match fixing. Topping reassured them and said that it was in the bookmaker's own best interest to ensure that the highest levels of protection were maintained. "Bookmakers are the ones that suffer if fraudulent bets are placed," he said. "They have no interest in lowering their guard when it comes to monitoring these criminal activities."