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As so many online sportsbook operators are fighting for rights to market their product in Western Europe, its quite shocking to learn that at least one of the foremost online gambling operators is in fact planning to leave the eastern-most part of the continent. A well known sportsbook operator talking about moving out of the United Kingdom due to inequality issues among online gambling operators.
According to the online sportsbook, the company in question feels it is being unjustly besieged with a new tax hike plan. There is a big disparity in taxation for online sportsbooks that have their head office in the United Kingdom, and those online sportsbook operators functioning from offshore locations, including an additional ten percent tax on horse racing. Online sportsbook operators are troubled by the fact that the online sportsbook paid over more than six million pounds in tax last year alone while online sportsbook operators at locations outside Europe are able to evade this levy coming from the BHA or the British Horseracing Authority.
The online sportsbook operator has not put forth any final declaration whether it will or will not pull out from the United Kingdom, but there is a contingency plan in the operator’s possession that points to the company’s serious consideration of moving its base of operations to Gibraltar. If the online sportsbook operator thinks that it cannot effectively compete in a market where many of its rivals are not subject to the equivalent multi-million proposed tax hike; Gibraltar may in fact be the company’s best solution.
Operating out of Gibraltar would turn out to be more profitable as horseracing is not taxed there.
Moreover, the gross profit tax is a meager 3 percent, while the United Kingdom charges a staggering fifteen percent GPT. Last year in June, one of online sportsbook operators biggest competitors, made the same move, traversing the whole of Eastern Europe to set up head office on the tiny peninsula that is Gibraltar.
Earlier than the development of the UK Gambling Commission in 2005, online sportsbooks that operated from inside the borders of the United Kingdom had a very firm hold on the local populace. Nevertheless, since then, more and more offshore operators are inching their way into the market.
The lesser companies have not taken the spotlight off UK’s major online sportsbooks, as the greater part of customers maintain accounts with the online sportsbook in question and other companies based inside the United Kingdom. But the profit margins, after taxes, are not based on their output.
The online sportsbook operator recently opened up an office in Dublin, Ireland that has about a hundred members in its staff. This office is outside the British jurisdiction, and therefore the online sportsbook gets more space to breathe as the gambling rules continue to develop. The revenue generated from taxation of online gambling in the United Kingdom has already dropped from a hundred and fifteen million to seventy five million in the last couple of years gone by. To keep the numbers from dwindling down to nothing a change needs to be made.
