ladbrokes today announced that it will transfer its Ladbrokes.com sportsbook operations to Gibraltar by the end of the year, and will today begin offering its online customers Best Odds Guaranteed on all British and Irish horseracing.
Currently ladbrokes sportsbook operations are based in Rayners Lane, near Harrow, London and incur 15% Gross Profits Tax and 15% VAT on input costs as well as corporation tax. British based bookmakers must also pay Horserace Betting Levy at a rate of 10% of profits on British horseracing. Offshore bookmakers pay very low profits taxes of 1 or 2% and are not subject to the Horserace Betting Levy.
Christopher Bell, Chief Executive Officer of Ladbrokes plc commented: "Our award winning sportsbook Ladbrokes.com is the biggest in the UK market but faces aggressive competition from offshore operators who hold a very significant cost advantages by operating from low tax jurisdictions. Operating from the UK has become unsustainable and we will relocate by the year end."
ladbrokes is one of the most successful online sportsbooks in the world offering betting and gaming services to people in 17 languages and 18 currencies. The service has over 725,000 active customers and posted revenues of £172.2 million and profits of £55 million in 2008. However this year growth levels have slowed due to the recession and increasing levels of competition from offshore operators.
While the ladbrokes sportsbook is to relocate offshore Ladbrokes is to retain its call centre operations for telephone betting in the UK. A number of cost reduction measures are being taken to safeguard the future of the business including redeploying staff and utlising new technology to reduce costs per call.
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