William Hill establishes a new branch in Malta.
Like bet365, William Hill, a traditional British bookmaker, is now planning to establish a new office in Malta without abandoning its existing headquarters in Gibraltar. Could betting companies be trying to avoid potential tax hikes due to Brexit? This is what William Hill is saying.
William Hill, founded in London in 1934, has recently announced that it will open a branch in Malta to help propel its international growth. The exact location has not been decided yet, but a small office is currently being sought where a team will assess opportunities for global expansion.
Although Gibraltar has been William Hill's main base, with the London Stock Exchange company only being subject to a meager 1% gambling tax rate, it will continue to be the heart of the company's operations post-Brexit. According to a press spokesperson, "As William Hill's online customer base is mainly in the UK, Gibraltar will remain the main operational hub after Brexit."
The company has not yet disclosed which markets could be targeted from the new office. However, earlier this year, CEO Philip Bowcock mentioned that the focus for its 2018 expansion would be on gray markets such as Germany, Scandinavia, and Eastern Europe.
An Exit Before Brexit Part II
William Hill, like others in the British gambling industry based in Gibraltar, is not dismissing speculation that the move could be a precautionary measure against potential Brexit consequences. The press representative states that Malta provides "an option for international operations should they be required after Brexit."
In an interview with the Times of Malta, William Hill's Chief Digital Officer Ulrik Bengtsson also acknowledges the real reasons behind the decision: "We are setting up a Malta office for the small, initial organization of our international business post-Brexit."
To ensure that Gibraltar-based online gambling operators like William Hill can continue to serve the UK market with favorable tax terms after Brexit occurs, 'The Rock' recently signed a bilateral agreement with the UK, according to reports.
However, the uncertain political situation is causing concern for many British gambling providers. There is still debate in the media about how the UK's departure from the European Union will ultimately affect the British enclave. In the worst-case scenario, a standard UK gambling tax rate of 20% might be applied.
Gibraltar, the Sinking Ship?
Gibraltar, the Spanish enclave known for its attractive tax haven status, seems to be on shaky ground due to Brexit. After bet365, William Hill is the second significant player in the UK gambling industry to announce plans to set up in Malta while still maintaining ties to Gibraltar.
In May, bet365 had already declared its intention to move its offshore offices from Gibraltar to Malta. The company claimed Brexit had nothing to do with the relocation, stating that it was simply looking for "additional space" and a "supporting location." However, EGR accused the operators of being calculating and making preemptive tax evasion.
The press has speculated that other companies, such as 888 Holdings and Paddy Power Betfair, are making similar preparations. It is currently unclear if this trend will indeed materialize.
In conclusion, an increase in gambling tax to 20% would not only hurt providers but also impact Gibraltar, with the online gambling industry accounting for over 50% of the local gross domestic product.
Read also:
- The CDU is pushing for additional medical study positions in Homburg.
- German enthusiast creates gigantic Harry Potter figure
- New leader dismisses previous Schalke team.
- "White Winnie" elevates Prussia.
Source: www.onlinecasinosdeutschland.com
