UK Online Casino Industry Hurt By William Hill And Ladbrokes Move

William Hill and Ladbrokes are two of the UK's biggest gaming companies. Their recent decision to take their business offshore to Gibraltar may severely hurt the rest of the gaming companies that are left in the UK.

First, William Hill made the decision to move their operations to Gibraltar. The decision was made easy for them when they realized that they would be paying a three percent tax instead of a fifteen percent tax. Ladbrokes then made the same decision a few weeks later.

The move has many in the UK feeling as though the country has pushed out the gaming companies. The bottom line is that the UK may now suffer greatly without the revenue that was being generated by these two gaming giants.

"The UK has effectively turned its back on the industry," said John Coates, Chairman of the Remote Gaming Association, "It will now be almost impossible for a UK-based operator to compete with offshore business."

The US is in a similar situation, only there is no legal companies operating within the country. All of the action from US customers is currently being sent to sites with their base offshore. That is why Representative Barney Frank is pushing for Internet gambling regulations in the country.

Gordon Brown set up the system with the fifteen percent tax in the hopes of luring more gaming companies to the UK. Instead, the plan has backfired, and now the UK is in danger of losing all the companies they currently have if they do not change their tax rates, as evidenced by the William Hill and Ladbrokes move to Gibraltar.

August 31, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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