William Hill Leading Online Gambling Companies To Gibraltar

William Hill and other UK-based casino companies are fed up over the tax rate they are paying on their Internet gambling operations. As a result, the company is expected to announce this week that they will be moving their online gambling operations to Gibraltar.

The move will come as a major blow to the UK. If William Hill does indeed leave, it is most likely that other big gaming companies would follow suit. Ladbrokes would be the most notable of the other companies that would follow William Hill to Gibraltar.

The companies are unhappy with their latest revenue figures, and they have been searching for ways to remain competitive with other online companies that are based in locations where the tax rate is not as high. Currently, William Hill and other UK-based gaming companies are paying 15% in taxes.

That figure is unbelievable high compared to companies based offshore. Some of the rates offshore are as low as 1.5%. That is a major difference in the amount of overall income the company can make.

Although the UK has no intentions of changing the tax rate to accommodate William Hill and Ladbrokes, they will be paying a steep price if the companies relocate. Millions of dollars will be lost in taxes if the companies follow through on their threat to leave.

William Hill has been outperforming Ladbrokes and their stock price reflects that. PartyGaming, one of the world's largest online gambling operators, is outperforming both other major companies.

August 2, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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