Ladbrokes make their move to Gibraltar
5th November, 2009
As reported by EGR Magazine, Ladbrokes have been planning their move to Gibraltar since their half year results in August, and have initiated the move two months before schedule after competitive pressure from operators such as Paddy Power and Bwin who are taxed less and have their headquarters in Gibraltar.
Through operating in the UK, Ladbrokes are subject to a 15% gross profit tax and VAT on input costs. They are also subject to a 10% levy for British horseracing profits.
The reasons for the move were clarified by Chief Executive Christopher Bell, stating that competing with other operators with tax advantages was ‘unsustainable’ and hope that the move will enable Ladbrokes to benefit from tax advantages themselves.
Christopher Bell also commented saying that they have used the opportunity to invest into better technology ahead of the move as well as a new sports book too.
