Betfair Betting Exchange Continues to Support British Horse Racing

Published Tuesday, March 08, 2011 -

Many savvy investors already knew that the outcome of the latest gambling tax grab by the U.K. government would be an exodus by online gambling firms who are already feeling the competition pinch.

Betfair has announced it will relocate its betting exchange to the jurisdiction of Gibraltar in order to maintain a lower tax level after the government of the U.K. legislated that there would now be a fifteen percent tax on the gross betting profits earned by operators registered in the U.K..  Betfair will now conduct its business with a Gibraltar gambling license and not one issued by the U.K. This turn of events would make one think why would the U.K. government want to scare away a business that brought many jobs to the United Kingdom and tax revenues on a continuing bases. Betfair stands to save approximately £18.5m a year in taxes alone once the move is implemented.

Betfair’s  staff of 1,200 in the U.K. will not be relocated to Gibraltar a blow to the local economy. Even though Betfair will move its license to Gibraltar it concedes that that the firm will still pay the required British Horse racing levy. Betfair has been under duress because some high-rolling poker players have disappeared; horse-racing is declining in popularity; and gamblers are risking less when budgets are tight.

The company stated  in its interim management statement recently, “Betfair will continue to support British horse racing by committing the same amount of money to the sport that the company has been paying via the statutory levy for the remainder of the 49th Levy Scheme and on the terms set out for the 50th Levy Scheme” The firm’s statement continued, "Betfair continually strives to create the best technology platform for the business. This revised structure will provide the company with the freedom to locate key technical equipment in more efficient locations in order to improve service to customers and compete on a level basis in the UK market."




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