BETFAIR yesterday confirmed it will move its gambling licence to Gibraltar in order to save on its tax bill.
The betting firm estimates it will save £10m in the next year and £20m the year after, taking advantage of Gibraltar’s one per cent tax on gross profit from betting.
Betfair says part of the reason for the move is the double taxation it is sometimes subject to in the UK under its current set up. It follows Ladbrokes and William Hill in setting up their gambling licenses offshore.
Chief executive David Yu told City A.M. the “lions share” of savings will be through tax but the firm will also benefit from synergies.
The firm also announced its revenues were up 6.2 per cent on the same period a year earlier, despite poor weather and a decrease in average poker spending.