The UK may be having a love affair with online gambling at the moment, but that doesn’t mean that the iGaming business is in love with their situation. With a new taxation structure seemingly looming on the horizon and growing competition from unregulated offshore providers, British gambling giant Betfair has hinted that if action is not taken soon, they will pull a reverse Madonna and get the hell out of England.
Betfair, which is reportedly planning a market flotation later in the month, currently faces a 10 percent horseracing levy that offshore companies do not – a levy which reportedly cost the company more than £7.3 million in tax revenue last year.
The company has hinted at a contingency plan that would see the iGaming giant moving its business to Gibraltar, where the much lower 3 percent tax will allow them to compete more openly with their mainland rivals.
“No decision has been made but like every company, Betfair puts in place contingency plans for the risks facing [its] business,” claims an anonymous company spokesman.
Analysts believe that the statement serves as a warning to the British government by suggesting that Betfair is ready to bounce at the drop of a hat.