Ladbrokes Expands Gibraltar Operations, Offers Tax-Free Phone and Internet Betting to UK Customers

Strategic Insights -

Ladbrokes, Britain's largest bookmaker, has announced plans to expand its Gibraltar operations and offer tax-free phone and internet betting to UK customers. This move follows similar announcements from other UK bookmakers, including Victor Chandler International, Hill's, and Coral, which have all moved offshore to avoid the 9% levy on UK racing bets. The expansion will see a further 200 staff taken on to run the new division, which will be named Ladbrokes International and go live in October.

Key Takeaways:

  • Ladbrokes will offer tax-free phone and internet betting to UK customers through its Gibraltar operation.
  • The move is driven by a desire to remain competitive in the telecommunications industry.
  • The company will take on an additional 200 staff to run the new division, Ladbrokes International.
  • The Gibraltar operation will offer a range of sporting events from around the world, and from next year, customers will be able to place bets online and play casino games through the internet.
  • Punters betting through Ladbrokes' Gibraltar operation will still be charged a 3% deduction.
  • Ladbrokes plans to hold on to its levy "for the foreseeable future".
  • The company is in advanced talks with at least one UK digital television operator about providing armchair sports fans with an interactive betting service.

Statistics:

  • 200 staff will be taken on to run the new division, Ladbrokes International.
  • The Gibraltar operation will offer a range of sporting events from around the world.
  • Customers will be able to place bets online and play casino games through the internet from next year.
  • Punters betting through Ladbrokes' Gibraltar operation will still be charged a 3% deduction.

Sources:

  • Ladbrokes City report, page 31.