..

Betfair the Latest Online Gambling Firm to Move off British Shore

Written by:
Guest
Published on:
Mar/08/2011

LONDON - (Reuters) - Betfair (BETF.L), the world's largest betting exchange, said it would follow rivals Ladbrokes (LAD.L) and William Hill (WMH.L) by moving part of its business to Gibraltar to slash its tax burden.

Betfair, founded 10 years ago by one-time professional gambler Andrew Black and former JP Morgan derivatives trader Ed Wray, said it expected to save 20 million pounds ($32 million) a year as a result of the switch, which will see its betting exchange operate under a Gibraltar licence from Wednesday.

Betfair currently pays 15 percent tax on gross profit from betting, but this will drop to 1 percent following the move.

On a conference call with reporters, CEO David Yu said Betfair was also looking to avoid the so-called "double taxation" which it is currently faces under UK tax regulations.

"When you look at how the UK does their taxation, it's based on all revenues rather than where the customer is located. For example, if you're paying tax to a local jurisdiction it doesn't really work to have a case where you're double taxed both in the UK as well as the other jurisdiction," he said.

Britain is reviewing its licensing system for gambling companies following the decision of Britain's two biggest bookmakers William Hill and Ladbrokes to relocate their businesses to Gibraltar in order to pay less in taxes.

"The question mark is whether this provokes any response from the UK government, now most of the online gambling companies have moved offshore," said Liberum Capital analyst Richard Taylor.

Taylor said the tax change could add 66 pence per share to Betfair's value based on 2012 earnings and 10 million pounds worth of annual savings rising to 121 pence per share when the savings increase to 20 million.

Shares in Betfair were up 5 percent to 933 pence at 1030 GMT. They were sold at 1,300 pence in an IPO last October and hit a high of 1,610 pence that month, but their value has slumped on the back of fears over increased regulation.

Business/Financial News

Buyers Beware as "Altcoin" Frenzy Bruises Bitcoin

Buyers Beware as "Altcoin" Frenzy Bruises Bitcoin

Bitcoin’s smaller rivals are eroding its share of the $2 trillion digital currency market. Of the dozens snapping at its heels, most have little use beyond financial trading - but few of the investors fuelling their rise seem bothered.

Bitcoin Rises 5.6% to $49,337.72 Sunday

Bitcoin Rises 5.6% to $49,337.72 Sunday

Bitcoin rose 5.63 % to $49,337.72 by 0800 GMT on Sunday, adding $2,628.83 to its previous close.

Bitcoin Slips Below $50k After Musk Says Tesla Won’t Take It

Bitcoin Slips Below $50k After Musk Says Tesla Won’t Take It

The price of bitcoin fell below $50,000 Thursday morning after Tesla CEO Elon Musk tweeted a day earlier that the electric car maker would stop accepting the digital currency as payment for its vehicles.

Get a Job in Cryptocurrencies

Get a Job in Cryptocurrencies

Getting a job in cryptocurrency will more than likely require a certificate or degree.  One can begin by taking online courses.  Bitcoin Theory covers the design of Bitcoin as a system as prescribed by Satoshi Nakamoto.

SpaceX Accepts Dogecoin as Payment to Launch Moon Mission Next Month

SpaceX will launch a satellite to the moon next year funded entirely with the cryptocurrency dogecoin, Canadian company Geometric Energy Corporation (GEC), which will lead the lunar mission, announced on Sunday (May 9).

Syndicate