Ladbrokes joins offshore exodus

Bookmaker will move its web operations to Gibraltar to save on tax

Running online operations from the UK became "unsustainable" for Ladbrokes

Betting group Ladbrokes has announced plans to move its online operations to Gibraltar, just two days after rival William Hill announced its own shift to the British territory.

According to the firm’s chief executive, Chris Bell, Ladbrokes' online sportsbook is facing “aggressive competition from offshore operators, who hold very significant cost advantages by operating from low-tax jurisdictions".

Bell said that running the online gaming operations from the UK has become “unsustainable” and the move, which the firm hopes will generate annual savings of £7m, will be completed by year end.

In a press conference call, Bell also said the move will result in the loss of a “handful” of jobs. Some of Ladbrokes' gaming products already operate out of Gibraltar, which is located at the southern end of the Iberian Peninsula.

Apart from William Hill, several other online betting firms are already based there, including PartyGaming and 32 Red, due to the favourable tax regime.