Bookmakers issue job loss warning to UK government
March 26, 2009 by mbates
Representives from the leading UK bookmakers William Hill and Ladbrokes have issued a warning to the Chancellor that any attempt to increase taxes and regulations in the April budget will lead to job losses and shop closures amid fears that the government is considering a raise of gross profits tax from 15pc to 17pc.
An industry insider said “Analysis by London Economics indicates that an increase in GPT from 15pc to 17pc would result in the closure of 845 betting shops and see the loss of 3,190 full time jobs,”. The gaming industry currently employs 40,000 people and operates over 8500 shops.
They have also indicated that an increase in taxes would see UK based operators relocate certain aspects of their business to offshore locations such as the Isle of Man and Gibraltar where taxes are set at around the 1pc mark.
The UK gaming industry currently contributes at least £1 billion in national and local taxes. This is on top of levies paid to the horse and greyhound industries which are thought to be in the region of £130 million per year.
Ladbrokes launch Bet British advertising campaign
March 23, 2009 by mbates
The UK based bookmaker Ladbrokes has launched an advertising campaign started from 21st March aimed at encouraging punters to only place bets with UK licensed bookmakers, the campaign will appear in the Racing Post.
A PR spokesman for Ladbrokes said “Very few advertisers in the Racing Post are paying tax or levy in the UK but not many consumers would be aware of this. We are informing betting customers that by betting with Ladbrokes or other UK-based operators they are encouraging employment and tax generation in the UK as well as supporting British racing through the levy. We are also reinforcing the fact that while we are increasingly a global business we remain as British as British beef.”
Ladbrokes is responsible for paying 35% of all Horserace & Betting Levy for 07/08 payments made in the UK during this they paid £100.4m in Gross Profits Tax, £68.5 million in VAT and £49.9 million in Corporation Tax as well as paying £40.4 million in levy to UK horseracing and £45 million in local taxes.
How this campaign will be viewed by other operators is yet to be known but a majority do operate from offshore locations such as the Isle of Man, Gibraltar and Malta where companies based in these locations benefit from payer tax of just 1% or less, such as Sporting Bet, Blue SQ and Bet Fred.
