UK Loses £55 Million in Gambling Tax Revenue Overnight

It is incredibly frustrating when online casino regulators see the iGaming sector as a bottomless pit of money to be emptied whenever they see fit. This is seen whenever regulatory bodies trump up a wild idea that needs funding, and suddenly, players and operators are threatened with increased taxes, fees, and other penalties.

The UKGC recently found that just because a gambling brand is associated with your country, it does not mean its leadership will continue to hand over insane sums of money without looking for a way to stem its losses.

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 Sky Bet Bolts for Malta

Facing heavy fines and reduced revenue thanks to player stipulations in the United Kingdom, popular casino and betting brand Sky Bet decided to move its headquarters from one island to another, by setting up shop in Malta.

The move involved moving key personnel from their Leeds office to its new Maltese offices. This move is not the first time of its departments have been shifted out of Leeds; the company had previously relocated other core departments to offices in Gibraltar or Malta.

This change of scenery also led to leadership changes, with several still-to-be-announced executive positions and directors replaced by new faces.

 Million Saved by Moving Shores

It is estimated that, thanks to the tax structures and tax breaks afforded to companies in Malta, the gambling platform is set to save an enormous £55 million right off the bat. The particular tax clauses that come into play are:

UK Gambling Taxes: 50% or more

1. Corporate Tax: 25% 
2. Remote Gaming Duty: 21% on UK players
3. Gaming Duty: up to 50% on gross profits

Malta Gambling Taxes: Less than 10% (effective rate)

1. Corporate Tax: 35%
2. Remote Gaming Duty: 5% on players in Malta
3. Tax Rebate: Refund rate of up to 6/7 on distributed profits (5% rate)

With these incredible savings up for grabs, it's easy to see why the expense of moving headquarters is a no-brainer for gambling sites.

It is also worth noting that not only does the UK lose out on the direct tax revenues from the parent company, but also on income tax, sales tax, and other daily spending on groceries, rent, and utilities from all the jobs that have left the country, which is an uncalculated loss.

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