The UK is undoing itself again, encouraging businesses to leave the country for tax havens rather than stay. SkyBet is the latest company to leave!
The latest saga linked to the possibility of a huge tax increase about to hit the UK’s gambling industry is SkyBet’s move to Malta.
According to the company, the idea behind the move is to streamline its operations, but many say it’s a tax-saving move.
Can We Blame UK Casino Operators for Saying Enough is Enough?
The UK has recently imposed a 1% levy on casino businesses, reduced maximum bets on online slots, and forced them to spend heavily on system upgrades to tackle responsible gambling.
All online casinos and sports betting sites complied, but how does the country repay them? The looming scenario of increased taxes.
Why wouldn’t a company move overseas if it’s going to save millions in tax payments? That’s how business-hostile the country has become, especially towards gambling.
It is a country where traditional English pub drinking is no longer a regular outing but a once-in-a-while visit due to high taxes. Why wouldn’t it do the same to the casino industry? Well, looking at the country’s past form and the latest news, that’s exactly what it is going to do.
The next industry the country wants to dismantle is another one of its most successful, gambling!
Sky Bet has seen it coming, and although, as Brits, we want companies offering B2C services in our country to pay the full tax burden, we can hardly blame them for moving overseas to continue giving their customers value for money, i.e., casino and sports betting bonuses.
Source: The news confirming that SkyBet is moving its headquarters to Malta is from ITV. Although a poor media company is rarely known for reporting the truth, it’s more about narrative, a bit like the BBC. Plus, we have to say, there’s been nothing on the SkyBet website.
Arguably Britain’s Worst Prime Minister Before Keir Starmer is Kicking Up Fuss
There may be people like Gordon Brown, moaning about gambling companies moving overseas, but can you blame them?
That’s right, the guy who sold half the UK’s gold reserves, known as ‘Brown’s Bottom’, when he was acting Chancellor of the Exchequer. The same prime minister who treated boom-time banking money as permanent, relying on its tax money to fill Britain’s fiscal budget. In the end, when he left Number 10 Downing Street, he left the United Kingdom’s finances in tatters. Also, Gordon Brown is the same person who worked with Tony Blair to loosen regulations in the country that led to the 2008 stock market crash, caused by the US mortgage-bond collapse, which hit UK banks hard.
The moral of this story is: Don’t listen to Gordon ‘Black Hole’ Brown if your job or reputation is based on your performance. Any comment from this guy, I advise you to do the opposite.
The Numbers Behind Sky Bet’s Departure
Flutter Entertainment, Sky Bet’s parent company, contributed over £700 million in UK taxes last year and employs more than 5,000 people across Britain, including almost 2,000 in Leeds and 600 in Sunderland. Sky Bet alone spent £135 million on marketing in 2024, with major partnerships including its sponsorship of the English Football League. Tax expert Dan Neidle estimates the Malta move could save Sky Bet up to £55 million annually.
£31 million in reduced corporation tax (5% in Malta versus 25% in the UK): That’s some statistic, and the company saves another£24 million through VAT arrangements. However, Neidle warns this strategy carries risk, calling it “reckless” if HMRC challenges the arrangement or tax laws change.
Treasury Pressure and Industry Response
The Institute for Public Policy Research estimates the government could raise £3.2 billion yearly by increasing taxes on online gambling, physical slot machines, and sports betting. Former Prime Minister Gordon Brown backs this proposal, suggesting the revenue should lift the benefit cap for families with more than two children. The gambling news has triggered strong reactions in Parliament. Treasury Select Committee Chair Meg Hillier called Flutter’s timing “rather hypocritical,” noting the company appeared before the committee weeks earlier, extolling the virtues of how much tax they’re paying in the UK.”
The betting industry warns that higher taxes would cause shop closures and cost up to 40,000 jobs, though critics dismiss this as scaremongering.
Casinoplusbonus Opinion
This situation reflects a broader policy dilemma facing governments worldwide. On one hand, operators have complied with expensive new regulations and already contribute substantial tax revenue and employment. The threat of additional tax increases makes relocation financially sensible. On the other hand, these companies profit significantly from UK customers and should contribute fairly to public services. The challenge is finding a balance that keeps operators competitive while supporting public finances.
Neither punitive taxation nor tax avoidance through relocation serves players’ long-term interests, and both approaches risk destabilising an industry that millions of UK gamblers rely on for entertainment.
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