Exit Before Brexit? Bet365 Moves to Malta

Exit before Brexit? bet365 moves to Malta

By Vanessa Beyer Published on: May 23, 2018 Updated on: August 7, 2024

In anticipation of the UK's exit from the EU in 2019, British sports betting king bet365 appears to be relocating its offshore offices from Gibraltar to Malta. The supposed act of prevention could possibly establish a trend, but 'Brexit' hardly plays a role in this regard, as the company reports.

The trademark of the gambling tax haven Gibraltar: a 426 meter high limestone monolith. ( Image source )

Currently, the largest British bookmaker bet365 has confirmed that it will move into a new office complex in the holiday resort of Sliema on the north-east coast of the British overseas territory of Malta. For this purpose, the privately run group of companies from Stoke-on-Trent, as it is said, made a purchase promise of 70 million euros, which should therefore be fulfilled immediately after the official Brexit on March 29th next year.

According to one Times of Malta article 1,000 employees have already been relocated, which bet365 firmly denies:

The company currently has a sports betting license from the Malta Gaming Authority (MGA) - and any departments of the bet365 marketing apparatus are already based in Sliema - but contrary to all assumptions, Great Britain's exit from the EU hardly plays a role here. The so-called move is more of a regular expansion anyway a bet365 press officer explained:

"We are taking additional space and looking for additional staff in Malta to support our online operations. We will also be expanding our infrastructure there. However, it should be noted that the number of people being relocated to Malta is completely inaccurate."

The spokesman continues that 500 employees are planned for the new Malta location, and “the extent” of the alleged move has been “exaggerated” by the media. Regardless of any plans for Malta, bet365 will continue to “maintain a strong presence in Gibraltar”. The headland on the southern coast of Australia, on which a 426 meter high limestone monolith towers, is still the company's “most important operational hub,” it says in the end.

The Gibraltar situation

Gibraltar's Gambling Minister Albert Isola is calm about Brexit. ( Image source )

Even if Gibraltar's Gambling Minister Albert Isola optimistic about the economic development in the wake of Brexit shows, Europe's local media outlets, lawyers and the industry itself are assessing the future of what was previously known as 'Online Las Vegas'IGTen 'Rocks' rather fralich:

The European Court of Justice (ECJ) in Luxembourg had Britain's patronage of Gibraltar already strongly encouraged before the start of the Brexit negotiations in 2017 - in terms of service law, the United Kingdom and Gibraltar consequently are to be assessed as a unit within the EU.

At the moment, the service providers based in Gibraltar - which mainly come from the gaming and financial sectors - still pay 1% tax, but given the currently planned increase in the UK online gaming tax from 15 to 20%, the situation could worsen as a result of Brexit in 2019.

The industry magazine EGR therefore condemns the bet365 strategy and accuses the company of calculation: The step was therefore precisely planned to avoid these possible effects of Brexit. Meanwhile, EGR said other firms, including 888 Holdings and Paddy Power Betfair, were also making similar preparations. In his annual “Power 50” ranking the most powerful online gambling operator in Great Britain, EGR bet365 was recently listed at number one eight times in a row. Founded in 2000 by Denise Coates, the company is one of the largest gaming companies in the world, with over 23 million customers and over 3,500 employees. Denise Coates is now Britain's highest-paid CEO.

Whether expansion or relocation - such measures by such a big player in view of such an extreme political situation such as Brexit have an impact and could even make the best horses in the stable shy away. However, Albert Isola, the gaming minister who has been in office since 2013, is not afraid of this, on the contrary:

"We understand that businesses need security and need to manage risk. But what remains is that Gibraltar remains the choice of choice for the world's most reputable gaming companies. Brexit will not change that."

Consequently says: Wait and see. If Gibraltar's British service providers were actually burdened with an online gambling tax of 20% after the official Brexit in 2019, it would be an absolute fiasco for the Rock: The gambling industry now generates over 50% of the GDP here.

Exit before Brexit? bet365 moves to Malta

Exit before Brexit? bet365 moves to Malta

The Gibraltar situation

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