Malta canvassing offshore bookmakers to switch location
by Anthony Manduca
Malta is set to emerge as the new offshore location for the second wave of low-tax betting outfits targeting punters in Britain, according to the latest issue of the UK newspaper The Independent on Sunday.
The newspaper said that the authorities in Malta are in the process of issuing a number of betting licences and have canvassed at least one of the bigger offshore bookmakers in another tax haven with a view to a switchoff location.
The Malta Business Weekly had already reported that the Stanley Leisure Gaming Group was expected to be issued with an online betting licence by the Maltese regulatory authorities.
A charge of 0.5 per cent of turnover has been offered to interested applicants, who would be in a position to target punters in Britain, where deductions are nine per cent.
At least two British-based firms are said to be eyeing Malta as their new offshore location. At present Ladbrokes, Coral, Victor Chandler and Stan James have bases in Gibraltar, William Hill is in Antigua and leading internet bookmaker sporting-bet.com has a licence in Alderney.
An announcement over the issuing of a licence for the Stanley Leisure Gaming Group is expected soon. Stanley would be the first company to be given a betting licence in Malta which it will use as a base for a racing and general sports-betting website.
Stanley chairman Leonard Steinberg said in January - when he unveiled betting profits up 13 per cent to £241m within group profits that were down by 30 per cent - that internet strategy was central to the company's future plans.
"We would not be betting on esoteric sports such as basketball and American football," Steinberg said. "Other internet firms do and are getting caned."
Stanley operate Britain's fourth-largest betting-shop chain and, like their chief rivals, have claimed they have been left with no alternative but to set up offshore operations while duty in Britain remains at 6.75 per cent.
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