Malta-based online betting company loses £1.4m

by Franco Aloisio

The online betting branch of Stanley Leisure is reported to have lost £1.4m (Lm0.9m) in its first year of operation. Stanley Leisure, like sev-eral other betting companies, have set up their online business outside British territory. Malta has been the favourite destination for these betting companies.
Stanley Leisure’s chief executive officer Bob Wiper last week said that the company’s internet betting business based offshore in Malta lost £1.4m in the last year. Mr Wiper said he expects two more years of losses, totalling £3m annually, before Stanley Leisure’s online business starts breaking even.
Despite the downward trend in the online gambling business, Stanley Leisure has recorded more profitable business in its core operations, namely casinos and bookmaking. Its betting division increased its operating profits by 27 per cent to £10.3m.
“The internet attracts a fundamentally different type of gambler. Our average bet in the betting shops is £5.50. The average online bet is £70,” Mr Wiper said.
Stanley Leisure was one of the first bookmaking and casino gambling groups to have set up their online business in Malta, mainly because of the new on-line betting law which allows foreign centres to operate from Malta. Another factor is the attractive provisions in the Income Tax Act for these companies, with advantageous tax rates.

Two weeks ago, The Malta Business Weekly reported that the Malta Gaming Board is currently processing a total of 20 new licences for foreign on-line betting companies planning to setup base here.
Several companies have already established a presence in Malta, while others have expressed an interest
in doing so. These include Sunderlands, Stanley Leisure, William Hill, Ladbrokes, Firststake, Luvbet, Paddy Power, Wembley, Unibet, GC
Sports, International Allsports and Eurofootball.
The facilities offered in Malta have attracted not only British betting companies but also Australian ventures.
Canberra-based Canbet Ltd might opt to move out of Australia and set up its online business in Malta. This comes after reports that the Australian government might decide to crackdown on online bookmaking.