Ladbrokes Poker Revenue Falls as Sportsbook MovesPoker Down 13.6 Percent in First Six Months of 2009 as Company Announces Sportsbook Move |
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Ladbrokes Poker revenue fell 13.6 percent in the first half of 2009 to £12.7 million from £14.7 million in the first half of 2008 the company said in its interim report today.
It described the current poker market as “very competitive and difficult”. Ladbrokes Poker joined the Microgaming network in February 2009 and during the first half of the year active player numbers grew 2.9 percent to 107,000 but average monthly active player days were down 17 percent and player yields dropped 16.3 percent.
The company said,” The key areas of focus in the second half include a series of product and service enhancements for the existing player base and the rollout of the Italian poker service.”
Following William Hill’s lead earlier in the week, the company also announced it was moving its sportsbook operation to Gibraltar to avail of lower tax rates.
“Currently Ladbrokes sportsbook operations are based in Rayners Lane, near Harrow, London and incur 15% Gross Profits Tax and 15% VAT on input costs as well as corporation tax,” the company said. “British based bookmakers must also pay Horserace Betting Levy at a rate of 10% of profits on British horseracing. Offshore bookmakers pay very low profits taxes of 1 or 2% and are not subject to the Horserace Betting Levy.”
“Our award winning sportsbook Ladbrokes.com is the biggest in the UK market but faces aggressive competition from offshore operators who hold a very significant cost advantages by operating from low tax jurisdictions. Operating from the UK has become unsustainable and we will relocate by the year end."
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