William Hill shifts online set-up to Gibraltar

Bookmaker expects to save millions of pounds by moving offshore

William Hill's entire online operations are now based out of Gibraltar

William Hill has moved its entire online operations to Gibraltar to save millions of pounds in tax.

Datacentres supporting the bookmaker’s internet sports book and fixed-odd games division were moved offshore at midnight last night, according to a William Hill spokesman.

The firm’s internet casino and poker operations, as well as William Hill Online, a joint venture with gaming development firm Playtech, are already based in the British territory on the Iberian Peninsula.

The spokesman added that the latest move, which is part of an ongoing online integration programme, will mean an increase in staff based in Gibraltar from 75 to about 100 employees.

William Hill said in a statement that the move would bring cost savings that other offshore operators already achieve, which have previously put William Hill Online at a commercial disadvantage.

The firm said it paid a total of £300m in tax to the UK government last year.

"We are ambitious for William Hill Online to be a successful online betting and gaming business on the international stage," said Ralph Topping, the group's chief executive.

"Having acquired European-focused web sites, global marketing and multi-lingual customer services capabilities, this is the logical next step in our development of this business," he said.

Last year, the gambling firm reported poor performance by its online channel due to inflexibility of the IT infrastructure. The company then said it wanted to repair the damage via investment in restructuring.

"This will be a transitional year for the interactive channel as we make the necessary investments to lay the foundations for future growth. The most significant of these is the replacement of our interactive sportsbook technology system with a more flexible platform," chairman Charles Scott said at the time.