Flutter-owned UK operator Sky Bet has relocated its HQ to Malta, potentially saving it millions of pounds in taxes. The relocation was announced earlier this year alongside plans for layoffs.
Sky Bet Relocates HQ to Malta
The relocation of Sky Bet’s HQ to Malta was announced to employees in June, when the company warned that it was planning to lay off 250 workers in the UK. In a live-streamed meeting, company leaders cited business and cost efficiency as the chief reasons for the relocation.
Despite that, Sky Bet will not end its presence in the UK and the company’s office in Leeds will remain one of Flutter Entertainment’s largest hubs.
While the company leadership justified the relocation with business efficiency, they never explicitly mentioned taxes as a motivator for the decision. However, a Flutter insider told ITV News that the UK’s tax rates were definitely taken into account.
Flutter Insider Says Sky Bet Is Seeking to Avoid the Rising Taxes
For context, the United Kingdom has been mulling over gambling tax hikes for a while, to the industry’s dismay. Proponents of such a measure have argued that gaming, as a potentially harmful vertical, should contribute more to the strained economy. Gambling industry stakeholders have parried with claims that a tax hike would benefit the black market and hurt the British economy as a whole.
Whatever the case, the relocation of Sky Bet’s HQ to Malta is sure to save it up to GBP 31 million in taxes, according to expert estimates. ITV News was told that everyone affected by the relocation understands that “this is about tax.”
No one with a straight face would say it’s “for strategic reasons” or whatever other nonsense people come up with.
Flutter insider
The Move May Turn Out to Be Risky
Tax expert Dan Neidle agreed with this assessment, saying that people either go to Malta for sunbathing or to avoid tax. While he acknowledged that Sky City could save millions of pounds in taxes and VAT, he told ITV News that he believes the move to be reckless.
The risk is that there’s a lot of expense in moving people to Malta, and then they’re stuck. And if the law changes or HMRC challenges their position, they could end up, in fact, saving nothing, but being stuck in Malta.
Dan Neidle
In the meantime, Flutter just published its Q3 report, highlighting strong revenue. The momentum, however, was offset by a dramatic increase in net loss, causing the company to lower its FY 2025 guidance.