Flutter insists Sky Bet Malta move isn’t solely tax-driven
Sky Bet, one of the UK’s biggest online betting brands, began moving commercial and marketing roles to Malta on 1 November.
Flutter Entertainment, Sky Bet’s parent company, insists the transition is driven by strategy, efficiency and global competitiveness. But the relocation has coincided with significant UK redundancies and growing scrutiny over the potential tax savings associated with shifting work overseas, fuelling debate over what is really behind the decision.
ITV News reported that the move could reduce Sky Bet’s tax bill, citing comments from an unnamed insider at Flutter who claimed “tax was the elephant in the room”. The company, however, told SiGMA News that the claim is not true.
Concerns over motivation
The firm has insisted the primary reasons for the move relate not to tax but to the competitive environment facing gambling operators in the UK. Flutter pointed to pressure stemming from the government’s Gambling Act Review, the growth of illegal offshore operators targeting British punters, and the possibility of further tax rises.
A spokesperson said: “Flutter paid more than £700 million in taxes to HMRC last year and we employ over 5,000 people across the UK including almost 2,000 in Leeds and 600 in Sunderland. As with most global businesses around the world, we are constantly striving to remain competitive and efficient and to give ourselves the best chance of success in an incredibly challenging environment.”
“The challenge we face is only made harder by the recent Gambling Act Review, the significant rise of illegal, unregulated black-market competitors and the possibility of tax rises in the Budget.”
Strategic shift with knock-on tax effects
Flutter acknowledged that the move would have tax consequences but framed them as secondary to operational strategy. “In June this year, after migrating Sky Bet onto the same technology platform as our other brands, we decided to move a number of commercial and marketing roles to our commercial centre in Malta – where Flutter already employs over 750 people. This decision was made for a number of strategic and commercial reasons and will have some tax implications. But Flutter is committed to the UK and Sky Bet will continue to pay UK corporation tax on its profits.”
The company already maintains significant hubs in Porto and Cluj, where some of the 250 Leeds redundancies announced in June were tied to roles being moved overseas.
Still, the decision has fuelled speculation over whether tax was a driving factor. The Times of Malta reported that Sky Bet’s relocation could save the company around £55m per year in tax, citing analysis from tax specialist Dan Neidle and noting Malta’s effective corporate tax rate of around 5% compared with 25% in the UK. The figure also includes VAT-related savings.
Global footprint
Earlier this year, Flutter switched its primary stock market listing to New York, while retaining a secondary listing in London. The group now describes itself as the world’s largest sports betting and iGaming operator.
Pressure on the company has recently intensified internationally. Flutter suffered a sharp downturn in its Asia-Pacific performance this year after India introduced an unexpected total ban on real-money gaming, triggering a $556m impairment charge for the group.
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