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Totalbet.com, the online betting joint venture between Tote Direct and PA Sporting Life, applied on Wednesday to move it's internet business to Malta.
The company cited antiquated betting legislation and the need to maintain its ability to compete in an increasingly cut-throat industry as reasons for the move.
British betting legislation was framed 30 years ago and is seen by the betting industry as out of touch with an ever changing online market.
UK bookmakers have lobbied for changes in taxation law on gambling. The government has promised a review of the gambling industry, but results are not expected until mid-2001.
Standard betting tax in the UK is 9 per cent and bookmakers pay a duty rate of 6.75 per cent of turnover.
Each year British punters spend in excess of £40bn ($60bn), which nets the treasury £1.7bn.
Several bookmakers have relocated online operations offshore where they no longer fall under the control of UK betting law.
With turnover from online gambling predicted to reach £3.7bn by 2002 and with no reduction in tariffs on the horizon, more bookmakers are expected to make the move.
Totalbet.com has appointed Lee Richardson as it's first managing director. He joins the company from Tote Direct, where he had the same position. He previously held senior marketing posts with the British Horse Racing Board and Hertz Europe.
His appointment was "an important step for Totalbet," said Peter Jones, Tote chairman.
"We have a great technical site and Lee is the right man to sell the benefits of betting on it to the worldwide market.
"Regarding our move to Malta. It is not a question of on or off shore but rather one of how to compete most effectively for the international betting market," Jones added.
"We employ 3,000 staff in Britain. That remains unaffected.
"The internet side of our operation though requires a particular international outlook and the betting duty currently applied here makes that more difficult."
The company cited antiquated betting legislation and the need to maintain its ability to compete in an increasingly cut-throat industry as reasons for the move.
British betting legislation was framed 30 years ago and is seen by the betting industry as out of touch with an ever changing online market.
UK bookmakers have lobbied for changes in taxation law on gambling. The government has promised a review of the gambling industry, but results are not expected until mid-2001.
Standard betting tax in the UK is 9 per cent and bookmakers pay a duty rate of 6.75 per cent of turnover.
Each year British punters spend in excess of £40bn ($60bn), which nets the treasury £1.7bn.
Several bookmakers have relocated online operations offshore where they no longer fall under the control of UK betting law.
With turnover from online gambling predicted to reach £3.7bn by 2002 and with no reduction in tariffs on the horizon, more bookmakers are expected to make the move.
Totalbet.com has appointed Lee Richardson as it's first managing director. He joins the company from Tote Direct, where he had the same position. He previously held senior marketing posts with the British Horse Racing Board and Hertz Europe.
His appointment was "an important step for Totalbet," said Peter Jones, Tote chairman.
"We have a great technical site and Lee is the right man to sell the benefits of betting on it to the worldwide market.
"Regarding our move to Malta. It is not a question of on or off shore but rather one of how to compete most effectively for the international betting market," Jones added.
"We employ 3,000 staff in Britain. That remains unaffected.
"The internet side of our operation though requires a particular international outlook and the betting duty currently applied here makes that more difficult."
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