Sky Bet has shifted its headquarters to Malta in a move that could reduce its UK tax liability by tens of millions of pounds each year.
Sky Bet has shifted its headquarters to Malta in a restructuring move that could reduce its UK tax liability by tens of millions of pounds each year.
The decision comes at the same time as the government is facing pressure to raise tax revenues and consider higher duties on betting companies.
Sky Bet, which markets itself as the UK’s No. 1 betting app, has transferred its sports betting operations to the Maltese branch of a new UK entity, SBG Sports Limited.
The relocation was first revealed to staff in June by Sky Bet’s parent company, Flutter Entertainment.
During a live-streamed meeting for employees across several offices in the UK, Ireland and mainland Europe, Flutter outlined plans to make around 250 UK-based redundancies alongside the move.
Executives described the shift as an effort to operate more efficiently and reduce costs. From 1 November, commercial and marketing decisions began transitioning to Malta, although the Leeds Sky Bet office remains one of Flutter’s major sites.
No explicit reference was made to tax during the internal announcement, but a Flutter insider characterised tax considerations as being widely understood among staff in comments provided to ITV News.
Tax expert Dan Neidle also told the news outlet that Malta’s effective corporation tax rate can be as low as 5%, compared with 25% in the UK.
Based on Sky Bet’s most recent annual profits filed by Hestview Limited, the potential annual saving could reach £31m.
Neidle also highlighted a VAT mechanism that could have lowered Sky Bet’s marketing-related VAT bill by about £24m last year.
He described the move as a significant gamble, however, noting the expense of relocation and the risk of future legal or regulatory changes.
The strategy could fall short of expectations, he suggested, if HMRC challenges the company’s tax position or if Maltese tax rules evolve.
Flutter in constant movement
Sky Bet spent £135m on marketing in 2024 and remains a high-profile sponsor of the English Football League.
Flutter has undertaken several structural changes in recent years, including moving Sky Gaming’s head office to Gibraltar in 2024 and shifting its primary stock market listing to New York.
The group, valued at over £25bn, owns Paddy Power, Betfair and Tombola, all of which are registered outside the UK.
Meanwhile, UK Chancellor Rachel Reeves is under pressure from MPs to raise taxes on gambling companies, with the Institute for Public Policy Research estimating a potential annual revenue increase of £3.2bn resulting from higher duties.
Former Prime Minister Gordon Brown has supported the proposal, while industry leaders warn it would lead to shop closures, job losses, and more customers moving to the black market.
Flutter CEO Peter Jackson has argued publicly that tax rises would drive customers to unlicensed operators.
MPs on the Treasury Select Committee have criticised Flutter’s decision, calling it contradictory given the industry’s recent emphasis on its tax contributions.
Flutter maintains that it paid more than £700m to HMRC last year and employs over 5,000 people in the UK.
The company acknowledged that the Malta move will have tax implications but attributed its restructuring to regulatory burdens and the need for a more pragmatic operating model.