Britain is known for many things, but the stereotype of the stiff upper lip is one of the kinder ones. The cliché of being stoic, emotionally restrained and resilient during adversity has its roots in Victorian culture, but was reinforced in the wars that followed.  

Every time something rocked the country, the people of Britain were expected to suck it up and simply get on with it. So when the UK Budget dropped last autumn, while it proved to be an unpopular development, there was no dramatic uproar or reaction. Some companies published statements questioning how productive – or counterproductive – these new measures would be, but there was a pervasive feeling that everyone would get through it. Except for Sky Bet... which left the UK to re-establish its headquarters in Malta before the OBR could even leak its Autumn Budget documents.  

Flutter had held internal meetings with employees back in June to explain the reasoning behind the move. The topic of taxes was not explicitly addressed in the meeting, but staff still described the issue as “the elephant in the room.” Malta could offer tax rates as low as 5% to the business, a fraction of the 25% expected in the UK for online sports betting and the 40% recently introduced for online casinos. This had the potential to translate into £55m ($74.21m) saved in tax payments to the UK each year. To Flutter, it was an obvious choice. Senior leadership would move from one small island to an even smaller one, and from 1 November last year, all day-to-day operations and marketing decisions for Sky Bet brands have been made from the new location in Malta, under the branch of a new company, SBG Sports Limited. 

This was not necessarily a popular decision beyond the boardroom. It came with hundreds of layoffs across UK offices, and customers accused Sky Betting & Gaming of profiting off UK customers while refusing to pay its full UK tax. However, the operator was willing to pay its taxes for 15 years (when the rates were reasonable). The company employed thousands of people in several British cities and kept many communities afloat. So was the onus on Flutter for leaving, or on the Government for not listening to the industry’s warnings? 

Either way, this may not be the only company looking to relocate to Malta within the next few months. There have been some concerns that the archipelago has lost its pull in iGaming over the past couple of years, especially as globalisation continues to affect the industry. But that mindset did not account for the UK Government making Britain an increasingly hostile environment for gambling operators. Malta might not be a hot new jurisdiction, but it is exactly what executives might be looking for right now. It is familiar, safe and most of all – welcoming. 

Perhaps this sort of action, which is so detrimental to the UK economy, is what is needed to create long-term change in the industry. A stiff upper lip is necessary to keep calm and carry on, but it does little to influence the world around it. The Government did not seem to heed the warnings, but it may understand the consequences if enough companies put themselves before the taxman. This industry is always looking for the next big disruptor. Well, not every disruption is going to be a popular one, but it may yet create a positive change for everyone else if politicians finally realise taxing gambling companies can leave for Malta if their home country no longer works for them.