The timing of Sky Bet’s strategic overhaul is drawing massive attention just as the UK government faces mounting pressure to boost tax revenues and consider steeper duties on the gambling industry. Sky Bet, which is widely promoted as the UK’s leading betting app has made the decision to move its sports betting operations to the Maltese branch of its newly formed UK entity, SBG Sports Limited.
Employees of the company first learned of the relocation in June during an internal video briefing delivered by Flutter Entertainment, Sky Bet’s parent company. In the same meeting staff were told that approximately 250 UK based workers would be made redundant. Flutter executives framed the decision as part of a broader effort to streamline operations and cut costs. Fast forward five months and on the 1st November key commercial and marketing responsibilities began migrating to Malta, that being said the Leeds office will remain an important base for the company.
While the internal announcement avoided any explicit reference to tax, sources within the Flutter Group told ITV News that the financial incentives linked to Malta’s tax regime were well understood. Tax specialist Dan Neidle made it clear that Malta’s effective corporate tax rate can be as low as 5% which is far less than the UK’s 25% rate which could rise even more. Using Sky Bet’s most recent profit figures, he estimated the annual savings could reach £31 million. He also pinpointed a VAT mechanism that may have reduced the company’s marketing related VAT bill by roughly £24 million last year.
However, Neidle warned that these potential gains are not a given. Relocating operations is expensive as a whole and any future legal or regulatory shifts whether that be from HMRC scrutiny or changes to Maltese tax rules could undermine the financial logic of the relocation. From his point of view it is a calculated gamble, it could be one that could pay off handsomely or fall short if tax authorities intervene.
The decision forms part of a wider pattern from the group. Flutter has been reshuffling its corporate structure for a number of years. In 2024 alone, the group moved Sky Gaming’s head office to Gibraltar and transferred its primary stock market listing to New York. The group is valued at more than £25 billion with Flutter also owning Paddy Power, Betfair as well as Tombola all of which are registered outside the UK. Sky Bet remains a major brand which spent £135 million on marketing in 2024 and maintaining a high-profile partnership with the English Football League.
At the same time of this move for Skybet, UK Chancellor Rachel Reeves is being pressed by MPs to impose higher taxes on gambling companies. The Institute for Public Policy Research has advised that increasing duties could generate up to £3.2 billion annually. Former Prime Minister Gordon Brown has backed the proposal but the opposition being the betting industry leaders warn that the move could force shop closures, trigger job losses and push customers towards unregulated operators. Flutter CEO Peter Jackson has publicly argued that higher taxes would accelerate this shift of punters towards the black market.
From our perspective, Flutter’s relocation strategy exposes a growing tension between corporate attitude and political expectations. On one hand, Flutter insists it contributed more than £700 million to HMRC last year and still employs over 5,000 people in the UK. On the other hand its decision to move operations offshore even if legally justified undercuts industry claims that gambling companies are committed long-term partners in the UK economy. Ultimately, the move reflects an industry preparing for a tougher environment as well as testing the limits of the UK’s ability to retain major digital businesses on its shores.