eGaming Review January 2014 - Page 18

[P E O P L E NEWS ] POC TAX COULD COST 1,300 GIBRALTAR JOBS Former chief minister Sir Peter Caruana warns of huge economic impact introduction of new UK remote gaming tax could bring Gibraltar’s economy would be hit hard by the proposed 15% UK Point of Consumption tax with 1,300 jobs under threat as a result, the territory’s former chief minister Sir Peter Caruana has warned. Speaking to  The Times, Caruana said that the proposed tax rate would have a huge impact and declared its timing – which coincides with Spain imposing stricter border controls and other restrictions on the British Overseas Territory – to be a “very unhappy coincidence”. Research cited by Caruana and conducted by Bournemouth University economics professor John Fletcher in 2012 suggested that the Gibraltarian government could lose up to £20m in revenue as a result of the bill. The Gibraltar Betting and Gaming Association (GBGA) has warned that up to 1,300 jobs – around one third of those employed in the industry – could be lost as UK-facing companies operating from the territory look to restructure and downsize in order to swallow the looming tax hit. The UK regulation will allow licensees to base staff and technology anywhere in the world, a move that GBGA commissioner Phill Brear told eGaming Review contradicts what other major licensing states in the EU and US have sought to enforce. “As recent and current licensing failures show, thin, long distance regulation encourages abuse of the licensing system,” Brear added. MORE CUTS AT LADBROKES WITH 56 JOBS UNDER THREAT UK operator embarks on third redundancy round of the year as part of continued cost-control measures Ladbrokes could be about to cut as many as 56 jobs from its London headquarters as the company continues to streamline its operations, eGaming Review has learned. Staff at the Rayners Lane office were informed of the news with the job losses set to impact a number of departments – although it is thought the operator’s retail arm could be the worst hit. A Ladbrokes spokesperson confirmed the number at risk, but refused to comment further. The company also began a  redundancy consultation involving 100 staff in May and placed 75 roles under threat just two months ago. 16 Of the 100 roles to have been cut in the first round of redundancies, around half were understood to have been redeployed elsewhere in the company. The redundancies follow a difficult period for the operator which was recently forced to deny speculation it was readying itself to issue what would be its fourth profit warning of the year. Ladbrokes’ share price crashed to a low of 178.5p following a leaked email sent from Ireland-based brokerage firm Goodbody Stockbrokers which suggested the bookmaker’s full-year operating profit forecasts were to be cut by £10m to £135m. NEWS IN BRIEF British bookmaker Ladbrokes has appointed Andrew Bagguley as mobile and devices director to head up its new mobile development hub. Bagguley joins from German telecommunications company Deutsche Telekom and will lead Ladbrokes’ new mobile development hub, working closely with mobile development agency Chelsea App Factory. Paddy Power’s head of egaming Isaac Ward has left his role at the Irish operator to join Australian operator Tom Waterhouse. Ward is the latest in a number of departures from the operator in recent months after Paddy Power head of bingo Oonagh Flanagan left to join Gala Coral as head of marketing for bingo. Gibraltar-licensed operator 888 has strengthened its marketing division after appointing former PKR global head of marketing Erika Schwartz Poole to head up its offline marketing and partnerships strategy. Poole is tasked with launching a new offline sub-brand, encompassing its global live events, VIP offline activity, brand ambassadors and social activities.  Betfair’s digital director Ben Carter has resigned after more than four years at the exchange and sportsbook operator. Carter left Betfair last Friday to become head of marketing at online marketplace Notonthehighstree t. com, however no replacement has been lined up as of yet.