After denying previous speculations, bet365 now confirms scaling down of Gibraltar operations and relocation to Malta over Brexit uncertainty
Online gambling giant bet365 confirmed on Thursday that it has decided to scale down its operations in Gibraltar and relocate most of its business to Malta, citing Brexit uncertainty as what has prompted the move.
Bet365 told its Gibraltar staff on Thursday that as part of their “strategic and contingency plans to ensure EU market access and to maintain and enhance operational efficiencies, we have been building our presence in Malta and operating a dual regulatory and licensing strategy between Gibraltar and Malta for a number of years.”
Bet365 set up its Malta subsidiary – Hillside (New Media Malta) plc in 2014 and obtained an operating license from the Malta Gaming Authority in 2015. Maltese media outlets reported last year that bet365 registered a second company in Malta in June 2016 following the Brexit vote and that a third company – Hillside (Shared Services Malta) Ltd. – was registered in April 2018.
The media reports triggered suggestions that bet365 was gearing up to relocate its operations to Malta along with more than 1,000 Gibraltar-based employees. The company denied those back then, calling them mere “speculation” and that while it was indeed planning to grow its presence in Malta, it would remain committed to Gibraltar.
Operating in a Highly Uncertain Environment
Bet365 further pointed out on Thursday that “from an operational and technical perspective and given our operating model, it has become increasingly challenging to efficiently run […]
multisite operations and this has necessarily resulted in us conducting a review of our operations.”
The company added that they “also continue to operate in a highly uncertain environment, driven primarily by the continuing Brexit landscape.” As a result, bet365 will enhance its Maltese business and relocate a significant portion of its Gibraltar operations to the Mediterranean island nation.
The gambling operator has commenced a consulting period with staff in relation to the future relocation. Bet365 will “maintain a presence in Gibraltar”, but the scope of it will become clear after they “have completed their staff consultation.”
According to Gibraltar media outlets, most of bet365’s staff in the British Overseas Territory will be offered the chance to relocate to Malta or accept redundancy.
Malta Welcomes bet365’s Relocation Plan
News about bet365’s relocation to Malta quickly unleashed positive reactions from some of the nation’s top officials, including Maltese Prime Minister Joseph Muscat who said in a tweet that they welcome the company’s announcement and that its footprint will now be “double that originally envisaged.”
Nigel Vella, a spokesperson for the Maltese government, tweeted that bet365’s relocation means more jobs on the island and further growth.
Malta’s Junior Minister for Financial Services, Digital Economy and Innovation, Silvio Schembri, said that he is pleased with Thursday’s announcement and that the operator’s relocation to Malta would create “double the jobs originally planned to be created” in his country.
We welcome @bet365 announcement on the significant expansion of operations in #Malta, where its footprint will now be double that originally envisaged -JM @SilvioSchembri
— Joseph Muscat (@JosephMuscat_JM) May 23, 2019
@bet365 to increase its operations in #Malta – further jobs & growth ?? @JosephMuscat_JM @SilvioSchembri @MaltaGov
— Nigel Vella (@VellaNigel) May 23, 2019
I am pleased with the latest announcement by @bet365 . Their relocation from #Gibraltar to #Malta will see the creation of double the jobs originally planned to be created in #Malta. @JosephMuscat_JM @Hcliff_Farrugia
— Silvio Schembri (@SilvioSchembri) May 23, 2019
The Government of Gibraltar also commented on the announcement about the pending relocation, saying that it was aware of bet365’s plan and that it has worked “very constructively” with the company on what has prompted its decision and how the effects of the relocation could be mitigated.
The government further said in a statement that it is clear that the decisions made by bet365 “are directly related to Brexit and not to any matter otherwise related to Gibraltar” and that they will continue to work with the gambling operator throughout the period of staff consultation and rationalization in order to “seek to ensure that the footprint of bet365 in Gibraltar remains substantial.”
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