Sky Bet, one of the United Kingdom’s largest online gambling operators, has moved its headquarters to Malta in a transition that could reportedly reduce its annual UK tax burden by tens of millions of pounds.

The development was first reported by ITV News, which revealed that the sports betting giant shifted its operations under the Maltese branch of a newly formed UK entity, SBG Sports Limited.

According to ITV.com, “Sky Bet’s parent company, first told staff about the move in June, alongside a plan to make around 250 people in the UK redundant.” During a live-streamed briefing across Flutter Entertainment’s UK and Ireland operations, the company cited a “need to operate more efficiently” and reduce costs.

Steve Birch, Chief Commercial Officer of Sky Betting and Gaming, explained that from 1st November, “day-to-day commercial and marketing decision making will take place in Malta,” while emphasising that the Leeds office would remain one of Flutter’s key sites.

Tax seen as the unspoken driver

While the official internal messaging focused on operational efficiency, the ITV News investigation suggests tax advantages were widely understood by staff to be the true motive.

An insider at Flutter told ITV: “Tax was the elephant in the room. It is absolutely understood, across everyone affected, indirectly or directly, or even aware of the announcement, that this is about tax. No one with a straight face would say it’s ‘for strategic reasons’ or whatever other nonsense people come up with.”

ITV also consulted tax specialist Dan Neidle, who noted that a company managed and taxed from Malta could pay an effective corporation tax rate of just 5 per cent  –  compared with the UK's 25 per cent. Based on Sky Bet’s most recent profits filed by Hestview Limited, that could translate into “a potential saving of up to £31 million,” he said.

Mr Neidle further highlighted a VAT optimisation opportunity. “I know lots of people who’ve gone to Malta. They've all either gone there for sunbathing or to avoid tax. I don't know anyone who's gone there for any other reason,” he told ITV News. He argued Sky Bet’s marketing spend could see VAT reductions of “as much as £24 million.”

However, he warned the relocation was risky: “If I had been advising them, I'd say that it was reckless… if the law changes [or] HMRC challenges their position, they could end up, in fact, saving nothing, but being stuck in Malta.”

The decision to house Sky Bet’s sports betting business in Malta adds to a pattern already visible across Flutter’s multinational brands.

Paddy Power and Betfair have long operated through Ireland and Malta, while Tombola is registered in Gibraltar. Last year, Flutter also moved the head office of Sky Gaming  –  which includes Sky Vegas and Sky Poker  –  to Gibraltar.

The group has simultaneously shifted its primary stock market listing to New York, signalling its growing focus on the rapidly expanding US betting market while retaining a secondary listing in London.

What this means for Malta’s iGaming sector

Sky Bet’s movement into Malta reinforces the island’s status as one of Europe’s most established hubs for online betting and gaming operations  –  particularly at a time when the UK market is becoming more restrictive.

Over the past three years, British operators have faced:

• increasing tax pressure, including calls for higher gambling duties
• affordability checks for players
• tougher advertising rules
• tighter oversight by the Gambling Commission

For large operators with multinational footprints, Malta offers predictable regulatory frameworks, EU-aligned compliance structures, and competitive taxation.

Economic implications for Malta

While the ITV investigation primarily framed the shift from a UK taxation perspective, the relocation could mean:

• more high-value operational roles in marketing, trading, compliance, and product housed locally
• increased economic activity linked to service providers, affiliates, and technology partners
• additional corporate visibility for Malta

However, Mr Neidle’s warning means that global tax rules are evolving. The OECD’s Pillar Two reforms  – introducing a 15 per cent global minimum corporate tax  –  could eventually narrow the tax advantages enjoyed by Malta-based companies. For the time being, however, Malta remains an attractive environment for operational consolidation.