Paddy Power Betfair to close Gibraltar office
Approximately 20 Betfair staff to be relocated to London and Dublin offices
Paddy Power Betfair will close its Gibraltar-based Betfair office in August, with staff to be relocated to the operator’s London and Dublin offices, EGR Intel understands.
Approximately 20 staff will be affected by the closure, with the decision believed to be part of the company’s merger cost-cutting exercise rather than Brexit.
Specifically, the firm will be giving up its Gibraltar gaming licence and operating from just a Malta licence in certain jurisdictions.
Paddy Power’s Isle of Man office was also closed last year to cut licensing costs.
The London-listed operator said in a statement: “Following the merger of Paddy Power and Betfair we have been reviewing our licensing arrangements with the aim of simplifying and centralising operations across the combined Group.
“As part of this review, we have taken the decision to close our Gibraltar office and relocate its functions to other areas of the Group.”
Phill Brear, Gibraltar’s gambling commissioner, told EGR Intel: “This move by Paddy Power Betfair comes as no surprise and we expect the staff to find jobs in an industry that continues to thrive and grow in Gibraltar.”
He added: “We are seeing more demand for Gibraltar licences than at any time since 2010, with operators in other jurisdictions keep to ‘step up’ to Gibraltar.
Betfair said back in 2014 it was committed to maintaining a presence on the peninsula.
The Government of Gibraltar said in a statement: “It has been clear for some time that the Betfair office was under review due to the new r merged company consolidating its estate and operations across Europe since it was formed last year. While we have had a great working relationship with Betfair for the seven years they have been in Gibraltar, this office has been found to be ‘surplus to requirements’ as it replicated activities undertaken elsewhere.
“We wish the group well and will be happy to assist them in the future should they want to be licensed in Gibraltar again.”
The government also claimed its gambling industry was still growing, with four new operators in the process of being licenced.
“Whatever Brexit may produce for Gibraltar, Government will adapt its licensing and regulatory arrangements to ensure we remain the premier remote gambling jurisdiction,” the statement said.