Around 300 employees of British bookmakers William Hill are to lose their jobs, following the company's decision to close its telephone betting centre in Athlone, Co Westmeath.
The closure is due to "significant changes" taking place in the betting industry, said Mr David Harding, chief executive, William Hill Organisation Ltd. These changes include the abolition of the 9 per cent betting tax in Britain at the beginning of this month.
The telephone betting service at the Athlone centre, which was established in January 2000, was aimed at avoiding paying the British Exchequer tax.
None of the staff at the centre has been given notice and work will continue in the short term, Mr Harding said in a statement.
"We will be contacting the IDA as a matter of urgency to explain our proposal, in order for them to try to seek a buyer for the call centre," he said.
The centre, which is located in the Kilmartin Industrial Estate on the edge of Athlone where it processes bets for customers in the UK and in continental Europe, employs about 150 permanent and 150 temporary staff.
Mr Harding said significant industry changes were taking place. "As a result of this, we have been undertaking a full review of all our operations and, regrettably, it has now become apparent that it will be increasingly difficult for us to operate in a cost-effective manner in Ireland."
Mr Harding said the company informed the staff, "which has clearly come as a shock". He was unavailable yesterday for further comment. When the centre in Athlone opened, British customers who phoned the firm's telephone betting service in Leeds were asked if they wanted reduced tax betting. Those who did were routed through the Isle of Man to Athlone where the bet details were forwarded to a computer in Antigua.
The firm had expected to make considerable savings by paying the Irish betting tax of 5 per cent, compared with cumulative taxes and charges of 9 per cent in Britain. The company's statement at the weekend said: "The announcement does not affect the current situation in William Hill's call centre in Leeds. If the proposal to close the centre in Athlone is accepted, operations in the UK will be expanded."
