Gambling software company with offices in Ipswich coughs up £25m after accounts probe
PUBLISHED: 09:42 02 January 2019
Playtech, a gambling software development company with a presence in Ipswich, has agreed to pay Israeli tax authorities £25 million following an audit that probed 10 years of accounts.
Although Playtech has its headquarters in the Isle of Man, it owns Gaming Technology Solutions (GTS) a leading global supplier of gaming solutions for online gaming operations located on Wherry Quay in Ipswich.
Through the GTS Enhanced Gaming Engine (EdGE) platform, Playtech provides clients with access to soft and casino games on the market.
Playtech, which is listed on the FTSE 250, said that following a civil tax audit covering 2008 to 2017 Israel has made “transfer pricing adjustments” relating to Playtech’s activities there.
As a result the firm will stump up the cash and no penalties will be imposed as a result of the audit.
The additional tax charge will be reflected as an exceptional item in Playtech’s 2018 accounts and payment is expected to be made in the next 30 days.
The news comes just days after Playtech warned it will take an earnings hit of up to £22.5 million in 2019 due to new Italian gambling taxes.
The Italian senate recently passed the country’s 2019 budget which includes tax rises on gambling activity.
Playtech’s full-year guidance, which was for adjusted earnings of £287.7 million to £323.6 million as of November, remains unchanged.
GTS has maintained offices in Ipswich since the company’s inception in 2005.
GTS was formed by a group of gaming industry experts and, after spending four years developing its software platform, the company was acquired by Playtech in 2009.