The high rollers' bookmaker, Victor Chandler, has already announced his intention to set up his entire London-based credit business In Gibraltar, allowing punters to avoid paying the 9% deductions in the UK.
Now, two of Britain's leading bookmaking firms, William Hill and Sunderlands, have threatened to follow his example, and relocate off-shore.
John Brown, chief executive of Ladbrokes said: "If the government doesn't do anything, we can't just sit here. We would have no choice but to go off-shore ourselves."
According to a report, the market leader, Ladbrokes, is also seeking urgent talks with government departments to discuss the latest moves.
Chris Bell, managing director of Ladbrokes said: "We have already asked the treasury for a meeting, when we intend to lobby for a reduction in UK betting tax to 3%." This is the levy that Chandler will be imposing, half of which he plans to return to racing. Chandler plans to float the company either in London or New York in two years.
