Betfair, the UK’s biggest online betting entity, is moving its London based internet operations offshore. The move reduces the gambling giant’s tax liability from 15% to 1%.

CEO David Yu said moving offshore also protects Betfair from double taxation under UK law.

“When you look at how the UK does their taxation, it’s based on all revenues rather than where the customer is located. For example, if you’re paying tax to a local jurisdiction it doesn’t really work to have a case where you’re double taxed both in the UK as well as the other jurisdiction,” he said.

Betfair, now operating under a Gibraltar license, will move equipment and 120 staff to offices in Gibraltar and Dublin.

In the first year, Betfair expects to see £10 million in savings. In future years, the group expects to save £20 million annually. Lower saving in the first year have been attributed to higher operational costs stemming from running the new offices in parallel with existing ones.

Betfair isn’t the first UK gambling group to move offshore. William Hill moved operations to Gibraltar in 2009 and Ladbrokes made the move in 2010.