Analysts Assess Potential Impact of UK Gross Profit Tax

In a top-down analysis of the proposed 15 percent gross profit tax (GPT) to be levied on the UK businesses of online operators, analysts at Jefferies have estimated that Betfair will see its earnings hit harder than UK-facing peers Ladbrokes, Paddy Power and William Hill.

As part of a sector note published on Tuesday, the Jefferies analyst team lays out the estimated pro-forma impact on the profitability of Betfair, Ladbrokes, Paddy Power and William Hill, should a 15 percent tax on UK-derived gross gaming revenue be implemented in December 2014.

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