New Gambling Tax Legislation Signals Return To The UK For ‘Offshore’ Data Centres

VTS0088 Steven Norris - Headshot - Chairman - Virtus Data CentresThe UK Government is introducing a new law which will remove the tax advantage from betting, gaming and online bingo companies operating their data centres offshore in so-called ‘tax havens’.

“The effects will be more far reaching than these companies realise,” said Stephen Norris, former MP and chairman of Virtus Data Centres, ” From 1st December 2014 not only will UK betting and gaming operators lose their £300 million/year tax advantage, they will soon realise that they are paying way over the odds for electricity, Internet bandwidth, other services and staff airfares for the running of their data centres.”


Norris, who is also president of the Data Centre Alliance, continued to explain that with these extra costs – and the inconvenience of having their data centres in far away in places like Gibraltar, Isle-of-Man and the British Virgin Isles – gaming companies will quickly feel the pinch. “These excessive costs will seriously bite into their bottom-line once the tax advantage disappears.

”We forecast that they will soon wish they were enjoying the much cheaper energy and bandwidth costs (plus the convenience of being close to home) of having their data centre located in a state-of-the-art facility like Virtus’ London data centres,” he said.


The change to tax law is being introduced because the UK government has identified that it is losing some £300 million in tax revenues from UK gaming companies, many of which have relocated their data centres to a low tax economy.


Under the current law the sales transaction is deemed to take place in the data centre, hence the current tax advantage from having the data centre located in a low tax economy.


The new law will redefine the ‘legal place’ at which the transaction is deemed to take place. It will now be the address of the UK gamer or gambler’s ISP (Internet service provider), which means that it will be subject to UK taxation no matter where in the world the data centre is located.


Neil Creswell, CEO of Virtus commented, “All gaming company CEOs and CFOs will already be aware of the tax situation, but few yet realise the double-hit from also needing to rapidly cut their excessive datacentre costs. Bringing gaming data centre operations back to London is the simple, quick option.”


Virtus London Data Centres make an ideal location for gaming and gambling companies to onshore their data centre operations. The Virtus LON1 facility, for example, is a very high spec Tier 3 data centre with low PUE and a 100 per cent uptime record. It is only a few minutes off the M25 at Junction 25, making it highly accessible for IT staff.


LON1 offers cheap and fully ‘green’ electricity (thereby avoiding CCL – the climate change levy tax). Also, being carrier-neutral, it has a large number of highly competitive carriers present including Level(3), Virgin, Geo, Pacnet and C4L. Virtus LON1 also has fast-fibre connectivity to all corners of the UK via Openreach.


Creswell concluded: “Gaming company CEOs and CFOs have a lot to think about in the coming year. We at Virtus are expert at migrating data centre operations into our data centres without interruption to clients 24×7×365 online businesses and so are ideally poised to help.

”We’ve migrated dozens of customers and host a number of gaming companies in what are, we believe, are the most modern flexible data centres in London.”


For more details please visit

Virtus Data Centres sponsors EuroCloud

Virtus Data Centres (‘Virtus’), London’s most modern and flexible data centre specialist announces today that it will be the sole sponsor for EuroCloud’s monthly meet up.

Discussing the future of the Cloud, September’s event will bring together five thought leaders, including IBM’s UK & Ireland Cloud Lead, Doug Clark, to give presentations. This will be followed by a moderated panel session, at which the audience can test the robustness of the leaders’ vision, and then wrapped up with a networking after-party. The event will be attended by 40 to 50 Cloud CEO’s and CTO’s from across the Cloud industry.

Join the speakers, EuroCloud members and Virtus at 15:30 on Thursday 19th September at the Furniture Makers Hall. If you would like to come along, follow the link below. Attendance is open to all and free for EuroCloud members.


About Virtus

Virtus is London’s most modern and flexible data centre specialist. Its high quality, environmentally efficient and carrier rich data centres are the power and connectivity behind London’s financial, media, cloud and digital economy businesses.

Since 2008 it has built and operated highly connected data centres located in prime but cost effective locations close to the centre of London. Its sites provide multi-use, highly resilient and secure Tier 3 facilities, ideally flexible for handling a broad range of requirements for businesses of all sizes.

By owning and designing its own data centres it has maintained an emphasis on high power density and environmentally friendly cooling technology.  This maximises efficiency, minimises environmental impact and reduces operating costs for its clients.

Today it continues to innovate in the way businesses of all types buy data centre services to ensure it exceed its clients’ expectations in quality, flexibility, service and value.

For more information please go to: or contact us on twitter: @VirtusDCs.

New Intel white paper added to Siemon data centre e-book: “10GBASE-T for broad 10Gigabit adoption in the data centre”

Siemon, a global leader in network infrastructure, has added a new Intel white paper to its data centre e-book. Entitled ‘10GBASE-T for broad 10Gigabit adoption in the data centre’, the new white paper was written by Intel’s Carl G Hansen with contributions from Siemon’s noted data centre expert, Carrie Higbie.  Covering key 10 Gigabit Ethernet drivers, current need and future adoption expectations, Intel’s paper lays out 10Gb/s cabling media and architecture options, including a comparative look at backwards compatibility, power consumption, latency and cost.

The new Intel content is incorporated into Siemon’s comprehensive and educational 71 page data centre e-book, entitled ‘Deploying, managing and securing an efficient physical infrastructure’. Developed in light of recent advances in data centre hosting options and high-speed infrastructure, the e-book provides an in-depth overview, designed to guide IT network professionals through critical data centre decisions. Infrastructure-related topics include actionable strategies, considerations and recommendations on cloud and co-location facilities, cooling best practices, point-to-point versus structured cabling, physical layer intelligence and more.

Topics in the data centre e-book now include:

  • Intel’s ‘10GBASE-T for broad 10Gigabit adoption in the data centre’
  • Strategies and considerations for cloud and co-location data centres facility owners and hosting providers
  • Strategies and considerations for cloud and co-location data centre tenants
  • Point-to-point versus structured cabling
  • Data centre cooling best practices
  • Intelligence at the physical layer
  • Benefits of screened and shielded cabling

Commenting on the update to the e-book, marketing manager, Graeme Stoker said, “This digital publication has proven to be extremely popular and is valued by all those working in data centre environments.  With the addition of Intel’s new white paper, the book is essential reading and contains the very latest insight regarding 10 Gigabit Ethernet from leading industry experts.  With thoughts and theories backed up by significant  detail and technical data, this is a key reference text for data centre professionals”.

To download Siemon’s ‘Deploying, managing and securing an efficient physical infrastructure’ e-book, including the new Intel paper, visit  

About Siemon

Established in 1903, Siemon is an industry leader specialising in the manufacture and innovation of high quality, high-performance copper and optical fibre network cabling solutions. With offices and partners throughout the world, Siemon offers a global service and has a reputation for delivering market leading performance with systems that maximise efficiency and return on investment.

Siemon’s products include the most comprehensive suite of copper available, in both unshielded and shielded twisted-pair, for category 5e, category 6 (Class E), category 6A (Class EA) and category 7/7A (Class F/FA) standards performance.  The company’s optical fibre range includes both multimode and singlemode cabling systems.  In addition to cabling systems, the company has developed specific and specialised products for network provision in both enterprise and hosted data centre environments, often partnering with other global industry leaders in delivery of complete solutions for these markets.  With over 400 patents specific to structured cabling, Siemon Labs invests heavily in R&D and development of industry standards, underlining the company’s long-term commitment to its customers and the industry.  

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