Ladbrokes is following arch rival William Hill by moving its online sports betting arm to Gibraltar - at a cost to the Treasury of about £12 million a year.

The bookie said the move is an inevitable result of high UK tax and competitive pressure.

Chief executive Chris Bell said: “We'd prefer to operate from the UK and maybe we will be back. But we've got a 70p in the pound tax disadvantage as things stand.”

Profit for the half year to June fell 25% to £99 million, a sign that the recession has finally hit the sector.

Ladbrokes claimed - though bookies often do - that punters had enjoyed a storming year with big wins on golf, tennis and football.

“Our customers have had the longest winning streak I can remember,” he said.

The High Rollers - the super rich who bet frequently and in large amounts - are still punting. Profits from them rose from £40 million to £58 million. The dividend is cut by a third to 3.5p.

Cricket betting remains a distant fourth in popularity to football, horses and golf, but the Ashes has helped. The new fashion for betting on every single ball is taking off.

Meanwhile, some investors are now betting against Ladbrokes. Accendo Markets said in a note that it, “expect the uncertain outlook and poor sector sentiment to weigh on Ladbrokes shares for some time yet. We maintain our view that the shares are a sell down to 158p.”