Sky Bet has relocated its headquarters to Malta, a move that could save the Flutter Entertainment-owned operator up to £55 million ($72.05 million) in taxes annually.

The gambling company moved its sports betting operations into the Maltese arm of SBG Sports Limited, a newly created UK entity. ITV reported that the move “will mean less money for the government at a time when the public finances are under strain.”

Tax specialist Dan Neidle told ITV that the projected savings of £55 million ($72.05 million) are based on last year’s profit and include the effects of Malta’s lower corporation tax rate and VAT-related savings.

“I know lots of people who’ve gone to Malta. They’ve all either gone there for sunbathing or to avoid tax. I don’t know anyone who’s gone there for any other reason,” Neidle said. He noted concerns about exposure to future regulatory or tax changes.

“If I had been advising them, I’d say that it was reckless. The risk is that there’s a lot of expense in moving people to Malta, and then they’re stuck. And if the law changes [or] HMRC challenges their position, they could end up, in fact, saving nothing, but being stuck in Malta,” Neidle added.

Flutter, Sky Bet’s parent company, informed employees in June that the administrative shift would be paired with a plan to reduce about 250 roles in the UK. The company told staff it needed to operate more efficiently and reduce costs.

Steve Birch, chief commercial officer of Sky Betting and Gaming, said that from November 1, “day-to-day commercial and marketing decision making would take place in Malta,” while Sky Bet’s Leeds office would continue to be one of Flutter’s larger locations, ITV reported.

Flutter, which recently moved its primary stock market listing to New York while keeping a secondary listing in London, describes itself as “the world’s largest sports betting and iGaming operator” with a valuation of about £30 billion ($39.3 billion). Other Flutter brands with UK presence, such as Paddy Power and Betfair, are registered in Ireland and Malta.

Sky Bet’s regulatory ties to Malta date back to 2017, when the company applied for a sports betting license in the country. At the time, then–Prime Minister Joseph Muscat indicated that a “household name” in the gaming sector intended to relocate to Malta.