Thousands of jobs could be wiped out and millions of pounds' worth of revenue lost to the government if all the major betting chains moved their operations abroad.

Jobs could be lost if bookies leave the UK

Earlier this month, the UK's second- and third-largest bookmakers, William Hill and Coral, announced they would set up their own off-shore betting services.

They issued a warning that they would switch all their operations off-shore unless the government cut betting tax to 3%, from its current rate of 9%.

Ladbrokes is expected to reveal its plans on Thursday when owner, the Hilton group, announces its half-year results. Press reports suggest Ladbroke will make the move, but a spokesman declined to comment.

All three big bookies are believed to be considering moving to Gibraltar, the Isle of Man and the Channel Islands to cut their tax bills.

They have been enjoying a boom period, as betting on both sporting and non-sporting events has grown recently.

The exodus to off-shore gambling was started by privately-owned bookmaker Victor Chandler International which set up a Gibraltar-based operation in March this year.

The UK could see its largest bookie go abroad

The lower tax rate - 3% - enabled the company to attract huge numbers of punters.

Ladbrokes already has a call centre in Gibraltar, but the business does not yet offer its tax-free betting service to UK customers.

Half-year results at the Hilton leisure group are expected to show firm growth, after it expanded last year by buying up the Stakis hotel chain.

The move prompted its decision to change its group name from Ladbrokes to Hilton.