Gaming specialist William Hill Online (WHCL) is to establish a new telephone betting operation based in Gibraltar; the move will also see the firm close the group’s telephone betting subsidiary in the UK, William Hill Credit Limited (WHCL).

The company’s existing telephone betting business made losses of £1.8m in 2009, while it expects a small operating loss in the first half of this year.

The move is expected to result in cost savings of approximately £4-7m per annum expected to commence from the start of 2011. However, it added the move would cost a one-off cost of £7m.

The agreement will see business processing outsourcing (BPO) and customer management outsourcer Vertex, take over the Sheffield-based call centre currently run by WHCL and that William Hill Online will also manage customers from Gibraltar. Customers will be able to use their telephone betting account for online transactions.

WHCL’s second call centre in Leeds will close, with all staff being offered alternative positions.

William Hill will continue to have a substantial presence in the UK and Ireland, including more than 2,300 licensed betting offices and around 16,000 employees.