Sunday 20 April 2014

Betfair pulls out of Germany in tax row

Betting exchange operator Betfair is to pull its core sports gambling product out of the German market after failing to settle a dispute over taxation.

The company said today a 5pc tax on sports betting stakes introduced this year made its exchange model unviable in Germany.

Betfair, which operates an exchange system that allows gamblers to effectively bet against each other, argues it should not have to pay the tax.

"The company is disappointed, however, that to date the tax authorities have not been able to agree to an interpretation of the law that would allow Betfair to continue to offer the exchange product," Betfair said.

"Consequently, Betfair has decided to withdraw its exchange product from the German market," it added.

Betfair said ongoing contribution from Germany would be minimal following the withdrawal of the product. Besides the sports betting exchange, it also offers poker, casino and more traditional fixed odds betting in Germany.

In its last financial year, approximately 4 percent of core Betfair revenue came from Germany and this delivered a contribution of approximately 6 million pounds ($9.6 million)before the allocation of central costs.

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