Betfair forced to exit Germany
In another blow for international expansion Betfair has been forced to exit Germany.
In July Germany applied a turnover tax of 5% on stakes which Betfair believed wasn’t applicable to it. Betfair confirmed that discussions are continuing with tax authorities regarding the potential tax liability, if any, arising from bets placed on its exchange since the law came into effect.
Betfair is now reviewing its operations in this market. In FY12, approximately 4% of Core Betfair revenue came from Germany and this revenue delivered a contribution of approximately £6 million before the allocation of central costs. Previous territories where this has happened has prompted an exit of the exchange business. Germany looks set to follow IMHO.
EU harmonisation on betting seems as remote as ever at the moment with individual territories actively seeking ways to protect their existing business.
Full RNS notice is here: –
https://www.investegate.co.uk/betfair-group-plc/bet/update-on-germany/201211070700064940Q/
Category: Betfair, Industry news
