BetFair Taxed Out of Germany
BetFair is closing its online sports betting exchange in Germany thanks to a 5% turnover tax. This is the latest in a series of online gambling companies that are leaving the German market due to the recent increase in taxes.
BetFair’s exchange system allows bettors to bet against one another and not against a bookmaker – a unique method of sports and novelty punting.
Germany accounts for 4% of BetFair’s revenues so this is not expected to have a major impact on BetFair and even less on Germany’s gross domestic product.
“The company is disappointed 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 on Wednesday.
“Consequently, Betfair has decided to withdraw its exchange product from the German market,” it added.
Britain’s largest bookmaker William Hill is also no longer offering any services to German residents because of taxes. Even Bwin.Party isn’t doing so well in Germany. Yes, they’ve remained open in Germany, but a spokesman said that German taxes had contributed to their decline in revenues.
Stock analyst aren’t fazed by the move. They assume that this will lead to a tighter business model for BetFair and that eventually the two sides (BetFair and the German tax authorities) will come to agreement.
The questions remains – do German authorities care that European gambling entities are leaving? Does this hurt the German employment picture? Probably not much.