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Betfair Group PLC (BET)

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Wednesday 07 November, 2012

Betfair Group PLC

Update on Germany

RNS Number : 4940Q
Betfair Group PLC
07 November 2012
 



Betfair Group plc
7 November 2012

UPDATE ON GERMANY

As previously indicated, in July 2012 Germany introduced a law that applies a 5% tax on stakes on sports betting in the country. A tax at this rate, if applicable, would make Betfair's current exchange model unviable. Following detailed opinions provided by its legal and tax advisors, Betfair believes that, in regard to bets placed on its exchange, it is not an organiser of sports betting under the tax law and is not, therefore, liable for the tax.

Betfair has been working with the relevant tax authorities to seek clarification on interpretation of the law and its applicability to exchanges. 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. Consequently, Betfair has decided to withdraw its exchange product from the German market.

Following this decision, on-going contribution from Germany is expected to be de minimis and Betfair is 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.

The company believes that it has fulfilled all of its obligations under German law, including the filing of necessary tax returns. 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.

For further information contact:

Media

Leonie Foster

Head of Corporate Communications

+44 20 8834 6084

+44 7834 535 407

leonie.foster@betfair.com

Investors/Analysts

Paul Rushton

Head of Investor Relations

Tel: +44 20 8834 6139

paul.rushton@betfair.com

 

 


 

 

 

 


This information is provided by RNS
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