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BETFAIR REACTS TO CYPRUS ONLINE GAMBLING BAN
July 9,2012 : BETFAIR REACTS TO CYPRUS ONLINE GAMBLING BAN (Update)
Company stands to lose GBP9 million in revenues due to betting exchange inclusion in banning law
Online gambling group Betfair plc has reacted to last Friday's ban on internet gambling and betting exchanges in Cyprus, warning that it is considering legal action against the government of the Mediterranean island.
Betfair made about 4 percent of its revenues - equivalent to GBP 9 million - from Cyprus in the last year.
In a stock exchange advisory this (Monday) morning, Betfair commented:
"Betfair notes the decision of the Cypriot Parliament on Friday to introduce gaming legislation that restricts the products that operators can offer in the country. Product restrictions include online casino and poker as well as bets "designed to facilitate the receipt or acceptance of bets between players".
"The company believes that the legislation contains serious flaws and, in certain areas, is inconsistent with European Union law.
"In FY12, Core Betfair generated approximately 4 percent of revenue from Cyprus and this revenue made a contribution of approximately GBP 9 million before allocation of central costs.
"Betfair is working with advisors to understand the potential implications on its business and will be taking all necessary steps to reduce the impact on profitability through both legal action and cost management."
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