Betfair hit by Cyprus gambling ban
Internet gambling firm Betfair warned it was considering legal action against Cyprus after the country banned online casinos and exchange betting.
Internet gambling firm Betfair warned it was considering legal action against Cyprus after the country banned online casinos and exchange betting.
Betfair made about 4% of its revenues - equivalent to £9m - from Cyprus in the last year.
The Cypriot parliament pushed the measure through on Friday after long delays and heated battles over its content.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The state is worried it is losing billions in tax revenues to online casinos as well as exchange betting, where punters bet directly with each other using a company as an intermediary.
However, Betfair said the legislation contained "serious flaws and, in certain areas, is inconsistent with European Union law".
"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," the firm said.
OPAP - a company which runs the lottery in the country - was exempted from the legislation, which also contains new taxes on betting shops.
Several arson attacks on OPAP outlets have been blamed on local firms begrudging what is seen as preferential treatment for the company.
There was no suspicion of any involvement from Betfair in such actions.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
How to boost your pension by £33,000 by paying it an annual Christmas bonus
Contributing an extra £400 into your pension pot this festive period will give the gift of compound interest and should make your retirement feel more jolly and bright
By Ruth Emery Published
-
Japan’s medium-sized stocks provide shelter from trade wars
Nicholas Price, portfolio manager of Fidelity Japan Trust, tells us where to invest in Japan
By Nicholas Price Published