Betfair Decides to Exit German Market

Due to a problem with new German tax laws, the Betfair Group Plc decided to withdraw its exchange product from the country saying "a five percent tax on sports betting stakes introduced this year make its exchange model unviable in Germany". The company claims that while the new tax laws apply to its betting exchange product, it is at odds with German tax authorities on its interpretation of the law. Therefore, the Group and other relevant parties keep potential tax liability discussions on what may be due since the new law came into effect in July 2012. According to an Oriel Securities analyst, this sum may reach as much as GBP 20 million.