This story is sponsored by Betfair
Betfair is to cease operations in Greece after the country’s gaming regulator threatened unlicensed operators with criminal sanctions and fines.
The Greek Gaming Commission on 5 November issued a one-month warning to operators targeting the market without its permission to either apply for a licence or exit, with those failing to do so being blacklisted, IP blocked and subject to financial penalties and/or criminal sanctions.
Confirming its withdrawal today, Betfair said today that associated fiscal conditions announced by the Commission, including the payment of back taxes, would also render the market “economically unattractive” for the company. The law passed by the EU Member State in August 2011 requires companies to pay a hefty 30% gross profit tax on operations in the country.
Thus while the company considered the threatened financial penalties and criminal sanctions to be illegal and “the gambling legislation in the country to be inconsistent with European law”, Betfair said it would be withdrawing until there was “greater clarity on the regulatory situation”.
Several leading European operators, including Sportingbet, opted to start paying taxes on Greek operations under an interim arrangement from last August, when the country passed its law to licence and regulate online gambling in the country. Betfair was not among those companies.
Prior to today’s announcement, Betfair expected to generate £13m in revenue and £7m in earnings (EBITDA) from exchange betting, casino and poker operations in Greece in the current financial year, the London-listed operator informed the markets this morning.
Greece is the third European market for which Betfair has been forced to issue regulatory-related earnings guidance since the summer. The betting exchange specialist announced in July it would be taking steps to profitability of Cyprus’ ban on exchange betting, poker and casino. It also announced earlier this month that it was to withdraw its betting exchange from Germany after failing to broker a compromise on the 5% turnover tax regime recently introduced for sports betting in the country, resulting in a projected £6m hit to full-year earnings.
Betfair added today that it found it “disappointing” that the European Commission had not take action against Greece to prevent protectionist behaviour with respect to its gambling market, “despite previously stated intentions to the contrary”.
Industry lobby groups the RGA and EGBA today issued a further complaint to the European Commission regarding the non-notification of regulations that would extend the monopoly of part-state-owned OPAP over online gambling in Greece. The RGA said the two bodies “are concerned that the Greek Government has failed to begin licensing online gambling operators.” There are now four outstanding complaints against OPAP’s monopoly, three lodged with the EC and another with the Greek Council of State.
Article written by Stephen Carter
