Betfair lodges formal complaint in Cyprus
Operator argues new legislation " which could see it shut out of the country " is inconsistent with EU law.
Exchange operator Betfair will today lodge a formal complaint with the European Commission concerning recently passed gambling legislation in Cyprus.
Under current legislation in the EU member state, adopted on 6 July, betting exchanges in their current form could be prohibited, with other sports betting products remaining unaffected.
The UK operator attracts around 4% of its group revenues (£9m) from the island and has previously slammed the new legislation as containing “serious flaws” and being “inconsistent with European Union law” on several counts.
Politicians in Cyprus have sought to ban exchange wagering based on concerns around the increased risk of match fixing and money laundering the form of betting could attract.
Martin Cruddace, chief legal and regulatory officer at Betfair said the operator was “disappointed with the inclusion of elements within it which could unfairly discriminate Betfair” which are “clearly incompatible with EU law”.
“We have therefore asked the Commission to review the matter and engage with the Cypriot authorities, with the aim of addressing the concerns raised in our complaint,” he said.
“Betfair is a transparent and responsible operator, with a track record of working cooperatively alongside governments in any jurisdiction in which it operates. Current Cypriot law goes against European free market principles and we look forward to working with the Commission and the Cypriot government so we can continue to provide our Cypriot customers with Betfair’s best-in-class Exchange product and odds value,” added Cruddace.
Cyprus’ new regulatory framework imposes a 10% tax on sportsbook revenues minus winnings, with operators required to pay an additional contribution of 3% of gross revenues to a regulatory body, which then distributes 1.5% of the money to the Cyprus Football Association, 1% to gambling addiction charities, and 0.5% to other sporting associations.
Legislation was originally introduced in September 2010, designed to close a loophole which allowed operators to bypass a ban on land-based gambling by setting up shops allowing punters to gamble online. While this was seen as a move to combat criminal organisations using gambling as a source of revenue, it was criticised for grouping EU-licensed, private operators with such illegal operations, and the fact that the law did not apply to Greek monopoly operator OPAP.