Betfair has withdrawn its betting exchange from Germany after hitting another stumbling block. New tax laws on sports betting in Germany proposed in the summer threatened to make the exchange business model unviable.
Betfair claimed the betting exchange was not liable for the 5% tax. And it had been working with the German authorities to resolve the matter. But this has been unsuccessful.
"The company is disappointed that to date the tax authorities have not been able to agree to an interpretation of the law that would allow Betfair to continue to offer the exchange product," the company said in a statement.
Last year 4% of core revenues were from Germany. This amounted to £6 million. The online bookmaker says it has fulfilled its obligations under German law, including the filing of necessary tax returns.