Betfair May Be Forced To Block German Online Gamblers
Many online gaming companies would be affected by new proposed German Internet gambling laws, but perhaps none would be more affected that Betfair. The online bookmaker may be forced to block German online gamblers if the country moves forward with the new tax plan.
Betfair had been in favor of Germany overhauling their online gambling laws, but they have come out against the plan proposed this past week. Germany is looking to tax not only the winnings from online bets, but also the stake. That is the part that would drive Betfair out.
Betfair operates under the premise of allowing a large amount of bets. The company has prided itself on allowing smaller bets in bigger volume with less of a profit margin. If each bet was to be taxed, a profit margin would be unsustainable for Betfair, and therefore would lead to he online company blocking Germans from their software.
“It is not set in stone, but if these regulations go into law as they have been proposed, there are going to be a lot of online bookmakers that will have to reconsider their position regarding Germany,” said Gaming Analyst Steve Schwartz. “It seems more logical that this was just a first proposal, and that German lawmakers will tweak the law to make it work for all parties involved.”
German legislators may be the big winners after the new law proposal. Bookmaking companies will now have to spend millions of dollars in lobbying efforts to ensure that the law does not pas as proposed. The German lawmakers stand to benefit by receiving these lobbying funds in exchange for a commitment to changing the proposal to only include a tax on winnings.
European countries have spent the better part of the past two years cleaning up their online gambling laws. The European Commission has come down hard on countries that have not complied with European Union law, and countries such as France, Italy, Spain, and now Germany, have changed their laws to come into compliance.