Betfair, the UK-based online betting exchange, announced on Thursday the launch of its new operation in Malta, enabling the pioneering firm to offer its peer to peer poker games over the internet.
Betfair, founded in 2000 and one of a crop of new betting exchanges allowing punters to place bets directly with one another instead of with a traditional bookmaker, stated yesterday that it was "delighted" to be awarded a licence to operate as a tier one company in Malta
“Exchange poker, our first product to be hosted here in Malta, is already proving to be a great success with our customers. We expect to launch other games products from Malta in the near future," stated Steve Ives, director of Betfair Games.
According to Mario Galea, chief executive officer of Malta’s Lotteries and Gaming Authority, the decision by Betfair to choose Malta over other offshore jurisdictions is a ringing endorsement of the country's new gaming legislation.
“Malta has become the jurisdiction...to weigh anchor (in) for the most reputable remote gaming operators," Mr Galea stated.
"It is not a coincidence that Betfair, the company that revolutionised internet betting, chose Malta, a pioneer in regulating remote gaming, to launch and host this unique and innovative concept,” he added.
However, analysts have speculated in recent months that Betfair has obtained a Maltese licence in anticipation of changes to the UK tax regime, which could come as a result of a review of the gambling industry taxation by the UK Treasury.
One possible outcome of this review, expected to be announced as part of Chancellor Gordon Brown's pre-Budget report next month, could be that winnings made through betting exchanges are brought into the tax net. At present, betting exchanges pay a 15% tax on gross profits - a position conventional bookmakers consider to be unfair.
Speaking earlier in the year, Stephen Hill, Betfair’s chief executive, refuted suggestions that the decision to obtain a licence to operate in Malta was connected to worries about the future UK tax regime. Mr Hill cited instead Malta's "excellent technological infrastructure" its membership of the European Union and its "progressive and responsible" gambling legislation.
