bwin.party Shares Fall as New German Betting Proposals Released

[brean78]

Loads of press on this yesterday, these were just a few.

Bwin.party stumbles on regulation worries - Telegraph

bwin.party slams German licensing plans - EGR Magazine

bwin.party Shares Fall After Germany Betting Tax Proposals - Casinospy

From the Telegraph:

Germany’s states – which are in control of gambling – have drawn up proposals which include plans to tax sports betting from next year at 16.67pc of turnover. But bwin.party believes the proposals are neither in compliance with European Union law nor in line with market requirements.

[TheGooner]

16.67% of turnover?!!

That's a nonsense obviously as most sportsbooks are priced up with an over-round of just 5-8% - meaning that is their projected GROSS profit on most events BEFORE running expenses!

While 16.67% tax on turnover might be the sort of slice that you can expect out of a state run lottery, I do not think that a tax on sports will be able to sustainably generate more than 1% on turnover ...