Betfair exits Portugal ahead of licence application

Betfair will stop accepting bets from customers in Portugal from tomorrow ahead of an application for a licence which could see it become the first major sports betting operator to be licensed in the country.

A spokesperson for Betfair this morning confirmed it was to suspend its Portugal-facing operation, a business which Barclays this morning estimated accounted for around 2% of the group’s total revenues.

While some have criticised Portugal’s decision to tax sports betting on turnover, exchanges are to be taxed on revenues presenting Betfair with an opportunity not afforded to the likes of William Hill, which withdrew from Portugal last month.

Barclays also said the operator appeared to be “broadly comfortable with market expectations despite the risk of downgrades associated with this news”, adding the company remained its “preferred stock in the UK gambling sector”.

The withdrawal is in line with Betfair’s move away from unregulated markets with last month’s FY15 results reporting a sustainable revenue mix of 82% compared to 78% in FY14.

Meanwhile Betfair also announced it will turn off its classic betting exchange at the end of the month as it completes the roll out of the Exchange+ platform, which it said offered greater speed and more features.

“We know that classic was very popular and have used extensive customer feedback to ensure that Exchange+ retains the simplicity and style of the old site. We are constantly talking to customers and will be making more improvements in the coming months,” a Betfair spokesperson told eGaming Review.