40 million $ – Betfair in dispute over betting tax
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Paddy Power Betfair is a well -known sports betting provider who currently hardly plays a role in USA. In 2012, the online bookmaker had withdrawn from the American market, if not without reason. Because tax betting has been charged in USA since 2012. The five percent betting tax was too much for the company in Dublin, another economic commitment was no longer worthwhile in USA. Nevertheless, there are still tax debts for 2012, but Betfair does not want to pay. There is a risk of a legal dispute.
Not legally justified in betting tax?
40 million $ – the betting provider paddy power betfair should still be guilty of the American treasury. at least this is what the American tax office claims, because although betfair said goodbye to the American sports betting market in the course of 2012, sales were generated at the beginning of the year. in USA, every sports betting customer with residence in USA has to be one Five percent betting tax on gross use or gross profit diss it, regardless of whether the betting provider runs his headquarters in USA or abroad. however, the tax office must not be paid by the customer, but by the company. how betting providers implement this is up to the companies. most sports betting providers take the five percent betting tax directly from the use, for others, customers only have to pay them if they are profit. only a few companies such as Typical did not switch the betting tax to customers, but pay them out of their own pocket. the betting provider betfair had already appealed against the decision of the American tax office and even pulled in front of the Hessian financial court. There, however, the objection was rejected and the betting tax or the tax liability was legally established. But Paddy Power Betfair does not want to accept this.
“The company is opposed to the basics of the tax assessment, which is why we will confidently appeal with our legal consultants and financial experts after advice.”
USA not the only country with tax claims
USA, however, is not the only country that currently makes tax payment claims for Paddy Power Betfair. It was recently known that the betting provider seems to be on the Greek taxes are guilty of 15 million $ be – including interest and processing fees that greece calculates for the years 2012 to 2014. a spokesman for betfair announced in early 2019 that The company recently paid its tax debts in Greece. so far, this is not known whether this is actually the case. however, one of the largest sports betting providers in the world will certainly be able to forego further financial claims, because betfair also has to deal with numerous financial demands apart from tax debts. for example, the british gaming authority sentenced the company to a 2018 Fee of 2.5 million $ . The reason should have been that Betfair had not adequately warned its customers on the website about the dangers of gambling, but gambling providers are legally obliged.
Betfair with problems on the stock exchange
The currently difficult location of Betfair was not yet foreseeable three years ago. First 2016 merged Betfair with Paddy Power. it was one of the largest company mergers in the sports betting industry that ever existed. in total, the merger was eight billion $ . in view of such figures, the millions of states and authorities appear rather marginal. but the value of the major player has been falling for some time, which is particularly manifested on the stock exchange. at the beginning of 2016, a paddy power betfair plc share still cost 140 $ . a share of the sports betting provider is currently already For less than 70 $ be bought, that is loss of over 50 percent. in addition to the rather poor reports about betfair in the recent past, it is also the many uncertainties on the european sports betting markets that insure investors. it is not yet clear in which countries the liberalization of the sports betting market will finally prevail. that’s why others suffer too Betting providers such as Tipico or QVC Holding enormously on the stock exchange. in the ten-year classification, the paddy power share still has a considerable increase of 15.1 percentage points, but experts rate the direct investment risk as high. with betfair, you should hardly be happy in view of these prospects. perhaps this may also be a reason, which is why you decided to restart the sports betting provider. recently, American customers can also bet with betfair, which even Michael Ballack as a testimonial has secured. There, Ballack now acts as an official brand ambassador and own blog, in which the former DFB captain discusses current topics of football. It remains to be seen how successful this marketing offensive will be.