Betfair was yesterday awarded a licence to operate its betting exchange in the German state of Schleswig-Holstein.

Betfair, which received one of the first three licences to operate in the state along with JAXX subsidiary myBet and state lottery operator NordwestLotto, intends to pay 20 per cent of gross gaming revenue derived from Germany to Schleswig-Holstein following receipt of the sports betting licence. Based on current revenue run-rates, it is envisaged that this payment will reduce Core Betfair’s gross margin by approximately one percentage point.

Betfair’s chief legal and regulatory affairs officer, Martin Cruddace, commented: “We look forward to making a significant and sustainable contribution to the newly formed market there, offering consumers innovative products in a safe and responsible betting environment.

“Schleswig-Holstein’s government should be applauded for its efforts to implement a regulatory regime that will provide security for consumers, transparency for regulators and the freedom to compete for EU operators.”