Betfair exits German sports betting market as new IST enters law
Flutter Entertainment pivots towards “stronger performer” in PokerStars as part of international realignment strategy
Betfair’s German sports betting website has closed to local players with immediate effect.
The Flutter Entertainment subsidiary has blocked new player registrations since 29 June and barred all bets from 3pm on 30 June.
It is understood the Betfair.de website will remain open to German customers to allow for withdrawals, but no cut-off date for the withdrawal of funds or closing of accounts has been confirmed.
A Betfair spokesperson told EGR: “Since the completion of our combination with The Stars Group last year, it has been our intention to withdraw access to Betfair from Germany in favour of PokerStars, which is a stronger performer in the market.”
The decision to shutter Betfair in the German market in favour of PokerStars chimes with Flutter’s multi-year international expansion strategy as first revealed in March.
Flutter has committed to using PokerStars as the lead brand across the international division due to its strong brand awareness and customer base, which is the largest in the firm’s international segment.
As part of this pivot, Betfair transitioned to Flutter’s secondary brand in international markets, but is still actively promoted in select territories including Italy, Spain, Romania and Latam, where it retains high brand awareness.
As justification for this pivot, Flutter pointed to PokerStars’ larger market share and customer base, which is three times bigger than Betfair overseas.
In April, EGR revealed Flutter’s decision to switch its preferred sports betting brand in Italy and Germany from Sky Bet to PokerStars Sports as part of this new strategy, with the switch taking place on 22 April.
Sky Bet players in Austria, Italy and Germany already accessed their accounts via their PokerStars log-in details, with Flutter citing the potential of combining existing Sky Bet brand knowledge with the PokerStars Sports brand.
Betfair’s decision to close in Germany comes on the same day as passage of the 4th Interstate Treaty on Gambling (IST) into law.
The treaty, which has been in the works for the last 24 months, creates a national regulatory regime for sports betting in Germany. Crucially, it also legalises the online casino vertical for the first time, with the vertical previously having been banned in the German market.
However, operators expanding into online casino face an uncertain journey, thanks in part to the passage of a 5.3% tax on online poker and slots turnover.