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Liberalisation of sports betting: JAXX SE continues to advocate Schleswig-Holstein approach

JAXX SE / Key word(s): Miscellaneous

06.04.2011 / 18:00

Liberalisation of sports betting: JAXX SE continues to advocate Schleswig-Holstein approach

Kiel, April 6, 2011 - The Kiel-based JAXX SE fundamentally welcomes the decision by the Prime Ministers of the federal states to award licences for sports betting to private operators. 'We are delighted that the Prime Ministers have decided to open up the German sports betting market,' remarked Mathias Dahms, Management Board spokesman of JAXX SE. The JAXX Group's operations include the sports betting portal www.myBet.com.

At the same time Dahms was highly critical of the basic terms: 'The proposed licence payment of 16 2/3 percent of revenue makes such a venture uncompetitive compared with the rest of Europe. I have serious reservations whether there will be any companies prepared to accept such terms. Economic considerations aside, under such conditions it is actually highly questionable whether the desired aim of channelling activities previously taking place on grey and black market will actually work. An excessively high tax rate will inevitably result in users of sports betting continuing to use foreign operators, who will be able to offer much more attractive odds. A tax rate of three to four percent on revenue or 20 percent on gross profit, as proposed by Schleswig-Holstein, is realistic and appropriate.'

Dahms also levelled criticism at the procedure for awarding the licences: 'While private operators will have to go through a laborious application process, the state provider ODDSET looks like getting a free pass - that skews the system.'

All in all, Dahms believes that the model proposed by 15 federal states will not be acceptable to the EU Commission, to which the amendment to the State Treaty must be submitted by way of notification. 'The draft contains too many components that are contrary to EU law.'

JAXX SE therefore continues to advocate the approach proposed by Schleswig-Holstein, which envisages a greater degree of liberalisation, no cap on the number of licences and above all more moderate taxation of sports betting. 'If Schleswig-Holstein promotes its own law as planned, it can count on our support!'

About JAXX:

JAXX SE, listed in the Prime Standard of Deutsche Börse, is a financial holding company with holdings in international companies in the gaming industry. JAXX currently holds interests in companies in Germany, the UK, Spain, Austria and Malta. JAXX SE has its headquarters in Kiel. The holding companies cover the entire spectrum of the games and gambling industry. Depending on national regulatory structures, they broker or market sports and horse betting, lotteries, and casino and poker games. The shares of JAXX SE have been traded at Deutsche Börse since 1999 under ISIN DE000A0JRU67.

Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail stefan.zenker@jaxx.com

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118752  06.04.2011