Update on Cypriot regulation

Betfair Group plc9 July 2012

Update on Cypriot regulation

Betfair (LSE:BET) notes the decision of the Cypriot Parliament on Friday to introduce gaming legislation that restricts the products that operators can offer in the country. Product restrictions include online casino and poker as well as bets "designed to facilitate the receipt or acceptance of bets between players". The Company believes that the legislation contains serious flaws and, in certain areas, is inconsistent with European Union law.

In FY12, Core Betfair generated approximately 4% of revenue from Cyprus and this revenue made a contribution of approximately £9 million before allocation of central costs. Betfair is working with advisors to understand the potential implications on its business and will be taking all necessary steps to reduce the impact on profitability through both legal action and cost management.

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