Approval of Gambling Regulations in German State

The German state, Schleswig-Holstein recently approved gambling regulations which are competition friendly. This has led to a significant rise in the shares of Betfair and Bwin.party Digital Entertainment. The new regulation was passed by a marginal number of votes.

With the passing of this new regulation, online gambling companies can operate sites of sports betting. The top court of the European Union last year declared that Germany’s betting framework is different from that of the rest of the continent. Betfair, in an email mentioned that it welcomes the court’s suggestion of creating a responsible and transparent gambling framework in Germany. After this announcement, Betfair’s share rose by 3.4%. Bwin.party recorded a rise in its share by 15%.

Betfair also said that it supports the law of granting unlimited licenses to online casino games, poker and sports betting.  Schleswig-Holstein can also make a huge profit through this.

Ivor Jones, Numis Securities’ analyst tells investors that this is a testament of Germany opening the path for online gambling in reasonable business terms. Schleswig-Holstein’s new regulations will force the other states to think in similar lines. The introduction of a stricter regime can be delayed due to this.

The recent gambling regulations by Schleswig-Holstein made the shares of Betfair rise significantly, covering all losses made earlier. At 11-36 p.m, London, Bwin.party’s share rose to 128.3 pence.