Betfair heads to Malta

Online betting exchange Betfair.com has been awarded a licence to operate out of Malta which will enable it to offer services which UK gambling legislation currently inhibits.

The company says it will be running "peer-to-peer games", which UK taxation and related costs currently make cost-prohibitive. Betfair declined to comment further on what this may entail, saying there will likely be a launch later this year of "an innovative exchange-based product".

Those watching developments in the online gaming space and the explosion of online card games, however, may be putting their bets on casino games such as poker - the most obvious example of which peer-to-peer games may appeal to the gambling fraternity.

Betfair would not be drawn on such speculation but told silicon.com it will not be moving operational facilities to the Mediterranean island but instead will be using the favourable tax breaks of the island to place servers there.

Online casinos and bookmakers have often opted for offshore locations with favourable taxes and liberal attitudes to gambling such as Alderney, Bermuda, Grand Cayman and Malta.

Stephen Hill, CEO of Betfair, said: "Malta's excellent technological infrastructure, its progressive and responsible gambling legislation and its EU membership were the three key reasons for us applying for a licence there."