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Parimatch International Betting Platform for a Sportsbook | Parimatch Tech

PARIMATCH is an international betting company using and promoting its own platform for a sportsbook. Being originated from Ukraine, PARIMATCH was initially aimed to reach the CIS markets several years ago. But recently, we could have expanded our trademark to Europe, South America, and Africa. We position ourselves as a mono-brand operator.

In our objective to enter new markets in Europe, for instance, we account for various opportunities, including M&A, creating a local subsidiary to obtain the local license, a joint enterprise with the partner. All the options are put forward, and we account for them. When it comes to compliance and legal perspective, we precisely consider the appropriate requirements in researching and developing our road map. They are the following:

  • the requirements to the platform’s certification and audit. As we use our own platform for a sportsbook, it is essential to get familiar with the particular market’s existing requirements to comply with the respective gaming board. Some countries are open to accepting the platform’s certification by famous international technical centers (laboratories) like GLI. Others, like Malta, demand the platform to meet the special requirements of the Gaming Authority and conduct a separate audit;
  • the requirements to AML and responsible gaming platform modules in order to support the players and meet applicable laws. In Germany, for instance, the maximum wager per spin is 1 Euro, the monthly deposit through all operators is 1000 Euro;
  • financial obligations required due to investing in the industry, a number of share capital, net assets, security deposits to protect players, like in Poland or Bulgaria;
  • restriction in marketing and advertising. Entering a new market, whether newly created (like Germany or the Netherlands) or existing one (like Poland) is a business that requires renewed and fresh marketing solutions to appeal to players’ attention to your product.

With a decision to enter the European market (for instance, Romania), we adhere to two significant concepts: either to establish a new local entity and receive the local license or get the local license under the name of the Cyprus company within our group that already has a license in the EU or European company with no license. The crucial moment to consider is the tax consequences.

When cooperating with Bulgaria, the tax regime includes the following in case the Cyprus company applies for the local license in Bulgaria:

  • whether gambling activities are set through an authorized agent or a Bulgarian company, the profits from them will have an equal tax regime;
  • In terms of the treaty between Bulgaria and Cyprus, and the Cy tax law, Bulgarian profits can be taxed only in Bulgaria, but in Cyprus, they are exempted from paying taxes;
  • Cyprus National Betting Authorities (NBA) Law doesn’t provide the specification in revenue taxation whether it is in Cyprus or abroad. Thus, the Cyprus company’s betting revenue from Bulgaria will be taxed at 10% and 3% of the contribution.

Every European country has its own peculiarities and offers attractive regimes, even if it is a part of the EU. For instance, in Poland, the company’s assets (including licenses) can be handed over through the so-called pre-pack process. Such type of transfer includes permits and licenses along with the entire company’s business. The pre-pack transfer process was established in 2016, and it allows the purchaser to keep on the bankrupted company’s business without requesting the licenses and permits.

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