Betfair to challenge Cyprus ban The company has lodged a complaint with the European Commission arguing that legislation passed in July is discriminatory and disproportionate. Martin Cruddace, chief legal and regulatory officer at Betfair, said: "Having played a constructive role in the preparatory phase of a draft Cypriot law, we were disappointed with the inclusion of elements within it which could unfairly discriminate Betfair and in any event are clearly incompatible with EU law." The new law restricts the ability of betting exchanges, such as Betfair, which operate by allowing punters to bet against each other, creating their own odds rather than a market created by a bookie. The Cypriot government has argued that the new legislation is needed to combat money laundering and match-fixing. Betfair has countered it will do no such thing, describing the concerns as "unfounded and misinformed" and accusing the government of producing no evidence to back up its claims. "Betfair is a transparent and responsible operator, with a track record of working co-operatively alongside governments in any jurisdiction in which it operates," Mr Cruddace said. Current Cypriot law goes against European free-market principles and we look forward to working with the commission and the Cypriot government so we can continue to provide our Cypriot customers with Betfair's best-in-class Exchange product and odds value. A source close to the company said Betfair was determined to fight the ruling as it felt it was discriminatory given the fact the company's main competitor in Cyprus, OPAP, would not be affected by the new law. Betfair continues to operate in the country while it appeals against the decision by Cyprus to the EC. The new legislation will have to go back to the Cyprus parliament before it comes into law. Cyprus provides 4pc or £16m of Betfair's £390m turnover. Betfair's shares rose 14 to 748p.