UPDATE: Betfair shares take 4.5pc hit on Cyrpus news

Shares in online gaming group Betfair have fallen 4.5pc on the news that Cyprus has introduced legislation restricting online casino and poker games, as well as exchange betting. Cyprus contributed around 4pc of group revenues last year, which translates to around £9m of profit.

A statement from the betting exchange responded by warning: "The company believes the legislation contains serious flaws and, in certain areas, is inconsistent with European Union law. Betfair...will be taking all necessary steps to reduce the impact on profitability through both legal action and cost management."

Industry analysts have suggested that Cyprus is also planning to introduce a new betting tax of 13pc of gross profits.