The company behind the Russian launch of the Bwin betting brand nearly struck a deal with Betfair before realizing that Russia’s tax rules made that deal a non-starter.

This week saw the launch of Bwin.ru, the partnership between Russian-licensed bookmaker Digital Betting LLC and the Bwin brand of UK-listed operator GVC Holdings. The launch marks the first entry of a Western betting brand into Russia’s regulated online sports betting market.

In a wide-ranging interview with Russian affiliate Bookmaker Ratings, Digital Betting/Bwin.ru CEO Dmitry Sergeyev said his company had considered approaching the operators of the Bet365, Betfair and Sportingbet brands regarding possible tie-ups, but research determined that Bwin had “the highest rates of recognition and the degree of trust of the Russian audience,” and thus “it would be foolish of us not to use such a commercial advantage.”

Sergeyev also revealed that the Russian firm had gone as far as to conduct talks with UK-listed Paddy Power Betfair regarding the potential use of the Betfair brand in Russia. However, these plans came to naught due to what Sergeyev called the “complex tax status” of betting exchanges in Russia.