Threatened by escalating gaming taxes, 888 Holdings considers quitting the market

With the government of Germany acceding an escalation on gaming taxes’ regulation, 888 Holdings, one of the world’s most popular online gaming operators and platform providers is excogitating on quitting the market.

The company explicated in a statement to Reuters that, tighter regulations have threatened its operations and a tax liability nearly halved its 2017 core earnings. As informed by the international press, in October the German Federal Administrative Court confirmed a ban on three types of online gambling namely – casino, poker, and scratch cards – a ruling that 888 said it may appeal to the Federal Constitutional Court, adding that it was “assessing the status and breadth of its offerings in the German market.”

Last December, Novomatic dropped plans for a €5 billion initial public offering on the Frankfurt bourse due to unclear regulation regarding gambling halls in one of its core markets, Germany. Meanwhile, 888 Holdings’ share price was down almost 5 percent after the company posted a 48.2 percent fall in earnings before interest, taxes, depreciation and amortisation to near €33.5 million. 888 Holdings put that down to a €36.9 million provision related to potential value added tax (VAT) on services in Germany prior to 2015.