Germany’s tax is seen as a threat

A renowned gaming company revealed that it is evaluating leaving the German regulated market.

Germany.- As the government of Germany approved an increase on gaming taxes’ regulation, the online poker and casino operator 888 Holdings is considering leaving the market… “where tighter regulations threaten its operations and a tax liability nearly halved its 2017 core earnings,” explained the company through a statement published by Reuters.

As informed by the international press, in October the German Federal Administrative Court confirmed a ban on three types of online gambling: casino, poker and scratch cards – a ruling that 888 said it may appeal at 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 per cent after the company posted a 48.2 per cent 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.