GVC welcomes “clarity and certainty” of German transition policy despite EBITDA damage
Operator flags potential £70m EBITDA hit for 2021 with operators required to switch off casino games from 15 October
GVC has welcomed new interim operating standards in Germany’s online gambling market despite the fact 2021 EBITDA could be reduced by £70m as a result of the changes.
The FTSE 100 operator finally has “clarity and certainty” over the country’s new-look legislation after details of the interim transitional period were published today.
On 10 September, Germany’s 16 federal states agreed to a transitional tolerance policy for the interim period before the implementation of the permanent Interstate Treaty 2021 (IST).
The details reveal that as of 15 October, operators must switch off all casino table games including blackjack and roulette until the individual states choose to issue licences under the new IST.
Deposit limits of €1,000 per month must be implemented across poker and slots, while all poker and slot games must be offered in the German language.
From 15 December, operators must enforce a €1 max stake per spin on slot games, while all slot spins are capped at a minimum duration of five seconds.
In complying with the temporary regulations, GVC said it will be well placed to gain sports betting and gaming licences under the IST, which is expected to enter into force on 1 July 2021.
GVC CEO Shay Segev said: “The introduction of the Interstate Treaty and Tolerance Policy brings long-awaited clarity to the future of online gaming regulation in Germany.
“This development is to be welcomed, as is the greater certainty and detail it provides on operating under the new licensing regime.
“The establishment of a level-playing field for responsible, licensed operators is ultimately good for German consumers, the group and the industry as a whole.
“It also re-enforces our position as the most globally regulated and responsible operator in our industry.
“We look forward to building on our market-leading offer in Germany and providing our customers with the very best gaming experiences under the new regulatory framework,” he added.
The transitional period restrictions will reduce revenue for GVC across the German market, although it expects no material change in EBITDA expectations for the current financial year.
However, full year 2021 EBITDA could be negatively impacted to the tune of £70m. GVC is a market leader in Germany with bwin.