Bwin.party Balks at Newly Opened German Online Gambling Market: Shares Down Nearly 16 Percent
The newly formed combo company of Bwin.party has said that the newly opened German market will not be profitable to operators because of a 16.7 percent tax proposal. The company has balked at other proposed changes to the law that would include a ban on in-game wagers, the requirement for licensees to be established land-based casinos and a possible curtailing of advertising.
"Implementation of the principles presented by the minister-presidents yesterday is just as likely to fail as the outgoing monopoly model in Germany," said bwin.party chief executive Norbert Teufelberger in a statement on Thursday.
He added: "A proposed tax rate of 16.67 percent on the stakes placed in sports betting would make it impossible to offer a competitive product. Furthermore, excluding poker and casino products from this licensing model will continue to drive consumers into the black market."
As a result of the news, Bwin.party’s shares dropped 16 percent on Wednesday (ironically, almost the same percentage of that suggested tax)
Bwin is Austria’s biggest online sports betting firm while PartyGaming is the world’s third largest Internet poker room. The two companies officially merged last week to create the world’s largest Web gambling enterprise.
- Aaron Goldstein, Gambling911.com
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