888 Holdings is considering exiting its German business

Online gambling company 888 Holdings is considering exiting its German business after tighter regulation weighed on profits in the country.

The group’s subsidiary has been banned from online gaming activity in Baden Württemberg, Germany’s third-largest state and home of Stuttgart.

Now 888 is facing the prospect of some payment institutions withdrawing backing for German operations.

In a statement released this morning 888 said: “The company is highly disappointed by this far reaching ruling and, together with the Group’s legal counsel, is considering potential courses of action, which may include a petition to the German Federal Constitutional Court and is assessing the status and breadth of its offerings in the German market.”

Other gaming operators have already pulled out of the country.

Tip! Use our exclusive Multilotto bonus code and claim total of 900€ bonuses to Casino + 20 no deposit free spins to 7Sins casino game.

A bill for VAT in Germany also weighed on pre-tax profits, as did a record £7.8m fine in the UK. Pre-tax profits fell to $18.8m (£13.4m), compared with $59m in the prior year.

Shares fell over five per cent in early trading, but analysts at Canaccord Genuity said: “German uncertainty may cloud short-term performance, but we see 888 as an attractive play on the two key themes of industry consolidation and US market opening.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: