German licensing and Tolerance Policy
1 October 2020
GVC Holdings PLC
("GVC" or the "Group")
German licensing and Tolerance Policy
GVC Holdings PLC (LSE: GVC), the global sports-betting and gaming Group, welcomes the introduction of the transitional period tolerance policy ("Tolerance Policy") in Germany.
On 10 September the 16 Lander (German federal states) confirmed that they had agreed to a transitional tolerance policy for the period ahead of the implementation of the Interstate Treaty 2021 ("Interstate Treaty") with details published today. The introduction of this policy effectively brings forward, and largely implements, many parts of the Interstate Treaty. As such this provides clarity and certainty for GVC in the German market.
The key elements of the Tolerance Policy that will come into effect on 15 October 2020 are:
· Switching off all casino table games (eg Blackjack & roulette), until the individual Lander choose to issue licences under the Interstate Treaty
· Deposit limits across poker and slot gaming of €1,000 per month. There may be the ability for these limits to be raised once full licences have been issued
· Certain Responsible Gaming enhancements such as prescribed verification of customer processes and cooling off periods
· All poker and slot games must be offered in the German language
· Restrictions on parallel play on slots and autospins
· Restrictions on advertising of poker and slots games
· Some limited restrictions on sports betting in-play markets
The following elements will come into effect from 15 December 2020:
· €1 max stake per spin on slot games
· 5 second minimum duration of a slot spin
In complying with the Tolerance Policy, GVC will be well placed for the issuance of sports betting and gaming licences under the Interstate Treaty which is expected to enter into force on 1 July 2021.
The overall impact of the Tolerance Policy will be to reduce revenue across the German market. With the policy coming into effect through the balance of 2020 GVC estimates that the impact will not materially change EBITDA expectations for the Group for the current financial year. For 2021 GVC estimates that Group EBITDA will be reduced by approximately £70m.
Shay Segev, CEO of GVC commented:
" 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 licencing regime. The establishment of a level playing field for responsible, licenced 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."
Enquiries:
|
Investor Relations GVC Holdings PLC David Lloyd-Seed, Director of Investor Relations & External Communications Jennifer Spencer, Investor Relations Manager |
Tel: +44 (0) 203 938 0000 investors@gvc-plc.com |
|
Media GVC Holdings PLC Tessa Curtis, Head of media Relations Jay Dossetter, Head of ESG & Press Office |
Tel: +44 (0) 203 938 0000 |
|
Powerscourt Rob Greening / Elly Williamson |
Tel: +44 (0) 20 7250 1446 |
Forward-looking statements
This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, results of our operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. These forward-looking statements include all matters that are not historical facts. By their nature, these statements involve risks and uncertainties since future events and circumstances can cause results and developments to differ materially from those anticipated. Any such forward-looking statements reflect knowledge and information available at the date of preparation of this document . Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), the Company undertakes no obligation to update or revise any such forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its directors accept no liability to third parties in respect of this document save as would arise under English law.
About GVC Holdings PLC
GVC Holdings PLC (LSE:GVC) is a FTSE100 company and is one of the world's largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group owns proprietary technology across all of its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group has also entered into a joint-venture with MGM Resorts to capitalise on the sports-betting and gaming opportunity in the US. The Group is tax resident in the UK with licenses in more than 20 countries, across five continents.
For more information see the Group's website: www.gvc-plc.com
LEI: 213800GNI3K45LQR8L28
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