Holland Casino on brink of bankruptcy
Dutch monopoly put under direct supervision of banks as debts spiral towards 100m
Dutch monopoly operator Holland Casino has edged closer to bankruptcy after being put under direct supervision of national banks amid mounting debts and falling revenues.
The organisation, which holds the exclusive right to operate casinos in the Netherlands, faces debts of around 60m which are spiralling towards 100m.
An internal memo told Holland Casino this morning staff that the organisation could yet be saved but this would require significant cost saving measures.
Holland Casino is aiming to cut around 450 jobs in total and reduce staff benefits. Employee salaries currently account for some 60% of all operating costs.
Should the organisation lose support of the banks it faces bankruptcy, with the Dutch government already confirming it is not prepared to fund or bailout a gambling business.
Meanwhile trade unions have pulled out of talks with Holland Casino’s executive board over staff pay and benefits, and are now only willing to talk directly with the country’s Ministry of Finance.
Holland Casino has earmarked 2015 for the launch of its online gambling business, highlighting the move as a “necessary” development to boost its financial performance.
As part of June’s annual financial report, which revealed the company suffered losses of 652,000 in 2012, the operator also confirmed it is aiming for a freeplay launch later this year.
Last year the Dutch government pledged to privatise the country’s gaming monopoly Holland Casinos Group, a matter previously discussed in January 2011.
Holland Casino was unavailable for comment at the time of writing.