888 files complaint against German ban
Operator seeks to appeal the German Federal Administrative Court’s ban on its services in Baden-Wurttemberg
888 has filed a complaint against the German Federal Administrative Court’s decision to prohibit the operator’s services in the market.
The firm has claimed the ruling infringes constitutional and EU law and its right to provide services in certain jurisdictions, and is now seeking to get the ruling reversed.
However, in an analyst note, Goodbody said it viewed the announcement as “neutral” for the group.
“In terms of a time frame for a response to this complaint, we understand the Federal Constitutional Court retains wide discretion for handling complaints and therefore it is difficult to estimate,” the note continued.
“Regulatory uncertainty around online gambling in Germany continues to prevail and has existed for a number of years now.”
In its 2017 full-year results, 888 said it was highly disappointed by the ruling and noted the withdrawal of a number of operators and payment providers from the German market in recent months.
In January Novomatic made its exit from Germany after calling on regulators to overhaul the system.
While Germany accounts for only 7% of 888’s group revenues, the operator reported exceptional VAT charges of $45.3m had negatively impacted its 2017 profits, causing them to slip 68% to $18.8m.