888 Holdings: License from Malta as a precaution for the upcoming Brexit
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The Brexit is imminent and the gaming companies have also prepared for the exit of the British from the EU. 888 Holdings has secured a gambling license in Malta to avoid any risks from Brexit. Furthermore, the operator of online games was able to increase his profit last year.
Sales drops, profit increases
Recently, 888 Holdings announced his winning figures from the last financial year, which despite some problems caused satisfaction. In 2018 the company was able to Total turnover of $ 529.9 million record. Compared to the previous year, this is a decline of two percent. However, the gambling giant was able to increase its profit from taxes by eleven percent to $ 86.7 million.
The casino and sports betting business are the draft horses for the company. 888 Holdings recorded the strongest growth in the casino division exclusive Great Britain. There, a increase in sales of 17 percent ensured satisfied faces. Overall, the casino business gambled gambling company has brought sales of 318 million. The sports betting is also flourishing. Here, however, sales could only be increased from $ 75 to $ 80 million.
Is due to stronger regulation and higher taxes In the UK, total sales decreased by 15 percent – Despite increasing number of customers, also on the island. However, this could be coped with as well as a strong decline in sales in the online poker. Due to market trees in Spain and Portugal, poker sales have dropped by almost 40 percent to $ 49 million in 2018.
Managing Director Itai Pazner also describes a good start to 2019:
“The positive dynamics at the end of 2018 continued in the first quarter of 2019, with the average daily turnover in 2019 compared to the fourth quarter of 2018 by 10 percent, which is due to improvements in the most important KPIs.– Paul Gauselmann, CEO of the Gauselmann Group
Maltese license should ensure access to the EU market
The decent business figures move the management of 888 Holdings, of course, to lie down on the lazy skin, because the next task is imminent: Brexit. To be prepared and the Market access to the EU countries also after the Brexit The company has one License of the Maltese gambling authority MGA secured.
Good to know:
The Spanish government fears that the Brexit Agreement will fix Britain’s rule over Gibraltar. Since 1713 The headland on the south coast of Spain belongs to the British overseas area. However, Spain has always protested against British rule.
As part of the Brexit negotiations, the location of Gibraltar is also a big topic. It is unclear whether the status of the British overseas area is preserved. Therefore, it is as unclear how the Gibraltar’s happiness in the future must be assessed in the future – which also uses 888 Holdings. Due to the uncertain location, whether the licenses are still valid within the EU, management was forced to act.
In addition to the precaution of the further license of the Malta Gaming Authority Server built by 888 Holdings in Ireland. Brexit is therefore also a risk for the gaming industry and means that business activities are shifted. Due to the goals of the company to increase its number of customers in other European countries, this step was important in order to supply customers within the entire EU even after an (unregulated) Brexit.
Expansion of the European market and access to the USA
In addition, 888 Holdings wants to grow in other countries or gain a foothold. There are currently particularly interesting here Portugal and Sweden. After leaving the Portuguese poker market, the gaming company tried to take a new license and received it in January. A Swedish happiness license was also granted at the end of 2018. Online casinos and sports betting are now to be offered here.
In addition, the provider also tries in the United States after the US Gambling Act was loosened. There has already 888 Holdings with the Takeover of AAPN take a first step into the door and also placed as a sponsor of the nfl club new york jets. these new markets are very important for the company because another decline in the british home country is not unlikely. not only the regulation could become a problem, but also a declining economy that will most likely occur with an exit from the eu could reduce future sales.
As the business figures from last year have shown, the decline in Great Britain for 888 Holdings is to be mastered In other European countries, growth leads to a balance. What future development will look like is also dependent on the Brexit negotiations. Since the uncertainty as to whether there is an agreement at all is very large, the step of 888 Holdings is only logical and understandable.