888 Casino Revenue Growing Despite Downsides
The 888 online gambling firm released information recently that showed the revenue of the company rose another 4 percent in 2017, even though profits were being cut in half thanks to biting regulations and scrutiny from German and UK markets.
While most of the online gambling industry is stinging from the latest regulations, 888 Casino showed profits again rose, this time from $520 million to $541 million, with an impressive rise of almost 26 percent throughout regulated markets not including the UK.
The revenues from taxed and regulated markets represent the majority of the group's revenue, coming in at 70 percent last year. Profits before taxes did drop last year, from $59 million to only $18 million, but pre-tax profits climbed from $69 million to $78 million.
The growth of the group has been driven by casino games and sports betting into regulated markets. Despite 888 withdrawing from certain markets, the growth was a result of the team at 888 working hard and being resilient in providing first-class technology to their customers and the ability to make changes quickly as they were needed.
One area of concern for 888, is the German gaming market. Uncertainty still exists in some territories because a recent ruling that was handed down by the Federal Administrative Court of Germany, so the 888 board is currently assessing the status of its offerings throughout the German market.
Today in Germany, a subordinate of the group is the subject of a ruling that is on appeal from the Federal Administrative Court, prohibiting online gambling services throughout the state. General findings of the law upholding this prohibition on providing online gaming throughout Germany is currently protected under a German InterState Gambling Treaty.
A report that was released by 888 shows they were told to pay charges in excess of $45 million because of perceived value that was adding tax that related to the provision of gambling services throughout Germany and $5 million in lieu of fines that were part resolutions to the UKGC license review.
Not to the surprise of those in this market, due to the regulations on 888, many of the other providers in land-based and online gambling sectors have decided to pull out of the German gaming market. To make matters worse, those payment institutions that handle more than 9 percent of the monies deposited for 888 to Germany, have stopped providing their services because of the online gaming market regulations. There are other payment processing institutions that share the same thoughts and have made it know they too are considering withdrawing their services from this sector.
888 chairman, Brian Mattingley, says he and the company are extremely disappointed with the far-reaching rulings, and with the help of legal counsel, are considering taking action. These legal actions could include petitioning the German Federal Constitutional Court and assessing the status of offerings throughout the German market.
The focus for 888 this year and moving forward remains on delivering to their customers a safe and fun experience, while providing exceptional customer support every step of the way.