GVC Holdings plc (AIM:GVC), a leading online gaming company, notes the announcement issued on Thursday 7 April 2011 by the Sachsen-Anhalt Lander who led the conference of the Lander governors on Wednesday 6 April 2011 to discuss the future of internet gaming in Germany. The minutes of that meeting are not yet available, but a short press release in German was issued.
GVC understands that there was no unanimous agreement of the Lander but Sachsen-Anhalt suggests that online casinos could only be run by the state-operated land-based casinos.
Germany passed its Interstate treaty with effect from 1 January 2008 and it expires 31 December 2011. That treaty was found to be defective by the EU, and GVC believes the proposals, made by the Lander seemingly acting out of protectionism for the state-run businesses, will go the same way when challenged in the EU.
Another Lander, Schleswig Holstein, continue to propose a more liberal approach. Their parliament has already drafted a bill which has had its first reading and been submitted to the EU for approval. It is understood by GVC that Schleswig Holstein could unilaterally enact their own regime which would have legal force throughout Germany for the online industry. GVC will be applying for a licence in Schleswig Holstein, should such an opportunity arise, particularly as GVC’s German business already operates and pays taxes under a licence granted by an EU member state with rigorous customer protection and anti-fraud measures.
GVC will keep the market informed of all material developments in its core markets and will carry on its business as usual in the meantime.
For further information:
|GVC Holdings PLC|
|Kenneth Alexander, Chief Executive||Tel: +44 (0) 20 7398 7702|
|Richard Cooper, Group Finance Director||www.gamingvc.com|
|Arbuthnot Securities Limited|
|James Steel / Ben Wells||Tel: +44 (0) 20 7012 2000|
|Henry Harrison-Topham / Oliver Hibberd||Tel: +44 (0) 20 7398 7702|
About GVC Holdings PLC
GVC Holdings PLC is a leading online gaming company. The Group is headquartered in the Isle of Man and is licensed in Malta, and the Netherlands Antilles.
In December 2004, the shares of Gaming VC Holdings S.A., GVC’s predecessor company, were admitted to the AIM market of the London Stock Exchange. The GVC Group has not and has never transacted wagering activity by players in the US. Further information on the Group is available at www.gamingvc.com