21 May 2020
GVC Holdings PLC
(“GVC” or the “Group”)
GVC Holdings PLC (LSE: GVC), the global sports-betting and gaming group, has learned that the UK tax authority, Her Majesty’s Revenue & Customs (“HMRC”), has taken the decision not to appeal the ruling of the Upper Tribunal (Tax and Chancery Chamber) in the cases of the Done Brothers (Cash Betting) Ltd (trading as Betfred) and Rank Group Plc concerning the application of VAT to certain gaming machines and fixed odds betting terminals within licenced betting shops.
The Rank dispute concerned the VAT liability of gambling made using certain gaming machines prior to 5 December 2005 while the Done Brothers dispute related to the tax treatment of supplies of gambling by means of fixed odds betting terminals (“FOBTs”) during the period prior to 31 January 2013.
The Group understands it will be eligible for a rebate of historic VAT incorrectly paid on gaming machine revenues from its own Ladbrokes betting shops in the period 1 October 2002 to 31 January 2013. The Group estimates that this will result in a cash inflow to the Group of approximately £200m.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2016.
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About GVC Holdings PLC
GVC Holdings PLC is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group owns proprietary technology across all of its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group has also entered into a joint-venture with MGM Resorts to capitalise on the sports-betting and gaming opportunity in the US. The Group, incorporated in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 20 countries, across five continents.
For more information see the Group’s website: www.gvc-plc.com