Privatization of Holland Casino Could Earn the Netherlands up to 1 Billion Euros

Last week, the Dutch government sent a bill to Parliament containing a proposal to sell state-owned Holland Casino. Subsequently, the Council of State published its (mandatory) advice on the bill.

The sale of Holland Casino will probably be concluded by late 2017. But how much should prospective buyers expect to offer for Holland Casino? We just might have an answer to that question:

 

“But what will the Dutch get for their national casino company?

To answer that question, we first have to look at the EBITDA multiplier that potential buyers will use to determine their offer. Some industry experts argue a multiplier of 10 would be reasonable. On average, over the last three years (2013-2015) Holland Casino posted an EBITDA of 65 million euros, which would mean that Holland Casino could be worth around 650 million euros.

But that estimate could very well be too low. The average EBITDA of Holland Casino over these last three years is to a large degree negatively impacted by the bad results in 2013. Particularly in the fast-changing gaming industry, potential buyers tend to focus on the current and future operating results and profitability.

Assuming that […] this year’s results will be at least as good as last year’s, the average EBITDA between 2014 en 2016 becomes 88.5 million euros – which would mean a projected sale price of 885 million euros.

According to one industry expert, even that estimate could be conservative.”

Read the full article here.

 

Gaming in Holland Releases Full Agenda for June Conference

We are pleased to announce the release of the full agenda for the 2016 edition of the Gaming in Holland Conference.

Besides the upcoming regulation of online gaming, the privatization of Holland Casino and the (future) funding of sports and charities in the Netherlands will take center stage on day one. Day two will focus on (affiliate) marketing, as well as various “new kids on the block:” daily fantasy sports, binary option trading, and eSports.

This year’s conference will take place on June 7-8, and is co-hosted with the iGaming Super Show.

Click here to register. See you in Amsterdam!

 

Plenary Debate on Remote Gaming Bill Postponed to Week 22

The Lower House has once more postponed the scheduled plenary debate on the remote gaming bill. The debate is now set to be held during week 22, on May 31, June 1 or June 2.

Don’t forget: Gaming in Holland will be present at the debate and will live tweet directly from the Chamber; and more extensively after the debate has concluded. Or you can follow the debate with this brand new app.

Please note: if the plenary debate on the remote gaming bill will be postponed again, Gaming in Holland will offer all participants in this year’s June conference a free-to-attend session dedicated to Dutch iGaming regulation in the fall!

 

Data from UK/FR/IT Show: High Taxes and Product Restriction Create a Big Black Market

Using data from the UK, French, and Italian markets, UK-based gaming consultancy firm Regulus Partners shows that light-touch regulation maximizes potential tax yield and minimizes illegal activity, while the opposites are equally true:

“GB charges a 15% tax on all products and collects substantially all of a large, vibrant and growing market. Italy has moved to GPT and now collects much more tax on a more visible market, which has (probably) been unshackled from growth restrictions. France attempts to collect c. 50% in tax but succeeds in collecting less than 20% of the available tax in a market stunted by regulation.”

The current proposal before the Dutch Lower House to introduce a 29% gaming tax is therefore likely to end up being counterproductive. When will our politicians finally heed these warnings?

 

H2 Gambling Capital and iGaming Business Present Holland Dashboard

“The focus on the Dutch market is timely as we gear up for the iGaming Super Show from 7-10 June in Amsterdam, where our partners Gaming in Holland will also be hosting their annual high level conference discussing all key aspects of the igaming sector in the regulating Dutch market,” iGaming Business writes.

The data presented here includes the proposed 29% gross win tax on interactive gambling and provides market forecasts up until 2021.

 

Amaya Eyes Expansion to the Netherlands

In Amaya’s latest earning call interim CEO Rafi Ashkenazi discussed the brand PokerStars, stating, among other things, that PokerStars have now launched betting and casino and will extend the offering of these verticals to all European markets.

Ashkenazi then added that “[t]he development in other European markets is, as you probably know, in the Netherlands. We’re also quite optimistic that this will happen either late this year or next year.”

 

Other News

Speel Verantwoord, the Dutch trade association of online gaming operators, reacts to the local regulator’s plans to have iGaming apps removed from Dutch-language app stores.

 

Spain’s regulated online gambling market reported revenue rising nearly one-third in Q1 following last summer’s legalization of online slots play.

 

Poland may reform its gaming regulation, including the legalization of online poker.

 

Ladbrokes and Gala Coral are expected to find out this week whether their proposed merger is to be allowed by the UK’s Competition and Markets Authority (CMA).

 

Brazil could legalize online gaming as early as June: its illegal gambling market is currently estimated to be worth around $5.7b.