..

Bwin.party Balks at Newly Opened German Online Gambling Market: Shares Down Nearly 16 Percent

Written by:
Aaron Goldstein
Published on:
Apr/07/2011
Bwin.party

The newly formed combo company of Bwin.party has said that the newly opened German market will not be profitable to operators because of a 16.7 percent tax proposal.  The company has balked at other proposed changes to the law that would include a ban on in-game wagers, the requirement for licensees to be established land-based casinos and a possible curtailing of advertising. 

"Implementation of the principles presented by the minister-presidents yesterday is just as likely to fail as the outgoing monopoly model in Germany," said bwin.party chief executive Norbert Teufelberger in a statement on Thursday.

He added:  "A proposed tax rate of 16.67 percent on the stakes placed in sports betting would make it impossible to offer a competitive product. Furthermore, excluding poker and casino products from this licensing model will continue to drive consumers into the black market."

As a result of the news, Bwin.party’s shares dropped 16 percent on Wednesday (ironically, almost the same percentage of that suggested tax)

Bwin is Austria’s biggest online sports betting firm while PartyGaming is the world’s third largest Internet poker room.  The two companies officially merged last week to create the world’s largest Web gambling enterprise.

- Aaron Goldstein, Gambling911.com

As always, you can Follow us on Twitter for all the latest breaking gambling news.  (get the latest business headlines related to the gambling sector around the clock)

Business/Financial News

Custom Bookie Websites: Get Yours for Free

You do not have to go back all that far to remember the days when a sports bookmaker conducted the majority of their business with a pen and a pad of paper.

Costa Rica Hydro Plant Gets New Lease on Life From Crypto Mining

Costa Rica Hydro Plant Gets New Lease on Life From Crypto Mining

A small river in the middle of coffee plantations, sugar cane fields and a forest provides energy to a hydroelectric power plant in Costa Rica that feeds hundreds of computers wired up to the cryptocurrency mining business.

Ayre Tells Market Watch: "For Sure Bitcoin is a Ponzi Scheme"

Ayre Tells Market Watch: "For Sure Bitcoin is a Ponzi Scheme"

Calvin Ayre says Bitcoin SV is powered by a revolutionary technology that has many useful applications, while the digital currency most people know as Bitcoin is useless and a fraud.

Bloomberg: Bitcoin Death Cross Is Staring Down Bulls After a Painful Retreat

Bloomberg: Bitcoin Death Cross Is Staring Down Bulls After a Painful Retreat

Bloomberg warned of crypto being mired in a drawdown as the Fed readies a stimulus withdrawal and the IMF issued its latest warning on crypto risk to financial markets.

Pay Per Head Sportsbook Demo

Pay Per Head Sportsbook Demo

A pay per head sportsbook service allows people to become bookies and accept action on various sports.

Syndicate