GVC gains four sports betting licences in Germany
GVC Holdings has been awarded four sports-betting licences in Germany. On 9th October the German regulator issued licences for the bwin, SportingBet, Ladbrokes and Gamebookers brands to enable each of them to offer sports-betting products to customers across Germany. This is a significant milestone for GVC coming swiftly after the Tolerance Policy for gaming that was announced on 1 October 2020 and brings further clarity and certainty in Germany.
An outline of the licence terms are:
- Wagering limit of €1,000 euros per month that can be increased to €10,000 subject to certain criteria being met as well as certain loss limits
- The ability to increase this further to €30,000 for 1 per cent of customers subject to enhanced due diligence and certain loss limits
- Deposit limits until customer verification processes are complete
- Maximum annual bonus per customer of €100
- The inclusion of certain responsibility requirements by the licence holder
The licences have been issued with immediate effect. However, the timing for implementation of the terms attached to the licences are yet to be formally agreed and GVC is working with the regulator on an implementation plan with terms expected to be in place in the early part of 2021. The granting of the licences to GVC’s four sports brands in Germany is in-line with GVC’s strategic ambition of operating in regulated markets and will enable it to build on its leading position in the German market. Following implementation, GVC estimates that Group EBITDA will be reduced by up to £40m1 on an annualised basis.
Shay Segev, CEO of GVC commented: “The award of these licences is great news for GVC, bringing the clarity and certainty that we have long sought for sports-betting in Germany. Combined with the recent Tolerance Policy we can now look confidently to the future, building on our position as a market leader by delivering an unparalleled, innovative experience for our German customers. The much-anticipated regulation of online gaming in Germany re-enforces GVC’s position as the most globally regulated and responsible operator in our industry.”
1: The reduction of EBITDA of up to £40m per annum relates to the issuance of the four sports-betting licences. This is incremental to the impact from the Tolerance Policy, as announced on 1st October 2020, of approximately £70m for the FY2021.