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GAMING REGULATION IN GERMANY AFFECTS ONLINE BET SALES!

11:16 / 04.06.2021 13 views

German gaming and sports betting provider Bet-at-home AG released its business figures for 2020 today. Overall, in 2020, sales fell sharply from last year, the company told its investors.

Profit in 2020 amounted to 126.9 million euros. In 2019, 143.3 million euros were received. Poor performance is due, among other things, to restrictions due to the corona pandemic. The postponement of several sporting events from March 2020 did not go unnoticed.

The usually mild summer months were positively impacted by the gradual resumption of gaming operations. However, the sales lost in the spring could not be fully compensated.

On the other hand, large investments in marketing were postponed due to the postponement of the European Football Championship to 2021 and other sporting events, these expenses decreased from 39.8 million euros in the previous year to 30.5 million euros.

The online casino segment is highly dependent on gambling regulation.
The online and live casino segment has not been affected by the pandemic, but new laws in Germany have made themselves felt. This is what the Bet-at-home message says:

Regardless, the online casino and live casino gaming segment has not been affected by the pandemic. However, legal liberalization measures in Germany have led to restrictions in the online gaming segment, which negatively affected the sales of online casinos in the main German market. Overall, gross betting and gambling revenues in FY2020 were € 126.9 million (FY 2019: € ​​143.3 million).

Despite the restrictions imposed by the new gambling regulation in Germany and the corona pandemic, EBITDA in fiscal 2020 of € 30.9 million was lower than in the previous year. However, the forecast, which assumed EBITDA of 23 to 27 million euros, was exceeded.

Current Fiscal Year 2021 at a Glance
According to the annual report, Bet-at-home management expects sales of sports betting and casino games to continue to decline in 2021, at between € 106 million and € 118 million.

The message says:

The decline in gross income from betting and gambling in FY2020 is largely due to legal compliance in connection with the German sports betting license. In addition, from October 2020, the requirements of the German authorities in the field of casino products must be met, which will negatively affect the development of sales in the 2021 financial year.

EBITDA is expected to be between 18 and 22 million euros. How the company operates in 2021 will depend on when the Corona restrictions are lifted and whether the State Gaming Treaty comes into effect in its current form.

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