Bwin.party Digital Entertainment Plc, the largest online gambling company in the world created by the merger of Bwin and Party Gaming, announced that its net revenue in the third quarter of the current fiscal plummeted by 10% because of fall in poker sales and a new gambling tax introduced by the German government.
The company announced recently that its net revenue during a three-month period to Oct 31, 2012 collapsed to 175.7 million Euros, which is much lower compared to its net revenue during the corresponding three-month period last year. However, the company added that it has begun recovering rapidly from the end of September.
Bwin.party stated, “The introduction of a 5 percent turnover tax on sports betting in Germany, revenue decline in poker and continued pressure on consumer spending, particularly in parts of southern Europe, held back our performance in the third quarter.”
The government of Germany imposed a new tax rule on the online gambling industry, which was enforced from July 1. As a result of this new tax rule, Bwin.party had to cancel short-odd bets, leading to an 8% fall in the total amount wagered on sports markets at Bwin.party. Sports betting revenue year-on-year fell by 2% to 828.3 million Euros. Another factor responsible for this was the unfavorable results of the European soccer events.
Bwin.party’s poker sector also suffered, and the company announced a fall of 29% net year-on-year revenue to 37 million Euros. Unlike its sports betting sector, Bwin.party’s poker sector has still not recovered although the company states that its poker sector will start growing rapidly once it integrates its .com networks.
The firm also stated that business has begun looking good recently because its sports betting sector recovered rapidly, presenting an daily average net revenue rise by 19% in October while compared to the corresponding period last fiscal. In all, the company is very happy about its annual result.
Recently, Bwin.party partnered with Zynga, a leading provider of social gaming services in the world, according to the terms of which the two companies will launch real money online casino and poker games in UK. Early in 2013, UK casino players can expect an exciting portfolio of 180 online casino games and poker games, including Zynga’s famous FarmVille slot. The partnership deal will allow Zynga’s real money online poker customers in the UK to play as part of Bwin.party’s large and well-regulated .com player pool.