BUSINESS

Pwin throws a wobbler; Sazka bought but the saga continues

TAGs: bwinparty, Germany, Sazka

Pwin baby crying

Norbert as a child

Bwin.party digital entertainment(Pwin) has thrown their customary tantrum at being told Germany is a no-go area for them. A spokesperson for Bwin e.K. (Their German Luftwaffe department) explained that, “The ban violates European rules and won’t last.”

The spokesperson then added that, “A regulated market opening is the only way to combat the black market in Germany and to comply with EU requirements.”

Pwin seems to be completely missing the point here (or the German courts are having their fun with young Norbert.) The effect that this ruling will have is likely to be extremely short-lived due to the fact that the current gambling industry treaty expires very soon. This will mean that firms are given a far easier time of it in the market that bwin is thought to garner around a quarter of its revenues from.

The problems that Pwin has experienced over the past year or so usually manifest themselves in the firm’s share price that was again down ever so slightly today by 0.5%. Yesterday, the firm’s share price dipped by as much as 12% as their shareholders got scared of what their next German wurst und sauer kraut might contain. Would you accept food from a pirate though?

Two major financial groups have purchased the Czech lotto firm Sazka. The Prague Post reports that PPF and KKCG bought the firm for 3.81billion koruna, after an official bidding process saw their bid the highest one to be put forward. The lottery firm’s plight first came to light as they failed to pay out winnings to players amounting to 103.4million koruna ($6.1m).

This isn’t the end of the saga though. One of the firm’s major creditors, Česká spořitelna, has asked that the tender be cancelled and a new one held over fears that a legal challenge may be launched against the action of Sazka’s bankruptcy lawyer. A challenge is also being made out of court for Penta, a firm that offered around 5bn koruna outside of the bidding process.

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com