Bwin.party says 2015 net revenue, Cashflow to take EUR15 Million hit


Bwin.party Says 2015 Net Revenue, Cashflow To Take EUR15 Million Hit - 30th January 2015

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bwin.party Digital Entertainment Markets Business Gaming Entertainment

LONDON - Online gaming operator Bwin.party Digital Entertainment PLC Friday said its net revenue and cashflow in 2015 will be reduced by around EUR15 million before "mitigating actions", due to the new VAT rules came into force across the EU at the beginning of the month.

Gambling has typically been exempt from VAT. However as of January 1 under new EU law, member states have the ability to apply VAT to gambling subject to certain limitations and conditions, and therefore taxed depending on where the company's customers are located.

"Whilst substantial uncertainty remains, in the light of the new rules the board now expects to file for and pay VAT in certain EU Member States and that in 2015 total net revenue and cashflow will be reduced by approximately EUR15 million before any mitigating actions," Bwin.party said in a statement.

Bwin.party shares were trading 0.3% lower at 106.11 pence midday Friday.