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Gambling: German State Treaty on Gaming cost Jaxx AG millions

The price of protectionism paid by German online gambling company Jaxx AG, was showcased again this week when the company announced financial results that included a consolidated loss of Euro 16.9 million, largely due to the implementation of the German State Treaty On Gaming.
 
The Treaty shields the German states which monopolise gambling in the country from fair competition by private companies.
 
The Jaxx statement revealed that the firm had written down Euro 15 million in investments in its German operations and closed its Jaxx Gmbh Hamburg subsidiary as a result of the new Treaty legislation,

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which came into effect in January and prohibits online lottery agency operations.
 
“While terrestrial agency business via supermarkets and filling stations is still fundamentally possible subject to certain restrictions, in virtually every instance permits have been refused for reasons that have not been fully explained,” read a statement from Jaxx.
 
Despite its significant impairment charges, Jaxx revealed that its overall business was growing with consolidated sales up 67 percent to Euro123.5 million alongside cash flow from operating activities of Euro 3.7 million. In addition, Jaxx stated that its cash and cash equivalents after investing and financing activities amounted to Euro 13.2 million, slightly down on 2007’s Euro 13.8 million, and its equity ratio was 44.2 percent leading to a balance sheet total of Euro 48.6 million.
 
“Although serious doubts have been cast on the lawfulness of the State Treaty On Gaming by the European Commission and by experts in constitutional law and European law, the new legislation has prohibited lottery agency operations on the Internet since the start of 2009,” read the statement.
 
“All investments in that field have been written off except for the few instances where permits have been granted.”
 
Jaxx has relocated many of its operations to London



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Abdelaouhab Zizi Wins MPNPT Morocco Main Event - Abdelaouhab Zizi has defeated fellow Casablanca resident Fadhil Farag heads up to win the 2018 MPN Poker Tour Morocco Main Event and MAD 375,000 (c. €33,220) after a two-way deal.

Final 12 For MPNPT Morocco - Sunday on the MPN Poker Tour Morocco will see several trophies awarded at the Mazagan Beach Resort, with the largest going to the Main Event champion along with a prize of MAD 400,000 (c.€35,400).

MPNPT Morocco Updates - Leading the 104 combined survivors from both flights is still Said El-Yousfi with 272,000 chips; visit the MPN Poker Tour blog for an end-of-day recap and full chip counts.

MPN Poker Tour Morocco Day 1A - The MPN Poker Tour has returned to Morocco this week (January 11-14), featuring the MAD 1.5 million guaranteed Main Event, accompanying side events, and the activities and parties for which this tour has now become known on two continents.

2018 MPN Poker Classic - The MPN announces the return of The Classic tournament series this January. The series is back following its successful €350,000 guaranteed debut in 2017. This time €500,000 is guaranteed, along with a once in a lifetime trip to Monaco for the Classic Champion.

PDC and Sportradar Renew Deal - Following this month’s hugely successful World Championship, the Professional Darts Corporation (PDC) and long-standing partners Sportradar have renewed their multi-faceted cooperation that will see the leader in sports data and content continuing in their role as official data

Poker Yaar Joins MPN - Available through download, instant play and mobile, Pokeryaar.com is live with Omaha, Hold’em and Five-Card poker variants, alongside MPN’s Fish Party, the industry’s only progressive jackpot SNGs.

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