{"id":1599,"date":"2021-10-01T13:03:47","date_gmt":"2021-10-01T20:03:47","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=1599"},"modified":"2021-11-01T13:09:22","modified_gmt":"2021-11-01T20:09:22","slug":"netherlands-shambles","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/netherlands-shambles\/","title":{"rendered":"Netherlands shambles"},"content":{"rendered":"<p><strong>How do you say chaos in Dutch?<\/strong> As of today the Netherlands\u2019 online gaming and betting market is regulated, with 10 operators having received licenses, including bet365, Tombola and Holland Casino. But the advent of a regulated regime was the cause of a flurry of announcements yesterday, and much confusion.<\/p>\n<p><strong>Timeline:<\/strong><\/p>\n<ul>\n<li>8:39 am &#8211; Entain announces Netherlands exit<\/li>\n<li>11 am &#8211; Betsson announces Netherlands exit<\/li>\n<li>11:13 am &#8211; LeoVegas announces Netherlands exit<\/li>\n<li>12.03 pm &#8211; Kambi announces partnership with BetEnt for the Netherlands<\/li>\n<li>1:05 pm &#8211; EGR reports that Kindred would continue to operate in the Netherlands<\/li>\n<li>10 pm &#8211; Kindred announces \u2018temporary\u2019 Netherlands exit<\/li>\n<\/ul>\n<p><strong>Reverse ferret: <\/strong>It was the stance taken by Kindred (likely the largest operator in the space) that bemused market observers. After a day of speculation and the aforementioned EGR story, the company announced at 10 pm UK time it had taken the decision \u201cto cease any services towards Dutch citizens as of today on a temporary basis.\u201d<\/p>\n<p><strong>Calculating the cost of Nexit:<\/strong> It will take time for the reputational costs to become clear (Kindred can only hope that US regulators were too busy preparing for G2E to notice), but the financial impact is clear. Possibly attempting to underplay that impact, the four exiting companies all expressed the damage to profits in monthly numbers. Hence, Kindred said it would lose \u00a312m in monthly EBITDA, Entain said it would cost \u00a35m and Betsson SEK25m, while LeoVegas said it was worth \u201clow-to-mid single-digit\u201d share of total revenues in \u201crecent quarters.\u201d<\/p>\n<p><strong>Back-of-a-napkin calculations:<\/strong> We\u2019ve rounded this up for you &#8211; there are caveats about current run rates here but this at least gives a guide:<\/p>\n<ul>\n<li>Entain ~\u00a360m in EBITDA or <strong>c.7.1%<\/strong> of 2020 EBITDA of \u00a3843m,<\/li>\n<li>Betsson ~SEK300m in EBIT or <strong>c. 27%<\/strong> of 2020 operating income of SEK1.13bn,<\/li>\n<li>Kindred ~\u00a3144m in EBITDA or <strong>c.52%<\/strong> of group EBITDA for 2020 of \u00a3274.2m.<\/li>\n<\/ul>\n<p><strong>A rocky re-entry: <\/strong>It is doubtful Kindred\u2019s actions yesterday will have done it any favors in the eyes of the regulator, which has so far rejected 19 of the 29 applicants for a license. Speaking at this week\u2019s Gaming in Holland event, KSA chair Ren\u00e9 Jansen said the body \u201cencountered a substantial number of flaws in the license applications\u201d and urged future license applicants to be \u201cvery well prepared\u201d.<\/p>\n<h3>Additional hot news of the week on Earnings + More:<\/h3>\n<ul>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/1-oct-weekend-edition-no16\" target=\"_blank\" rel=\"noopener\">Churchill Downs Arlington Racetrack sale to Chicago Bears<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/1-oct-weekend-edition-no16\" target=\"_blank\" rel=\"noopener\">Endeavor Investor presentation<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/1-oct-weekend-edition-no16\" target=\"_blank\" rel=\"noopener\">Playtech updates<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/1-oct-weekend-edition-no16\" target=\"_blank\" rel=\"noopener\">Sector watch: NFTs<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>How do you say chaos in Dutch? As of today the Netherlands\u2019 online gaming and betting market is regulated, with 10 operators having received licenses, including bet365, Tombola and Holland Casino. But the advent of a regulated regime was the cause of a flurry of announcements yesterday, and much confusion. Timeline: 8:39 am &#8211; Entain [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[324],"tags":[608,602,604,634,619],"class_list":["post-1599","post","type-post","status-publish","format-standard","hentry","category-news","tag-churchill-downs","tag-endeavor","tag-netherlands","tag-nfts","tag-playtech"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=1599"}],"version-history":[{"count":2,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1599\/revisions"}],"predecessor-version":[{"id":1602,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1599\/revisions\/1602"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=1599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=1599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=1599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}