Novomatic Follow Rivals Merkur By Exiting German Online Gambling Market
The uncertain legal framework for online gambling in Germany has forced another major player to exit the online space. Austria- based gaming equipment giant Novomatic announced they have exited the online gaming market in Germany. In a statement Novomatic said that there were online operators in Germany that were illegally offering Novomatic Digital products without having received permission from them to do so. In addition thy called for greater clarity from the German authorities regarding the legality of online gambling.
This latest move follows Novomatic’s shelving of their planned 5 billion Euro IPO due to the unclear regulations on the land-based gaming halls in Germany.
Germany is Novomatic’s most important market and there is no way they would risk their entire operation for the 2.4 percent revenues that come front the online and mobile gaming sector. Total revenues for Novomatic rose 11.3% year-on-year to EUR1.22 billion which was attributed largely to their growth of their slot machines. Currently Novomatic operates over 260,000 VLT’s and gaming terminal globally.
Novomatic’s exit of Germany follows that of rival Gauselmann Group which also ordered all German online casinos from offering slots from their subsidiary Merkur Gaming.