The Holland Casino Group’s fiscal report for the initial six months of 2021 revealed disheartening outcomes, indicating a deficit of €64.8 million across the half-year period.
The gaming conglomerate, which oversees 14 casinos within the Netherlands, disclosed that income for the six-month span concluding on June 30 amounted to a mere €28.8 million. The establishments were operational for only the final few weeks of the timeframe, having been shuttered until June 5 due to Covid-19 restrictions. Even upon reopening, the guest capacity within casinos remained constricted for a period of three months.
Holland Casino stated that its net earnings, computed after accounting for taxes, resulted in a shortfall of €64.8 million, contrasting with a deficit of €37.8 million during the equivalent period of 2020, when casinos were operational for a limited number of months. The unfavorable outcomes incorporated government aid from the Noodmaatregel Overbrugging voor Werkbehoud (NOW) program, akin to the UK’s furlough program.
Ruud Bergervoet, the Chief Financial Officer, remarked that the organization benefited from “the supportive NOW program, tax postponements, stringent cost control measures, and rigorous operational management.”
The report did not enumerate operating expenses within its H1 2021 results statement, despite the announcement of a restructuring strategy at the close of 2020, encompassing a 10% reduction in workforce.
Dutch gambling firms are reporting that June’s income figures indicate that gambling houses in the Netherlands are on course to resume normal operations shortly. “With the required restructuring finished, everyone has found their position in a more efficient and adaptable organization.”
The organization is looking ahead and anticipates its gambling houses to be fully operational in the autumn. This includes the end of the curfew, meaning pubs and eateries will no longer have to shut down at midnight.
The organization hopes to acquire an online gambling permit before the regulated market launches on October 1st, which will mark the organization’s 45th anniversary.
Chief Executive Officer Erwin van Lambaart stated, “Despite the significant impact of the coronavirus pandemic on our company in the first half of 2021, we remain optimistic about our 45th anniversary year.
“Overall, the Netherlands has been without legal casino services for nearly a year, but now that the coronavirus measures in the Netherlands are gradually being eased, recovery is in sight. We observe that the resilience and dedication of our employees, the general support measures of the government, and our clear strategic investment vision for the future make us strong.
“We see potential opportunities in online gambling, and from October 1st, we will apply for a license and open our new world-class casino branches in Venlo and Utrecht.”
Netherlands-based gambling establishments experienced a significant decline in earnings during the initial six months of 2020, witnessing a nearly 60% reduction in revenue. This downturn was directly attributed to the enforced closure of these facilities for a period spanning almost five months, a consequence of the global health crisis. The government is currently taking a firm stance against illicit gambling operations, imposing substantial financial penalties on those found engaging in such activities, levying a significant portion of their profits.