Holland Casino, after experiencing a €64.8 million loss in the initial six months of the year, is shifting its focus to online operations.
The gaming conglomerate, which operates 14 casinos, reported earnings of only €28.8 million for the period ending June 30. The casinos were operational for a limited period, reopening on June 5 after being closed due to COVID-19 restrictions. Three months later, limitations on visitors persist.
Holland Casino reported a net loss after taxes of €64.8 million, compared to a loss of €37.8 million in the same period of 2020, when casinos were open for a significant portion of the time. The negative outcome includes government aid from the Noodmaatregel Overbrugging voor Werkbehoud (NOW) program, comparable to the UK’s furlough scheme.
Chief Financial Officer Ruud Bergvoort stated that the group benefited from the “constructive NOW program, tax postponements, stringent cost control measures, and rigorous operational management.”
The group did not disclose operating expenses in its 2021 half-year results, despite announcing a restructuring plan at the end of 2020, including a 10% reduction in staff.
Casinos in the Netherlands are reporting that June’s financial figures indicate they will soon be able to operate profitably. “Due to the essential reorganization, everyone has found their position in a more effective and adaptable organization.”
The group anticipates its casinos to resume full operations in the autumn. This includes the lifting of the curfew, which means that pubs and eateries will be allowed to remain open until midnight.
The group hopes to secure an online gambling permit before the regulated market commences on October 1, the group’s 45th anniversary.
Chief Executive Officer Erwin van Lambaart stated: “Although the coronavirus also severely impacted 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 almost a year, but now that the Dutch coronavirus restrictions are progressively being lifted, recovery is in sight. We observe that our employees’ tenacity and commitment, the government’s general support measures, and our clear strategic vision for the future make us strong.
“We see that online gambling will be a potential service offering from October 1, we have submitted an application for a license, and we are establishing new top-tier casino branches in Venlo and Utrecht.”
Netherlands-based gambling establishments encountered significant financial setbacks during the initial six months of 2020. Their earnings experienced a steep decline of 58.7%, resulting in a meager €146.3 million in revenue. This downturn can be attributed to the global health crisis, which necessitated the temporary closure of all 14 casinos for an extended period of almost five months.
Dutch officials have recently declared that entities providing unauthorized gambling services within the Netherlands will face substantial penalties. These fines will amount to a minimum of 4% of their Dutch market earnings.
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