888 Sport Depart The Netherlands Costing Them Millions
After a conjunction report, 888sport have officially recalled their business from the Netherlands due to a number of financial and ethical reasons. While the company remained successful in the Dutch market a series of decisions lead shareholders to formally order a withdrawal from the European nation. The knock-on effect is the loss of millions of dollars due to unsold assets and other EU laws which prevent this action from taking place often. 888sport are one of the first sportsbooks to formally depart a country after only just entering the market four years ago.
888sport have officially departed the Dutch market in an effort to recalibrate European business dealings. Despite their swift exit, the problem of unsolved assets and shareholder agreements will cost them millions to repay. This is one of the major withdrawal cases of the last decade. ?8300/Pixabay
According to industry analysts, 888sport are set to suffer a net $10million loss after withdrawing from the Dutch market in a hasty fashion. Many consumers are confused by the sudden news of their departure, but signs have been showing for a year or more. 888 are one of Europe’s most successful online sportsbooks boasting some of the continents highest market share; competing with big name brands such as Bet365 and Betway only solidifies their market position. They have one of the largest user bases in Holland, and their loyal customers are undoubtedly shocked by the news.
While 888sport may seem like the guilty party, it was in fact, the Dutch regulators that enforced changes upon the company resulting in their departure after a few months. Due to the uncertainty of the current market, they chose to revoke their current license, but a company spokesperson said they would likely reapply within a year. They are keen to hang onto their wide user base and do not want to lose customers to their fierce competitors. The volatile nature of the betting industry would dictate a severe loss in market share should this happen.
Many consumers are keen to see them back in the Dutch market as they provide a fairly unique service not seen with many other companies in the same field. Their virtual casino network is one of the most coveted features of their website, envied by many other firms in the online sportsbook industry. Since their inception in 2008, they’ve been developing their own unique casino games to offer for their consumers, partnering with other development studios such as Hacksaw Gaming to craft a linear product with many benefits for the consumer.
Due to several financial obligations, roughly $10 million will be taken off the company in the form of taxes, depreciation of assets and shareholder dividends. They are also responsible for the staff they employ. Currently, they have over 100 workers in their Amsterdam office, and due to their withdrawal, most will either transfer to a different 888 office or leave for another company. As most of their employees are developers, they will most likely be able to find similar positions in other companies.
How Will 888sport Respond
888 are keen to continue providing an excellent service to all their consumers, new and old, and maintaining business partnerships across Europe. While their immediate value will drop due to the fallout, they will most likely regain their stronghold over the continental market with continued high-quality services for their customers. Due to the current nature of the Dutch market, they have decided to wait. While the COVID period has been difficult for business, 888sport and many other Dutch online sportsbooks have flourished in popularity.
The Dutch government are also keen to maintain a steady gambling industry as the tax received makes up almost 1.2% of the country’s GDP. The Holland Gambling Commission have changed several rules, mostly to do with licensing. The new legislation requires an additional pay license for online sportsbook business. Whereas before one license covered all operations, the added category can cause major financial trouble for companies who aren’t prepared.
