Greek OPAP suffers 72% profits drop following tax hit

Former Greek state run gambling operator OPAP, posted a bigger than expected drop in profits for 2013. The operator had been hurt by new corporate gaming taxes implemented in the region.

The operator had been burdened with a new 30% levy on its gross gaming revenue, which saw 2013 net profits drop to €141 million (£117 million). The new 30% levy imposed by the Greek Government shaved €345 million (£302 million).

OPAP business management, had foreseen the impact of new taxes on its business, and had forecasted a downturn with regards to profits for 2013. However the operator missed its corporate forecast of €153 million (£127 millon).

Further bad news saw the operator report a fall of 6.6% on total revenue generation, with its sport betting vertical seeing a downturn of 10.3% to €1.3 billon (£1.15 billion) . Casino and games performance had also seen a downturn of 4.3% to €2.4 billion (£1.98 billion)

CEO Kamil Ziegler noted that new tax levy’s had made it a ‘difficult year for the Greek economy and business’.

OPAP will be looking to improve performance in 2014, and to adjust its operations to new Greek gaming regulations and taxes. OPAP management have signalled growth through online verticals, this 2014 the operator signed a partnership agreement with B2B igaming services provider GTECH Interactive, to supply igaming inventory for its gaming divisions.