888 Holdings PLC (LSE:888) said US$10mln will be knocked off profits this year after its Dutch arm halted operations from the start of October due to changes to the country's gaming rules.
The Netherlands legalised online gambling on 1 October, with ten companies granted licences, but these did not include 888 and under the new rules groups that operated there when the market was unregulated in theory have to wait two years to reapply again for a licence.
888 said it intends to apply for a local Dutch licence and hopes it can start up again in the second half of fiscal 2022, but added the move by the authorities was unforeseen and the situation over licences is still unclear.
Elsewhere, trading in the three months to end September, its third quarter, had been good against tough comparators, 888 said, with group revenue overall rising by 7% to £230mln.
Revenues rose by 29% for the first nine months of the year to £758mln.
Itai Pazner, chief executive, added that strategically it had been an outstanding quarter.
“During the period we announced the transformational acquisition of William Hill International, successfully launched SI Sportsbook in the US and began operating 888sport under a new licence in Germany.
“Alongside these important strategic milestones, I am pleased with the group's continued positive trading, particularly as we lap very tough comparative periods.”