German State Treaty on Gaming cost Jaxx AG millions

The price of protectionism paid by German online gambling company Jaxx AG, was showcased again this week when the company announced financial results that included a consolidated loss of Euro 16.9 million, largely due to the implementation of the German State Treaty On Gaming.

The Treaty shields the German states which monopolise gambling in the country from fair competition by private companies.

The Jaxx statement revealed that the firm had written down Euro 15 million in investments in its German operations and closed its Jaxx Gmbh Hamburg subsidiary as a result of the new Treaty legislation, which came into effect in January and prohibits online lottery agency operations.

“While terrestrial agency business via supermarkets and filling stations is still fundamentally possible subject to certain restrictions, in virtually every instance permits have been refused for reasons that have not been fully explained,” read a statement from Jaxx.

Despite its significant impairment charges, Jaxx revealed that its overall business was growing with consolidated sales up 67 percent to Euro123.5 million alongside cash flow from operating activities of Euro 3.7 million. In addition, Jaxx stated that its cash and cash equivalents after investing and financing activities amounted to Euro 13.2 million, slightly down on 2007’s Euro 13.8 million, and its equity ratio was 44.2 percent leading to a balance sheet total of Euro 48.6 million.

“Although serious doubts have been cast on the lawfulness of the State Treaty On Gaming by the European Commission and by experts in constitutional law and European law, the new legislation has prohibited lottery agency operations on the Internet since the start of 2009,” read the statement.

“All investments in that field have been written off except for the few instances where permits have been granted.”

Jaxx has relocated many of its operations to London

Live activity feed

  • Index
    "Exclusive Winaday/Slotland Halloween Contest -$650+ up for grabs"
  • No avatar small
    "I just started using bitcoin myself. I buy bitcoin using my checking account thru Coinbase. It takes a little longer than using a debit/credit card but if I understand it correctly the fees are lower that way. Then I transfer bitcoin to my wallet at Blockchain before depositing at an online casino. I made two deposits at Slotastic! and one at Slotocash and each time the money was there immediately. The only problem I had was on my first deposit I did not account for the conversion difference when making a minimum amount deposit and my bonus did not get triggered automatically. I got it soon worked out though when I contacted support thru Live Chat and explained the mistake was caused by my first time using bitcoin. They credited my account with the bonus and just suggested I add a little more next time to cover the additional fees and conversion rate differences. I didn't do too good at Slotocash but did much better at Slotastic! and even though I made my deposit using bitcoin there was a message on the Withdraw screen saying I had to send in their Credit Card Authorization Agreement before I could make a withdrawal. I contacted Live Support to clarify and they advised I only had to send in a copy of my drivers license and a recent utility bill to verify my identity not my credit card. After I emailed these documents I received an email the next day advising my documents had been received and approved. I then submitted my withdrawal request and expected an immediate response just like I got on my deposit but it didn't happen. That's been about 7 hours ago now so I'm guessing it might be a day or two at least if I'm lucky before anything happens. But if it happens then that'll be much better than having to wait weeks or months like some have to. I'll update later when the withdrawal is finally completed."
  • Index
    "never any spins for me. im depositor. also asked chat they said only selected players.  "
  • Photo
    "blue day thank you very much."
  • No avatar small
    "Partypoker. Not bad desire:"
  • No avatar small
    Started by
    Banking icon 4
Swipe left or right to see more

lcb activities in the last 24 hours

  • 46
    new members
  • 569
    members online
  • 16011
    guests online
  • 122
    new posts
  • 1070
    free games played
Join the club

Highest Community Rated Online Casinos

Swipe left or right to see more

Latest forum posts

Join today and start earning rewards

You will immediately get full access to our online casino forum/chat plus receive our newsletter with news & exclusive bonuses every month.
S logo

Report to moderator

Use this function to inform the moderators and administrator of an abusive or wrongly posted message.

Please note that your email address will be revealed to the moderators if you use this

Select Language
Search Results