(Bloomberg) —
888 Holdings Plc will lose out on $10 million in profit next year thanks to a legal overhaul in the Netherlands that will force it to apply for a gambling license.
Earnings before interest, tax, depreciation and amortization in 2022 will be hit because the Gibraltar-based digital gambling company halted sales in the country on Oct. 1 after the Dutch government launched a licensing system for online betting.
888 “continues to believe the Netherlands represents an attractive medium-term opportunity and intends to apply for a local license in the coming months,” it said in a trading update Tuesday. It said this year’s trading will be in line with expectations and reported 7% year-on-year sales growth for the third quarter.
Other operators including Entain Plc and Kindred Group are going through the same process
However, 888’s main focus is its $3 billion reverse takeover of rival William Hill’s non-U.S. operations, which analysts expect will more than triple its profits.
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