Gaming supplier Novomatic says it has halted its plans for an initial public offering over regulatory uncertainty in Germany, one of its most important markets, Reuters reports.
The Austrian firm was expected to publish its intention to float on the Frankfurt stock exchange, but said it has given up plans for a 2017 listing. It did not list specific reasons why.
The new rules in Germany state that gambling halls need to be 100-500 meters apart from each other, and each license can hold up to 12 gambling machines.
“The implementation of the new German regulation is filtering through more slowly than expected and it is difficult for investors to fully assess the effect on Novomatic’s business,” said a source quoted by Reuters.
As well as this, Novomatic’s acquisition of Ainsworth, which is expected to contribute around US$59 million in annual core earnings, has not yet completed, the source added.
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.