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Olympic's application for Polish license rejected

BC, Tallinn, 30.09.2016.Print version
The listed Estonian gaming operator Olympic Entertainment Group (OEG) announced on Friday that its Polish subsidiaries' applications for a new operating license have been rejected, reported LETA/BNS.

By today, OEG has been informed that the Polish Ministry of Finance has rejected the applications for a location specific license for Warsaw the Polish subsidiaries Casino Polonia-Wroclaw sp. z o.o. and Ultramedia sp. z o.o. submitted on Sept. 1, the company said in a stock exchange disclosure.


Pursuant to Polish legislation, a tender is held for location specific licenses in case there are more applicants than licenses to be issued, OEG said. If the number of applicants equals or is smaller than the number of licenses, the ministry is not obliged to hold a tender.


Operators interested in the casino business in Warsaw had the right to apply for a license, the deadline for submitting the applications was March 24. Olympic's Polish subsidiaries submitted the applications on Sept. 1.


OEG announced last week that it was freezing operations in Poland from Sept. 24 as the company's location specific license expired on Sept. 23 and it had not received a new one.

Freezing the active operations of the Polish subsidiaries will result in an impairment of goodwill and assets in Poland with book value in the range of 9-10 mln euros and the costs associated with freezing operations amount to about 1 mln euros.


The consolidated revenues and income of the Polish subsidiaries of OEG in the first six months of 2016 amounted to 9.4 mln euros and operating profit amounted to 500,000 euros. In the first half of 2016 the Polish operations accounted for 10% of the group's total revenue and 4% of its operating profit.

 






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