Estonian casino operator Olympic Entertainment Group (OEG) today announced that its Polish subsidiary Casino Polonia-Wrocław sp. z o.o. has filed for bankruptcy with a local court. Casino Polonia-Wrocław operated Casino Polonia in the city of Wrocław up until September 2016.
Local media reported that OEG was forced to close the gambling venue on September 24 as its license for the provision of casino games in a specific location had expired and a new license had not been issued.
OEG’s Polish subsidiary was not able to obtain another license for the operation of the casino in question because it had missed the application deadline announced by local regulators. Interested companies were to submit their application up until March 24, 2016. However, Casino Polonia-Wroclaw sp. z o.o. and Ultramedia sp. z o.o., another OEG subsidiary in the local market, submitted their applications on September 1.
The Estonian gambling operator’s Polish subsidiaries generated the amount of €13.5 million during the nine months ended September 30, 2016. The companies also reported operating loss of €8.8 million for said period. Previous reports by OEG show that revenue from its Polish operations accounted for 10% of its overall revenue and represented 4% of its operating profit for the six months ended June 30, 2016.
It was in January 2016 when OEG acquired a 20% stake in Casino Polonia through its subsidiary Baina Investments sp. z o.o. Thus, the Estonian gambling operator increased its stake in the Polish casino company to 100%. The purchase price was not disclosed by the involved parties.
Following the announcement about Casino Polinia’s permanent closure, OEG Management Board Chairman Armin Karu said that his company planned to return to the Polish market in the spring of 2017.
OEG, through its many subsidiaries, is one of the leaders in the provision of land-based and online gambling services in the Baltic Region (Estonia, Latvia, and Lithuania) as well as in Malta, Italy, and Slovakia. As of September 2016, the company operated 123 casinos and 32 betting shops, employing more than 3,000 people in the six above-mentioned countries. OEG also runs the OlyBet gambling website.
