Estonian gambling operator Olympic Entertainment Group (OEG) today announced that it has finalized the liquidation of Olympic Casino Bel IP, known to be its Belarusian subsidiary.
The company explained in a short statement on its website that the liquidation came as part of the group’s effort to adjust its structure. OEG further pointed out that the liquidation process will not impact its overall economic activities.
The announcement comes just days after it became known that the casino operator will have to close several of its gaming venues in the historical center of Riga, the capital and largest city of Latvia. Under a newly introduced ban, all gambling halls in the area but few located in hotels will have to be shuttered within a five-year period.
OEG said in a statement that seven of its venues, those being slots casinos, will be closed as a result from the ban. It is still unknown when exactly the ban will be imposed, but the casino operator pointed out that it will not be before June 2022 when its properties located in Riga’s historical center will have to close doors.
Olympic Voodoo Casino, known to be the operator’s flagship Latvian casino, will remain intact as the prohibition does not cover its location. OEG said that it does not expect any negative financial consequences to ensue from the ban. The company owns 54 casinos and gaming halls across Latvia. These generated revenue of €66.2 million and operating profit of €24.1 million in 2016.
OEG has recently posted its financial results for the first quarter of the year, reporting revenue before taxes of €51.5 million, up from €48.8 million during the same period of 2016. Net revenue totaled €40.3 million, reflecting an increase from the amount of €37.6 million generated a year earlier.
At the end of the reported period, OEG operated 4,100 slot machines, 108 electronic roulette terminals, and 167 gaming tables in its properties across Europe. It is also important to note that it ran 120 casinos and 31 betting points by the end of this year’s first quarter, down from 124 casinos and 33 betting points during the same period of 2016.
OEG currently operates in its home country as well as in Latvia, Lithuania, Slovakia, Italy, and Malta. The company exited Poland and Belarus last year.
May has been an eventful month for the Estonian operator in relation to its planned structure adjustment. The company announced the completion of the merger of its Italian subsidiaries – Slottery S.r.l. and Jackpot Game S.r.l. Following the merger’s closure, OEG will now run its Italian operations under the Slottery brand.
In Lithuania, OEG demerged its UAB Orakulas subsidiary into UAB Orakulas and UAB Orakulas Services, thus separating its technology platform and risk management tools from its operational activities.
