LeoVegas, a Swedish gambling site and online bookmaker, has reached a settlement with the Dutch tax authorities. The gambling platform, which in 2017 the casino Website Royal Panda has taken over, has to pay a substantial $ 14.9 million $to the tax authorities as a result of unpaid income tax.
Presentation of quarterly figures
The news of the agreement with the Tax Authorities was shared by Leovegas in the quarterly report for the first three months of 2022. The settlement had to do with the acquisition of gambling company Royal Panda by LeoVegas in 2017. The company would have paid too little tax on their income in the period 2015 to 2018.
During the presentation of the quarterly figures and the corresponding nomination, Gustaf Hagman, CEO of LeoVegas, made it clear that the company's settlement was struck with the Dutch tax authorities. This agreed to both parties with a settlement of $ 14.9 million, which LeoVegas expects to pay during this year.
An agreement between the two parties
Royal Panda was originally owned by Web Investments Limited, based on Malta, but was taken over by LeoVegas in 2017. The acquisition cost the gambling company around $ 120 million, of which Royal Panda is half by means of. would earn an earn-out. The Dutch founders of Royal Panda even ended up in the Quote 500 due to the sale of their website.
In response to the news about the settlement, LeoVegas has announced that it was relieved that the case with the Tax Authorities, which had been going on a considerable time, can now finally be terminated with an agreement between the two parties.
After the presentation of the quarterly figures was completed, the press and shareholders still had the opportunity to ask questions about LeoVegas. During the round of questions, the question came along whether the gambling company currently owes more payments to the tax authorities, but CEO Gustaf Hagman soon indicated that this was not the case.
The CEO emphasized the fact that it was a case from 2015-2018 and said in his words that it was "a saying old thing" who is "behind us after the settlement".
Upset with the central government
However, it is not the first time that LeoVegas is upset with the Dutch government. In 2019, for example, the gambling company from the Gaming Authority also received a fine of $ 350,000 and the Royal Panda they have just taken over a fine of $ 400,000. The fines were challenged by LeoVegas, but unfortunately this did not have the desired effect. At the end of 2021, the company announced that it would not appeal and to accept the ruling.
Due to the legalization of the Dutch Gaming Market in early October 2021, LeoVegas was forced to withdraw since they were not yet in possession of the required permit. This had a considerable impact on the total turnover of the gambling platform in the first quarter of 2022, since about 7% of LeoVegas consisted of Dutch players.
The company announced in February 2022 that they were busy with the process for a permit application at the Gaming Authority, and during the presentation of the quarterly figures it was indicated that the application has since been submitted. It would take about six months before the permit was actually received and LeoVegas can finally go live in the USA. She is expected to do this with her brands LeoVegas and Expekt.