Mobile gaming group LeoVegas has released its latest figures for Q3 of 2019, disclosing the impact of a changing payment regulatory environment in Germany
Overall, the firm saw a 12% increase in revenue despite admitting to “challenges” in the German market.
The company stated: “In Germany we are facing challenges related to the elimination of a key payment solution, which is affecting both our revenue and new customer acquisition during the quarter.”
LeoVegas admitted the removal of the unnamed payment solution is expected to have a “negative impact” on the firm’s Q4 net gaming revenue (NGR).
This follows Lower Saxony’s decision to enforce a blocking order against an unnamed international payment service provider (PSP) in Germany.
Global financial giant PayPal also imposed stricter regulations on online gambling transactions in the European country.
In Germany LeoVegas is active under its EU licence and has complementary gaming licences in the federal states of Schleswig-Holstein and Hessen.
LeoVegas described the situation in Germany as “complex” with a number of states still debating on the rules for country-wide regulation.
The firm concluded: “Based on currently available information, the assessment is that preparations are being made for a regulated market, as a temporary, licence-based market for sports betting will take effect on 1 January 2020. Permanent market regulation may be implemented starting in July 2021.”
