A slot-machine operator hit by new laws which TREBLED its tax bill has been bailed out by a private equity firm.
JVH Gaming — the biggest gaming arcade operator in the Netherlands — ran up debts of £235 MILLION after the Dutch government increased gaming taxes from 11 per cent to 29 per cent.
Now Waterland, a Dutch private equity group, has agreed a deal with JVH’s creditors — led by Bank of Ireland and CIBC World Markets — to clear the company’s debts at a discount.
JVH, which runs 45 Jack’s Casino arcades in the Netherlands, had profits cut in half by the tax change which Waterland claim was simply aimed at closing a hole in the Dutch national budget.
Waterland boss Lex Douze insisted JVH was still profitable. “We were interested to stay in this company and continue as an investor, but starting from a lower level,” he added.
JVH operates more than 7,000 slots and runs 33 arcades in the Netherlands. It also sells more than 4,000 gaming machines across Europe every year. Last year it made £76 million.