OPAP blames online struggles on steep taxes and regulations

Greek monopoly OPAP has blamed unfair market conditions and high levels of taxation for a poor online performance in the first quarter of 2016.

Adjusted net profit for the firm in Q1 was down 26% to ?42.8m, with gross gaming revenue (GGR) down 4.4% to ?341m.

The firm did not break out specific online numbers but OPAP IR director, Nikos Polymenakos, told EGR the channel was “not performing as we would expect” and was something “management would be addressing”.

Polymenakos also said OPAP was operating under a “significant handicap” when compared to the 24 online operators with interim licences.

“The majority of these interim licencees are regulated from Malta and other places and there is a significant difference in the requirements of Greek laws compared to other jurisdictions,” he said.

OPAP is subject to the recently agreed 35% GGR tax for operators, retroactive to January, which Polymenakos suggested some competitors were avoiding.

“Total Greek GGR is estimated to be around ?200m, but the taxes paid were only around ?35m, around half of what would have been expected,” said Polymenakos.

“We are the only company paying this new tax rate. If everyone else is paying it on a voluntary basis then it doesn’t make much difference to them.”

OPAP launched its online sports betting product in June 2014, but Polymenakos said the channel still generated “quite a small number” compared to the land-based product.

Last week the operator announced that Ladbrokes’ former international MD Damian Cope would be taking over as CEO in July.