Holland Casino Saw €60m Loss in 2020
State-owned Dutch casino operator Holland Casino has released its annual report for 2020, revealing that the operator experienced a 53.8% drop in revenue compared to 2019. This amounts to a €58.8 million loss, resulting in a total of €333 million. Visitor numbers were also down 60% year-on-year, leveling out at 2.5 million.
In its recently released annual report for 2020, state-owned Dutch casino operator Holland Casino revealed how it experienced a 53.8% drop in revenue compared to 2019, amounting to a total €58.8 million loss. ©Pexels/Pixabay
Visitor Numbers Also Down in 2020, While Average Spend Went Up
Dutch state-owned and run casino operator Holland Casino recently released its annual report covering the year 2020, in which it revealed that it experienced a 53.8% drop in revenue for the year compared to 2019.
This amounted to a €58.8 million loss in revenue, almost €60 million, leaving the casino operator at a total generated revenue for the year of €333 million.
Due to ongoing restrictions and periods of nationwide lockdown being imposed as a result of the global spread of the coronavirus (Covid-19), the operator only had 14 of its physical venues open for just 71 days throughout the year.
Naturally, this meant that overall visitor numbers were down a whopping 60% when compared to 2019, leveling out at only 2.5 million.
Interestingly enough, however, was that the average spend per visit increased by 13.7%, up from €117 in 2019 to €133 in 2020.
Holland Casino attributed this change to a “different visitor mix” being present at their various physical locations.
Majority of Revenue Generated by Slot Machines
The operator’s report also revealed that the biggest contributor to its €333 million total revenue for 2020 were slot machines, bringing in a total of €185.9 million in revenue.
Table games, meanwhile, also brought in a significant €124.7 million, while tips generated €10.7 million, food and beverage €10.3 million, and finally other benefits approximately €1.4 million.
Gambling taxes also dropped by 53.8% for Holland Casino in 2020, down to €94.5 million, with the operator being able to defer €74.9 million of the total amount.
When combining all of the above factors together with operating expenses, which were themselves down from €442.5 million in 2019 to €318 million in 2020, Holland Casino experienced a loss before corporation tax of €80.7 million.
The operator’s net profit before tax in 2019 was €86.9 million.
However, Holland Casino then received a corporation tax benefit of €21.9 million, resulting in loss of €58.8 million for the casino operator in 2020.
Holland Casinos Assures it Remains Financially Robust
While Dutch casino operator Holland Casino experienced significant losses in 2020 due to the challenges posed by the coronavirus (Covid-19) pandemic, it assured observers that it remains financially robust, with solid liquidity, and therefore continues to invest strategically in its future.
Holland Casino chief executive Erwin van Lambaart reassured the public by citing government support measures and strategic future investments as one of several reasons why the casino operator will overcome this challenging period:
“Despite the constantly changing circumstances and major challenges that this crisis year caused, I firmly believe that we will get through it well. This is due to the resilience of our people, general government support measures, focus on cost control and a clear strategic investment vision for the future. Together, this has meant that we were always able to anticipate the consequences of this crisis.”– Erwin van Lambaart, Chief Executive, Holland Casino
Operator Plans to Gradually Reopen Venues as Part of Pilot Program
Holland Casino’s cautious optimism for the future can no doubt be seen in its recent announcement that its physical venues would be allowed to gradually reopen at the end of April as part of a pilot program.
This news follows the shutdown of virtually all of its physical locations since December last year.
During the weekend of the 24th and 25th April, 2021, six of Holland Casino’s venues across the Netherlands will be permitted to open for one day.
Casinos in Enschede, Venlo and Breda will be able to open on Saturday, April 24th, while casinos in Amsterdam West, Utrecht and Leeuwarden will see open doors on Sunday, April 25th.
The latest government restrictions mean that all visitors must make a reservation before being able to visit the casino and must also bring with them proof of a negative Covid-19 test.
This latest pilot program aims to see if comprehensive Covid-19 testing will allow its physical venues to reopen sooner than expected.
Holland Casinos Previously Shuttered All Venues in December 2020
As previously mentioned, Holland Casino, the primary state-owned casino operator in the Netherlands, was forced to shut all of its land-based operations back in December 2020.
The closures were in response to the Dutch government tightening regulations over the holiday period following a spike in coronavirus (Covid-19) cases in the small European nation.
Dutch prime minister Mark Rutte ordered all non-essential shops and businesses, gyms, museums, cinemas and theatres to close for five weeks.
A partial lockdown that was in place since mid-October 2020 failed to significantly lower the spread of the coronavirus (Covid-19).
Holland Casino was first forced to shut down all of its physical locations in mid-March 2020, following the first outbreak of the coronavirus (Covid-19) pandemic across Europe.
After successful attempts at lobbying the Dutch government, all physical casinos were allowed to open up from July 1st, 2020 — only to be forced to close their doors at midnight following the imposition of a nightly curfew in September.
As the second wave of the coronavirus (Covid-19) started to spread across Europe in November 2020, Holland Casino was forced to shut down operations for the second time in 2020.
