Published On: Wed, Jan 2nd, 2019

Playtech agrees $32 million payment to Israeli tax authorities

The charge, which would be included in its 2018 accounts as an exceptional item, would be paid over the next 30 days.

London-listed gambling company Playtech said on Wednesday it had agreed to pay Israeli tax authorities additional tax liability of €28 million ($32.16 million; £25.2 million) following an audit of certain Playtech group functions in Israel in the years from 2008 to 2017.

The charge, which would be included in its 2018 accounts as an exceptional item, would be paid over the next 30 days. Therefore no penalties had been imposed by the authorities, Playtech said.

Founded in 1999 by Israeli-Cypriot billionaire Teddy Sagi, Playtech is developing technology for a range of casinos and sports betting products. Sagi has scaled down his holdings to 4.6%, as opposed to 81% at the time of its IPO in London stock exchange. He has since invested in hi-tech companies and real estate.

The intelligence-driven gambling software company said adjusted EBITDA for the year would fall between €320 -€360 million, compared to €322.1 million a year before. The company warned in November of headwinds in Asia that had challenged the group in 2018. It said the Asia sales would fall by nearly half.

In December, Playtech warned that an Italian gambling tax law change to increase taxation on various types of gambling is expected to reduce its 2019 earnings before interest, taxes, depreciation, and amortization by approximately $23-28.5 million.

The company has 5,800 employees across 17 countries including Israel, and is headquartered in the Isle of Man.

 

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