(Reuters) - GVC Holdings (GVC.L) has made a provision of about 200 million euros (£175 million) in its 2017 accounts after its Greek unit was slapped with a tax bill from a local authority.
The tax bill was 186.77 million euros, ‘substantially higher by multiples’ than the revenues generated by the Greek business during the period of assessment, 2010 and 2011, the sports betting firm said in a statement after the market close on Thursday.
GVC did not provide further details but said it planned to appeal.
During the period of the tax assessment, the business was owned by Sportingbet Plc, prior to its acquisition by GVC, the gaming company said in a statement.
The company, which sealed a deal to buy Britain’s largest bookmaker Ladbrokes Coral LCL.L last month, said it expects full-year net gaming revenue from Ladbrokes of around 1 billion euros.
Earlier in the month, the company had forecast core earnings to be at the top of its range after reporting revenue of 873.2 million euros in 2016.
Gambling companies in Britain have seen their share prices hit by reports that the country will slash the top stake on high street betting terminals to just 2 pounds, which would result in job losses and shop closures.
Reporting by Hanna Paul in Bengaluru; Editing by Jane Merriman and Susan Fenton