NetEnt prevails in Swedish tax ruling
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The Administrative Court of Appeal has ruled on the software firms previously reported dispute with the Swedish Tax Agency (Skatteverket).
NetEnt’s appeal has been approved by the Administrative Court of Appeal, and the earlier ruling by the Tax Agency’s review and the Administrative Court has been reversed. In relation to the dispute, NetEnt will be compensated in the amount of 1.8 MSEK for legal costs. Aside from this, however, the Company’s reported financial position or earnings will not be impacted by the ruling, according to the Business Wire report.
The Administrative Court of Appeal ruling concerns the decision by the Swedish Tax Agency to impose additional taxes on NetEnt of approximately MSEK 94.4 regarding the financial years 2007-2010. That is the amount reported by NetEnt as a contingent liability throughout the course of the dispute.
The Company and its legal advisors have insisted that NetEnt has complied with laws that apply for taxation of its operations. For that reason, the Company has not made any provisions in relation to the dispute. Therefore, with the exception of compensation for legal costs, neither NetEnt’s reported earnings nor financial position will be impacted by the ruling.
In related news, a license agreement has been sealed between NetEnt and Amaya-owned online gaming brand PokerStars in New Jersey. PokerStars, the largest online poker website in the world, was granted a license in the state last year and has been preparing to launch operations since. Under the terms of the agreement, desktop and mobile games will be supplied to PokerStars by NetEnt.
Ahead of the planned official launch scheduled March 21, PokerStars will have a soft-launch next Wednesday in the Garden State. Amaya Gaming announced on Thursday that starting at 4 p.m. local time on March 16, a maximum of 500 players would be allowed by Pokerstarsnj.com to download and test-drive the New Jersey site’s software.
The supplier of digitally distributed gaming systems already has partnerships with several major operations in the state, and now will apply to the New Jersey Division of Gaming Enforcement for a transactional waiver to launch operations with PokerStars. Regulators in the state are still reviewing NetEnt’s application for a full license.
The Administrative Court of Appeal has ruled on the software firms previously reported dispute with the Swedish Tax Agency (Skatteverket).
NetEnt’s appeal has been approved by the Administrative Court of Appeal, and the earlier ruling by the Tax Agency’s review and the Administrative Court has been reversed. In relation to the dispute, NetEnt will be compensated in the amount of 1.8 MSEK for legal costs. Aside from this, however, the Company’s reported financial position or earnings will not be impacted by the ruling, according to the Business Wire report.
The Administrative Court of Ap…