Löwen firms announce merger as German regulation hits industry

Löwen firms announce merger as German regulation hits industry

Friday, December 1, 2017 Posted by Michael Lawson
The company hopes to increase effectiveness and efficiency by doing so.

Löwen Gruppe subsidiaries Crown Technologies and Hirscher Moneysystems will merge into parent company Löwen Entertainment from the beginning of 2018. The company expects to increase effectiveness and efficiency by doing so.

Christian Arras, Chairman of the Executive Board at Löwen Entertainment, told TotallyGaming.com: “The example of Löwen Crown Service or Löwen Crown Vertrieb clearly shows that the Löwen-Gruppe profits enormously from the focus provided by restructuring.

“With the merger of Crown Technologies and Hirscher Moneysystems with Löwen Entertainment, we are combining the expertise of our employees and moving even closer together as a company.

“Nothing about our renowned sales and service structures will change. However, customers will find they profit a great deal from our increased performance.”

It’s believed that the merger is a response to the tightening of gambling regulations in Germany. The new regulations, implemented in September, state that arcades may only apply for one license per venue to hold a maximum of 12 slot machines.

Officially, 12 had also been the maximum amount of machines permitted, but operators have swerved the rules by obtaining multiple licenses and hosting several “separate” arcades in different rooms in the same building, each with its own entrance.

However this loophole has now been blocked, and the industry says it will result in the demise of thousands of amusement arcades and put up to 70,000 people out of work. The damage to the Treasury from lost taxes could be as much as €1.4 billion (£1.23 billion).

Löwen Director Daniel Henzgen previously noted how the firm is “fighting for every location”.

Totally Gaming says: The German gaming industry still has a lot of question marks hanging over it, after the government’s tightening of regulation back in September. A number of betting companies have been affected by this crackdown, and although Löwen don’t explicitly cite this as the reason for the merger, it’s quite possible that it was implemented in order to tighten things up and protect from the potential loss in revenue.   

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