Emergency reorganization at Fair Play Casino
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14 Jan 2025 •
Reading time: 2 minutes For several years, Janshen-Hahnrats Group, the parent company of the famous Fair Play Casino chain, has been facing a financial crisis of rare intensity. The year 2023, although marked by a slight increase in its turnover, ended with a record loss of 16.2 million euros. How did this once flourishing company get to this point?
Difficult years
It all started with the Covid-19 pandemic, which dealt a severe blow to gambling operators. The prolonged closures of physical casinos were followed by an increase in the tax on gambling. This devastating cocktail jeopardized the financial balance of Janshen-Hahnrats.
Despite an increase in turnover, from 56.3 to 60.3 million euros in 2023, fixed costs and depreciation on tangible and intangible assets weighed on the results. The financial balance sheet thus plunged into the red, forcing the company to take drastic measures.
Break with the bank
One of the most significant episodes in this descent into hell was the break with the group’s main bank. Already struggling to meet its financial commitments, Janshen-Hahnrats saw its credit lines gradually restricted in 2023, before being completely cut off on October 1. A situation aggravated by controversial internal management: a financial director allegedly concealed critical correspondence with the bank, further complicating strategic decision-making.
To keep the business afloat, shareholders have injected 10 million euros in recent years, but these efforts seem insufficient given the scale of the crisis.
Towards a second reorganization
Faced with this tense context, a first wave of layoffs took place in the spring of 2024, reducing the workforce by 106 positions. However, this measure was not enough to stabilize the financial situation. With pessimistic forecasts for 2025 and 2026, in particular due to a planned increase in gambling taxes, the company is considering a second reorganization to further reduce its costs.
In a press release, management from Fair Play stated:
“There is considerable uncertainty about our ability to meet our financial obligations in the near future.”
Financial experts believe that Janshen-Hahnrats’ survival will depend on its ability to quickly find alternative financing solutions.
The difficult transition to online gambling
The company had bet on online gaming to revive its growth. However, this sector, although growing, has not met expectations. Intense competition and strict regulations on advertising spending have slowed the growth of this activity.
“Online gambling was supposed to be our lifeline, but the results are far from up to par,” confides a Fair Play’s employee, speaking on condition of anonymity.