The Supreme Administrative Court of Poland has ruled that casinos acting as a taxpayer must calculate, collect and pass on to the Polish tax authorities personal income tax on all tips received by employees from casino customers.
Casinos Poland described the announcement as ‘unfavourable news.’
Peter Hoetzinger, Vice Chairman of the Board, President, Co-Chief Executive Officer of Century Casinos, which owns 66 per cent of Casinos Poland, said: “The verdict is final, but we have not yet received the written justification. That will be issued by the court within about two or three weeks. That ruling, stating that tips are part of the salary of our casino employees could also have negative consequences on certain Social Security charges of Casinos Poland. The exact financial impact including a potential write-off of the goodwill we have on our books for Casinos Poland is not yet known and is being analysed by our tax advisors. It is really bad news and could lead to a significant one-time hit to our income statement in the first half of this year. But we will move on and focus even more on operating and profit margin development at all nine properties of Casinos Poland.”
Casinos Poland delivered the news following what it described as ‘another good quarter.’ Net operating revenue was up nine per cent and EBITDA was up14 per cent.
Mr. Hoetzinger added: “We operate 500 gaming machines and 82 gaming tables at nine locations throughout Poland. Everything increased; table game revenue just slightly, F&B revenue by 17 per cent but the strongest driver was once again the slot floor with slot machine revenue up 33 per cent. Slot coin-in was up even more, at 51 per cent. The higher slot volume is a direct result of us providing a better slot machine product in our casinos. We have successful implemented a slot player loyalty program and have seen the closure of the last non-casino slot arcades throughout the country.”