Folding in India, gaming companies lose big
[hfe_template id='11223']
[ad_1]
Gaming companies have reported sizeable writedowns on India-linked assets for the September quarter, underscoring the sharp impact of India’s real-money gaming (RMG) ban on corporate earnings. Although the ban has been in effect since August, the latest earnings cycle marks the first significant balance sheet impact beyond the immediate shutdown of cash gaming operations. US-headquartered Flutter Entertainment booked impairment of $556 million this quarter after India unit Junglee Games halted money-based rummy operations. Canada-based private equity firm Clairvest Group wrote off its investment in Head Digital Works, the operator of A23 Rummy. “In the second quarter, Head Digital Works experienced a material adverse regulatory development resulting from the Government of India enacting a law which bans real-money gaming and associated facilitations,” Clairvest said in a quarterly earnings disclosure. “This development has made it illegal...