According to the company website, JVH gaming has been providing people with exciting recreation options for over 50 years. The core activity of JVH gaming consists of marketing a broad variety of games of chance as well as operating these games in catering establishments and in its own 45 casinos and amusement centres in the Netherlands. The company’s aim to have as many locations as possible operating under the formula of Jack’s Casino has not been helped recently by accrued debt.

On 1 July 2008 new tax laws for gaming companies came into effect and JVH gaming has been struggling ever since. The tax rate on gross revenues went from 11% to 29%. Creditors such as Bank of Ireland and CIBC World Markets will now be paid under an agreement with the company’s private equity owner, Waterland Private Equity, which will inject more money into the company.

Waterland, a Dutch private equity firm, provides expansion capital to medium-sized companies to achieve growth. It focuses on companies providing products and services for leisure and luxury, outsourcing and efficiency, an ageing population, and sustainability. However, it is not only gaming companies that are facing higher taxes. The Dutch government recently postponed a vote on a bill that would increase tax on venture capital profits from 1.2% to 52% on ‘lucrative interests.’

Rob Thielen of Waterland Private Equity commented: “This is a slap in the face. Many will move operations to Luxemburg and Belgium. We are entrepreneurs. We take the risk.” Waterland is rescuing JVH gaming by paying off its €295 million (US$433 million) debt at a discount. (E-08.21.08)

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