Bwin Shares Slide on German Legal Setback

17 March 2008

Shares in Bwin fell 7 percent today on news the Vienna-listed bookmaker suffered a setback in a long-running case currently before the German Federal Court of Justice.

The case involves German lottery operator Westlotto, which in 2004 initiated legal proceedings against Bwin seeking to prevent it from advertising and operating in the country.

On Friday, Bwin learned that its motion to suspend the Westlotto proceedings against it was dismissed.

Bwin said that the case continues and that if it loses on appeal, "any penalties that may be imposed as a result of enforcement orders could have a material adverse effect on the company's results."

In February 2006, Westlotto was awarded a decision that effectively stopped Bwin from operating in Germany and sought to have it enforced before a final appeal ruling expected next year.

Bwin said it was confident it would win the case, adding that it will continue to offer its services in Germany via its and domains., moreover, operates under a German license and is not party to these proceedings, the company said.

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