German arcade gaming group Lowen Play digital GmbH became one of the few local operators to obtain a license from the Saxony-Anhalt State Administration Office to operate virtual slot machines.
Lowen Play Online
The permission issued by the national gambling regulator in Germany allowed Lowen Play to offer its customers online slot machine games under its Lowen Play Online brand. The group gained popularity in the country via its arcade halls.
Commenting on the key development, Lowen Play’s managing director Patrick Handl hailed the importance of the permit, “delighted to have finally received the license,” stressing the importance for the business to be able to operate virtual slot machines.
“The digital business field is an important pillar in the strategic direction of the Lowen Play Group,” Handl concluded.
The nascent online gaming brand is planning on the continuation and will initially offer its customers many of the classic games they already know from the slot machines at the group’s arcade halls. In the coming weeks, the online brand will make its online game offering even more attractive by bringing new payment methods and expanding the portfolio of games to enhance the player experience.
“With immediate effect, the range of entertainment relating to the Lowen Play brand will be expanded even further into the digital world,” said Marcel Freiberger, country lead and authorized representative of Lowen Play digital GmbH, emphasizing the group’s top priorities in terms of quality and range of games and player responsibility.
With almost 50 years of industry experience operating arcade halls, Lowen Play currently employs around 2,800 people to ensure its customers across more than 400 arcade halls have the best gaming experience the leisure industry can offer while placing the protection of players and minors at the core of its business values.
Financial Troubles Mounted
At the end of last year, Lowen Play had to give its creditors a 95% equity stake as part of a restructuring plan announced by the group’s operating entity, Safari Verwaltungs Gmbh, in December to reinstate the group’s €350 million ($374 million) 5.375% secured notes due 2022 as €220 million ($235 million) 7.75% senior secured notes due 2025.
Earlier, rating agency Moody’s downgraded Lowen Play’s ratings – corporate family rating to Caa3 from Caa1 and probability of default rating to Ca-PD from Caa1-PD – as well as Lowen Play’s instrument rating on the €350 million backed senior secured notes due 2022, issued by Safari Holding Verwaltungs GmbH, to Caa3 from Caa1, due to heightened restructuring risk.
Lowen Play was negatively affected by regulatory headwinds and pandemic-related restrictions and lockdowns, which weighed on its financial results, made it hard to manage its debt, and even questioned the sustainability of the group’s operating model.