Newgioco Group (NASDAQ:NWGI), the sports betting and gaming group, has been forced to close about 150 of its betting shops across Italy in the wake of the outbreak of the deadly coronavirus in the Mediterranean country.
Compounding the hit on the Florida company’s business in the country is the Italian government’s move to impose a raft of travel restrictions on ordinary Italians as well as putting limits on trans-border crossings, which could drag down Newgioco’s operating results and hamper its ability to meet filing deadlines. On top of this, a number of professional sports events in Italy and elsewhere have been either postponed or canceled which could diminish sports betting handle and revenues.
"We are closely monitoring the active circumstances and the impact of COVID-19 on our product demand and business," said CEO Michele Ciavarella in a statement.
“Although we have been directly affected by government directives to close all non-essential public gathering venues, which includes all betting shops and bingo halls throughout Italy, the company has recently taken significant steps to expand our global distribution in over thirteen countries."
Ciavarella went on to stress that the company’s long-term fundamentals remain robust and Newgioco is still proceeding according to plan with its planned investments like the development of its US betting platform. Further financial updates, as well as earnings and the publishing of cash flow from operations, will be made available during the fiscal second quarter of this year.