Odyssey Europe Holdco S.à r.l

As a consequence, Olympic will need to close seven venues by the end of 2022. Moreover, Riga City Council is now considering expanding the same ban to the entire city, and, if approved, 23 additional Olympic venues will have to close by end-2024. The stable outlook reflects our expectation that Olympic will maintain its leverage at around 4.5x for the next 12 months, while continuing to generate positive FOCF. The stable outlook also reflects our expectation that the financial sponsors will keep their commitment to maintaining a financial policy that supports moderate deleveraging through EBITDA growth, along with adequate liquidity. We could lower the rating over the next 12 months if the company reported revenues materially below our base-case forecast,

...Regulatory and reputational risk add pressure to the company's profitability and future growth.European gaming companies are facing increasing regulatory and fiscal challenges, as governments attempt to tackle the social risks associated with gambling. The regulatory environment in the Baltic region has historically been more favorable and stable than in other European countries. However, Estonia-based gaming company, Odyssey Europe Holdco S.a.r.l's (Olympic Entertainment Group AS's) operations could be affected by a series of government decisions. In 2018, Latvia increased taxes per device by 30%, and in 2019, Italy further increased its gaming tax on slot machines. Meanwhile, in 2017, Riga City Council introduced a law to ban gambling venues in the city's historical centre, except those located in four-star or five-star hotels. As a consequence, Olympic will need to close seven venues by the end of 2022. Moreover, Riga City Council is now considering expanding the same ban to the entire...

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