Meridianbet will pursue legal avenues to return to Brazil

Meridian Holdings has decided to remain in Brazil and pursue legal avenues to restart its betting business. CEO Zoran Milosevic announced the decision to investors after the country banned fixed-odds betting. Meridianbet has suspended its local operations, including fixed-odds betting and online casino games.

Milosevic said the company is keeping a downsized office in Brazil and is evaluating its legal options. In his view, the company is determined to use every legal means available to restart its business. It was noted that Brazil's Supreme Court is reviewing whether the regulation is constitutional, while Congress could amend or reject the regulation.

The company's third-quarter revenue was $46 million, down 3% from the same period a year earlier. Net loss attributable to the company was $13.3 million, while total net loss was $14.7 million. The group recorded $11.5 million in non-cash impairment charges this quarter.

Of these charges, $5.5 million is related to the Brazil license and related intangible assets. Another $5.9 million relates to goodwill in a reporting unit that includes other businesses and arose from ongoing operating losses. Adjusted EBITDA fell to $0.4 million from $4.8 million a year earlier.