Austrian gaming operator Novomatic has scrapped plans for an initial public offering due to regulatory uncertainty in its German market operations.

On Tuesday, Novomatic announced that this week’s proposed listing on the Frankfurt exchange would not proceed as planned. The listing was expected to value the company, which has over 26k employees based in 80 countries, at around €5b.

A Reuters source claimed the IPO was put off because of the slower than expected implementation of new German regulations regarding gambling halls, a market in which Novomatic holds a 53% share thanks to its Admiral brand. The company boosted its German presence this spring via the acquisition of slots hall operator Casino Royal.

The new rules require gambling halls to be up to 500m apart from each other, and each hall will be limited to 12 electronic gambling machines (EGM). Novomatic has previously stated that, while it expects these new rules to trim its German EGM footprint by up to 30%, it also expects the remaining machines will get more use.