Greece’s ongoing monetary crisis and standoff with European leaders could have repercussions that impact the worldwide economy.
That effect extends even to the gaming industry, as Greece’s attempts to avoid defaulting further on its debts may show costly to companies like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, with all the games just days away from a launch that is planned. However, the Hellenic Gaming Commission announced new lottery regulations into the wake regarding the country’s economic crisis, leaving much uncertainty as to the short-term future of the industry.
New Regulations Limit Enjoy, Jackpot Size
Under this new laws, daily loss limits were become added to the machines, and gamblers would be limited as to how long they would be permitted to use a machine every day. Jackpot levels would also be reduced under the brand new regulations.
That didn’t stay well with OPAP, the Greek company that operates the video lottery terminal network. In a declaration, the organization stated that the new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines through the country.
Considering the situation realistically, the timing of the brand new laws and OPAP’s choice that are coincidental, and it is hard to see how it might be directly related to the battle over Greek financial obligation. But it doesn’t imply that the crisis that is ongoingn’t be considered a element in the way the lottery terminal battle is resolved.
‘The delay doesn’t have anything regarding the existing financial obligation crises other than maybe OPAP playing hardball with the regulators hoping because they need the new tax revenue,’ said Todd Eilers of Eilers Research that they will cave.
IGT, Scientific Games Could Lose Revenue
If this is just a negotiating tactic on the part of OPAP, it could be an expensive one for slot machine manufacturers like IGT and Scientific Games. Both of those companies were terminals that are producing the Geek market, and the delays may potentially price those two organizations millions in income.
IGT had been awarded a vendor contract to give 5,500 lottery machines, while Scientific Games was slated to make 5,000 devices for the market. Two European manufacturers, Inspired Gaming and Synot, were also awarded first-phase merchant contracts.
IGT was anticipated to make up to $30 million in annual revenues through the machines offered to Greece, while Scientific Games could bring in as much as $27 million.
The delays plus the crisis that is financial definitely brought some uncertainty to the Greek video lottery terminal market, but Eilers says that in the long run, Greece should still be a lucrative market for manufacturers.
‘We still believe the VLT market will move ahead and represents a sizable growth possibility for vendors,’ he said.
The negotiations within the future of Greece’s lottery terminals comes at time when much larger battles are increasingly being waged on the nation’s monetary future.
Greeks voted ‘no’ on the lending that is strict made available from international creditors on Sunday, with more than 61 percent of voters being released contrary to the terms.
But that vote does not mean that Greece isn’t willing to negotiate. Prime Minister Alexis Tsipras states that the Greek federal government is still prepared to help make some changes in order to get assistance from Europe, and requested a three-year loan from the eurozone’s bailout investment on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having a banner so far as their stock price is soaring year. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to a yearly on top of following a revised $5 billion takeover bid from Gaming and Leisure Properties (GLPI); a bid that analysts say Pinnacle would be mad to turn down tuesday.
The brand new offer represents a rise of $900 million for a bid Pinnacle rebuffed in March.
The news of the proposal delivered Pinnacle’s stock price up by 5.82 percent in the New York Stock Exchange, as investors took the view, shared by JP Morgan, that the takeover is practically a deal that is done.
‘We have a time that is tough a situation where Pinnacle’s board and management could create the same value in the same time frame that GLPI’s deal would, and we do not see the probability of a superior bid from another entity,’ JP Morgan Gaming Analyst Joe Greff told the nevada Review Journal on Tuesday.
Bing Crosby No On Board
GLPI, a corporate spin-off of penn National Gaming formed in 2013, trades on the NASDAQ and owns 21 casino and racino properties across the US, like the Penn nationwide Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history straight back to 1938 when Jack L Warner, mind of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the ongoing business included Walt Disney and Bing Crosby.
The group was known as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its title to Pinnacle Entertainment when the racetrack was sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, as well as a stake that is controlling the race permit owner. In addition has 26 percent stake in Asian Coast developing Ltd, the master and designer of the Ho Tram Strip in Vietnam, which has benefited from the recent economic depression in Macau, as Chinese high-rollers seek to evade the scrutiny regarding the Chinese government.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine properties that are new its profile and basically doubling in size.
Under the brand new proposition, Pinnacle shareholders would also receive a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle shareholders a 28 per cent stake of GLPI.
However, the language GLPI has used, even its press releases, causes it to be clear that this may be a takeover that is hostile.
‘GLPI has committed financing in place and is ready to finalize this deal immediately, and we would expect to close our transaction within approximately six months of signing,’ the business said in a declaration. ‘Nevertheless, Pinnacle continues to produce brand new demands, delaying the signing of a definitive agreement and doubting its investors a value-creating transaction that is actually more advanced than Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it can ‘see the potential advantages’ of this GVC /Amaya deal, because it files another disappointing report that is financial. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party ended up being confirmed by the board today.
Yesterday, The Financial instances broke the story that GVC had made a $1.4 billion offer to acquire the share that is entire of the online gambling firm; today, the bwin.party board said it was considering the offer and might see the ‘potential benefits’ to bwin.party shareholders.
It had been presently committed to resolving a true number of ‘transaction-related issues,’ it added.
It is not clear whether 888 Holdings, which made an offer for bwin.party in March, is still at the settlement table.
‘Any offer made by GVC for bwin.party Today would include part of the consideration in new GVC shares,’ said Kenneth Alexander, Chief Executive of GVC Holdings. ‘Based on the successful Sportingbet acquisition to our experience and restructuring, we believe that the potential combination of GVC and bwin.party would result in substantial financial and running synergies and represent an opportunity that is excellent both GVC and bwin.party shareholders.’
Amaya Offering ‘Some associated with the Capital’
Alexander was additionally able to concur that Amaya Inc is supplying ‘some of this capital’ in the deal, and would therefore take ‘some of the assets’ should it proceed.
It’s understood that in the event of a takeover, GVC would own the majority of bwin.party, while Amaya would acquire the company’s poker operations, thus offering it a foothold in the New Jersey that is regulated market.
It’s believed Amaya would be given the choice to buy the sportsbook from GVC within the future.
The offer could be a reverse takeover comprised of a combination of new GVC shares and money, although all events have stressed that there might be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news headlines coincided with another disappointing financial report from bwin.party, which said that unfavorable activities results had led to a decline in gross win margins for the first half of the year.
The business’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 % within the previous year.
‘Despite challenging comparatives as well as the impact of EU VAT and POC tax, we have been pleased about our business performance in the half that is first’ bwin,party CEO Norbert Teufelberger said. ‘ We now have completed our new set-up that is organisational streamlined our decision-making procedures, significantly improving our operational performance.’
Despite the poor sports book results Alexander remained upbeat about the potential of the bwin.party acquisition. ‘It’s been a really market that is difficult bwin nonetheless it’s also been a very hard market for everyone,’ he said. ‘ From the GVC viewpoint, the one that