Greece’s ongoing monetary crisis and standoff with European leaders could have repercussions that impact the economy that is global.
That effect extends also to the gaming industry, as Greece’s attempts to further avoid defaulting on its debts may prove costly to businesses like Global Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, using the games just days away from a launch that is planned. But, the Hellenic Gaming Commission announced lottery that is new within the wake of the country’s financial crisis, leaving much uncertainty regarding the short-term future of the industry.
Brand New Regulations Limit Enjoy, Jackpot Size
Under this new laws, daily loss limits were to be added to the machines, and gamblers would be limited as to how much time they would be permitted to use a machine each day. Jackpot levels would also be lower under the brand new regulations.
That didn’t sit well with OPAP, the Greek company that operates the video lottery terminal network. The company said that the new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines throughout the country in a statement.
Looking at the problem realistically, the timing of the brand new laws and OPAP’s choice that are coincidental, and it is hard to see how it would be directly related to the battle over Greek financial obligation. But it doesn’t mean that the ongoing crisis won’t be described as a factor in how the lottery terminal battle is resolved.
‘The delay does not have anything regarding the present debt crises apart from maybe OPAP playing hardball utilizing the regulators hoping which they will cave because they need the new income tax revenue,’ said Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
Should this be merely a tactic that is negotiating the component of OPAP, it could be a pricey one for slot machine game manufacturers like IGT and Scientific Games. Both of these companies were terminals that are producing the Geek market, and the delays may potentially cost those two businesses millions in revenue.
IGT had been awarded a merchant contract to supply 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 additionally awarded vendor that is first-phase.
IGT was anticipated to make up to $30 million in yearly revenues through the machines provided to Greece, while Scientific Games could bring in as much as $27 million.
The delays as well as the crisis that is financial certainly brought some uncertainty to the Greek video clip lottery terminal market, but Eilers says that in the long term, Greece should still be a profitable market for manufacturers.
‘We nevertheless believe the VLT market will move forward and represents a sizable growth opportunity for vendors,’ he said.
The negotiations over the future of Greece’s lottery terminals comes at time when much larger battles are increasingly being waged within the nation’s financial future.
Greeks voted ‘no’ on the strict lending terms provided by international creditors on Sunday, with more than 61 percent of voters coming out contrary to the terms.
But that vote doesn’t mean that Greece isn’t willing to negotiate. Prime Minister Alexis Tsipras states that the Greek government is still ready in order to make some changes in order to get assistance from Europe, and requested a three-year loan from the eurozone’s bailout fund on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having a banner year as far as their stock price is soaring. (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 offer that is new an increase of $900 million for a bid Pinnacle rebuffed in March.
The news headlines of the proposal delivered Pinnacle’s stock price up by 5.82 percent regarding the New York inventory Exchange, as investors took the view, shared by JP Morgan, that planet 7 oz free chip the takeover is practically a done deal.
‘We have 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 don’t see the probability of a superior bid from another entity,’ JP Morgan Gaming Analyst Joe Greff told the Las Vegas Review Journal on Tuesday.
Bing Crosby No On Board
GLPI, a spin-off that is corporate of nationwide Gaming formed in 2013, trades on the NASDAQ and owns 21 casino and racino properties across the US, including the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history back to 1938 when Jack L Warner, mind of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the company included Walt Disney and Bing Crosby.
The group was initially referred to as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its title to Pinnacle Entertainment when the racetrack had been sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, in addition to a managing stake in the race license owner. It 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 downturn in Macau, as Chinese high-rollers seek to evade the scrutiny associated with government that is chinese.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine new properties to its profile and basically doubling in size.
Under the new proposition, Pinnacle shareholders would also get a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle investors a 28 percent stake of GLPI.
But, 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 set up and is ready to finalize this deal immediately, and we would expect to shut our transaction within approximately six months of signing,’ the business said in a declaration. ‘Nevertheless, Pinnacle continues to create brand new demands, delaying the signing of a definitive contract and denying its shareholders a value-creating transaction that is clearly more advanced than Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it can ‘see the prospective advantages’ for the GVC /Amaya deal, because it files another disappointing report that is financial. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party had been confirmed by the board today.
Yesterday, The Financial Times broke the tale that GVC had produced $1.4 billion offer to find the entire share capital of the internet gambling firm; today, the bwin.party board said it absolutely was considering the offer and might see the ‘potential benefits’ to shareholders that are bwin.party.
It was presently committed to resolving number of ‘transaction-related issues,’ it added.
It is ambiguous whether 888 Holdings, which made an offer for bwin.party in March, remains at the settlement table.
‘Any offer made by GVC for bwin.party would include part associated with the consideration in new GVC shares,’ said Kenneth Alexander, Chief Executive of GVC Holdings, today. ‘Based on our experience with the successful Sportingbet acquisition and restructuring, we believe that the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an excellent chance for both GVC and bwin.party shareholders.’
Amaya Providing ‘Some for the Capital’
Alexander was also in a position to confirm that Amaya Inc is supplying ‘some of this money’ in the deal, and would therefore take ‘some of the assets’ should it proceed.
It’s understood that in the event of the takeover, GVC would own the majority of bwin.party, while Amaya would find the company’s poker operations, thus offering it a foothold in the regulated New Jersey market.
It is believed Amaya would be provided the option to buy the sportsbook from GVC within the future.
The offer would be a reverse takeover comprised of a mixture of new GVC shares and cash, although all events have actually stressed that there may be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news coincided with another disappointing monetary report from bwin.party, which said that unfavorable recreations results had led to a decline in gross win margins for the first half of the season.
The company’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 per cent within the previous year.
‘Despite challenging comparatives together with the impact of EU VAT and POC tax, we are pleased about our company performance in the first half,’ bwin,party CEO Norbert Teufelberger said. ‘ We have completed our new set-up that is organisational streamlined our decision-making processes, significantly improving our operational performance.’
Despite the sports that are poor results Alexander stayed positive about the potential of a bwin.party purchase. ‘It’s been a very market that is difficult bwin however it’s also been a very difficult market for everybody,’ he said. ‘ From the GVC perspective, one that