Greece’s ongoing economic crisis and standoff with European leaders could have repercussions that impact the worldwide economy.
That impact extends even to the gaming industry, as Greece’s efforts to avoid defaulting further on its debts may prove costly to businesses like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, with the games just days away from a launch that is planned. Nonetheless, the Hellenic Gaming Commission announced brand new lottery regulations within the wake regarding the country’s financial crisis, leaving much uncertainty regarding the short-term future of the industry.
Brand New Regulations Limit Play, Jackpot Size
Under the new laws, daily loss limits were to be put into the machines, and gamblers would be limited as to how enough time they would be allowed to play on a machine each day. Jackpot levels would be reduced under the 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.
Considering the problem realistically, the timing of the brand new laws and OPAP’s choice may just be 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 a element in how the lottery terminal battle is resolved.
‘The delay does not have anything to do with the current debt crises apart from maybe OPAP playing hardball using 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 merely a tactic that is negotiating the component of OPAP, maybe it’s a costly one for slot machine game manufacturers like IGT and Scientific Games. Both of these companies were producing terminals for the Geek market, and the delays could potentially cost those two firms millions in revenue.
IGT ended up being awarded a vendor contract to supply 5,500 lottery machines, while Scientific Games was slated to make 5,000 machines for the market. Two European manufacturers, Inspired Gaming and Synot, were also 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 make as much planet 7 oz no deposit codes 2019 as $27 million.
The delays therefore the crisis that is financial definitely brought some uncertainty to the Greek video clip lottery terminal market, but Eilers says that in the long run, Greece should still be a lucrative market for manufacturers.
‘We nevertheless believe the VLT market will move ahead and represents a growth that is sizable for vendors,’ he said.
The negotiations over the future of Greece’s lottery terminals comes at time when bigger battles are now being waged throughout the nation’s monetary future.
Greeks voted ‘no’ on the lending that is strict offered by worldwide creditors on Sunday, with over 61 percent of voters being released against the terms.
But that vote does not mean that Greece isn’t prepared to negotiate. Prime Minister Alexis Tsipras says that the Greek federal government is still ready to produce some changes in an effort to receive assistance from Europe, and asked for 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 an annual at the top of Tuesday 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.
The offer that is new a growth of $900 million for a bid Pinnacle rebuffed in March.
The news of the proposal sent Pinnacle’s stock price up by 5.82 percent in the New York inventory 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 scenario 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 chances 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 spin-off that is corporate of nationwide Gaming formed in 2013, trades on the NASDAQ and has 21 casino and racino properties across the United States, including the Penn nationwide Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history right 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 initially called Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its name to Pinnacle Entertainment when the racetrack had been sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, along with a stake that is controlling the racing permit owner. Additionally has 26 percent stake in Asian Coast Development Ltd, the dog owner 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 for the 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 portfolio and really 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.
But, the language GLPI has used, even its press releases, helps it be clear that it is a takeover that is hostile.
‘GLPI has committed financing set up and is prepared to finalize this transaction immediately, and we would expect to shut our transaction within approximately six months of signing,’ the business said in a statement. ‘Nevertheless, Pinnacle continues to create new demands, delaying the signing of a definitive contract and doubting its investors a value-creating transaction that is actually better than Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it could ‘see the potential advantages’ of this GVC /Amaya deal, as it files another disappointing financial report. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party had been confirmed by the board today.
Yesterday, The Financial occasions broke the tale that GVC had made a $1.4 billion offer to get the entire share money of the internet gambling firm; today, the bwin.party board said it absolutely was considering the offer and could see the ‘potential benefits’ to bwin.party shareholders.
It ended up being currently committed to resolving a true number of ‘transaction-related issues,’ it included.
It is uncertain whether 888 Holdings, which made an offer for bwin.party in March, remains at the settlement table.
‘Any offer produced by GVC for bwin.party would include part regarding the consideration in new GVC shares,’ said Kenneth Alexander, Chief Executive of GVC Holdings, today. ‘Based on our experience with the effective 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 of both GVC and bwin.party shareholders.’
Amaya Offering ‘Some associated with the Capital’
Alexander was additionally able to make sure 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 the takeover, GVC would own the majority of bwin.party, while Amaya would find the company’s poker operations, thus providing it a foothold in the regulated New Jersey market.
It’s believed Amaya would be given the option to buy the sportsbook from GVC into the future.
The deal is a reverse takeover comprised of a combination of new GVC shares and cash, although all parties have stressed that there might be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news headlines coincided with another disappointing monetary report from bwin.party, which said that unfavorable sports results had led to a decline in gross win margins for the first half of the year.
The company’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 percent in the year that is previous.
‘Despite challenging comparatives along with the impact of EU VAT and POC income tax, our company is satisfied with our company performance in the half that is first’ bwin,party CEO Norbert Teufelberger said. ‘ We now have completed our brand new set-up that is organisational streamlined our decision-making processes, significantly improving our operational performance.’
Despite the sports that are poor results Alexander remained upbeat about the potential of a bwin.party purchase. ‘It’s been a very market that is difficult bwin nonetheless it’s also been a very difficult market for everybody,’ he said. ‘ From the GVC viewpoint, one which