Greece’s ongoing financial crisis and standoff with European leaders could have repercussions that impact the economy that is global.
That impact extends also to the gaming industry, as Greece’s attempts to further avoid defaulting on its debts may prove costly to companies like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, with all the games simply days away from a launch that is planned. Nonetheless, the Hellenic Gaming Commission announced lottery that is new within the wake for the nation’s economic crisis, leaving much doubt as to the short-term future of the industry.
New Regulations Limit Play, Jackpot Size
Under the new regulations, daily loss limits were to be put into the machines, and gamblers would be limited as to how enough time they would be permitted to use a machine each day. Jackpot levels would be reduced under the regulations that are new.
That didn’t sit well with OPAP, the Greek company that operates the video lottery terminal network. In a declaration, the company stated that the brand new regulation would make operating the terminals ‚no longer viable,’ and immediately stopped the deployment of 16,500 machines through the entire country.
Considering the problem realistically, the timing of the brand new regulations and OPAP’s decision that are coincidental, and it is hard to see how it would be directly related to the battle over Greek debt. But that doesn’t imply that the ongoing crisis won’t be considered a element in how a lottery terminal battle is resolved.
‚The delay doesn’t have anything regarding the current financial obligation crises other than 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 just a negotiating tactic on the part of OPAP, maybe it’s a costly one for slot machine manufacturers like IGT and Scientific Games. Both of the companies were terminals that are producing the Geek market, and the delays may potentially cost those two organizations millions in income.
IGT ended up being awarded a merchant contract to provide 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 additionally awarded vendor that is first-phase.
IGT was expected 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 financial crisis have definitely 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 still believe the VLT market will move ahead and represents a growth that is sizable for vendors,’ he said.
The negotiations throughout the future of Greece’s lottery terminals comes at time when much larger battles are now being waged over the country’s monetary future.
Greeks voted ‚no’ on the lending that is strict provided by international creditors on Sunday, with over 61 percent of voters being released against the terms.
But that vote does not mean that Greece isn’t ready to negotiate. Prime Minister Alexis Tsipras says that the Greek government is still ready to create some changes to be able to get assistance from Europe, and requested a loan that is three-year the eurozone’s bailout investment on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having an advertising so far as their stock price is soaring year. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to a yearly high on 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 a growth 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 on the New York Stock Exchange, as investors took the view, shared by JP Morgan, that the takeover is practically a done deal.
‚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 corporate spin-off of penn National Gaming formed in 2013, trades on the NASDAQ and has 21 casino and racino properties across the United States, including the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history straight back to 1938 when Jack L Warner, head of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the business included Walt Disney and Bing Crosby.
The group was known as 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 license owner. It has 26 percent stake in Asian Coast Development Ltd, the master and developer of the Ho Tram Strip in Vietnam, which has benefited from the present 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.
A 28 percent stake of GLPI under the 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.
However, the language GLPI has used, even its press releases, makes it clear that this is usually a takeover that is hostile.
‚GLPI has committed financing set up and it is ready to finalize this deal immediately, and we would expect to close our transaction within approximately six months of signing,’ the ongoing business said in a declaration. ‚Nevertheless, Pinnacle continues to create brand new demands, delaying the signing of the definitive contract and doubting its planet 7 oz aus shareholders a value-creating transaction that is obviously better than Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it could ‚see the prospective advantages’ of the GVC /Amaya deal, as it files another disappointing report that is financial. (Image: pokergruond.com)
Today GVC’s Amaya-backed bid for bwin.party was confirmed by the board.
Yesterday, The Financial circumstances broke the story that GVC had made a $1.4 billion offer to acquire the entire share money of the online gambling firm; today, the bwin.party board said it had been considering the offer and may see the ‚potential benefits’ to bwin.party shareholders.
It ended up being currently committed to resolving number of ‚transaction-related issues,’ it included.
It is unclear 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 of the consideration in new GVC shares,’ said Kenneth Alexander, leader of GVC Holdings, today. ‚Based on the successful Sportingbet acquisition to our experience and restructuring, we think 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 Providing ‚Some regarding the Capital’
Alexander was additionally in a position to concur that Amaya Inc is supplying ‚some of the money’ 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 find the business’s poker operations, thus providing it a foothold in the New Jersey that is regulated market.
It’s believed Amaya would also be given the choice to buy the sportsbook from GVC in the future.
The deal would be a takeover that is reverse of a mix of new GVC shares and money, although all events have actually stressed that there can be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news headlines coincided with another disappointing report that is financial bwin.party, which said that unfavorable sports results had led up 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 12 months.
‚Despite challenging comparatives together with the impact of EU VAT and POC taxation, our company is pleased with our business performance in the very first half,’ bwin,party CEO Norbert Teufelberger said. ‚ We have completed our brand new organisational set-up and streamlined our decision-making processes, significantly improving our operational performance.’
Despite the sports that are poor outcomes Alexander stayed upbeat about the potential of the bwin.party acquisition. ‚It’s been a very hard market for bwin but it’s also been a very hard market for everybody,’ he said. ‚ Through the GVC viewpoint, one that