Greek Financial Crisis May Impact IGT. Prime Minister Alexis Tsipras says
Greece’s ongoing economic crisis and standoff with European leaders could have repercussions that impact the international economy.
That impact extends also to the gaming industry, as Greece’s attempts to avoid defaulting further on its debts may prove costly to companies like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, utilizing the games simply days away from a planned launch. However, the Hellenic Gaming Commission announced lottery that is new in the wake for the country’s financial crisis, leaving much doubt regarding the short-term future of the industry.
Brand New Regulations Limit Enjoy, Jackpot Size
Under this new laws, daily loss limits were become put into 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 be lower under the new regulations.
That didn’t sit well with OPAP, the Greek company that operates the video lottery terminal network. In a declaration, the business stated that the new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines through the entire country.
Evaluating the specific situation realistically, the timing of the new regulations and OPAP’s decision that are coincidental, and it’s really hard to see how it would be directly related to the battle over Greek financial obligation. But that does not signify the ongoing crisis won’t be considered a element in how the lottery terminal battle is resolved.
‘The delay doesn’t have anything related to the present 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 part of OPAP, maybe it’s a pricey one for slot machine game manufacturers like IGT and Scientific Games. Both of the companies were creating terminals for the Geek market, and the delays may potentially price those two companies millions in revenue.
IGT ended up being 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 also awarded vendor that is first-phase.
IGT was likely to make up to $30 million in annual revenues through the machines provided to Greece, while Scientific Games could generate as much as $27 million.
The delays therefore the financial crisis have undoubtedly brought some uncertainty to the Greek video lottery terminal market, but Eilers says that in the long term, Greece should still be a lucrative market for manufacturers.
‘We nevertheless believe the VLT market will move forward and represents a growth that is sizable for vendors,’ he said.
The negotiations on the future of Greece’s lottery terminals comes at a right time whenever bigger battles are now being waged on the nation’s financial future.
Greeks voted ‘no’ on the lending that is strict made available from international creditors on Sunday, with more than 61 percent of voters developing 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 ready to help make some changes so as 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 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 a rise 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 Stock Exchange, as investors took the view, shared by JP Morgan, that the takeover is practically a deal that is done.
‘We have a tough time envisioning 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 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 corporate spin-off of penn nationwide Gaming formed in 2013, trades on the NASDAQ and owns 21 casino and racino properties across the US, such as the Penn National 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 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 managing stake in the race license owner. In addition has 26 percent stake in Asian Coast developing Ltd, the owner 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 essentially 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.
Nonetheless, the language GLPI has used, even its press releases, helps it https://casino-online-australia.net/planet-7-oz-casino-review/ be clear that it is a hostile takeover.
‘GLPI has committed financing in place 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 statement. ‘Nevertheless, Pinnacle continues to make new demands, delaying the signing of a definitive contract and denying its shareholders a value-creating transaction that is obviously more advanced than Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it could ‘see the potential benefits’ regarding the GVC /Amaya deal, as it files another disappointing financial report. (Image: pokergruond.com)
Today GVC’s Amaya-backed bid for bwin.party was confirmed by the board.
Yesterday, The Financial Times broke the tale that GVC had made a $1.4 billion offer to get 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 presently committed to resolving number of ‘transaction-related issues,’ it included.
It is confusing 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 Today would include part of the consideration in new GVC shares,’ said Kenneth Alexander, Chief Executive of GVC Holdings. ‘Based on our experience utilizing 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 window of opportunity for both GVC and bwin.party shareholders.’
Amaya Providing ‘Some associated with Capital’
Alexander was additionally able to confirm 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 the takeover, GVC would own nearly all bwin.party, while Amaya would get the company’s poker operations, thus providing it a foothold in the regulated New Jersey market.
It is thought Amaya would be given the also option to buy the sportsbook from GVC in the future.
The deal is a takeover that is reverse of a mix of new GVC shares and cash, although all events have actually stressed that there can be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news coincided with another disappointing financial report from bwin.party, which said that unfavorable activities results had led up 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 within the year that is previous.
‘Despite challenging comparatives as well as the impact of EU VAT and POC taxation, we’re pleased about our business performance in the very first half,’ bwin,party CEO Norbert Teufelberger stated. ‘ We now 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 outcomes Alexander stayed upbeat about the potential of a bwin.party acquisition. ‘It’s been a very difficult market for bwin however it’s also been an extremely tough market for all,’ he said. ‘ Through the GVC perspective, the one that