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 efforts to avoid defaulting further on its debts may prove costly to organizations like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, because of the games simply days away from a launch that is planned. However, the Hellenic Gaming Commission announced brand new lottery regulations within the wake of this nation’s economic crisis, leaving much doubt regarding the short-term future of the industry.
Brand New Regulations Limit Play, Jackpot Size
Each day under the new regulations, daily loss limits were to be added to the machines, and gamblers would be limited as to how much time they would be allowed to play on a machine. Jackpot levels would be reduced under the regulations that are new.
That didn’t stay well with OPAP, the Greek company that operates the video lottery terminal network. In a declaration, the business 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.
Considering the specific situation realistically, the timing of the regulations that are new OPAP’s choice 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 crisis that is ongoingn’t be described as a element in how the lottery terminal battle is resolved.
‘The delay does not have anything regarding the present debt crises other than maybe OPAP playing hardball with all the regulators hoping they will cave because they require the brand new taxation income,’ said Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
Should this be simply a negotiating tactic on the part of OPAP, it could be a costly one for slot machine game manufacturers like IGT and Scientific Games. Both of the companies were producing terminals for the Geek market, and the delays could potentially price those two firms millions in income.
IGT had been awarded a vendor contract to deliver 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 first-phase merchant contracts.
IGT was expected to make up to $30 million in yearly revenues from the machines offered to Greece, while Scientific Games could bring in as much as $27 million.
The delays and also the financial crisis have certainly brought some uncertainty to the Greek video 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 whenever much larger battles are now being waged on the nation’s economic future.
Greeks voted ‘no’ on the strict lending terms provided by international creditors on Sunday, with more than 61 percent of voters being released against the terms.
But that vote doesn’t mean that Greece isn’t willing to negotiate. Prime Minister Alexis Tsipras claims that the Greek federal government is still ready in order to make some changes to be able to get assistance from Europe, and requested a loan that is three-year the eurozone’s bailout fund on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having an advertising year in terms of their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to a yearly on top of Tuesday after a revised $5 billion takeover bid from Gaming and Leisure Properties (GLPI); a bid that analysts say Pinnacle would be mad to show down.
The new offer represents a rise of $900 million for a bid Pinnacle rebuffed in March.
The headlines of the proposal sent 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 situation where Pinnacle’s board and management could create the exact same value in the same time frame that GLPI’s deal would, and we do not see the likelihood of a superior bid from another entity,’ JP Morgan Gaming Analyst Joe Greff casino-online-australia.net 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 National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history back to 1938 whenever 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 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, also a controlling stake in the race license owner. Additionally has 26 percent stake in Asian Coast Development 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 the government that is chinese.
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 really 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, makes it clear that this may be 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 shut our transaction within approximately six months of signing,’ the company said in a declaration. ‘Nevertheless, Pinnacle continues to make new demands, delaying the signing of a definitive agreement and doubting its investors a value-creating transaction that is clearly superior to Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it can ‘see the potential advantages’ for the GVC /Amaya deal, since 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 occasions broke the tale that GVC had produced $1.4 billion offer to acquire the share that is entire of the online gambling firm; today, the bwin.party board said it had been considering the offer and might see the ‘potential benefits’ to bwin.party shareholders.
It was currently committed to resolving number of ‘transaction-related issues,’ it added.
It is unclear whether 888 Holdings, which made an offer for bwin.party in March, continues to be at the negotiation 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 because of the effective Sportingbet acquisition and restructuring, we think that the potential combination of GVC and bwin.party would result in substantial financial and running synergies and represent an excellent opportunity for both GVC and bwin.party shareholders.’
Amaya Offering ‘Some associated with 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 acquire the company’s poker operations, thus offering it a foothold in the regulated New Jersey market.
It is thought Amaya would be given the also choice to buy the sportsbook from GVC in the future.
The deal is a takeover that is reverse of a combination of new GVC shares and cash, although all events have stressed that there can be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news coincided with another disappointing report that is financial bwin.party, which said that unfavorable recreations results had led up to a decline in gross win margins for the first half of the season.
The business’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 along with the impact of EU VAT and POC tax, our company is pleased with our business performance in the half that is first’ bwin,party CEO Norbert Teufelberger stated. ‘ We now 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 results Alexander remained positive about the potential of a bwin.party acquisition. ‘It’s been a really market that is difficult bwin however it’s also been a very hard market for everybody,’ he said. ‘ From the GVC perspective, one which