Greece’s ongoing economic crisis and standoff with European leaders could have repercussions that impact the economy that is global.
That effect extends even to the gaming industry, as Greece’s efforts to further avoid defaulting on its debts may prove costly to companies like International 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. Nevertheless, the Hellenic Gaming Commission announced lottery that is new in the wake for the country’s monetary crisis, leaving much doubt as to the short-term future of the industry.
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 also be reduced under the new laws.
That didn’t sit well with OPAP, the Greek firm that operates the video lottery terminal community. In a declaration, the organization 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 country.
Taking a look at the specific situation realistically, the timing of the regulations that are new OPAP’s choice may just be coincidental, and it’s really hard to see how it would be directly related to the battle over Greek financial obligation. But it doesn’t signify the crisis that is ongoingn’t be considered a element in the way the lottery terminal battle is resolved.
‘The delay does not have anything related to the present debt crises apart from maybe OPAP playing hardball utilizing 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 negotiating tactic on the component of OPAP, maybe it’s a pricey one for slot machine game manufacturers like IGT and Scientific Games. Both of those companies were terminals that are producing the Geek market, and the delays may potentially price those two companies millions in revenue.
IGT ended up being awarded a merchant contract to give 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 expected to make up to $30 million in annual revenues from the machines supplied to Greece, while Scientific Games could make as much as $27 million.
The delays plus the crisis that is financial certainly brought some uncertainty to the Greek video lottery terminal market, but Eilers says that in the long run, Greece should still be a lucrative 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 within the future of Greece’s lottery terminals comes at a right time whenever bigger battles are now being waged on the nation’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 doesn’t mean that Greece isn’t prepared to negotiate. Prime Minister Alexis Tsipras states that the Greek government is still willing to produce some changes to be able 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 an advertising year so far as their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to an annual 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 of the proposal delivered Pinnacle’s stock price up by 5.82 percent in 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 tough time envisioning a scenario 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 told the Las Vegas 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 US, including the Penn nationwide Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history right back to 1938 whenever Jack L Warner, head 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, also a stake that is controlling the race permit owner. It has 26 percent stake in Asian Coast developing 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 regarding the Chinese government.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine properties that are new its portfolio 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, causes it to be clear that this is usually a aggressive takeover.
‘GLPI has committed financing in place and it is ready to finalize this transaction immediately, and we would expect to close our transaction within approximately six months of signing,’ the ongoing company said in a declaration. ‘Nevertheless, Pinnacle continues to help make new demands, delaying the signing of the definitive contract and denying its shareholders a value-creating transaction that is actually superior to Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it could ‘see the potential advantages’ of the casino-online-australia.net GVC /Amaya deal, since it files another disappointing report that is financial. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party had been verified by the board today.
Yesterday, The Financial instances broke the tale that GVC had made a $1.4 billion offer to acquire the entire share capital 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 had been 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 made 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 because of the successful Sportingbet acquisition and restructuring, we think 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 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 company’s poker operations, thus giving 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 within the future.
The deal would be a reverse takeover comprised of a mixture of new GVC shares and money, 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 activities results had led 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 as well as the impact of EU VAT and POC income tax, we have been pleased about our company performance in the first half,’ bwin,party CEO Norbert Teufelberger said. ‘ 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 the bwin.party acquisition. ‘It’s been a very hard market for bwin nonetheless it’s also been a very hard market for everyone,’ he said. ‘ Through the GVC perspective, the one that