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 economy that is global.
That impact extends even to the gaming industry, as Greece’s efforts to avoid defaulting further on its debts may show costly to organizations like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, utilizing the games simply days away from a planned launch. Nevertheless, the Hellenic Gaming Commission announced lottery that is new within the wake of the country’s monetary crisis, leaving much uncertainty regarding 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 be lower under planet 7 oz 25 free spins the regulations that are new.
That didn’t stay well with OPAP, the Greek firm that operates the video lottery terminal network. In a statement, the organization said 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.
Evaluating the situation realistically, the timing of the new regulations and OPAP’s decision may just be coincidental, and it’s 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 considered a element in how a lottery terminal battle is resolved.
‘The delay doesn’t have anything related to the present debt crises apart from maybe OPAP playing hardball with 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
Should this be just a negotiating tactic on the part of OPAP, it may be a pricey one for slot machine game manufacturers like IGT and Scientific Games. Both of the companies were terminals that are producing the Geek market, and the delays may potentially price those two firms millions in income.
IGT ended up being awarded a vendor contract to provide 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 first-phase merchant contracts.
IGT was likely to make up to $30 million in yearly revenues from the machines supplied to Greece, while Scientific Games could make as much as $27 million.
The delays therefore the financial crisis have certainly brought some uncertainty to the Greek video clip lottery terminal market, but Eilers says that in the long run, Greece should still be a profitable 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 within the future of Greece’s lottery terminals comes at time when much bigger battles are now being waged over the nation’s monetary future.
Greeks voted ‘no’ on the lending that is strict provided by worldwide creditors on Sunday, with over 61 percent of voters being released contrary to the terms.
But that vote doesn’t mean that Greece isn’t willing to negotiate. Prime Minister Alexis Tsipras states that the Greek federal government is still prepared to produce some changes in an effort to receive assistance from Europe, and asked for 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 at the 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 growth 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 in the New York inventory Exchange, as investors took the view, shared by JP Morgan, that the takeover is practically a done deal.
‘We have a tough time envisioning a situation 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, 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, like the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history right back to 1938 when 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 name to Pinnacle Entertainment when the racetrack ended up being 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 developing Ltd, the master and developer 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 for 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 portfolio and essentially doubling in size.
Under the new proposition, Pinnacle shareholders would also get a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle shareholders a 28 % stake of GLPI.
But, the language GLPI has used, even its press releases, makes it clear that this is usually a aggressive takeover.
‘GLPI has committed financing set up and it is prepared to finalize this deal immediately, and we would expect to shut our transaction within approximately six months of signing,’ the ongoing business said in a declaration. ‘Nevertheless, Pinnacle continues to make new demands, delaying the signing of a definitive agreement and denying its shareholders 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 may ‘see the prospective advantages’ regarding the GVC /Amaya deal, because 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 capital of the web gambling firm; today, the bwin.party board said it absolutely was considering the offer and may see the ‘potential benefits’ to bwin.party shareholders.
It was currently committed to resolving number of ‘transaction-related issues,’ it added.
It is ambiguous 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 using the effective Sportingbet acquisition and restructuring, we believe 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 this capital’ 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 acquire the company’s poker operations, thus providing it a foothold in the regulated New Jersey market.
It’s thought Amaya would additionally be provided the choice to buy the sportsbook from GVC in the future.
The offer would be a reverse takeover comprised of a mixture 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 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 season.
The company’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 per cent in the previous year.
‘Despite challenging comparatives as well as the impact of EU VAT and POC tax, our company is pleased about our company performance in the half that is first’ bwin,party CEO Norbert Teufelberger stated. ‘ We now have completed our new organisational set-up and streamlined our decision-making procedures, significantly improving our operational performance.’
Despite the poor sports book results Alexander remained positive about the potential of the bwin.party acquisition. ‘It’s been a really difficult market for bwin nonetheless it’s also been a very difficult market for all,’ he said. ‘ From the GVC perspective, one which