Greek Financial Meltdown 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 prove costly to organizations like International 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 launch that is planned. Nonetheless, the Hellenic Gaming Commission announced lottery that is new into the wake of the nation’s financial crisis, leaving much doubt regarding the short-term future of the industry.
New Regulations Limit Play, Jackpot Size
Under the newest regulations, daily loss limits were become put into the machines, and gamblers would be limited as to how much time they would be allowed to use a machine each day. Jackpot levels would additionally be reduced under the new laws.
That didn’t stay well with OPAP, the Greek company that operates the video lottery terminal community. In a statement, 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 country.
Evaluating the problem realistically, the timing of the brand new laws and OPAP’s decision that are coincidental, and it is hard to see how it will be directly related to the battle over Greek financial obligation. But it doesn’t imply that 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 regarding the current 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 simply a tactic that is negotiating the component of OPAP, it could be a pricey one for slot machine game manufacturers like IGT and Scientific Games. Both of those companies were creating terminals for the Geek market, and the delays could potentially price those two firms millions in revenue.
IGT ended up being awarded a vendor contract to offer 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 also awarded vendor that is first-phase.
IGT was likely to make up to $30 million in annual revenues from the machines provided 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 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 forward and represents a sizable growth possibility for vendors,’ he said.
The negotiations within the future of Greece’s lottery terminals comes at a right time when bigger battles are increasingly being waged on the nation’s monetary future.
Greeks voted ‘no’ on the strict lending terms made available from worldwide creditors on Sunday, with more than 61 percent of voters developing against the terms.
But that vote does not mean that Greece isn’t willing to negotiate. Prime Minister Alexis Tsipras states that the Greek government is still ready to produce some changes in order to get 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 an advertising year in terms of their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to a yearly at the top of Tuesday 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.
The brand new offer represents a growth of $900 million for a bid Pinnacle rebuffed in March.
The news headlines of the proposal sent 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 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 do not see the chances 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 spin-off that is corporate of nationwide Gaming formed in 2013, trades on the NASDAQ and owns 21 casino and racino properties across the US, including the Penn nationwide Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history back to 1938 when Jack L Warner, head of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the ongoing company 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 ended up being 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. 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 present economic depression 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 new properties to its portfolio and basically 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 investors a 28 % stake of GLPI.
But, the language GLPI has used, even its press releases, makes it clear that this may be a aggressive takeover.
‘GLPI has committed financing set up and it is prepared to finalize this transaction 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 produce new demands, delaying the signing of the definitive contract and denying its investors a value-creating transaction that is obviously superior to Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it can ‘see the possible benefits’ of this GVC /Amaya deal, as it files another disappointing report that is financial. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party ended up being confirmed by the board today.
Yesterday, The Financial circumstances broke the tale that GVC had made a $1.4 billion offer to find the entire share money of the internet gambling firm; today, the bwin.party board said it absolutely was considering the offer and could see the ‘potential benefits’ to shareholders that are bwin.party.
It was currently committed to resolving a true number of ‘transaction-related issues,’ it included.
It is confusing whether 888 Holdings, which made an offer for bwin.party in March, continues to be at the settlement table.
‘Any offer produced 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 our experience with 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 chance for both GVC and bwin.party shareholders.’
Amaya Offering ‘Some associated with Capital’
Alexander was also in a position to make sure 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 the takeover, GVC would own nearly all bwin.party, while Amaya would get the business’s poker operations, thus providing it a foothold in the New Jersey that is regulated market.
It is believed Amaya would be given the also choice to buy the sportsbook from GVC in the future.
The offer would be a reverse takeover comprised of a combination of new GVC shares and money, although all parties have actually stressed that there may be no certainty that the deal will be accepted.
Poor Sportsbook Results
The headlines coincided with another disappointing economic report from bwin.party, which said that unfavorable recreations results had led 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 per cent within the previous 12 months.
‘Despite challenging comparatives as well as the impact of EU VAT and POC taxation, our company is pleased with our business performance in the first half,’ bwin,party CEO Norbert Teufelberger stated. ‘ We have completed our brand new organisational set-up and streamlined our decision-making procedures, significantly improving our operational performance.’
Despite the sports that are poor results Alexander remained positive about the potential of the bwin.party purchase. ‘It’s been an extremely market that is difficult bwin nonetheless it’s also been an extremely tough market for everybody,’ he said. ‘ From the GVC perspective, the one that