Greece’s ongoing economic crisis and standoff with European leaders could have repercussions that impact the economy that is global.
That impact extends also to the gaming industry, as Greece’s efforts to further avoid defaulting on its debts may show costly to organizations like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, with the games just days away from a planned launch. Nonetheless, the Hellenic Gaming Commission announced brand new lottery regulations within the wake of this nation’s monetary crisis, leaving much doubt regarding the short-term future of the industry.
New Regulations Limit Enjoy, Jackpot Size
Under the brand new regulations, daily loss limits were become included with the machines, and gamblers would be limited as to how enough time they would be permitted to use a machine every day. Jackpot levels would be lower under the brand new regulations.
That didn’t sit well with OPAP, the Greek company that operates the video lottery terminal community. 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 through the country.
Taking a look at the situation realistically, the timing of the regulations that are new OPAP’s choice may just be coincidental, and it is hard to see how it will be directly related to the battle over Greek debt. But that doesn’t imply that the ongoing crisis won’t be described as a factor in how the lottery terminal battle is resolved.
‘The delay does not have anything related to the current financial obligation crises other than maybe OPAP playing hardball utilizing the regulators hoping which they will cave because they require the new tax revenue,’ said Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
If this is simply a tactic that is negotiating the component of OPAP, it could be a costly one for slot machine game manufacturers like IGT and Scientific Games. Both of those companies were producing terminals for the Geek market, and the delays may potentially cost those two organizations millions in revenue.
IGT had been awarded a merchant contract to offer 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 through the machines offered to Greece, while Scientific Games could make as much as $27 million.
The delays while the financial crisis have definitely brought some uncertainty to the Greek video clip 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 sizable growth possibility for vendors,’ he said.
The negotiations on the future of Greece’s lottery terminals comes at a right time when bigger battles are increasingly being waged over the country’s economic future.
Greeks voted ‘no’ on the strict lending terms provided by international creditors on Sunday, with more than 61 percent of voters coming out against the terms.
But that vote casino-online-australia.net doesn’t mean that Greece isn’t prepared to negotiate. Prime Minister Alexis Tsipras says that the Greek government is still willing to help make some changes in order 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 a yearly 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 new offer represents a rise of $900 million on a bid Pinnacle rebuffed in March.
The news of the proposal delivered Pinnacle’s stock price up by 5.82 percent on 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 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 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 nationwide Gaming formed in 2013, trades on the NASDAQ and owns 21 casino and racino properties across the United States, including 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 referred to as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its name to Pinnacle Entertainment when the racetrack was sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, also a controlling stake in the race license owner. It 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 current economic depression 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 properties that are new its profile and basically 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.
However, the language GLPI has used, even its press releases, causes it to be clear that this is usually a takeover that is hostile.
‘GLPI has committed financing in place and it is prepared 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 statement. ‘Nevertheless, Pinnacle continues to produce new demands, delaying the signing of the definitive agreement and doubting its shareholders a value-creating transaction that is obviously superior to Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it can ‘see the possible advantages’ of the GVC /Amaya deal, as it files another disappointing financial report. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party had been confirmed by the board today.
Yesterday, The Financial occasions broke the story that GVC had made a $1.4 billion offer to get the share that is entire of the web 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 currently committed to resolving a true number of ‘transaction-related issues,’ it included.
It is not clear 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 regarding the consideration in new GVC shares,’ said Kenneth Alexander, leader of GVC Holdings, today. ‘Based on the successful Sportingbet acquisition to our experience 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 chance of both GVC and bwin.party shareholders.’
Amaya Providing ‘Some associated with the Capital’
Alexander was also in a position to confirm 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 the takeover, GVC would own nearly all bwin.party, while Amaya would acquire the business’s poker operations, thus giving it a foothold in the New Jersey that is regulated market.
It is thought Amaya would be given the also option to buy the sportsbook from GVC into the future.
The offer is a takeover that is reverse of a mixture of new GVC shares and cash, although all parties have stressed that there may be no certainty that the deal will be accepted.
Poor Sportsbook Results
The headlines 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 company’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 percent into the previous year.
‘Despite challenging comparatives as well as the impact of EU VAT and POC tax, we have been pleased with our company performance in the half that is first’ 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 poor sports book results Alexander stayed positive about the potential of a bwin.party acquisition. ‘It’s been a really hard market for bwin but it’s also been a very difficult market for all,’ he said. ‘ Through the GVC perspective, one that