Greece’s ongoing monetary 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 avoid defaulting further on its debts may prove costly to organizations like Global Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, with all the games just days away from a launch that is planned. However, the Hellenic Gaming Commission announced lottery that is new into the wake associated with the nation’s financial crisis, leaving much uncertainty as to the short-term future of the industry.
Brand New Regulations Limit Play, 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 play on a machine every day. Jackpot levels would additionally be lower under the brand new laws.
That didn’t sit well with OPAP, the Greek firm that operates the video lottery terminal system. In a declaration, the organization stated that the new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines through the entire country.
Looking at the specific situation realistically, the timing of the new regulations and OPAP’s decision 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 signify the ongoing crisis won’t be described as a element in the way the lottery terminal battle planet 7 oz bonus is resolved.
‘The delay does not have anything related to the existing debt crises other than 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
Should this be merely a negotiating tactic on 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 terminals that are producing the Geek market, and the delays could potentially cost those two firms 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 first-phase merchant contracts.
IGT was anticipated to make up to $30 million in annual revenues from the machines offered to Greece, while Scientific Games could bring in as much as $27 million.
The delays and also the crisis that is financial 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 still believe the VLT market will move ahead and represents a sizable growth opportunity for vendors,’ he said.
The negotiations within the future of Greece’s lottery terminals comes at time when much larger battles are increasingly being waged over the nation’s economic future.
Greeks voted ‘no’ on the lending that is strict offered 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 ready to negotiate. Prime Minister Alexis Tsipras claims that the Greek federal government is still willing to help make some changes in an effort to get assistance from Europe, and asked for 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 so far as their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to an annual 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 make down.
The new offer represents a rise of $900 million for a bid Pinnacle rebuffed in March.
The news 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 time that is tough 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 don’t see the probability 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 United States, including the Penn nationwide 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 ongoing company included Walt Disney and Bing Crosby.
The group was initially known as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its title to Pinnacle Entertainment when the racetrack was sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, also a managing stake in the race permit owner. Additionally has 26 percent stake in Asian Coast Development Ltd, the dog owner 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 Chinese government.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine new properties to 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.
Nonetheless, the language GLPI has used, even its press releases, makes it clear that this is 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 company said in a declaration. ‘Nevertheless, Pinnacle continues to make brand new demands, delaying the signing of a definitive agreement and doubting its investors a value-creating transaction that is clearly more advanced than Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it may ‘see the prospective advantages’ of the GVC /Amaya deal, as 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 circumstances broke the story that GVC had made a $1.4 billion offer to acquire the share that is entire of the web 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 presently committed to resolving number of ‘transaction-related issues,’ it added.
It is confusing whether 888 Holdings, which made an offer for bwin.party in March, is still 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 with all the effective Sportingbet acquisition and restructuring, we believe that the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an opportunity that is excellent both GVC and bwin.party shareholders.’
Amaya Providing ‘Some regarding the Capital’
Alexander was also 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 go ahead.
It’s understood that in the event of the takeover, GVC would own the majority of bwin.party, while Amaya would get the business’s poker operations, thus offering it a foothold in the New Jersey that is regulated market.
It’s thought Amaya would be given the also option to buy the sportsbook from GVC within the future.
The deal will be a reverse takeover comprised of a mixture of new GVC shares and money, although all parties have actually stressed that there might 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 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 12 months.
‘Despite challenging comparatives together with the impact of EU VAT and POC taxation, we’re pleased about our business performance in the first half,’ bwin,party CEO Norbert Teufelberger said. ‘ We 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 results Alexander stayed positive about the potential of the bwin.party acquisition. ‘It’s been a really difficult market for bwin but it’s also been an extremely tough market for everybody,’ he said. ‘ Through the GVC viewpoint, the one that