
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 attempts 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, utilizing the games simply days away from a planned launch. However, the Hellenic Gaming Commission announced lottery that is new in the wake associated with country’s financial crisis, leaving much uncertainty regarding the short-term future of the industry.
New Regulations Limit Play, Jackpot Size
Under the newest regulations, daily loss limits were to be put into the machines, and gamblers would be limited as to how much time they would be permitted to use a machine each day. Jackpot levels would additionally be lower under the regulations that are new.
That didn’t stay well with OPAP, the Greek company that operates the video lottery terminal network. In a declaration, 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 entire country.
Considering the situation realistically, the timing of the regulations that are new OPAP’s choice that are coincidental, and it’s hard to see how it would be directly related to the battle over Greek debt. But that doesn’t mean that the crisis that is ongoingn’t be a element in the way the lottery terminal battle is resolved.
‘The delay does not have anything regarding the present financial obligation crises apart from maybe OPAP playing hardball using 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 simply a negotiating tactic on the component of OPAP, it could be a costly one for slot machine manufacturers like IGT and Scientific Games. Both of the companies were terminals that are producing the Geek market, and the delays could potentially price those two businesses millions in income.
IGT ended up being awarded a merchant contract to give 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 additionally awarded first-phase merchant contracts.
IGT was anticipated to make up to $30 million in annual revenues from the machines provided to Greece, while Scientific Games could generate as much as $27 million.
The delays while the financial crisis have definitely brought some uncertainty to the Greek video 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 opportunity for vendors,’ he said.
The negotiations over the future of Greece’s lottery terminals comes at time whenever bigger battles are being waged within the country’s financial future.
Greeks voted ‘no’ on the strict lending terms made available from international creditors on Sunday, with more than 61 percent of voters being released against the terms.
But that vote does not mean that Greece isn’t ready to negotiate. Prime Minister Alexis Tsipras states that the Greek government is still willing to make some changes in order to get 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 a banner year so far as their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to a yearly at the 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 brand new offer represents an increase of $900 million for a bid Pinnacle rebuffed in March.
The news headlines of the proposal delivered Pinnacle’s stock price up by 5.82 percent on the New York Stock 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 exact 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 nevada 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 US, including the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history right back to 1938 whenever 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 called 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 planet 7 oz terms and conditions US, also a controlling stake in the race permit owner. In addition has 26 percent stake in Asian Coast developing Ltd, the dog owner 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 of this Chinese government.
Better Deal
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.
Under the brand new proposition, Pinnacle shareholders would also be given a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle shareholders a 28 per cent stake of GLPI.
But, the language GLPI has used, even its press releases, causes it to be clear that this can be a takeover that is hostile.
‘GLPI has committed financing in place and is prepared to finalize this transaction immediately, and we would expect to close our transaction within approximately six months of signing,’ the ongoing business said in a statement. ‘Nevertheless, Pinnacle continues to create brand new demands, delaying the signing of the definitive agreement and denying its investors a value-creating transaction that is actually superior to Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it can ‘see the potential advantages’ of 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 occasions broke the story that GVC had produced $1.4 billion offer to acquire the share that is entire of the web gambling firm; today, the bwin.party board said it was considering the offer and might see the ‘potential benefits’ to shareholders that are bwin.party.
It was presently committed to resolving number of ‘transaction-related issues,’ it included.
It is unclear whether 888 Holdings, which made an offer for bwin.party in March, is still at the negotiation table.
‘Any offer produced by GVC for bwin.party would include part of this consideration in new GVC shares,’ said Kenneth Alexander, Chief Executive of GVC Holdings, today. ‘Based on our experience with the successful 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 Offering ‘Some for the 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 go ahead.
It’s understood that in the event of a takeover, GVC would own nearly all bwin.party, while Amaya would find the business’s poker operations, thus offering it a foothold in the New Jersey that is regulated market.
It is believed Amaya would additionally be offered the option to buy the sportsbook from GVC into the future.
The deal is a takeover that is reverse of a combination of new GVC shares and cash, 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 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 per cent within the year that is previous.
‘Despite challenging comparatives together with the impact of EU VAT and POC income tax, our company is happy with our business performance in the half that is first’ bwin,party CEO Norbert Teufelberger said. ‘ We have completed our brand new organisational set-up and streamlined our decision-making processes, significantly improving our operational performance.’
Despite the sports that are poor outcomes Alexander stayed positive about the potential of the bwin.party purchase. ‘It’s been an extremely market that is difficult bwin however it’s also been a very hard market for everyone,’ he said. ‘ Through the GVC viewpoint, one that