Greek Financial Meltdown May Impact IGT. Prime Minister Alexis Tsipras says
Greece’s ongoing monetary 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 businesses like International Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, aided by the games just days away from a planned launch. Nonetheless, the Hellenic Gaming Commission announced lottery that is new into the wake associated with country’s economic crisis, leaving much doubt as to the short-term future of the industry.
Brand New Regulations Limit Enjoy, Jackpot Size
Under the brand new laws, daily loss limits were to be added to the machines, and gamblers would be limited as to how long they would be allowed to use a machine each day. Jackpot levels would also be reduced under the regulations that are new.
That didn’t sit well with OPAP, the Greek firm that operates the video lottery terminal network. The company said that the new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines throughout the country in a statement.
Evaluating the problem 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 it doesn’t signify the crisis that is ongoingn’t be a element in how a lottery terminal battle is resolved.
‘The delay doesn’t 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 costly 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 cost those two firms millions in income.
IGT was awarded a merchant contract to produce 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 also awarded first-phase merchant contracts.
IGT was expected to make up to $30 million in yearly revenues through the machines provided to Greece, while Scientific Games could bring in as much as $27 million.
The delays and the crisis that is financial undoubtedly brought some uncertainty to the Greek movie 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 whenever bigger battles are now being waged throughout the country’s financial future.
Greeks voted ‘no’ on the lending that is strict made available from 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 ready to negotiate. Prime Minister Alexis Tsipras claims that the Greek government is still willing to make some changes in order to get assistance from Europe, and asked for a three-year loan from the eurozone’s bailout fund 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 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 angry to make down.
The new offer represents an increase of $900 million for a bid Pinnacle rebuffed in March.
The headlines 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 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 nevada 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 owns 21 casino and racino properties across the United States, like the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history back to 1938 whenever Jack L Warner, head of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the ongoing business 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 title to Pinnacle Entertainment when the racetrack was sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, along with a controlling stake in the racing license owner. It 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 present economic depression in Macau, as Chinese high-rollers seek to evade the scrutiny regarding 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 really doubling in size.
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 investors a 28 per cent stake of GLPI.
However, the language GLPI has used, even its press releases, makes it clear that this can be a takeover that is hostile.
‘GLPI has committed financing in place and is ready 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 declaration. ‘Nevertheless, Pinnacle continues in order to make brand new demands, delaying the signing of a definitive contract and denying its shareholders a value-creating transaction that is obviously more advanced than Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it may ‘see the potential advantages’ for the GVC /Amaya deal, because it files another disappointing report that is financial. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party was verified by the board https://casino-online-australia.net/planet-7-oz-casino-review/ today.
Yesterday, The Financial Times broke the story that GVC had produced $1.4 billion offer to acquire the entire share capital of the online 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 ended up being presently committed to resolving number of ‘transaction-related issues,’ it included.
It is ambiguous 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 would include part for the consideration in new GVC shares,’ said Kenneth Alexander, leader of GVC Holdings, today. ‘Based on our experience utilizing 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 associated with 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 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’s thought Amaya would be offered the choice to buy the sportsbook from GVC within the future.
The offer could be a reverse takeover comprised of a mixture of new GVC shares and money, although all events have actually stressed that there might 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 sports results had led up 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 percent into the year that is previous.
‘Despite challenging comparatives together with the impact of EU VAT and POC income tax, we’re pleased with our company performance in the very first half,’ bwin,party CEO Norbert Teufelberger said. ‘ We have completed our brand new set-up that is organisational streamlined our decision-making procedures, significantly improving our operational performance.’
Despite the sports that are poor results Alexander remained upbeat about the potential of the bwin.party purchase. ‘It’s been a very market that is difficult bwin nonetheless it’s also been a very hard market for everyone,’ he said. ‘ From the GVC perspective, one which