
Greece’s ongoing economic 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 attempts to avoid defaulting further on its debts may show costly to companies like Global Game Technology (IGT) and Scientific Games.
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Those manufacturers had been hoping to provide video lottery terminals throughout Greece, with the games just days away from a launch that is planned. Nonetheless, the Hellenic Gaming Commission announced lottery that is new in the wake associated with the country’s financial crisis, leaving much uncertainty as to the short-term future of the industry.
New Regulations Limit Enjoy, Jackpot Size
Under this new laws, daily loss limits were become put into the machines, and gamblers would be limited as to how long they would be allowed to play on a machine every day. Jackpot levels would additionally be reduced under the regulations that are new.
That didn’t sit well with OPAP, the Greek company 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.
Taking a look at the specific situation realistically, the timing of the new laws and OPAP’s choice might be coincidental, and it is hard to see how it might be directly related to the battle over Greek debt. But that does not imply that the crisis that is ongoingn’t be considered a factor in how the lottery terminal battle is resolved.
‘The delay doesn’t have anything related to the current financial obligation crises apart from maybe OPAP playing hardball using the regulators hoping which they will cave because they need the brand new taxation revenue,’ said Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
Should this be simply a tactic that is negotiating the part of OPAP, maybe it’s 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 price those two companies millions in revenue.
IGT had been awarded a merchant contract to provide 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 from the machines offered to Greece, while Scientific Games could generate as much as $27 million.
The delays plus the crisis that is financial undoubtedly brought some uncertainty to the Greek video clip lottery terminal market, but Eilers says that in the long run, Greece should still be a lucrative market for manufacturers.
‘We still believe the VLT market will move forward and represents a sizable growth possibility for vendors,’ he said.
The negotiations throughout the future of Greece’s lottery terminals comes at time whenever much larger battles are increasingly being waged within the country’s economic future.
Greeks voted ‘no’ on the strict lending terms offered by worldwide creditors on Sunday, with more than 61 percent of voters coming out against the terms.
But that vote does not mean that Greece isn’t ready to negotiate. Prime Minister Alexis Tsipras says that the Greek government is still willing to help make some changes to be able to get assistance from Europe, and requested 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 a yearly at the top of 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 offer that is new a growth 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 deal that is done.
‘We have 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 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 corporate spin-off of penn National Gaming formed in 2013, trades on the NASDAQ and has 21 casino and racino properties across the US, such as the Penn National 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 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 had been sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, as well as a stake that is controlling the racing license owner. It has 26 percent stake in Asian Coast Development 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 regarding the government that is chinese.
Better Deal
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 receive a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle investors a 28 percent stake of GLPI.
Nevertheless, the language GLPI has used, even its press releases, causes it to be clear that this is often a hostile takeover.
‘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 business said in a declaration. ‘Nevertheless, Pinnacle continues to make brand new demands, delaying the signing of a definitive contract and doubting its shareholders a value-creating transaction that is actually 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 benefits’ regarding 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 tale that GVC had produced $1.4 billion offer to find the whole share money of the web gambling firm; today, the bwin.party board said it had been considering the offer and may see the ‘potential benefits’ to shareholders that are bwin.party.
It was currently committed to resolving number of ‘transaction-related issues,’ it included.
It is uncertain whether 888 Holdings, which made an offer for bwin.party in March, is still at the negotiation table.
‘Any offer made 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 the successful Sportingbet acquisition to our experience and restructuring, we think that the potential combination of GVC and bwin.party would result in substantial financial and running synergies and represent an excellent window of opportunity for both GVC and bwin.party shareholders.’
Amaya Providing ‘Some of the Capital’
Alexander was also in a position to confirm that Amaya Inc is supplying ‘some of the capital’ 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 the majority of bwin.party, while Amaya would get the company’s poker operations, thus giving it a foothold in the New Jersey that is regulated market.
It’s believed Amaya would be given the also option to buy the sportsbook from GVC in the future.
The deal could be a takeover that is reverse of a mixture of new GVC shares and money, although all parties have stressed that there can 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 sports results had led to a decline in gross win margins for the first half of the year.
The business’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 percent in the previous 12 months.
‘Despite challenging comparatives as well as the impact of EU VAT and POC tax, our company is pleased about our business performance in the first half,’ bwin,party CEO Norbert Teufelberger stated. ‘ We have completed our new organisational set-up and streamlined our decision-making processes, significantly improving our operational performance.’
Despite the poor sports book outcomes Alexander remained upbeat about the potential of a bwin.party purchase. ‘It’s been a really market that is difficult bwin but it’s also been a very difficult market for everybody,’ he said. ‘ From the GVC viewpoint, one that