Greece’s ongoing monetary crisis and standoff with European leaders could have repercussions that impact the worldwide economy.
That effect extends also to the gaming industry, as Greece’s efforts to avoid defaulting further on its debts may prove costly to companies like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers were 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 into the wake of this country’s economic crisis, leaving much uncertainty as to the short-term future of the industry.
Brand New Regulations Limit Enjoy, Jackpot Size
Each day under the new regulations, daily loss limits were to be added to the machines, and gamblers would be limited as to how much time they would be allowed to play on a machine. Jackpot levels would also be reduced under the regulations that are new.
That didn’t stay well with OPAP, the Greek firm that operates the video lottery terminal community. 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 new laws and OPAP’s choice may just be coincidental, and it’s really hard to see how it might be directly related to the battle over Greek debt. But that doesn’t mean that the ongoing crisis won’t be considered a element in the way the lottery terminal battle is resolved.
‘The delay doesn’t have anything related to the present debt crises other than maybe OPAP playing hardball because of 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 merely a tactic that is negotiating the part of OPAP, maybe it’s a pricey one for slot machine game manufacturers like IGT and Scientific Games. Both of those companies were creating terminals for the Geek market, and the delays could potentially cost those two companies millions in revenue.
IGT was 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 vendor that is first-phase.
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 as well as the financial crisis have definitely brought some uncertainty to the Greek video 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 growth that is sizable for vendors,’ he said.
The negotiations on the future of Greece’s lottery terminals comes at a right time whenever bigger battles are being waged within the country’s economic future.
Greeks voted ‘no’ on the strict lending terms made available from worldwide creditors on Sunday, with over 61 percent of voters coming out against the terms.
But that vote doesn’t 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 so as to receive assistance from Europe, and requested a three-year loan from the eurozone’s bailout investment on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having an advertising 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 offer that is new an increase of $900 million for a bid Pinnacle rebuffed in March.
The news headlines of the proposal sent 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 time that is tough a scenario 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 chances of a superior bid from another entity,’ JP Morgan Gaming Analyst Joe Greff told the Las vegas, 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 has 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 when Jack L Warner, mind 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 referred to as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its name to Pinnacle Entertainment when the racetrack had been sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, along with a controlling stake in the race license owner. It 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 current economic downturn in Macau, as Chinese high-rollers seek to evade the scrutiny for the government that is chinese.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine new properties to its portfolio and really 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.
But, the language GLPI has used, even its press releases, makes it clear that this is usually a hostile takeover.
‘GLPI has committed financing set up 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 produce new demands, delaying the signing of a definitive agreement and denying its investors 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 could ‘see the prospective advantages’ regarding the GVC /Amaya deal, since 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 get the whole share money of the online gambling firm; today, the bwin.party board said it was considering the offer and could see the ‘potential benefits’ to shareholders that are bwin.party.
It had been currently committed to resolving number of ‘transaction-related issues,’ it added.
It is not clear whether 888 Holdings, which made an offer for bwin.party in March, remains at the negotiation table.
‘Any offer produced by GVC for bwin.party would include part regarding the consideration in new GVC shares,’ said Kenneth Alexander, Chief Executive of GVC Holdings, today. ‘Based on our experience aided by the effective Sportingbet acquisition 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 chance for 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 the 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 choice to buy the sportsbook from GVC within the future.
The offer could be a reverse takeover comprised of a combination of new GVC shares and money, although all events have actually stressed that there may 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 up 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 per cent into the year that is previous.
‘Despite challenging comparatives along with the impact of EU VAT and POC tax, we are happy with our business performance in the very first half,’ bwin,party CEO Norbert Teufelberger stated. ‘ We have completed our new organisational set-up and streamlined our decision-making processes, planet 7 oz $50 free chip significantly improving our operational performance.’
Despite the poor sports book outcomes Alexander stayed positive about the potential of a bwin.party purchase. ‘It’s been an extremely market that is difficult bwin but it’s also been a very hard market for all,’ he said. ‘ Through the GVC viewpoint, one which