Greece’s ongoing financial crisis and standoff with European leaders could have repercussions that impact the global economy.
That effect extends also to the gaming industry, as Greece’s efforts to further avoid defaulting on its debts may prove costly to businesses like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, aided by the games simply days away from a planned launch. However, the Hellenic Gaming Commission announced lottery that is new in the wake associated with nation’s financial crisis, leaving much doubt as to the short-term future of the industry.
New Regulations Limit Play, 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 additionally be reduced under the regulations that are new.
That didn’t stay well with OPAP, the Greek company that operates the video lottery terminal system. 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.
Looking at the problem realistically, the timing of the regulations that are new OPAP’s decision that are coincidental, and it’s hard to see how it will be directly related to the battle over Greek debt. But it doesn’t imply that the crisis that is ongoingn’t be described as a factor in how the lottery terminal battle is resolved.
‘The delay doesn’t have anything related to the current financial obligation crises other than maybe OPAP playing hardball because of the regulators hoping they will cave because they require the new tax revenue,’ stated Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
Should this be merely a tactic that is negotiating the part of OPAP, it could be a pricey one for slot machine manufacturers like IGT and Scientific Games. Both of the companies were creating terminals for the Geek market, and the delays could potentially price those two businesses millions in income.
IGT was awarded a vendor contract to supply 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 vendor contracts.
IGT was expected to make up to $30 million in yearly revenues from the machines offered to Greece, while Scientific Games could make as much as $27 million.
The delays plus the crisis that is financial 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 nevertheless believe the VLT market will move ahead and represents a sizable growth possibility for vendors,’ he said.
The negotiations on the future of Greece’s lottery terminals comes at time whenever much bigger battles are being waged on the country’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 coming out contrary to the terms.
But that vote doesn’t mean that Greece isn’t prepared to negotiate. Prime Minister Alexis Tsipras says that the Greek federal government is still willing in order to make some changes in order to receive 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 year as far as their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to an annual high on 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 brand new offer represents a growth 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 in 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 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 likelihood 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 spin-off that is corporate of nationwide 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 whenever 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 initially known as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its name 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 managing stake in the race permit 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 for 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 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.
Nevertheless, the language GLPI has used, even its press releases, helps it be clear that this is 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 business said in a declaration. ‘Nevertheless, Pinnacle continues in order to make brand new demands, delaying the signing of the definitive contract and denying its shareholders a value-creating transaction that is actually more advanced than Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it could ‘see the potential advantages’ regarding the GVC /Amaya deal, since it files another disappointing financial report. (Image: pokergruond.com)
GVC’s Amaya-backed bid for bwin.party ended up being verified by the board today.
Yesterday, The Financial circumstances broke the tale that GVC had made a $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 could see the ‘potential benefits’ to bwin.party shareholders.
It was currently committed to resolving a true 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 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 the successful Sportingbet acquisition to our experience 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 Providing ‘Some of the Capital’
Alexander was also able to confirm 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 nearly all bwin.party, while Amaya would find the company’s poker operations, thus giving it a foothold in the New Jersey that is regulated market.
It’s thought Amaya would be https://casino-online-australia.net/planet-7-oz-casino-review/ given the also option to buy the sportsbook from GVC into the future.
The offer is a takeover that is reverse of a mix of new GVC shares and cash, although all events have stressed that there can be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news coincided with another disappointing monetary 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 percent into the previous year.
‘Despite challenging comparatives as well as the impact of EU VAT and POC taxation, we’re pleased about our business performance in the half that is first’ 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 poor sports book results Alexander stayed positive about the potential of a bwin.party acquisition. ‘It’s been a really hard market for bwin however it’s also been a very difficult market for everybody,’ he said. ‘ From the GVC perspective, the one that