Greek Economic Crisis May Impact IGT. Prime Minister Alexis Tsipras saysJaroco
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 attempts to avoid defaulting further on its debts may show costly to companies like Overseas Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, using the games simply days away from a launch that is planned. But, the Hellenic Gaming Commission announced lottery that is new into the wake for the country’s financial crisis, leaving much uncertainty as to the short-term future of the industry.
Brand New Regulations Limit Play, Jackpot Size
Under the latest regulations, daily loss limits were become put into 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 lower under the new regulations.
That didn’t stay well with OPAP, the Greek firm that operates the video lottery terminal network. In a statement, the company stated 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 problem realistically, the timing of the regulations that are new OPAP’s choice might be coincidental, and it is hard to see how it might be directly related to the battle over Greek financial obligation. But that doesn’t signify the ongoing crisis won’t be considered a factor in the way the lottery terminal battle is resolved.
‘The delay does not have anything regarding the existing financial obligation crises apart from maybe OPAP playing hardball with all 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 merely a negotiating tactic on the part of OPAP, maybe it’s an expensive 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 companies millions in revenue.
IGT ended up being awarded a vendor 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 first-phase merchant contracts.
IGT was anticipated to make up to $30 million in yearly revenues through the machines provided to Greece, while Scientific Games could generate as much as $27 million.
The delays and also the crisis that is financial definitely 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 ahead and represents a growth that is sizable for vendors,’ he said.
The negotiations within the future of Greece’s lottery terminals comes at a right time when bigger battles are increasingly being waged within the country’s monetary future.
Greeks voted ‘no’ on the lending that is strict offered by international 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 states that the Greek federal government is still ready to create some changes in order to receive assistance from Europe, and asked for a three-year loan from the eurozone’s bailout investment 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 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 offer that is new a rise of $900 million on a bid Pinnacle rebuffed in March.
The news headlines of the proposal sent Pinnacle’s stock price up by 5.82 percent regarding the New York inventory Exchange, as investors took the view, shared by JP Morgan, that the takeover is practically a done deal.
‘We have tough time envisioning 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 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 has 21 casino and racino properties across the US, like the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history straight back to 1938 whenever Jack L Warner, head of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the business included Walt Disney and Bing Crosby.
The group was known as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its name to Pinnacle Entertainment when the racetrack ended up being sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, in addition to a stake that is controlling the racing license owner. It also 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 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.
But, the language GLPI has used, even its press releases, causes it to be clear that this may be a takeover that is hostile.
‘GLPI has committed financing set up and it is ready to finalize this deal immediately, and we would expect to shut our transaction within approximately six months of signing,’ the ongoing company said in a declaration. ‘Nevertheless, Pinnacle continues to help make new demands, delaying the signing of the definitive agreement and doubting its shareholders a value-creating transaction that is clearly better than Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it may ‘see the possible advantages’ regarding 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 Times broke the tale that GVC had produced $1.4 billion offer to get the share that is entire of the internet gambling firm; today, the bwin.party board said it was considering the offer and could see the ‘potential benefits’ to bwin.party shareholders.
It ended up being currently committed to resolving a true number of ‘transaction-related issues,’ it added.
It is confusing whether 888 Holdings, which made an offer casino-online-australia.net for bwin.party in March, is still at the negotiation table.
‘Any offer produced by GVC for bwin.party would include part associated with the 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 think that the potential combination of GVC and bwin.party would result in substantial financial and operating synergies and represent an opportunity that is excellent both GVC and bwin.party shareholders.’
Amaya Providing ‘Some of this Capital’
Alexander was also in a position to concur that Amaya Inc is supplying ‘some of the capital’ in the deal, and would therefore take ‘some of the assets’ should it proceed.
It’s understood that in the event of a takeover, GVC would own the majority of 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 believed Amaya would be given the also choice to buy the sportsbook from GVC within the future.
The deal would be a reverse takeover comprised of a combination 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 news coincided with another disappointing report that is financial bwin.party, which said that unfavorable activities results had led to a decline in gross win margins for the first half of the season.
The business’s mobile operations have grown, however, with mobile accounting for 31 percent of total gross gaming revenue in June, up from 23 % into the previous 12 months.
‘Despite challenging comparatives as well as the impact of EU VAT and POC income tax, we are satisfied with our company performance in the first half,’ bwin,party CEO Norbert Teufelberger said. ‘ We now 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 upbeat about the potential of a bwin.party acquisition. ‘It’s been an extremely market that is difficult bwin nonetheless it’s also been a very difficult market for all,’ he said. ‘ From the GVC viewpoint, the one that