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 prove costly to organizations like International 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 within the wake associated with the nation’s economic crisis, leaving much uncertainty regarding 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 also be lower under the new laws.
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.
Looking at the situation 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 financial obligation. But that doesn’t mean that the crisis that is ongoingn’t be a element in the way the lottery terminal battle is resolved.
‘The delay doesn’t have anything regarding the current financial obligation 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 component of OPAP, it could be a costly 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 income.
IGT had been awarded a merchant contract to supply 5,500 lottery machines, while Scientific Games was slated to make 5,000 machines for the market. Two European manufacturers planet 7 oz coupon codes 2017, Inspired Gaming and Synot, were also awarded first-phase merchant contracts.
IGT was expected to make up to $30 million in annual revenues through the machines provided to Greece, while Scientific Games could bring in as much as $27 million.
The delays while the crisis that is financial definitely 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 growth that is sizable for vendors,’ he said.
The negotiations throughout the future of Greece’s lottery terminals comes at time when much bigger battles are increasingly being waged within the nation’s monetary future.
Greeks voted ‘no’ on the lending that is strict offered by international creditors on Sunday, with over 61 percent of voters developing against the terms.
But that vote does not mean that Greece isn’t willing to negotiate. Prime Minister Alexis Tsipras states that the Greek government is still prepared in order to make some changes so as to get assistance from Europe, and requested a loan that is three-year the eurozone’s bailout investment on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having an advertising year as far as their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to a yearly high on Tuesday after a revised $5 billion takeover bid from Gaming and Leisure Properties (GLPI); a bid that analysts say Pinnacle would be mad to show down.
The offer that is new a rise 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 in 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 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 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, including the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history back to 1938 when Jack L Warner, mind of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the ongoing company 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 ended up being sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, also a stake that is controlling the racing license owner. Additionally has 26 percent stake in Asian Coast Development Ltd, the master and designer 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 associated with the Chinese government.
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 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.
Nonetheless, the language GLPI has used, even its press releases, makes it clear that this is often a takeover that is hostile.
‘GLPI has committed financing in place and it is ready to finalize this transaction immediately, and we would expect to close our transaction within approximately six months of signing,’ the business said in a statement. ‘Nevertheless, Pinnacle continues to create new demands, delaying the signing of a definitive contract and doubting its investors 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’ of this 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 Times broke the tale that GVC had made a $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 may see the ‘potential benefits’ to bwin.party shareholders.
It ended up being presently committed to resolving a true number of ‘transaction-related issues,’ it included.
It is ambiguous whether 888 Holdings, which made an offer for bwin.party in March, continues to be at the negotiation 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 this Capital’
Alexander was also able to concur 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 the takeover, GVC would own nearly all bwin.party, while Amaya would get the company’s poker operations, thus giving it a foothold in the regulated New Jersey market.
It’s believed Amaya would be given the also choice to buy the sportsbook from GVC into the future.
The deal could be a reverse takeover comprised of a combination of new GVC shares and money, although all events have actually stressed that there can be no certainty that the deal will be accepted.
Poor Sportsbook Results
The news headlines coincided with another disappointing financial report from bwin.party, which said that unfavorable activities 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 % in the previous year.
‘Despite challenging comparatives as well as the impact of EU VAT and POC income tax, we’re pleased about our business performance in the half that is first’ bwin,party CEO Norbert Teufelberger said. ‘ We 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 remained upbeat about the potential of the bwin.party purchase. ‘It’s been a very hard market for bwin but it’s also been a very difficult market for everybody,’ he said. ‘ Through the GVC perspective, one which