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 efforts to further avoid defaulting on its debts may prove costly to companies like International Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, with all the games just days away from a planned launch. But, the Hellenic Gaming Commission announced lottery that is new within the wake of the nation’s financial crisis, leaving much uncertainty as to the short-term future of the planet 7 oz app industry.
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 lower under the new laws.
That didn’t stay well with OPAP, the Greek firm that operates the video lottery terminal system. In a declaration, the organization stated that the brand new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines throughout the country.
Considering the problem realistically, the timing of the new laws and OPAP’s choice might be coincidental, and it’s really hard to see how it will be directly related to the battle over Greek financial obligation. But it doesn’t mean 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 to do with the existing debt crises other than maybe OPAP playing hardball utilizing the regulators hoping they will cave because they need the brand new taxation revenue,’ stated Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
If this is simply a tactic that is negotiating the component 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 could potentially cost those two businesses millions in revenue.
IGT ended up being awarded a merchant contract to produce 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 vendor that is first-phase.
IGT was likely to make up to $30 million in yearly revenues through the machines offered to Greece, while Scientific Games could bring in as much as $27 million.
The delays therefore the crisis that is financial undoubtedly 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 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 whenever much larger battles are now being waged over the nation’s economic future.
Greeks voted ‘no’ on the strict lending terms offered by worldwide creditors on Sunday, with over 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 claims 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 so far as their stock price is soaring. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to an annual 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 on a bid Pinnacle rebuffed in March.
The news headlines of the proposal sent 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 time that is tough 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 don’t see the probability 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 nationwide Gaming formed in 2013, trades on the NASDAQ and has 21 casino and racino properties across the United States, including the Penn nationwide Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history back to 1938 whenever 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 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 controlling stake in the racing license owner. Additionally has 26 percent stake in Asian Coast developing Ltd, the master and developer of the Ho Tram Strip in Vietnam, which has benefited from the recent economic downturn in Macau, as Chinese high-rollers seek to evade the scrutiny of this Chinese government.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine new properties to its profile and essentially doubling in size.
Under the brand new proposition, Pinnacle shareholders would also be given a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle shareholders a 28 per cent stake of GLPI.
Nevertheless, the language GLPI has used, even its press releases, makes it clear that it is a hostile takeover.
‘GLPI has committed financing in place and it is prepared to finalize this transaction immediately, and we would expect to shut our transaction within approximately six months of signing,’ the company said in a statement. ‘Nevertheless, Pinnacle continues to create new demands, delaying the signing of a definitive agreement and denying its shareholders a value-creating transaction that is obviously 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 potential advantages’ of this GVC /Amaya deal, since 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 instances broke the tale that GVC had produced $1.4 billion offer to acquire the entire share capital 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 had been currently committed to resolving a true number of ‘transaction-related issues,’ it added.
It is unclear whether 888 Holdings, which made an offer for bwin.party in March, remains at the settlement table.
‘Any offer produced 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 operating synergies and represent an opportunity that is excellent both GVC and bwin.party shareholders.’
Amaya Providing ‘Some associated with Capital’
Alexander was additionally in a position to concur that Amaya Inc is supplying ‘some of this 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 nearly all bwin.party, while Amaya would acquire the business’s poker operations, thus offering it a foothold in the regulated New Jersey market.
It is believed Amaya would additionally be given the option to buy the sportsbook from GVC within the future.
The offer would be a takeover that is reverse of a mix of new GVC shares and cash, 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 report that is financial 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 per cent into the previous 12 months.
‘Despite challenging comparatives along with the impact of EU VAT and POC taxation, our company is satisfied with our business performance in the half that is first’ bwin,party CEO Norbert Teufelberger stated. ‘ We have completed our new set-up that is organisational streamlined our decision-making procedures, significantly improving our operational performance.’
Despite the sports that are poor results Alexander remained positive about the potential of the bwin.party purchase. ‘It’s been a tremendously market that is difficult bwin however it’s also been a very difficult market for everybody,’ he said. ‘ From the GVC perspective, one that