Greece’s ongoing economic 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 attempts to avoid defaulting further on its debts may prove costly to businesses like Global Game Technology (IGT) and Scientific Games.
Those manufacturers were hoping to provide video lottery terminals throughout Greece, using the games just days away from a launch that is planned. Nevertheless, the Hellenic Gaming Commission announced lottery that is new within the wake for the nation’s financial crisis, leaving much uncertainty as to the short-term future of the industry.
New Regulations Limit Enjoy, Jackpot Size
Under the new regulations, daily loss limits were become included with the machines, and gamblers would be limited as to how long they would be allowed to play on a machine every day. Jackpot levels would additionally be lower under the regulations that are new.
That didn’t sit well with OPAP, the Greek company that operates the video lottery terminal community. In a statement, the business stated that the new regulation would make operating the terminals ‘no longer viable,’ and immediately stopped the deployment of 16,500 machines through the entire country.
Evaluating the specific situation realistically, the timing of the regulations that are new OPAP’s decision may just be coincidental, and it’s hard to see how it will be directly related to the battle over Greek debt. 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 doesn’t have anything regarding the current debt crises apart from maybe OPAP playing hardball with all the regulators hoping that they will cave because they need the brand new income tax revenue,’ said Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
Should this be just a tactic that is negotiating the part of OPAP, maybe it’s an expensive one for slot machine game manufacturers like IGT and Scientific Games. Both of the companies were creating terminals for the Geek market, and the delays may potentially price those two businesses millions in revenue.
IGT had been awarded a merchant contract to offer 5,500 lottery machines, while Scientific Games was slated to make 5,000 machines for the market. Two European manufacturers, Inspired Gaming and Synot, were also awarded vendor that is first-phase.
IGT was expected to make up to $30 million in yearly revenues through the machines offered to Greece, while Scientific Games could generate as much as $27 million.
The delays as well as the crisis that is financial certainly brought some uncertainty to the Greek movie lottery terminal market, but Eilers says that in the long run, Greece should still be a lucrative market for manufacturers.
‘We nevertheless believe the VLT market will move forward 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 when much larger battles are increasingly being waged throughout the country’s economic 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 says that the Greek federal government is still prepared to produce some changes to be able to get 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 year as far as their stock price is soaring. (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 turn down.
The 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 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 do not 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 spin-off that is corporate of National Gaming formed in 2013, trades on the NASDAQ and owns 21 casino and racino properties across the United States, like 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 company 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 was sold to Churchill Downs in 2000.
Today, it owns 15 casino https://casino-online-australia.net/planet-7-oz-casino-review/ properties in the US, along with a stake that is controlling the race permit owner. It also has 26 percent stake in Asian Coast Development Ltd, the owner and designer 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 regarding the Chinese government.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine new properties to its portfolio and essentially 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.
However, the language GLPI has used, even its press releases, helps it be clear that it is a takeover that is hostile.
‘GLPI has committed financing set up and is ready to finalize this transaction immediately, and we would expect to shut our transaction within approximately six months of signing,’ the ongoing business said in a statement. ‘Nevertheless, Pinnacle continues to make brand new demands, delaying the signing of a definitive contract and doubting its investors a value-creating transaction that is obviously more advanced than Pinnacle’s previously announced standalone separation plan.
Bwin.party Confirms GVC Bid
Bwin.party board says it could ‘see the possible advantages’ regarding the GVC /Amaya deal, since it files another disappointing report that is financial. (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 was considering the offer and may 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 unclear whether 888 Holdings, which made an offer for bwin.party in March, is still at the settlement table.
‘Any offer made by GVC for bwin.party would include part associated with 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 associated with the Capital’
Alexander was also 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 the takeover, GVC would own nearly all bwin.party, while Amaya would get the business’s poker operations, thus providing it a foothold in the New Jersey that is regulated market.
It is thought Amaya would be given the also choice to buy the sportsbook from GVC into the future.
The offer would be a takeover that is reverse 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 headlines coincided with another disappointing report that is financial bwin.party, which said that unfavorable recreations 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 % into the year that is previous.
‘Despite challenging comparatives along with the impact of EU VAT and POC tax, we’re pleased with our business performance in the half that is first’ bwin,party CEO Norbert Teufelberger stated. ‘ We now 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 outcomes Alexander stayed upbeat about the potential of the bwin.party purchase. ‘It’s been an extremely difficult market for bwin nonetheless it’s also been a very hard market for everyone,’ he said. ‘ Through the GVC viewpoint, the one that