Greek Economic Crisis May Impact IGT. Prime Minister Alexis Tsipras says
Greece’s ongoing financial 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 further avoid defaulting on its debts may show costly to organizations like International Game Technology (IGT) and Scientific Games.
Those manufacturers had been hoping to provide video lottery terminals throughout Greece, with the games just days away from a launch that is planned. Nonetheless, the Hellenic Gaming Commission announced brand new lottery regulations in the wake associated with country’s monetary crisis, leaving much uncertainty regarding the short-term future of the industry.
Brand New Regulations Limit Play, Jackpot Size
Under the new laws, daily loss limits were to be put into the machines, and gamblers would be limited as to how enough time they would be allowed to use a machine each day. 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 network. In a declaration, the company said 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.
Looking at the situation realistically, the timing of the regulations that are new OPAP’s choice may just be coincidental, and it’s hard to see how it might be directly related to the battle over Greek debt. But that doesn’t mean that the ongoing crisis won’t be a factor in how the lottery terminal battle is resolved.
‘The delay does not have anything related to the present financial obligation crises apart from maybe OPAP playing hardball using the regulators hoping that they will cave because they need the brand new income tax income,’ stated Todd Eilers of Eilers Research.
IGT, Scientific Games Could Lose Revenue
Should this be just a negotiating tactic on the component of OPAP, maybe it’s an expensive one for slot machine manufacturers like IGT and Scientific Games. Both of these companies were producing terminals for the Geek market, and the delays could potentially cost those two organizations 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 also awarded first-phase merchant contracts.
IGT was likely to make up to $30 million in annual revenues from the machines supplied to Greece, while Scientific Games could bring in as much as $27 million.
The delays and also the crisis that is financial undoubtedly 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 ahead and represents a growth that is sizable for vendors,’ he said.
The negotiations within the future of Greece’s lottery terminals comes at time when much bigger battles are now being waged throughout the nation’s financial future.
Greeks voted ‘no’ on the strict lending terms provided by worldwide creditors on Sunday, with more than 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 ready to make some changes in order to receive assistance from Europe, and requested a loan that is three-year the eurozone’s bailout fund on Wednesday.
$5 Billion Pinnacle Entertainment Takeover Is Odds On
Pinnacle Entertainment is having an advertising so far as their stock price is soaring year. (Image: Pinnacle.com)
Pinnacle Entertainment’s share price rose to an annual at the top of 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 new offer represents an increase 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 on 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 situation where Pinnacle’s board and management could create the same value in the same time frame that GLPI’s deal would, and we do not see the probability of a superior bid from another entity,’ JP Morgan Gaming Analyst Joe Greff told the Las vegas, 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 United States, such as the Penn National Race Course in Grantville, Pennsylvania.
Pinnacle, meanwhile, traces its history straight back to 1938 whenever Jack L Warner, mind of the Warner Brothers Studio, opened the Hollywood Park Racetrack. Initial shareholders in the company included Walt Disney and Bing Crosby.
The group was initially referred to as Hollywood Park Entertainment, and later Hollywood Park Inc, before it changed its title to Pinnacle Entertainment when the racetrack had been sold to Churchill Downs in 2000.
Today, it owns 15 casino properties in the US, also a stake that is controlling the race permit owner. It also has 26 percent stake in Asian Coast developing Ltd, the owner and developer of the Ho Tram Strip in Vietnam, which has benefited from the present economic downturn in Macau, as Chinese high-rollers seek to evade the scrutiny for 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 basically doubling in size.
Under the brand new proposition, Pinnacle shareholders would also get a better deal; GLPI is offering $47.50 per share of Pinnacle, and would also give Pinnacle investors a 28 percent stake of GLPI.
Nevertheless, 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 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 produce brand new demands, delaying the signing of a definitive contract and doubting its shareholders a value-creating transaction that is actually more advanced than Pinnacle’s previously announced separation plan that is standalone.
Bwin.party Confirms GVC Bid
Bwin.party board says it may ‘see the possible benefits’ for the GVC /Amaya deal, because 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 circumstances broke the tale that GVC had produced $1.4 billion offer to get the share that is entire of the online gambling firm; today, the bwin.party board said it absolutely was considering the offer and could see the ‘potential benefits’ to shareholders that are bwin.party.
It was presently committed to resolving a true number of ‘transaction-related issues,’ it included.
It is not clear whether 888 Holdings, which made an offer for bwin.party in March, remains at the settlement table.
‘Any offer made 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 excellent window of opportunity for both GVC and bwin.party shareholders.’
Amaya Offering ‘Some for the Capital’
Alexander was additionally 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 proceed.
It’s understood that in the event of a takeover, GVC would own nearly all bwin.party, while Amaya would get the company’s poker operations, thus offering it a foothold in the New Jersey that is regulated market.
It’s believed Amaya would be given the also option to buy the sportsbook from GVC in the future.
The offer could be a reverse takeover comprised of a combination of new GVC shares and cash planet 7 oz review, although all parties 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 monetary report from bwin.party, which said that unfavorable recreations results had led up 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 per cent within the previous 12 months.
‘Despite challenging comparatives as well as the impact of EU VAT and POC income tax, our company is pleased about our company performance in the half that is first’ bwin,party CEO Norbert Teufelberger stated. ‘ We have completed our new organisational set-up and streamlined our decision-making procedures, significantly improving our operational performance.’
Despite the poor sports book results Alexander remained upbeat about the potential of a bwin.party purchase. ‘It’s been a really difficult market for bwin nonetheless it’s also been a very difficult market for everybody,’ he said. ‘ Through the GVC perspective, one which