Ainsworth CEO Disrupts Company's Nevada Licensing Renewal
Ainsworth Game Technology (AGT) is reviewing the position of CEO Harald Neumann after a setback in his Nevada gaming license renewal process.
LISTEN TO THIS ARTICLE:The Australian gaming manufacturer confirmed that the Nevada Gaming Control Board (NGCB) has recommended Neumann withdraw his application for license renewal in the state. The recommendation came during a hearing held on Wednesday as part of Nevada's routine five-year relicensing process for gaming executives. The development has prompted AGT to initiate a formal review of Neumann's role within the company.
Related: Australian Gaming Supplier Ainsworth hit by CyberattackIn a statement filed with the Australian Securities Exchange, AGT said Neumann's application was referred back to NGCB staff with the recommendation that he voluntarily withdraw. The company's chairman, Danny Gladstone, stated that the board is conducting a review of the matter and will provide an update once the process is complete.
Nevada's decision is significant, given that the US, and particularly the Las Vegas market, represents Ainsworth's largest and most important commercial territory. Failure to hold an active license in the state would complicate Neumann's ability to continue serving as chief executive.
While the NGCB did not specify the reasons for its recommendation, the timing coincides with ongoing legal scrutiny involving Neumann in Austria. Multiple Australian media outlets recently highlighted reports from Austrian authorities investigating allegations of bribery and improper political contributions connected to Novomatic, the gaming company Neumann led before joining Ainsworth.
More People News
Questionable Ties to Politics
The Austrian Public Prosecutions Office stated in 2021 that its investigation centers on suspicions that an executive at a gaming company offered political donations to secure favorable treatment in an international tax dispute. Neumann has been identified in media coverage as the executive in question, but has publicly denied all accusations.
In June, AGT addressed the controversy by explaining that it did not initially disclose the Austrian allegations to shareholders because the claims lacked supporting evidence. The company maintained that the information aired in Austrian media reports was not verified at the time of Neumann's appointment. The decision not to report those matters has since drawn increased scrutiny following the latest developments in Nevada.
The issue arises during a period of corporate transition for Ainsworth. Earlier this year, the company announced plans to enter into a Scheme of Arrangement with Novomatic, which already owns a controlling 52.9% stake in AGT.
The proposed AU$158.6 million (US$102 million) agreement would have allowed Novomatic to acquire all remaining shares in Ainsworth. However, that plan faced opposition from key shareholders, including Kjerulf Ainsworth, the sixth son of company founder Len Ainsworth, who holds a 12% stake and serves as AGT's second-largest individual shareholder.
RELATED TOPICS: People
Review this New Post
Leave a Comment
User Comments
Comments for Ainsworth CEO Disrupts Company's Nevada Licensing Renewal