Two Gambling Execs Charged with Bribery in Austria
Austrian anti-corruption prosecutors have brought bribery charges against former Vice-Chancellor Heinz-Christian Strache and two senior figures at Novomatic.
LISTEN TO THIS ARTICLE:The case was advanced following direction from senior prosecutorial authorities and the justice ministry.
Those charged from the gaming group are owner Johann Graf and former Ainsworth and Novomatic executive Harald Neumann. Neumann left his leadership role at Ainsworth Game Technology in October after Nevada regulators chose not to renew his gaming license.
Related: Novomatic's Ainsworth Takeover Still Possible amid Deal ChangesInvestigators allege that during his time in office Strache sought to secure the appointment of Peter Sidlo to the supervisory board of Casinos Austria AG. Prosecutors contend the push was politically motivated rather than based on professional suitability.
At the time, Novomatic held a 17.2% interest in Casinos Austria. Authorities claim there was an understanding that favorable treatment in future licensing matters would follow the appointment.
Strache has been charged with accepting benefits in order to exert influence. Graf and Neumann are accused of granting such benefits, while prosecutors have also requested a financial penalty against Novomatic under corporate liability rules.
The WKStA stated that companies can face sanctions when decision-makers commit criminal offenses connected to corporate interests. It alleges Strache was prepared to align future governmental actions with Novomatic's interests, including legislative initiatives and cabinet votes.
Prosecutors further assert that the two executives acted with at least conditional intent when facilitating the arrangement. The statutory maximum penalty for the alleged offenses is two years' imprisonment.
Charges Impact Companies' Operations
Novomatic criticized the move to prosecute, describing it as not comprehensible in light of earlier indications that the remaining allegation would be discontinued. The company said no additional questioning or new evidence had emerged to justify the shift.
A spokesperson for Novomatic reiterated that the firm has rejected the accusations since the investigation began in 2018. The company maintains that earlier claims were dismissed with final effect and expressed confidence that the outstanding allegation will also be resolved in court.
The proceedings could carry implications beyond Austria due to Novomatic's majority stake of 67.39 percent in Ainsworth Game Technology. Minority shareholder Kjerulf Ainsworth, who holds 7.49 percent, recently opposed an attempt by Novomatic to take the Australian supplier private.
Ainsworth has previously criticized company leadership over disclosure practices tied to the investigation and called for board-level changes. The situation highlights the broader dichotomy between ongoing legal scrutiny and corporate governance disputes.
Ainsworth has stated it did not consider earlier media reports about Neumann to require market disclosure because they lacked substantiated evidence. The case will now proceed through Austrian courts as prosecutors seek to vindicate their allegations.
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