Way forward for pokies boss hangs in steadiness after US gaming licence troubles

A cloud hangs over the way forward for an Australian pokie machine firm boss whose bid for a gaming licence within the US has met hurdles after revelations he was the topic of a European corruption investigation.

The ABC revealed in June that Harald Neumann, chief govt of Ainsworth Game Technology (AGT), had been below investigation in Austria over an alleged scheme with far-right politicians to win favours for his former firm Novomatic AG.

One of the world’s greatest pokie producers, AGT had not publicly disclosed Mr Neumann’s position within the investigation.

It informed the ABC on the time that “all (except for one) of the investigations involving Mr Harald Neumann and / or Novomatic AG have been dismissed”.

But the corporate revealed on Thursday that it was contemplating Mr Neumann’s future after the US’ most influential gaming regulator really useful he withdraw his software for a gaming licence.

In an announcement to the Australian Stock Exchange, AGT stated that “following the requirement to pursue licensure for all executive officers of the company, a meeting before the Nevada Gaming Control Board was held earlier today”.

“At this meeting Mr Neumann’s application was referred back to NGCB staff, including a recommendation that Mr Neumann withdraw his application,” it stated.

AGT chairman Danny Gladstone stated the Australian firm’s board was “undertaking a review of Mr Neumann’s role following the outcome of the NGCB’s meeting and will provide further details to the market once this review is completed”.

The advice by the board of the US regulator that Mr Neumann pull his licence software got here simply two days before he was scheduled to appear in a hearing for it.

Kjerulf Ainsworth, the son of AGT founder Len Ainsworth and a big minority shareholder within the firm, stated if Mr Neumann “doesn’t have a licence, he can’t stay as CEO”.

Speaking to the ABC from the US, Kjerulf Ainsworth has lately battled alongside different minority traders resisting an tried takeover by Novomatic AG on Mr Neumann’s watch.

Mr Ainsworth stated with US regulators showing to have taken the Austrian investigation under consideration, “all I’d say is I’m glad the process is working properly”.

“The regulators’ job is to keep it all clean,” he stated.

“People need to be held to account.”

Mr Neumann, who is predicated in Las Vegas, has “strenuously denied all the allegations” below scrutiny by Austrian prosecutors, the corporate beforehand informed the ABC.

House raids, texts

His home was raided in August 2019 as a part of an investigation into suspected bribery and illicit political funding by the Austrian Central Public Prosecutor’s Office for the Prosecution of Economic Crimes and Corruption.

The investigation has examined an alleged deal involving the nation’s then-chancellor Sebastian Kurz and vice-chancellor Heinz-Christian Strache to affect an appointment to the board of state-controlled regulator Casinos Austria.

It was alleged the board then signalled concessions for modifications to small-scale playing legal guidelines that will favour Novomatic.

In February 2020, anti-corruption police reportedly raided the house of Austrian finance minister Gernot Blumel, and the workplace of Novomatic, which denied making any funds.

Austrian media revealed textual content messages between Mr Blumel and Mr Neumann, wherein the then-Novomatic boss apparently sought assist arranging a gathering with the chancellor in 2017 to debate a donation and assist with a international authorized case towards the corporate.

“Good morning, I have a request: I need a short appointment with Kurz (firstly because of a donation and secondly regarding a problem that we have in Italy! Do you think it will work out this week??” a translated message from Mr Neumann stated.

In one other chat, in January 2018, Mr Neumann requested for assist scheduling “an appointment with SK … the topic will be gambling in general but also Casag [Casinos Austria]”.

The identical month of the raids and the publication of the texts, Mr Neumann resigned as Novomatic chief govt, citing household causes, and have become a “strategic adviser” for the corporate.

AGT made no public point out of the investigation when the Australian firm appointed Mr Neumann as chief govt in October 2021.

At the time, AGT chairman Mr Gladstone stated the corporate was “fortunate to be able to appoint Harald as our new CEO … the former successful CEO of Novomatic AG, our major shareholder”.

An AGT spokesperson informed the ABC in June that it was “our understanding that the one remaining investigation is largely complete, and it is anticipated that this will be similarly dismissed”.