Ainsworth Game Technology (AGT) has stated that the Austrian government has submitted an application to the Austrian courts to begin prosecuting former CEO of AGT Harald Neumann and majority owner Novomatic AG.
The case has been referred to as a politically motivated arrangement regarding the appointment of Peter Sidlo to the Casinos Austria board in exchange for favourable legislative and/or licensing considerations for Novomatic in conjunction with senior members of Novomatic’s management.
The political fallout of this case includes former Vice-Chancellor Heinz-Christian Strache and many other high-ranking officials. Last year former Chancellor Sebastian Kurz was acquitted of all charges related to false testimony stemming from the Ibiza inquiry, while investigations into other involved parties have continued.
The Austrian government has also requested a corporate fine against Novomatic as per Austria’s Association Liability Law, which allows for a corporation to be held criminally liable for the illegal acts of its officers/employees. If approved this ruling could result in significant financial exposure and precedent setting cases involving corporate accountability in Germany’s gambling industry. Novomatic, which holds a 67.39% stake in AGT, has rejected the allegations, stating that no new evidence has been presented and that earlier indications suggested the matter might be discontinued.
Despite the ongoing litigation in Austria, AGT has stated that it does not believe that the case will have a material impact on its operations or financial position at this stage.
