Police carry out raids on Novomatic AG's offices.
In light of the ongoing scandal surrounding the Casinos Austria affair, police have recently conducted raids on Novomatic AG's headquarters in Gumpoldskirchen, Austria. These allegations date back to last year and include claims of bribery, among other offenses. Harald Neumann, the Managing Director at Novomatic, recently announced his immediate resignation. With Novomatic being the leader in Europe's gambling market, this news has caused widespread concern.
Casino scandal continues
The recent raids come as authorities continue to investigate possible bribery in the Austrian casino system. The Strache affair has cast a spotlight on Novomatic and Casinos Austria, with rumors surfacing about potentially illegal donations being made to shape the country's gambling landscape. It has been suggested that the appointment of Peter Sidlo, a former Vienna FPÖ district councilor, as CFO of Casinos Austria was intended to help Novomatic obtain preferential treatment with regards to gambling licenses.
Both sides have denied these allegations, and while the presumption of innocence still holds, Novomatic has decided to sell its shares in Casinos Austria to the Czech Sazka Group, who now hold 53.2% of the state-owned company. In lieu of this decision, Novomatic has announced a partial withdrawal from Austria.
High-ranking partners targeted
Among those caught up in the current investigation are two Novomatic partners: an auditor from Linz and the Institute for Security Policy (ISP). The latter is identified as being close to the FPÖ, with former FPÖ member of parliament Markus Tschank as its chairman. The chief focus of this investigation is the granting of gambling licenses by Novomatic, which the company is suspected of having obscured through sponsorship deals. Reports in the Austrian newspaper Kronen-Zeitung allege that €240,000 was transferred to the ISP in this manner. The documents seized during the raid have yet to reveal if they hold more information on the case.
Upheaval at Novomatic
Novomatic CEO Harald Neumann, who has been in his position for six years, has resigned from his role. It is reported that board members Ryszard Presch and Johannes Gratzl will step in to manage the company. Additionally, Neumann will continue to work at Novomatic in a more limited capacity, serving on the Supervisory Board and offering advice on international projects. His departure was initially attributed to family reasons, but the current scandal may also have played a part.
Transparency and regulation
With the renewed attention on Novomatic, calls for more transparency and a clearer division of responsibilities have grown louder. Austrian Finance Minister Gernot Blümel (ÖVP) has advocated for the establishment of a new gambling supervisory authority to help separate the various roles the Ministry of Finance currently holds. This includes regulation, licensing, and representation of gambling sector owners. Mr Blümel stated that the current setup should be "reconsidered" to free these areas from political influence.
Regulatory changes ahead?
The Austrian Association for Betting and Gaming (ÖVWG) has entered the debate, urging the government to open up the market to international gambling providers. They claim that lifting the state-monopoly Casinos Austria has held since 2016 is crucial to changing the current regulatory landscape. With market share figures showing that unlicensed online casinos generate a significant majority of total turnover in the industry, it's clear that greater deregulation is needed.
Meanwhile, in Germany, the move towards legalizing online gambling is progressing. Alongside the announcement that the market will open up to reputable online casinos in mid-2021, private providers have been operating in a legal gray area, while unlicensed operators continue to prosper. This backs up the claim made by the ÖVWG that further legalization is necessary to address this issue.
Overall, the fallout from the Casinos Austria affair has raised serious concerns for Novomatic and the broader European gambling market. However, the prospects for future regulatory changes seem promising, with Germany's plans to liberalize the online gambling industry and Austria's pursuit of a more transparent system. Hopefully, these changes will help promote a more equitable market where fair competition can thrive.
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Source: www.onlinecasinosdeutschland.com
