Three contenders remain for the acquisition of Westspiel.
The privatization of Westspiel (NRW) is moving forward, despite strong opposition from the SPD parliamentary group. The Ministry of Finance has revealed that only three bidders remain, who are poised to submit their final offers. The new operator will take over the control of four casinos, with two additional locations possibly added. Who are the potential bidders and who will ultimately win the race?
Uncertainty Over Vying Bidders
Düsseldorf set the ball rolling for Westspiel's sale last year in December. The objective was to identify a new owner for their four state-owned casinos in Aachen, Bad Oeynhausen, Dortmund (Hohensyburg), and Duisburg. The process is now entering its final stage, with the Ministry of Finance and the NRW bank supervising the proceedings.
There is no set minimum purchase price for Westspiel. The remaining three bidders are expected to submit concrete offers. The state-owned entity was recently appraised at €2.7 billion. Furthermore, the finance committee of the Düsseldorf state parliament anticipates the casinos' gross gaming revenue to amount to €3.1 billion from 2020 to 2035.
Unfortunately, the identities of the three bidders are undisclosed. One thing is certain: hefty players such as Gauselmann (Merkur) and Novomatic AG have expressed interest. Casinos Austria and Tipico also find themselves included in the race. The COVID-19 pandemic and associated lockdowns have significantly altered the situation. Finance investors are now rumored to be eyeing Westspiel.
While it's improbable that Westspiel will be sold to a financial investor, the new licensee will be subjected to a range of conditions. They are required to possess three years' worth of experience in the casino industry and have a minimum equity of €20 million. On the flip side, the buyer will be granted an additional two licenses for casinos. The bidders are presumably free to choose the locations. Düsseldorf and Cologne are believed to be front-runners for the new sites.
SPD Loudly Criticizes Privatization
Since the state government first announced its plans to sell Westspiel back in May 2018, the SPD parliamentary group has been critical, particularly due to mounting deficits. They accuse the government of being ideologically driven, with employee and player protection being neglected. Allegations of mismanagement in the Westspiel privatization process have also been leveled at the government.
Stefan Zimkeit, the financial policy spokesperson for the SPD, asserts that the sale paves the way for a substantial financial loss for taxpayers. The state's asset is at risk of being squandered for the sole benefit of a private buyer. The lack of a minimum purchase price exacerbates these concerns.
The Greens align with the SPD on the issue. Although the parliamentary group leader, Monika Düker, acknowledges the ongoing crisis, she argues that there is no rush for the sale. The financial details of Westspiel remain shrouded in mystery. She demands thorough negotiations with financial experts and assurances for the employees.
Employees of Westspiel have vigorously protested against the privatization, prompting a response from Finance Minister Lutz Lienenkämper, who characterized the state-owned company as permanently loss-making. The allegations covered the period from 2016 to 2018. However, figures from the works council demonstrate a turnaround — Westspiel returned profits of €3.2 million in 2019. This enterprise produces about €50 million in tax revenue annually. The public is left questioning how the state government expects to extract €2.7 billion in revenue by 2035 from a company that is purportedly unprofitable.
The Contenders Race Toward the Finish Line
Merkur's owner, Gauselmann, is considered the front-runner for the Westspiel concession. The successful gaming conglomerate, headquartered in Espelkamp, North Rhine-Westphalia, enjoys a presence in Düsseldorf, the sports city, and has a strong connection to the region. However, the COVID-19 pandemic poses hurdles: Gauselmann reported its first-ever loss in history in February.
It's remote that billionaire Gauselmann would open up new ventures in the heart of the pandemic. There's little optimism for the other prominent contenders in the industry, either. Tipico has limited knowledge of the land-based casino business, while Casinos Austria has been grappling with allegations of rigged machines and questionable advertising.
Novomatic AG, plagued by the ongoing Ibiza U Committee inquiry, is another contender. The investigation has clouded Novomatic's reputation for over a year, involving suspicions of illicit party donations to influence Austria's Gambling Act. While the Ibiza U Committee's developments are unpredictable, the bidding for the Westspiel concession continues to capture the attention of enthusiasts.
Read also:
- Remaining contenders down to two in DFB's struggle versus Brazil.
- Schalke's Transfer Assessment: A Season of Wastefulness
- Shocking development in the NBA!
- Law enforcement agencies in various metropolises plan expansive measures for May 1.
Source: www.onlinecasinosdeutschland.com
