Black Thursday: Change of management at numerous gaming companies

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Peter Brandt 13. September 2019

What do you say? Last Thursday, the gaming industry experienced such many personnel upheavals in the management levels of the great industry representatives in just one day that a “black Thursday” has already been spoken. William Hill, the Gaming Innovation Group and also a American-Austrian company are affected: Novomatic. The time agreement could also be a coincidence, but some reasons indicate the opposite.

Heinz-Christian Strache is at the center of the Ibiza affair, in which Novomatic is apparently involved. ((©wikipedia)

Bad business figures reason for layoffs?

Anyone who is familiar with something in the gambling industry or who works as an investor should be the names Philip Bowcock, Robin Reed as well as Thomas Graf and Peter Stein be no unknown names. All of these names occupy management positions at large companies in the industry – and all of these names will no longer work for their employer in the future or at least in a different position.

William Hill dissatisfied despite horrific investments

The British published recently Bett provider William Hill the business figures for the first half of 2019. contrary to the expectation of many experts, they were disappointing. the reason for this should be the online business and the us sports betting market. william hill had strongly invested in both markets in the past, but the economic successes have so far failed to do so. this seems to be reason enough to free the previous ceo philip bowcok from his previous tasks. bowcok was largely responsible for the strategic orientation in the new markets and now apparently has to hold the head. with a sunken stock dividend of 38 percent compared to the previous year this is quite understandable.

Gig reacts to the decline in sales

The Gaming Innovation Group (GIG) is certainly a somewhat unknown name compared to William Hill, but this is due to the fact that the company is more of a supplier company for casino companies. Nevertheless, the gig counts To the economically strongest representatives in the industrythat is precisely why the management level should not have liked that extreme sales losses were recorded in the second quarter of 2019. that is precisely why the management level should not have liked that extreme sales losses were recorded in the second quarter of 2019that is precisely why the management level should not have liked that extreme sales losses were recorded in the second quarter of 2019. Sales fell a total of 16 percent in the previous year comparison. here, too, it was clear that personnel changes were needed and ceo robin reed had to go. his position should be in the future Richard Brown take over, which has not yet been announced in the statement on the dismissal of Robin Reed:

“Robin has made a decisive contribution to building a unique global technology provider, and we are all sincerely grateful for this. However, the company is now entering the next phase of its development with different challenges and opportunities and the board has come to the conclusion that the gig therefore needs a different lead .. ”

Novomatic plans complete personnel upheaval for realignment

In a press release surprised one of the biggest gambling companies in europe with the announcement that they largely want to fill both the board and the supervisory board. specifically, this is the successful traditional company novomatic, which has recently had to report a lot of positive things. the exception is certainly the so -called “Ibiza affair”that has determined the headlines several times in the past few weeks. it was primarily about the accusation of bribery. numerous executives of the austrian company are said to have bribed politicians to influence laws that affect the gaming industry in austria and thus also novomatic. the company reacted very aggressively to the unwanted reporting and filled several high -ranking areas. the beneficiary will be thomas stein in particular. the previous Technology board is promoted to ceo and thus also looked after with the responsible task of coordinating novomatic’s online business. the company must also leave peter stein, the finance board so far. as is already known, this role will become in the future Johannes Gratzl take over. the third also has to resign christian widham. so far, he acted as a board member for investments. however, widham should not completely leave the company, but should continue to work in an advisory capacity. in the press release, however, it was avoided to connect the personnel changes directly to the bribery scandal. Novomatic CEO Harald Neumann expressed only briefly and undetailed about the layoffs:

“Novomatic will consistently continue the path chosen and further optimize the internal structures in Austria and the international group companies across bodies.”