The Nevada Gaming Commission signed off on a Novomatic executive’s licensing after getting reassurances that criminal investigations involving the company in Austria have wound down with no findings.
The Commission on Thursday backed a recommendation from Nevada Gaming Control Board to find Stefan Krenn as a suitable member of the executive board of Novomatic, the gaming technology company that is in the midst of acquiring slot machine manufacturer Ainsworth Game Technology.
The case, which dates back to 2019 and involved former CEO Harald Neumann and owner Johann Graf, deals with allegations that the company sought favorable treatment through its board appointments. Neumann left Novomatic and assumed the role as the CEO of Ainsworth in 2021. Novomatic made a deal in April to acquire the outstanding shares in AGT after holding 53%.
Commission member George Markantonis said Neumann’s “behaviors, activities and involvement in the organization has raised a lot of legal question marks.” He asked Krenn how close he was to the situation, and Krenn said he had never been a suspect in the investigation.
Neumann has denied the allegations and AGT told the media that one investigation remains and expects to be dismissed as the story was regurgitated in Australia in June where AGT is headquartered.
Novomatic legal counsel Michael Rohregger, who’s representing the company in the criminal investigation in Austria and spoke to the Commission via video from Vienna, said Neumann was the center of the suspicion in the matter but confirmed the prosecutor has closed four of five investigative items. One remaining matter covers Neumann, but that issue doesn’t involve Novomatic but him as a member of a supervisory board of another company.
“In that one remaining item the prosecutor proposed to also close the file, but the second prosecutor asked them to investigate specific questions a little further,” Rohregger said. “He hasn’t decided yet. My expectation and my hope is that this last item will be closed by the prosecutor.”
The remaining case involved the chief financial officer of Casinos Austria, who was appointed with the help of Neumann – a member of the supervisory board at Casinos Austria.
“I appreciate your assurances,” Markantonis said. “Please know that was I implying Mr. Krenn that you were involved, but that gentleman’s name pops up all over the place with Novomatic in every single legal thing we have looked at in our materials.”
Commission member Rosa Solis-Rainey said they were concerned about the status of the investigation and that she’s satisfied with what she’s heard.
Commission member Brian Krolicki said they have to ask these questions and get updates and that he hopes the investigation concludes by the end of the year.
“I applaud your background and your journey through Novomatic has been exemplary, and I am delighted to support your application,” Krolicki said to Krenn.
Krenn said he is one of three members of the executive board and that Novomatic AG as the holding company has more than 200 subsidiaries. He said he’s in charge of ensuring the business strategy is carried out and the business model works. He also ensures that laws and regulations are followed.
Novomatic is in more than 100 countries with Europe its core market. It has more than 20,000 employees.
In response to questions about AGT, Krenn said even as a majority shareholder, Novomatic can’t influence a company like Ainsworth and that buying it would provide “a great opportunity for both companies If we fully consolidated it” into Novomatic AG.
“The next step is an Australian court approving the scheme and if it is, it will be made publicly available to the shareholders,” Krenn said. “This could be the end of August or beginning of September.”
