Ainsworth CEO Faces Uncertain Future After US Regulator Flags Licensing Concerns

Ainsworth Game Technology (AGT) could face a significant setback following revelations that its chief executive, Harald Neumann, is facing substantial licensing hurdles in the United States. The Nevada Gaming Control Board (NGCB) has urged Newmann to withdraw his gaming license application amid lingering doubts surrounding his alleged connection to a European corruption investigation.

Nevada Regulators Remain Concerned

Neumann, who was appointed as AGT’s CEO in late 2021, previously headed Austrian gaming giant Novomatic AG. His time at Novomatic was marked by a corruption probe by Austrian authorities, which investigated alleged backroom dealings between Novomatic executives and far-right political figures. The inquiry examined claims that the company sought to trade concessions for favorable treatment of its gambling interests.

While AGT remains adamant that most of the investigations against Neumann and Novomatic have been dropped, the Nevada regulator’s position indicates that concerns still linger. The NGCB’s recommendation, delivered just days before a scheduled hearing, has prompted the AGT board of directors to launch a review into Neumann’s position.

At this meeting, Mr Neumann’s application was referred back to NGCB staff, including a recommendation that Mr Neumann withdraw his application.

Ainsworth Game Technology announcement

AGT chairman Danny Gladstone noted that this development could have significant implications for the company’s leadership, as all executive officers must hold the appropriate permits to operate in US jurisdictions. Kjerulf Ainsworth, son of company founder Len Ainsworth and a key minority shareholder, was adamant that without a license, Neumann could not remain as CEO.

The Company Faces a Pivotal Decision

Neumann’s career has not been without its share of controversy. In June, he faced a corruption probe due to his alleged involvement in the so-called Ibiza affair, one of Austria’s most explosive political scandals in recent memory. Earlier in 2019, his house was raided as part of an inquiry into alleged bribery and illegal political financing. 

Following the raids, Austrian newspapers published text messages that seemed to indicate Neumann was attempting to trade political donations for assistance with a legal matter concerning Novomatic’s operations in Italy. Neumann resigned from Novomatic under the pretext of family matters shortly after these controversies. He was later appointed CEO of AGT without public mention of his involvement in the Austrian investigation.

This development could complicate AGT’s relationship with Novomatic, one of its largest shareholders, as a high-profile acquisition is reportedly underway and expected to close later this year. With regulatory trust no longer assured, the board’s evaluation of Neumann’s future will be a deciding factor in whether AGT can regain its stability without a top-level change.