Austrian Prosecutors Charge Former Novomatic Executives in Bribery Case

Austria’s top anti-corruption prosecutors have brought bribery charges against two leading figures in the country’s gaming industry. Johann Graf, founder and owner of Novomatic, and former chief executive Harald Neuman, along with Heinz-Christian Strache, vice-chancellor of the far-right Freedom Party of Austria (FPÖ), have all been implicated in this growing scandal.

The Two Executives Allegedly Sought Political Favors

The investigation began in 2018, examining allegations that Strache pushed for Peter Sidlo to become a board member at gambling operator Casinos Austria due to his political connections rather than his professional qualifications. At the time, Novomatic held a 17.2% stake in the company and commanded significant influence through nomination and voting rights.

Prosecutors claim that Strache planned to use his government role to benefit Novomatic by supporting legislative initiatives and cabinet decisions, in exchange for support linked to the board appointment. Graf and Neumann are accused of granting an undue advantage with the intention of influencing a public official’s future actions.

Under Austria’s criminal code, the alleged misconduct carries a potential penalty of up to two years in prison. Prosecutors also claim that Strache at least accepted the possibility of being influenced in his official duties. They say the case was delayed for nearly three years due to legal objections raised by the defendants.

The Lawsuit Could Have Significant Implications for Novomatic

According to the lawsuit, Novomatic could also face a corporate fine for the alleged actions of its former executives. However, the company has rejected any accusations. In an official statement, Novomatic said that most earlier claims had already been dismissed and expressed confidence that these new accusations would also prove unfounded in court.

For Neumann, the charges come after a turbulent year. He stepped down as chief executive of Ainsworth Game Technology in October, following the Nevada Gaming Control Board’s decision not to renew his Nevada gaming license. During the review, regulators accused him of being uncooperative and of failing to disclose relevant personal information. The setback occurred after Austrian media outlets reported his connection to a broader bribery investigation.

The legal implications could extend beyond Austria. Novomatic holds a majority share in Ainsworth, and the Australian supplier has recently faced internal frictions after minority shareholders prevented Novomatic from acquiring the company and taking it private. Ainsworth’s son, Kjerulf, publicly condemned management for their handling of governance matters, accusing them of not adequately informing shareholders of the investigation.