Harald Neumann Steps Down as Ainsworth CEO Amid Nevada Licensing Turmoil

Ainsworth Game Technology (AGT) finds itself in a sudden leadership vacuum after the abrupt resignation of CEO Harald Neumann, announced by the company in a Monday filing to the Australian Securities Exchange. Neumann’s departure comes just days after the Nevada Gaming Control Board (NGCB) recommended he withdraw his application for a key gaming license renewal in the United States. 

NGCB Officials Were Highly Critical of Neumann

The denial by the NGCB effectively barred Neumann from overseeing AGT’s Las Vegas operations, a critical hub for the Australian slot machine manufacturer. The resignation marks a dramatic turn for Neumann, who took over Ainsworth’s leadership in 2021 after a long career at Novomatic AG Austria, a leading European gambling technology group. 

Despite his intentions to expand Ainsworth’s footprint, Neumann’s tenure became increasingly controversial due to rising regulatory scrutiny. His application for a license in Nevada has been especially contentious. During the review process, NGCB agents accused him of being “hostile and belligerent” and “intentionally misleading,” alleging he failed to disclose relevant personal information.

You have to be a person of good character, honesty, and integrity. What I’ve seen here does not support such a finding.

Chandeni Sendall, NGCB board member

The NGCB ultimately refrained from outright denying Neumann’s application, as such a move would have placed him on Nevada’s industry “grey list.” However, the board recommended that he step down voluntarily. Ongoing legal investigations in Austria further complicated the former CEO’s position, as local prosecutors allege he sought political favors from the far-right.

AGT Swiftly Recovered from the Shakeup

In a recent announcement, AGT confirmed that current COO Ryan Comstock will take up the position of interim CEO as the board searches for Neumann’s successor. According to the company, the process will consider internal and external candidates. AGT considers the Vegas-based Comstock as a steady hand, familiar with the company’s technology and its international business.

A comprehensive search process is to be undertaken for a permanent CEO.

AGT statement

Neumann’s resignation aligns with a delicate period for AGT as the company seeks to regain public trust and bolster its earnings after a challenging time for the global gaming industry. AGT chairman Danny Gladstone recognized Neumann’s contributions but remained adamant that compliance was a key factor for executive officers. According to Gladstone, a leader facing such scrutiny was unsuitable for the company.

Industry experts believe that Ainsworth will likely focus on stability and regulatory transparency as it looks for a new leader. Kjerulf Ainsworth, son of company founder Len Ainsworth and a major shareholder, insisted that the company could not risk its US reputation over unresolved licensing issues. Despite this setback, the development could be an opportunity for AGT to reaffirm its global credibility.