Power Struggles Deepen at Ainsworth Game Technology

Ainsworth Game Technology (AGT), the Australian slot machine developer founded by the legendary Len Ainsworth, continues to suffer from significant internal power struggles. The latest twist comes from Len’s son, Kjerulf Ainsworth, who has launched a proportional bid to lift his stake in the company from 7.27% to just under 10% as he seeks to expand his influence.

Kjerulf Ainsworth Believes AGT Is Undervalued

The offer, pitched at AUD 1.30 ($0.85) per share, represents a 30% premium to the unconditional AUD 1.00 ($0.65) per share offer currently on the table from Austrian gaming giant Novomatic AG, AGT’s majority shareholder. This development has reignited tensions that have simmered since a planned buyout by Novomatic fell through earlier this year when Kjerulf Ainsworth, along with other minority shareholders, successfully blocked the deal.

In his letter to shareholders, Ainsworth presented his bid as a defense of shareholder value rather than a challenge to corporate control. He was adamant that regulatory constraints prevented him from surpassing the 10% ownership threshold. Ainsworth also signalled that he could make additional offers in the future, depending on market conditions and investor appetite.

I believe that shareholders deserve to have access to an alternative offer that better reflects the real value of AGI.

Kjerulf Ainsworth

Despite the measured tone, Ainsworth’s intervention exposes the growing rifts within the company’s ownership structure. Novomatic, which has been slowly raising its stake to 61.5%, has consistently sought to consolidate control over AGT’s operations and direction. Meanwhile, Ainsworth presents the current bid as a way of restoring Australian influence and resisting what critics call “foreign dominance”.

Recent Leadership Shifts Could Further Destabilize the Company

AGT’s recent leadership change threatens to raise further internal tensions. CEO Harald Neumann, a former Novomatic executive, resigned earlier this month after the Nevada Gaming Control Board advised him to withdraw his license application. This decision followed media reports in Austria linking Neumann to an investigation into alleged bribery and political funding during his previous tenure at Novomatic.

In Neumann’s absence, the board of AGT has chosen chief operating officer Ryan Comstock as interim CEO. Comstock, based in Las Vegas, is broadly regarded as a stabilizing figure with deep technical knowledge and a pragmatic approach to management. The firm has declared that its search for a permanent CEO will be open to both internal and external applicants.

These latest developments place AGT in a precarious position. The company must navigate declining investor confidence, a leadership vacuum, and a public battle between its founding family and its dominant shareholder. Analysts suggest that although Ainsworth’s bid may look small, it indicates his intention to be part of the company’s future, a symbolic, as well as a financial play.