Ainsworth pulls Nevada licence application for CEO Neumann
Australia-listed slot machine manufacturer Ainsworth Game Technology Ltd has withdrawn the Nevada licensing application of its Chief Executive Officer Harald Neumann, following a recommendation from the Nevada Gaming Control Board (NGCB). The decision, made shortly before a scheduled hearing, has drawn attention to the company’s leadership and regulatory standing in one of the world’s most closely watched gaming markets.
In a filing to the Australian Securities Exchange (ASX) on Thursday, Ainsworth confirmed, “An application for licensing in Nevada, in the United States, by its chief executive Harald Neumann had been referred back to NGCB staff, including a recommendation that Mr Neumann withdraw his application.”
The statement added, quoting Ainsworth Chairman Danny Gladstone, “The Board is undertaking a review of Mr Neumann’s role following the outcome of the NGCB’s meeting and will provide further details to the market once this review is completed.”
The filing did not specify the reasons behind the NGCB’s recommendation. Neumann was due to face a hearing with the NGCB on 11 October regarding the renewal of his executive licence. That hearing has now been called off after the board advised Neumann to withdraw his application.
Possible impact on Ainsworth’s operations
Licensing approval in Nevada is critical for gaming manufacturers operating in the United States. The move marks a significant development for Ainsworth, which has its global base in Australia but maintains a strong operational presence in Las Vegas, where Neumann is based.
The company has been undergoing structural changes amid an ongoing takeover bid by Novomatic AG, the Austrian gaming giant that already owns a majority stake in Ainsworth. The licensing process for all senior executives, including Neumann, forms part of the due diligence requirements tied to this acquisition.
Novomatic’s growing control
Novomatic, led by its founder Johann Graf, has steadily increased its ownership in Ainsworth over the past few months. As of 2 October, Novomatic and Graf controlled 61.5 percent of Ainsworth’s shares, according to official filings.
Novomatic has been seeking to acquire the remaining shares it does not already own to take full control of Ainsworth. However, this move has faced resistance from minority shareholders, including Kjerulf Ainsworth, son of company founder Len Ainsworth, who claimed that Novomatic’s offer undervalued the firm.
Allegations & investigations in Austria
Neumann, who became Ainsworth’s CEO on 1 October 2021, previously served as CEO of Novomatic from 2014 to 2020. He stepped down from that role citing “family reasons.”
However, in June 2024, Australian public broadcaster ABC reported that Neumann was “under investigation over alleged corruption involving far-right politicians in Austria – allegations he strenuously denied.”
The investigations trace back to Austria’s high-profile Ibiza affair, a political scandal that forced the resignation of former chancellor Heinz-Christian Strache in 2019. As part of the probe, authorities looked into whether Novomatic executives, including Harald Neumann, had tried to influence gaming laws by securing appointments at Casinos Austria, a company partly owned by Novomatic.
While several parts of the inquiry have since been dismissed, one case remains ongoing. Reports in Austria’s Der Standard also claim that Neumann faces a separate tax-related case connected to alleged payments made to him in 2018 and 2019. He has denied all allegations of wrongdoing.
Ainsworth faces investor pressure
Ainsworth, founded by Australian gaming pioneer Len Ainsworth, has been at the centre of investor unease following reports of Neumann’s legal troubles and Novomatic’s takeover ambitions. Shareholders, including institutional investors Spheria Asset Management, Kanen Wealth Management, and Allan Gray, have criticised the deal as “opportunistic” and accused the company of not adequately disclosing information regarding ongoing investigations.
The failure to secure a Nevada licence could now deepen uncertainty about Neumann’s future and the company’s regulatory standing in the US.
Board review underway
Ainsworth’s board has begun a formal review into Neumann’s role in light of the NGCB’s recommendation. “The Board is undertaking a review of Mr Neumann’s role following the outcome of the NGCB’s meeting and will provide further details to the market once this review is completed,” said Danny Gladstone.
Until the review is complete, Ainsworth has not said whether Neumann will remain in his role as CEO. His decision to withdraw the Nevada licensing application marks a significant moment for the company, coming at a time when it faces both regulatory scrutiny and major ownership changes in the world’s biggest gaming market.
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