Ainsworth CEO’s Future in Doubt as Nevada Regulator Raises Licensing Issues
Concerns Raised by Nevada Gaming Authorities
Ainsworth Game Technology (AGT) is facing a potential leadership crisis after its CEO, Harald Neumann, encountered significant challenges related to his gaming license application in the United States. The Nevada Gaming Control Board (NGCB) has highlighted ongoing concerns linked to Neumann’s past, urging him to withdraw his licensing request due to unresolved questions about his ties to a European corruption investigation.
Background on Harald Neumann and Past Investigations
Harald Neumann, who took over as CEO of AGT in late 2021, previously led Novomatic AG, an Austrian gaming company. During his tenure at Novomatic, Austrian authorities conducted an investigation into alleged corrupt practices involving Novomatic executives and far-right political figures. The probe centered on accusations that the company exchanged certain concessions for favorable treatment of its gaming operations.
Although AGT points out that most allegations against Neumann and Novomatic were dismissed, the Nevada gaming regulator remains cautious. The recent recommendation from the NGCB, released shortly before a key hearing, has led the AGT board to initiate a review of Neumann’s standing within the company.
The official statement from AGT reflected the board’s serious consideration of the issue, noting that NGCB staff advised Neumann to withdraw his application.
AGT Chairman Danny Gladstone acknowledged the potential impact of this development on the company’s leadership structure, stressing that all executives need valid gaming permits to operate legally in the U.S. Additionally, Kjerulf Ainsworth, a significant shareholder and son of the company founder, stressed that without a license, Neumann’s continuation as CEO would be untenable.
Implications for AGT’s Leadership and Future
Neumann’s career has been marked by controversy. Earlier this year, he was implicated in the so-called “Ibiza affair,” a significant political scandal in Austria, and faced a corruption investigation. In 2019, authorities raided his home as part of a broader inquiry into alleged bribery and unlawful political contributions.
Following the raid, media reports surfaced revealing messages suggesting that Neumann sought to exchange political donations for legal assistance related to Novomatic’s business interests in Italy. Neumann resigned from Novomatic shortly afterward, citing family reasons. His appointment as AGT’s CEO came without public disclosure of the ongoing investigation related to his previous role.
This situation adds complexity to AGT’s ties with Novomatic, which remains a major shareholder, especially as a notable acquisition by AGT is anticipated to conclude later in the year. With regulatory confidence in question, the board’s decision on Neumann’s position will be crucial in determining AGT’s ability to maintain stability without leadership changes at the top.
