Austrian Authorities Accuse Former Novomatic Leaders of Bribery Charges

Allegations Target Former Novomatic Executives and Austrian Politician

Austria’s foremost anti-corruption officials have leveled bribery accusations against prominent figures within the nation’s gambling sector. Johann Graf, the founder and principal owner of Novomatic, alongside Harald Neumann, the company’s former CEO, have been charged. Additionally, Heinz-Christian Strache, the vice-chancellor and a leading member of Austria’s right-wing Freedom Party (FPÖ), is implicated in the case.

Details of the Investigation and Alleged Bribery Scheme

The inquiry, which started in 2018, centers on claims that Strache sought to influence the appointment of Peter Sidlo to the board of Casinos Austria. Sidlo’s selection was said to have been driven more by his political affiliations than his qualifications. At the time, Novomatic owned a significant 17.2% stake in Casinos Austria and wielded considerable influence, including nomination and voting powers.

Authorities argue that Strache intended to leverage his government position to advance Novomatic’s interests through favorable legislation and government resolutions, expecting reciprocal support tied to Sidlo’s board role. Graf and Neumann are accused of offering improper benefits aimed at swaying a public official’s future conduct.

Under Austrian law, these offenses could result in up to two years’ imprisonment. Prosecutors also assert that Strache acknowledged the likelihood of being influenced during his official responsibilities. The proceedings faced nearly a three-year delay due to legal challenges raised by the accused.

Potential Consequences for Novomatic and Broader Impact

The charges may lead to a corporate penalty against Novomatic for the actions attributed to its former leaders. However, the company denies all allegations. Novomatic stated that most prior claims had already been dismissed and expressed confidence that the current accusations will also be refuted in court.

For Harald Neumann, the charges arrive on the heels of a difficult period. He resigned as CEO of Ainsworth Game Technology in October, following the Nevada Gaming Control Board’s refusal to renew his gaming license in that state. Regulators noted his uncooperative behavior and failure to disclose important personal details during their review. This licensing setback coincided with Austrian media reports linking him to the ongoing bribery probe.

The legal ramifications of this case could extend beyond Austria’s borders. Novomatic holds a controlling interest in Ainsworth, an Australian gaming supplier that has recently experienced internal conflicts. Minority shareholders blocked Novomatic’s attempt to acquire full ownership and privatize Ainsworth. Additionally, Kjerulf, the son of Ainsworth’s management, criticized leadership for poor governance and for not adequately communicating the investigation’s details to shareholders.