After a week of intense scrutiny, Ainsworth Game Technology (AGT) has confirmed that its CEO, Harald Neumann, has resigned.
Internal inquisition over Neumann’s position as leader of the ASX-listed gambling group came into focus last week after AGT told investors that the Nevada Gaming Control Board (NGCB) had recommended that the board of directors withdraw Neumann’s application to be licensed in Las Vegas.
Now he has officially stepped down with immediate effect, ending his tenure at the company, which began in 2021.
Formerly of Novomatic, Neumann was aiming to oversee a takeover of AGT by the Austrian gaming firm. However, attempts so far have stalled due to the disapproval of Novomatic’s $1-per-share offer by AGT’s wider shareholding.
Public grilling
As part of the licensing process, Neumann attended a public hearing where he was grilled by officials from the NGCB.
During the 90-minute interrogation, Neumann was accused of being hostile and belligerent with agents who were conducting a vetting process, and officials noted that he did not provide direct answers when questioned during the hearing.
He was also questioned as to why he failed to submit documents related to his bank accounts, a house he owns in Greece and a rental property in LA.
During the vetting process, details also emerged regarding a former relationship with an AGT employee in Australia, which Neumann stated constituted several dinner dates and conceded did breach AGT’s fraternisation policy.
Addressing Neumann, Board Member Chandeni Sandall said: “What you’re seeking today is an application for licensure, and as part of that qualification, you have to be a person of good character, honesty and integrity. What I’ve seen here on the record for the past hour does not support such a finding.
“What I would define as being arrogant is your unwillingness to come to the table and be cooperative and work with the agents and try to get this licensing done.”
Meanwhile, a corruption probe remains open in Austria related to Neumann’s time leading Novomatic.
In 2019, a series of investigations into more than 100 individuals was launched by Austria’s Economic and Corruption Prosecutor’s Office. Neumann was initially implicated in some of these cases. However, all but one have been discontinued as no further evidence of corruption was uncovered.
He resigned as Novomatic’s CEO in 2020 and became a “strategic advisor” for the company before joining AGT as CEO in 2021.
Neumann has always denied any wrongdoing related to the investigations. His legal representative told the board that Neumann and Novomatic expect the final investigation to be closed by the end of the year.
In summing up the hearing, Nevada Board Chair Brian Dreitzer said that he had “grave concerns” regarding Neumann’s conduct with agents and his answers during the hearing.
“I think the totality of the circumstances has left you unable to meet your burden to prove suitability at this moment,” he told Neumann.
The NGCB recommended that the licence application be withdrawn. However, crucially for Neumann, they did not deny his licence application.
If that had been the case, he would have been placed on a “grey list” of individuals who are restricted from doing business with licensees in Nevada indefinitely, significantly impacting his future within the gaming industry.
Search for a successor begins
AGT has confirmed that the company’s COO, Ryan Comstock, will step in as acting CEO effective immediately.
Comstock joined AGT in 2012 and was promoted to COO in 2018. AGT notes that before joining the company, the Las Vegas resident spent nearly a decade with Deloitte’s audit and assurance practice, where he served Gaming, Manufacturing and Technology companies.
AGT will now begin a “comprehensive search” for Neumann’s replacement and will consider both internal and external candidates.
The company’s Board of Directors also placed on record an acknowledgement of Neumann’s contributions during his tenure as CEO.
