A cloud hangs over the future of an Australian pokie machine company boss whose bid for a gaming licence in the US has met hurdles after revelations he was the subject of a European corruption investigation.
The ABC revealed in June that Harald Neumann, chief executive of Ainsworth Game Technology (AGT), had been under investigation in Austria over an alleged scheme with far-right politicians to win favours for his former company Novomatic AG.
One of the world's biggest pokie manufacturers, AGT had not publicly disclosed Mr Neumann's role in the investigation.
It told the ABC at the time that "all (except for one) of the investigations involving Mr Harald Neumann and / or Novomatic AG have been dismissed".
But the company revealed on Thursday that it was considering Mr Neumann's future after the US' most influential gaming regulator recommended he withdraw his application for a gaming licence.
In an announcement to the Australian Stock Exchange, AGT said that "following the requirement to pursue licensure for all executive officers of the company, a meeting before the Nevada Gaming Control Board was held earlier today".
"At this meeting Mr Neumann's application was referred back to NGCB staff, including a recommendation that Mr Neumann withdraw his application," it said.
AGT chairman Danny Gladstone said the Australian company's board was "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 recommendation by the board of the US regulator that Mr Neumann pull his licence application came just two days before he was scheduled to appear in a hearing for it.
Kjerulf Ainsworth, the son of AGT founder Len Ainsworth and a significant minority shareholder in the company, said if Mr Neumann "doesn't have a licence, he can't stay as CEO".
"It's that simple," he said.
Speaking to the ABC from the US, Kjerulf Ainsworth has recently battled alongside other minority investors resisting an attempted takeover by Novomatic AG on Mr Neumann's watch.
Mr Ainsworth said with US regulators appearing to have taken the Austrian investigation into account, "all I'd say is I'm glad the process is working properly".
"The regulators' job is to keep it all clean," he said.
"People need to be held to account."
Mr Neumann, who is based in Las Vegas, has "strenuously denied all the allegations" under scrutiny by Austrian prosecutors, the company previously told the ABC.
House raids, texts
His house was raided in August 2019 as part of an investigation into suspected bribery and illicit political funding by the Austrian Central Public Prosecutor's Office for the Prosecution of Economic Crimes and Corruption.
The investigation has examined an alleged deal involving the country's then-chancellor Sebastian Kurz and vice-chancellor Heinz-Christian Strache to influence an appointment to the board of state-controlled regulator Casinos Austria.
It was alleged the board then signalled concessions for changes to small-scale gambling laws that would favour Novomatic.
In February 2020, anti-corruption police reportedly raided the home of Austrian finance minister Gernot Blumel, and the office of Novomatic, which denied making any payments.
Austrian media published text messages between Mr Blumel and Mr Neumann, in which the then-Novomatic boss apparently sought help arranging a meeting with the chancellor in 2017 to discuss a donation and help with a foreign legal case against the company.
"Good morning, I have a request: I need a short appointment with Kurz (firstly because of a donation and secondly regarding a problem that we have in Italy! Do you think it will work out this week??" a translated message from Mr Neumann said.
In another chat, in January 2018, Mr Neumann asked for help scheduling "an appointment with SK … the topic will be gambling in general but also Casag [Casinos Austria]".
The same month of the raids and the publication of the texts, Mr Neumann resigned as Novomatic chief executive, citing family reasons, and became a "strategic adviser" for the company.
AGT made no public mention of the investigation when the Australian company appointed Mr Neumann as chief executive in October 2021.
At the time, AGT chairman Mr Gladstone said the company was "fortunate to be able to appoint Harald as our new CEO … the former successful CEO of Novomatic AG, our major shareholder".
An AGT spokesperson told the ABC in June that it was "our understanding that the one remaining investigation is largely complete, and it is anticipated that this will be similarly dismissed".
