Harald Neumann has resigned as chief executive officer of Ainsworth Game Technology, ending his tenure at the Australian slot machine manufacturer amid mounting regulatory and governance challenges. The resignation took immediate effect on Monday, October 13, just days after the Nevada Gaming Control Board (NGCB) recommended that Neumann withdraw his application for a gaming licence renewal in the state.
Nevada Regulator Pressure Leads to Sudden Exit
Neumann’s abrupt departure follows a tense exchange with one of the most influential gambling regulators in the world. The NGCB’s assessment, which included allegations that Neumann had misled investigators, withheld phone records, and shown a lack of contrition, culminated in a 90-minute hearing described by one board member as “very unusual.” Retired judge George Assad reportedly told Neumann, “Your behaviour is very unusual, to say the least … I’ve got eight different issues here that our investigators say were very problematic for them to conduct their investigation because of your being ‘very difficult to work with’, ‘disrespectful’, ‘arrogant’, ‘raising your voice’, which you’ve admitted to.”
The board’s inquiry stemmed from Neumann’s attempt to renew his Nevada licence, a requirement for executives overseeing gaming machine supply in the state. Although he previously held a licence, the renewal process reignited scrutiny, partly due to ongoing investigations in Austria dating back to 2019 involving his earlier tenure at gaming giant Novomatic AG—allegations Neumann has strenuously denied.
According to AFR, Ainsworth’s chairman Danny Gladstone confirmed last week that the company’s board had begun reviewing Neumann’s position following the outcome of the NGCB meeting. Monday’s filing to the Australian Securities Exchange (ASX) formalized the leadership change. “The board acknowledges Mr Neumann’s contribution during his tenure as the company’s CEO,” Ainsworth stated.
The company has appointed Ryan Comstock, Ainsworth’s chief operating officer since 2018, as acting CEO. Based in Las Vegas, Comstock has been with the firm since 2012, overseeing operations across finance, manufacturing, compliance, and development. Before joining Ainsworth, he spent nearly a decade with Deloitte’s audit and assurance practice and currently serves as chair of the Association of Gaming Equipment Manufacturers.
Ainsworth confirmed that a comprehensive search process is underway to identify a permanent replacement, considering both internal and external candidates. Shares in Ainsworth Game Technology closed 1.4% lower at A$1.06 in Sydney on the day of the announcement.
Corporate Governance Questions and Novomatic Ties
Neumann’s resignation comes as Ainsworth faces heightened scrutiny over its corporate governance and disclosure practices. Reports revealed that the company had not informed investors about the Austrian probe concerning Neumann’s time at Novomatic, where he previously served as chief executive. Corporate governance experts have since questioned whether Ainsworth fulfilled its continuous disclosure obligations, particularly given Neumann’s prior leadership at the company’s largest shareholder.
Novomatic, which owns the Admiral Casino brand, began acquiring shares in Ainsworth while Neumann was still at its helm. The Austrian firm has since expanded its stake and now holds 61.5% of Ainsworth following a series of acquisitions and an off-market bid earlier this year. The company had previously offered to buy out the remaining 47.1% for A$1 per share, but that proposal was withdrawn after resistance from minority shareholders.
Corporate governance specialist Helen Bird commented that Ainsworth’s handling of Neumann’s offshore investigations raised serious questions about potential conflicts of interest. “He was the CEO of your now major shareholder who has made an off-market takeover,” Bird said. “Where you have those conflicts, you’ve got to be even more careful and seek legal advice. I can only assume that they determined, based on legal advice, they didn’t need to [disclose anything] … all the indications are that this is a case where you would normally have to give some form of disclosure to the market.”
Neumann, who took over as CEO in October 2021, had previously stepped down from Novomatic in 2020, citing family reasons. His exit from Ainsworth marks the end of a turbulent period for the company, during which questions over leadership transparency and shareholder influence became increasingly pronounced.
While Ainsworth thanked Neumann for his service, the board’s swift appointment of an interim leader and launch of a leadership search signal a clear desire to stabilize operations and rebuild regulatory trust after months of reputational strain.
