Ainsworth concludes its search for a new CEO with a familiar face

(AsiaGameHub) –   After six months of searching, Ainsworth Game Technology (AGT) has appointed Ryan Comstock to serve as its permanent Chief Executive Officer, ending the acting role he had held since October.

Comstock assumed the interim CEO position following the resignation of Harald Neumann, whose tenure became untenable after the Nevada Gaming Control Board (NGCB) declined to grant him a gaming license in Austria.

In October, AGT announced it would conduct a comprehensive search for a new CEO, evaluating both internal and external candidates.

Prior to his appointment as Acting CEO, Comstock served as the company’s Chief Operating Officer since 2018. Before joining AGT in 2012, he worked for nearly a decade with Deloitte’s audit and assurance practice, where he specialized in serving gaming, manufacturing, and technology companies.

A statement from AGT explained that the board determined Comstock possessed the necessary attributes and operational experience across all areas of the company to assume the CEO role. The board reviewed his performance over the six-month period since his appointment and considered his extensive knowledge of all operational functions, along with initiatives he led during that time.

Public grilling

Neumann, former CEO of Novomatic, stepped down after a contentious public hearing before the NGCB. He was criticized for appearing hostile and confrontational toward board agents during the vetting process, and officials noted that he failed to provide direct answers to their questions.

The board also examined his prior relationship with an AGT employee in Australia. While Neumann described their interactions as consisting only of several dinner meetings, he admitted they violated AGT’s fraternization policy.

“I think the totality of the circumstances has left you unable to meet your burden to prove suitability at this moment,” stated Nevada Board Chair Brian Dreitzer during the hearing, adding that he expressed serious concerns about Neumann’s conduct toward agency personnel.

A blow to Novomatic

Neumann was brought on as CEO of AGT in 2021 with the goal of advancing Novomatic’s efforts to gain control of the ASX-listed company.

Following an unsuccessful initial takeover attempt last year, Novomatic continued its campaign through an off-market bid, raising its stake to approximately 67% at the time of reporting.

However, the Austrian gaming giant’s offer to purchase all remaining shares at AU$1 (£0.53) per share fell short of gaining full control in February due to insufficient shareholder support.

In response, Kjerulf Ainsworth—son of AGT founder Len Ainsworth—launched a competing offer of AU$1.30 (£0.69) per share in an effort to increase his own holdings.

Ainsworth has been a vocal critic of Novomatic, repeatedly asserting that its bid significantly undervalued AGT.

The most recent of his offers concluded on April 27, leaving him with an 8.24% stake in AGT.

Australian Stock Exchange regulations have barred Novomatic from making another offer within four months of its latest proposal. With this cooling-off period set to expire next month—and given the financial commitments already made—it is anticipated that Novomatic will initiate a new bid for complete ownership during the second half of 2026.

Nevertheless, considering both the previous failure of its offer and those by Kjerulf Ainsworth, it is evident that a substantially improved proposal will be required to attract the support of AGT’s minority shareholders.