Ainsworth CEO Harald Neumann steps down

Harald Neumann resigned as CEO of Ainsworth last week. The exit wasn’t exactly a surprise, the company announced it was reviewing his position just days earlier.

Ryan Comstock stepped in as Acting CEO right away. He’s been with Ainsworth since 2012 and served as COO since 2018. Before that, Comstock spent over a decade at Deloitte working in audit and assurance for gaming, manufacturing and tech companies.

Neumann originally joined Ainsworth back in 2020. He came from Novomatic, where he’d previously held the CEO position.

Why Neumann’s Position Became Untenable

Neumann couldn’t secure a Nevada Gaming Control Board license for Ainsworth. That’s a serious problem for a gaming company CEO. Some board members started questioning whether he should stay in the role.

His background didn’t help. He left his Novomatic CEO job following a corruption investigation in Austria. That history made regulators cautious.

The timing matters too. Novomatic now owns close to 60% of Ainsworth shares. By mid-September, the Austrian gaming giant had accumulated enough stock to effectively control the company. Ainsworth’s board urged shareholders to accept Novomatic’s bid of AU$1.00 (US$0.67) per share, calling it “fair and reasonable.”

The Nevada licensing issue became particularly problematic as the acquisition progressed.

What’s Happening With the Novomatic Deal

Novomatic Executive Board Member Stefan Krenn told Gambling Insider the offer was “very good.” He said an independent assessment confirmed the scheme was fair and reasonable. And he noted it was in shareholders’ best interests unless a better offer came along.

The acquisition is moving forward despite Ainsworth’s mixed financial results. First-half revenue jumped 25.3%. But EBITDA fell 48.4% in the same period.

Profit after tax hit $3.2 million, down 65% year-over-year. Those numbers show growth in sales but shrinking profitability. The company’s expanding revenue but struggling with margins.

How This Fits Ainsworth’s Recent Changes

The company’s been shuffling leadership for months. It announced several promotions in July across different departments.

In August, Ainsworth hired Jim Brown as Corporate Sales Director. Brown previously worked at Aristocrat and served as US Sales Director at Velvix. That hire suggested the company wanted to strengthen its sales operation heading into the ownership transition.

Now, Comstock takes charge during the Novomatic transition. His long tenure at Ainsworth, over 13 years, gives him deep knowledge of the business. Whether he’ll stay on permanently or if Novomatic installs its own CEO remains unclear. For now, he’s steering the company through a major ownership change.