Aristocrat Leisure to Stop Mobile Gaming Operations in Russia
Summary
- Australia operator stops mobile gaming in Russia
- Russia’s decision to invade Ukraine forced Aristocrat to make this decision
- New office opened in Poland
Australian based Aristocrat Leisure has suspended its mobile gaming operations in Russia over its invasion of Ukraine. The company had mentioned the invasion in its filing to the Australian Securities Exchange as it confirmed the news of the suspension. Aristocrat announced that operating in Russia was not viable as of now.
Natalie Toohey, chief corporate officer at Aristocrat, said that the company had already halted its operations in the Russian market even before a new series of casino resorts had opened there. The new casino resorts include the Tigre de Cristal, backed by Hong Kong-listed Summit Ascent Holdings Ltd., and the Primorye Integrated Entertainment Zone near Vladivostok.
In an email on 8 March, Toohey said that neither is Aristocrat conducting any business activity in Russia nor does it have any gaming business staff in the Russian market. The gaming division of the group refers to land-based casinos and allied products. Toohey stated that Aristocrat had never sold their products to the mentioned casinos. She clarified that the company had already exited from Russia before those regions were regulated.
The company stated in its filing that Russia had a minor contribution of about 3 percent in the annualised bookings of its social gaming umbrella brand, Pixel United. Formerly known as Aristocrat Digital, Pixel United comprises gaming brands such as Plarium, Big Fish Games, and Product Madness.
Aristocrat announced that it had extended its support to two-thirds of its employees working in the Ukrainian units of Pixel United. The company asserted its commitment towards ensuring the safe reinstatement of its Ukraine-based staff to safer locations within the country or abroad. The announcement said that the relocated members were working remotely, supported by other Pixel United studios in Europe.
Aristocrat Announces Its New Poland Office
The company also stated that it would open a new office location in Poland’s Wroclaw that would support its further talent acquisition and would supplement its existing operations in the country.
Aristocrat further noted that it had not expected the drastic impact on its earnings due to the military crisis. The group announced its intent to monitor the material impacts and that it would give an update in its half-year financial results that would be released in May 2022. Aristocrat said that it was exploring its options to support its employees in Russia and would assist them through the crisis.
David WalkerAuthor
David is our resident 'down under' contributor, letting us know what is going on in the southern hemisphere, he is also keen blackjack player
