Austria’s Public Prosecutor’s Office for Economic Affairs and Corruption has filed criminal charges in the long-running CASAG investigation, targeting former Vice-Chancellor Heinz-Christian Strache and two senior figures from the gambling group Novomatic AG. Prosecutors accuse Strache of accepting benefits to exert influence and allege that two Novomatic executives granted benefits to influence a public official.

The indictment, submitted to the Vienna Regional Court for Criminal Matters, also includes a request to impose a corporate fine on Novomatic AG under Austria’s Association Liability Act. The case centers on events tied to the leadership of Casinos Austria AG and alleged political involvement in appointments to its management board.

Prosecutors identify the two executives as Novomatic owner Johann Graf and former Novomatic and Ainsworth Game Technology CEO Harald Neumann. Neumann stepped down from Ainsworth in October after the Nevada Gaming Control Board chose not to renew his state gaming license. Novomatic held a 17.2% stake in Casinos Austria at the time of the events under scrutiny.

Alleged Arrangement Over Board Appointment

According to the charges published by The Economic and Corruption Prosecutor’s Office (WKStA), Strache, while serving as Vice-Chancellor and Federal Minister for Public Service and Sport, sought the nomination and appointment of Peter Sidlo to the management board of Casinos Austria. Prosecutors contend that professional qualifications did not determine the selection. Instead, they allege that political alignment with Strache and the ruling Freedom Party (FPÖ) drove the demand.

In exchange, investigators claim Strache signaled a willingness to act in Novomatic’s interests in his future official capacity, particularly in matters involving gambling and sports betting. Prosecutors state that this could have included introducing relevant government bills, voting accordingly in the Council of Ministers, and participating in negotiations shaping broader government policy.

The WKStA said in a statement that Strache “allegedly seriously considered it possible and accepted that he would be influenced in his activities as a public official by the appointment of his preferred candidate” and that “the two Novomatic executives allegedly acted with at least conditional intent to influence Strache in his activities as a public official through the described conduct.”

Investigators assert that Graf and Neumann, who exercised influence over Casinos Austria through nomination and voting rights as representatives of a shareholder, enabled the appointment. In doing so, prosecutors argue, they granted an undue advantage with the intention of influencing a public official’s future actions in favor of Novomatic’s business interests.

Under Austrian law, the alleged offenses carry a potential penalty of up to two years’ imprisonment.

Corporate Liability and Lengthy Investigation

Beyond the individual charges, prosecutors have applied for a financial penalty against Novomatic AG under the Association Liability Act. Authorities state that the company could bear responsibility for criminal acts committed by its decision-makers.

The investigation required extensive review of materials connected to the broader CASAG case. Prosecutors examined more than 5,000 files from related proceedings. Authorities questioned approximately 70 witnesses and conducted multiple interrogations of the accused.

Objections filed by defendants delayed the analysis of seized data for several years. Prosecutors could only begin evaluating certain materials about two and a half to three years after authorities secured them, following court-mandated review procedures. Data collected during searches in March 2020 became available for examination at the end of 2022. Some suspects declined to provide statements until other investigative steps concluded, which postponed final interviews until mid-2023.

Authorities completed the investigation in spring 2024 and forwarded a report to the Vienna Higher Regional Prosecutor’s Office. After further evidentiary review and oversight by the Ministry of Justice, officials approved the filing of charges in early 2026.

The probe originated from an anonymous complaint alleging a broader political understanding concerning appointments at Casinos Austria. The complaint suggested that party leaders had discussed placing specific nominees in senior roles and that an arrangement existed between the Freedom Party and Novomatic, which at the time was a minority shareholder in the casino operator.

Potential Impact on Ainsworth

The case may carry consequences beyond Austria. Novomatic controls 67.39% of Ainsworth Game Technology, while Kjerulf Ainsworth, son of founder Len Ainsworth, holds 7.49%. Ainsworth recently led a minority shareholder group that blocked Novomatic’s attempt to take the Australian supplier private.

Kjerulf Ainsworth has criticized the company’s earlier handling of disclosures related to the investigation involving Neumann and Novomatic. Earlier this month, he called for the resignation of Ainsworth chairman Danny Gladstone, citing his support for the failed takeover bid and backing of Neumann’s licensing suitability.

In June last year, Ainsworth stated that it had not believed it was required to inform the market about bribery allegations reported in Austrian media prior to Neumann’s appointment as CEO in 2021 because those claims were unsupported by “factual evidence”.

The Vienna court will now determine how the proceedings move forward. Prosecutors maintain that the evidence supports their case and that all investigative steps were conducted in line with the principle of proportionality.