Aristocrat Acquisition of VGT Presentation
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Specific risks
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Government gaming regulation
The global gaming industry is subject to extensive governmental regulation. While the regulatory requirements vary by jurisdiction, most require:
Licences and/or permits;
Findings of suitability;
Documentation of qualifications, including evidence of financial stability; and
Individual suitability of officers, directors, major shareholders and key employees.
Changes in laws or regulations or the manner of their interpretation or enforcement could impact the Group's financial performance and restrict our ability to operate
our business or execute our strategies. Difficulties or delays in obtaining or maintaining required licences or approvals could also have a negative impact on the
business.
A material breach of internal processes may result in violation of existing regulations which could also impact our ability to maintain required licenses or approvals.
Gaming laws and regulations serve to protect the public and ensure that gaming related activity is conducted honestly, competitively, and free of corruption. A change
in government (or governmental policy towards gaming) may also impact our operations. This political risk increases in jurisdictions where there is significant anti-
gaming opposition or vocal minority interests.
The Group has established a comprehensive regulatory assurance function and governance framework to ensure that we continue to monitor the political
environment and regulations in the jurisdictions in which we operate and to monitor our adherence to internal processes to ensure we comply with existing
regulations.
Intellectual property
The gaming industry is constantly employing new technologies in both new and existing markets. The Group relies on a combination of patents and other technical
security measures to protect our products, and continues to apply for patents protecting such technologies.
Competitors and others may infringe on our intellectual property rights, or may allege that we have infringed on theirs. Monitoring infringement and misappropriation
of intellectual property can be difficult and expensive. We may also incur significant litigation expenses protecting or defending our intellectual property.
The Group has an established framework to identify and protect its global intellectual property assets as well as monitor infringement by competitor products. The
Group has established a comprehensive regulatory assurance function and governance framework to ensure that we continue to monitor the political environment
and regulations in the jurisdictions in which we operate and to monitor our adherence to internal processes to ensure we comply with existing regulations.
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