Casinos Austria trial over 2019 CFO appointment nears resolution

The criminal proceedings surrounding the Casinos Austria affair are approaching resolution, with former Freedom Party of Austria (FPÖ) leader Heinz-Christian Strache, Novomatic founder Johann Graf and former Novomatic CEO Harald Neumann as the main defendants.  

This case revolves around the appointment of Vienna FPÖ politician Peter Sidlo as CFO of Casinos Austria in the spring of 2019. Back then, the FPÖ was one of Austria’s two major political parties. At that time, allegations surfaced that Sidlo lacked the necessary qualifications for the role. Later that year, the supervisory board removed him from the position. Although Sidlo filed a lawsuit, he ultimately lost at the Supreme Court level.  

Indeed, the accusation is that Novomatic and Strache made a deal. The company allegedly used its influence over Casinos Austria to secure Sidlo’s appointment as CFO and, in exchange, Novomatic sought involvement in the allocation of gambling licences and reforms.  

The charges from WKStA claimed that Strache was willing to be influenced in his future role as a public official in favour of the Novomatic Group. This included plans to introduce government bills, vote in accordance with those interests in the Council of Ministers and participate in negotiations on the formulation of general government policy.  

Strache is not accused of bribery. The investigation did not show that he performed any “breach of duty” in office, as stated in the indictment obtained by local Austrian media. The defendants have consistently denied the allegations, and the presumption of innocence applies. The WKStA investigated former members of the supervisory board at Casag. Ultimately, most cases were dropped, leaving only the allegations against Strache, Neumann and Graf detailed in the current indictment.  

Investigators also examined a series of large gifts from Novomatic founder Graf to employees and associates. These payments have since been largely classified as private and not subject to criminal action.  

Prominent figures from politics and business are expected to appear at the Vienna Regional Criminal Court soon. The WKStA plans to question more than 30 witnesses and defendants during the trial in this incident. Furthermore, the statements of several additional witnesses will be read aloud in court.