Beginnings

Graf was born in either 1946 or 1947 in Vienna. He grew up in a modest apartment without running water, sharing a bathroom with other residents. His parents opened a butcher shop when he was eight, prompting him to move in with his grandparents. Observing affluent children playing tennis outside, young Graf was full of energy and often pushed boundaries, even causing concern when he swam too far out to sea during a vacation in Yugoslavia.

Upon reaching high school, his father urged him to pursue butchery, hoping he would take over the family business. Although initially reluctant, Graf completed his apprenticeship in record time and became Austria's youngest master butcher at just 23. More interested in business than meat, he significantly boosted his parents' sales, quintupled their sausage quota, and realized he wanted more than a life in butchery.

First Venture

At 20, Graf purchased a car on credit and discovered he could sell it for a profit through newspaper ads. This led to a friendship with an electronic retailer, Gerhard Brodnik. In 1974, at the age of 27, Graf left butchery behind and co-founded Brodnik & Graf with an initial investment of 14,000 euros, focusing on importing pinball machines for local venues in Vienna.

Despite the challenging start—many establishments rejected their machines—Graf's determination paid off. An offer from the British slot machine company JPM for a commission on sales provided a much-needed boost. In 1975, Micro created the first electronic pinball machines, and Graf seized the opportunity to hire electronic engineers, marking a pivotal moment in his career.

Recognizing the importance of innovation, he expanded his business to include vending machines, which failed, but billiard tables proved more successful. In 1980, after Brodnik departed, Graf launched a new company initially named Intermatic, later rebranding it as Novomatic after spotting a Novotel in Vienna.

Novomatic

Graf identified a gap in the market: ordinary people wanted accessible gambling venues beyond the exclusive Casinos Austria. However, legal restrictions prevented him from constructing casinos. Undeterred, he engaged a constitutional expert, resulting in a partial victory that allowed him to install slot machines in cafes.

This led to the creation of the Admiral brand, along with the manufacturing of slot machines and amusement arcades. In 1981, he opened his first casino in Switzerland, subsequently expanding into France, the Netherlands, Germany, and beyond. Novomatic made significant strides in technology, developing the MPU 01 chip, which powered successful games like American Poker II.

Graf's ambition knew no bounds; he aimed to manufacture, own, and operate every type of gambling device, both physical and digital. By the late '90s, Novomatic was a pioneer in the gaming industry, developing a sophisticated biometric system to manage betting and enhance security.

The company faced challenges, including regulatory hurdles in Italy and a near-bankruptcy situation. However, strategic acquisitions, such as NSM Löwen Entertainment, allowed Novomatic to thrive. By 2008, they were generating substantial profits, even amidst a financial crisis.

Style

Although Graf stepped down from the CEO role, he remains integral to company decisions. During his tenure, he maintained a unique work style, arriving late and leaving after midnight, often shrouded in secrecy. Novomatic's reputation necessitated generous employee benefits, making it one of Austria's top employers.

Graf's weekends were spent studying gambling trends and generating innovative ideas for the week ahead, leading executives to shift their meetings to Wednesday to accommodate his schedule.

Controversies

Graf and Novomatic have faced their share of controversies. In 2020, he drew criticism for paying himself a $50 million dividend while laying off 120 employees. Reports indicated that a substantial portion of Novomatic's clientele in Vienna struggled with gambling addiction, leading to scrutiny from authorities.

Newer politicians have tightened regulations, compelling Novomatic to seek opportunities in Latin America and Africa, where the gambling landscape presents unique challenges. Allegations of money laundering surfaced, further complicating the company's operations in various regions.

As Novomatic navigated these difficulties, Graf adapted, ensuring compliance while maintaining profitability. His experiences in Russia showed the importance of local relationships, while controversies surrounding political connections prompted caution in business dealings.

Conclusion

Johann Graf is a complex figure. A passionate collector of vintage cars, he commands respect within the industry, earning nicknames such as "God of Slot Machines." His insights into the gaming world stem from a blend of enthusiasm for technology and a relentless pursuit of excellence.

When asked about Novomatic's success, Graf attributed it to a commitment to innovation, security, and a willingness to confront challenges head-on. As the industry evolves, so too does Graf's vision for Novomatic, which continues to seek new markets and opportunities.

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