Through its acquisition of PSG, Penn National will gain 1,100 terminals across Illinois.
Penn National Gaming, Inc. will acquire Prairie State Gaming (PSG), an Illinois operator of movie gaming terminals (VGTs), for a fee that is undisclosed. The company adds the acquisition to its collection of some 31,000 video gaming devices in 26 facilities across America.
While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that big tax revenues from hawaii’s VGTs will be held in limbo until they are able to agree terms, Penn National is seeking to get its own slice with this industry that is lucrative.
The deal, for an undisclosed transaction that is all-cash will dsicover the Pennsylvania-based casino, racetrack, and racino operator acquire 1,100 terminals across a network of 270 different bars and retail gaming establishments statewide.
Big Company
In Illinois, anywhere having a alcohol license is allowed to operate a VGT, and it’s big business. But that reality has created one thing of a challenge to the state’s casino industry.
The VGT industry raked in $72.8 million in revenue in July, in comparison to the combined $118.1 million in revenue of Illinois’ ten casinos, according to Fantini Gaming Research. For Penn National, which has three of those casinos, it’s a thought process of ‘if you can’t beat ‘em, join ‘em.’
PSG, which is amongst the biggest VGT operators in Illinois, created nearly $10 million in cash flow for the financial 12 months ending June 30th.
According to Jay Snowden, chief operating officer of Penn National, the acquisition represents the latest phase in a long-term strategy for ‘growth through accretive acquisitions.’
In the company agreed to purchase the Tropicana in Las Vegas for $360 million, making it the operator’s second Sin City property april. The business first bought off the debt for and in June of 2011 finalized its purchase for the M Resort and Casino regarding the South Las Las vegas Strip.
Penn National currently runs 26 casino, racinos, and racetracks in 16 American and one Canadian jurisdiction, with the majority located in the Midwest as well as the South of the United States.
Positioned for Growth
The offer will further cement the company’s position in Illinois, said Snowden. ‘We believe this acquisition provides us a platform that is solid future growth in the Illinois VGT market and possibly other states where this form of gaming is authorized.
‘PSG is one of Illinois’ most respected VGT operators, having a strong track record of regulatory compliance and a reputation for dependable around the clock service backed by one of the industry’s most experienced groups,’ he added.
Penn nationwide’s current performance that is financial made the investment community sit up and take notice. Its Q2 results for 2015 have exceeded expectations, bringing in revenues of $701 million, and the company says it remains favorably positioned for continued development in the half that is second of year.
As well as the purchase associated with Tropicana, Penn State opened Massachusetts’ first casino at the end of June. Called Plainridge Park Casino, the establishment that is slots-only onto the racecourse, and reported $6.1 million in gambling revenue in its first week of operation.
Optimal Payments’ Skrill Takeover to Complete by 10 august
Optimal Payments acquisition of Skrill has gotten the go-ahead from British financial regulators, as the payments industry looks to consolidate in the face of increased mobile competition . (Image: totallygaming.com)
NETELLER moms and dad Optimal Payments has announced that its €1.1 billion ($1.2 billion) reverse takeover of Skrill, previously Moneybookers, will be finalized next Monday, August 10, after having the green light from UK economic regulators.
Optimal received approval to acquire Skrill’s US company from American regulators in June. Both companies offer their payment services towards the new US online video gaming areas.
The deal highlights a time period of consolidation within the electronic re payments industry, as competition increases and innovation that is mobile disruption make the pooling of resources attractive. In April, Skrill completed the purchase of UK competitor Ukash, 30 real-money-casino.club days after the Optimal deal was announced.
The launch of Apple’s ‘wave and pay’ system on iPhone has spooked the digital wallets industry, which views the incursion of large non-traditional payment service provides into the payment room being a extremely disruptive danger. The ‘wave and pay’ system allows users to load credit card details onto their handset, acting as a de facto e-wallet.
‘ Not Really a Defensive Move’
Optimal Payments has denied that the acquisition is a defensive move, citing steady growth. Instead, analysts have said the enlarged company, which marries two of the UK’s biggest electronic payment services, will benefit from greater scale. It’s estimated the group that is combined have a cash flow of around £117 million ($182 million); Optimal’s standalone figure is around £58 million ($90 million).
The deal will alleviate both businesses’ reliance on the online gambling industry, consolidating their more mainstream ecommerce interests.
‘We’re becoming more appropriate in the space that is e-commerce we see organic growth both here and in gaming following the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.
Optimal also wants to minimize its current dependence on an unnamed customer that is asian which reportedly now represents over 33 percent regarding the organization’s sales.
Online Gaming Payments Giant
‘Over days gone by four years, we have effectively delivered growth that is significant revenues and earnings for the investors,’ said Leonoff. ‘This development resulted from executing our strategy to generate high degrees of organic growth and also to supplement this with accretive acquisitions.
‘The purchase of Skrill will produce a global tech champion in the fast growing digital payments space and we believe represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely stoked up about the future prospects for the Company.’
NETELLER was formed back 1999, at the same time as PayPal. But while PayPal shied far from the grey appropriate area of online gambling in America, NETELLER embraced it.
By 2005, the company was processing 80 % of on line gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to take out of the market that is US after UIGEA made the processing of online gambling deals unlawful.
Gaming Industry Desires to See Regulation of Frequent Fantasy Sports
Yahoo has joined an increasing number of major businesses wanting to break in to the day-to-day dream sports industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have actually turned day-to-day fantasy sports from the little niche product to the quickest growing section associated with fantasy activities industry.
Now, using the valuations of each of these organizations reaching $1 billion or more, the video gaming industry is starting to take notice, with some believing that the daily fantasy games deserve the exact same types of strict regulation casino companies deal with on a basis that is regular.
Based on officials at many gaming that is major, there’s absolutely nothing actually incorrect with daily fantasy sports (DFS), and they do not want to see the offerings banned or restricted through the marketplace.
However, they think that regulation is a part that is important of sort of gambling product, one thing they feel relates to DFS sites just as much as it does a casino or racetrack.
‘we think daily fantasy sports betting should just be legal like I think conventional sports betting must certanly be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK and also the other is maybe not. Drawing some line that is artificial the two makes no sense as being a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites state that their activities are completely legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to offer real cash awards.
That argument seems to have lots of sway, as sports leagues and media organizations are both getting on board en masse: most leagues now have partnerships with several internet sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their own DFS items in recent weeks.
But you can find people who are having a closer glance at the growing industry.
In Nevada, the state gaming control board is analyzing the legality of DFS games, though the industry believes its quite clear that the contests are legal under a fantasy sports exemption in the 2006 Unlawful Internet Gambling Enforcement Act.
‘When you begin providing daily fantasy contests, then you begin to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When chance begins to govern the outcome more than skill, you’ve got a form of gaming, and that is if the need for regulation kicks in.’
Lobbyists for the fantasy sports industry dispute that characterization, however, saying that their games are clearly more about skill than luck.
‘ They’re not like games of chance, where no matter how skillful the players is, losing or winning typically boils down to fortune,’ said Jeremy Kudon, somebody at Orrick who lobbies for the Fantasy Sports Trade Association.
For their part, FanDuel and DraftKings issued a statement that is joint the Reuters report.
In that statement, they stated which they work working with officials within the gaming industry ‘to educate them on the fantasy sports industry as our items are basically separate from, and never competitive with, gambling enterprises and gaming businesses.’
Lawsuits Target Free Money Marketing Campaigns
But you can find other threats to the industry as well.
DraftKings is facing class action lawsuits in at least three states, including Massachusetts, Florida, and Illinois, from players who feel they were deceived by the company’s aggressive advertising campaign, particularly due to misunderstandings over the nature of how deposit bonuses work.
And while the Fantasy Sports Trade Association believes daily fantasy games must certanly be legal and do not constitute gambling, even they have expressed concerns on the advertising campaigns utilized by the two major web sites.
‘The money motivation ended up being never ever an element that is key of sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the advertising in daily fantasy sports is really extremely concentrated on monetary gain.’
