Through its acquisition of PSG, Penn National will gain 1,100 terminals across Illinois.
Penn nationwide Gaming, Inc. will acquire Prairie State Gaming (PSG), an Illinois operator of movie gaming terminals (VGTs), for an undisclosed charge. The company adds the acquisition to its collection of some 31,000 gaming devices in 26 facilities across America.
While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that large tax revenues from the state’s VGTs will be held in limbo until they are able to agree terms, Penn nationwide is looking to get its very own slice with this industry that is lucrative.
The deal, for an undisclosed all-cash transaction, will see the Pennsylvania-based casino, racetrack, and racino operator acquire 1,100 terminals across a network of 270 different pubs and retail gaming establishments statewide.
In Illinois, anywhere having a alcohol permit is allowed to operate a VGT, and it’s really big business. But that reality has generated one thing of a challenge to the state’s casino industry.
The VGT industry raked in $72.8 million in revenue in July, compared to the combined $118.1 million in revenue of Illinois’ ten gambling enterprises, in accordance with Fantini Gaming Research. For Penn National, which owns three of those casinos, it’s a thought process of ‘if you can’t beat ’em, join ’em.’
PSG, which is amongst the largest VGT operators in Illinois, generated nearly $10 million in cash flow for the financial year 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 financial obligation for and in June of 2011 finalized its purchase for the M Resort and Casino on the South Las Las vegas Strip.
Penn nationwide currently runs 26 casino, racinos, and racetracks in 16 American and one Canadian jurisdiction, with the majority found in the Midwest plus the South of the United States.
Placed for Growth
The offer will cement the company further’s position in Illinois, said Snowden. ‘We believe this acquisition will provide us a platform that is solid future growth in the Illinois VGT market and potentially other states where this form of video gaming is authorized.
‘PSG is one of Illinois’ many respected VGT operators, having a strong track record of regulatory compliance and a reputation for reliable around the clock service supported by among the industry’s most experienced teams,’ he added.
Penn National’s recent performance that is financial made the investment community sit up and take notice. Its Q2 results for 2015 have exceeded objectives, bringing in revenues of $701 million, and the company says it remains favorably positioned for continued growth into the half that is second of year.
June as well as the purchase of the Tropicana, Penn State opened Massachusetts’ first casino at the end of. Called Plainridge Park Casino, the slots-only establishment tacked onto the racecourse, and reported $6.1 million in gambling revenue in its first week of operation.
Optimal re Payments’ Skrill Takeover to Complete by August 10
Optimal Payments acquisition of Skrill has gotten the go-ahead from UK financial regulators, as the payments industry looks to consolidate within the face of increased competition that is mobile . (Image: totallygaming.com)
NETELLER parent Optimal Payments has announced that its €1.1 billion ($1.2 billion) reverse takeover of Skrill, formerly Moneybookers, will be finalized next Monday, August 10, after getting the light that is green UK monetary regulators.
Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies offer their payment solutions to the US that is new online areas.
The deal highlights a period of consolidation within the digital re payments industry, as competition increases and innovation that is mobile disruption result in the pooling of resources attractive. In April, Skrill finished the purchase of UK competitor Ukash, per month 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 re payment area as being a threat that is highly disruptive. The ‘wave and pay’ system allows users to load credit card details onto their handset, acting as a de facto e-wallet.
‘ Not Just a Defensive Move’
Optimal Payments has denied that the acquisition is a defensive move, citing growth that is steady. Instead, analysts have said the enlarged business, which marries two of the UK’s biggest digital re payment services, will benefit from greater scale. It’s estimated the combined group will have a cash flow of around £117 million ($182 million); Optimal’s standalone figure is around £58 million ($90 million).
The deal will relieve both businesses’ reliance on the gambling that is online, consolidating their more mainstream ecommerce interests.
‘We’re becoming more relevant in the space that is e-commerce we come across organic growth both there and in gaming after the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.
Optimal also wants to minimize its current reliance upon an unnamed Asian customer, which reportedly now represents over 33 % regarding the company’s product sales.
Online Gaming Payments Giant
‘Over days gone by four years, we have effectively delivered growth that is significant profits and earnings for the investors,’ said Leonoff. ‘This development resulted from executing our strategy to generate high quantities of natural growth and to supplement this with accretive acquisitions.
‘The purchase of Skrill will develop a tech that is global within the fast growing digital payments space and now we think represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely stoked up about the future prospects for the Company.’
NETELLER was formed back 1999, at the time that is same PayPal. But while PayPal shied away from the grey legal area of on line gambling in America, NETELLER embraced it.
By 2005, the company was processing 80 per cent of on the web gambling transactions globally, which accounted for 95 percent of its revenue flow, but was forced to grab of this US market completely after UIGEA made the processing of online gambling transactions illegal.
Gaming Industry Desires to See Regulation of Day-to-day Fantasy Sports
Yahoo has joined an increasing number of major businesses trying to break into the day-to-day dream sports industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned fantasy that is daily from the little niche item to your quickest growing section associated with the fantasy recreations industry.
Now, with all the valuations of each of the companies reaching $1 billion or more, the video gaming industry is just starting to get sucked in, with some believing that the daily fantasy games deserve the exact same types of strict regulation casino companies deal with on a daily basis.
According to officials at many major gaming firms, there’s absolutely nothing actually incorrect with day-to-day dream sports (DFS), and they don’t really wish to see the offerings banned or restricted from the marketplace.
However, they think that regulation is an important part of any sort of gambling product, one thing they feel applies to DFS sites just as much as it does a casino or racetrack.
‘I think daily fantasy sports betting should be appropriate, simply like I do believe old-fashioned sports betting must be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK and also the other is not. Drawing some synthetic line between the two makes no feeling as being a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites state that their activities are totally legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to supply real cash rewards.
That argument appears to have a lot of sway, as sports leagues and media businesses are both getting on board en masse: most leagues now have partnerships with several web sites, ESPN has a major advertising and content deal with DraftKings, and both Yahoo and CBS have actually launched their very own DFS services and products in recent days.
But there are those that are going for a better look at the growing industry.
In Nevada, the state gaming control board is analyzing the legality of DFS games, though the industry thinks it is quite clear that the contests are legal under a fantasy sports exemption into the 2006 Internet Gambling Enforcement that is unlawful Act.
‘When you start offering fantasy that is daily, then you start to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When opportunity begins to govern the outcome more than skill, you’ve got a form of video gaming, and that is whenever need for regulation kicks in.’
Lobbyists for the fantasy activities industry dispute that characterization, nonetheless, saying that their games are clearly more about skill than luck.
‘ They’re not like games of possibility, where in spite of how skillful the players is, winning or losing always boils down to fortune,’ said Jeremy Kudon, a partner at Orrick who lobbies for the Fantasy Sports Trade Association.
For their part, FanDuel and DraftKings issued a joint statement for the Reuters report.
For the reason that declaration, they said they work working with officials in the video gaming industry ‘to educate them in the fantasy sports industry as our items are real-money-casino.club fundamentally separate from, and not competitive with, casinos and gaming businesses.’
Legal Actions Target Free Money Marketing Campaigns
But you will find other threats to the industry also.
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 thinks fantasy that is daily should really be legal and do not represent gambling, even they will have expressed concerns within the marketing campaigns utilized by the two major sites.
‘The money motivation ended up being never ever an element that is key of sports,’ said FSTA President Paul Charchian. ‘ Now a complete lot of the advertising in daily fantasy sports is truly excessively focused on financial gain.’