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 video gaming machines 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 could agree terms, Penn nationwide is seeking to get its own slice of this lucrative industry.
The deal, for an undisclosed transaction that is all-cash might find 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 liquor license is permitted to work a VGT, and it is big business. But that reality has generated something 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, based on 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 one of the biggest VGT operators in Illinois, generated nearly $10 million in cashflow 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 April, the company agreed to purchase the Tropicana in Las Vegas for $360 million, making it the operator’s second las vegas property. The organization first bought off the debt for and in June of 2011 finalized its purchase of the M Resort and Casino on the South Las Las vegas Strip.
Penn nationwide currently runs 26 casino, racinos, and racetracks in 16 US and one jurisdiction that is canadian with the majority located in the Midwest and the South of the United States.
Positioned for development
The offer will further cement the company’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 gaming is authorized.
‘PSG is certainly one of Illinois’ most respected VGT operators, by having a strong track record of regulatory compliance and a reputation for dependable night and day service backed by one of the industry’s many experienced teams,’ he added.
Penn National’s recent economic performance has made the investment community sit up and simply 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 development into the half that is second of year.
As well as the purchase regarding the Tropicana, Penn State opened Massachusetts’ first casino during the end of June. 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 Payments’ Skrill Takeover to Complete by 10 august
Optimal Payments acquisition of Skrill has gotten the go-ahead from UK financial regulators, as the payments industry looks to consolidate into the face of increased competition that is mobile . (Image: totallygaming.com)
NETELLER moms and dad 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 financial regulators.
Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies provide their payment services to your new US online video gaming markets.
The deal highlights a time period of consolidation into 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, per month following 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 room as 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 growth that is steady. Instead, analysts have said the enlarged business, 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 relieve both organizations’ reliance on the online gambling industry, consolidating their more conventional ecommerce interests.
‘we are becoming more relevant in the space that is e-commerce we come across organic growth both there and in gaming following the deal,’ Joel Leonoff, leader of Optimal, insisted recently.
Optimal also really wants to minimize its current dependence on an unnamed Asian customer, which reportedly now represents over 33 per cent associated with the organization’s sales.
Online Gaming Payments Giant
‘Over the past four years, we have successfully delivered significant growth in revenues and earnings for our shareholders,’ said Leonoff. ‘This development lead from performing our strategy to generate high levels of natural growth also to supplement this with accretive acquisitions.
‘The purchase of Skrill will develop a global tech champion in the fast growing digital payments space and we believe represents a essendon football club player numbers transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely stoked up about the prospects that are future the Company.’
NETELLER was formed back in 1999, at the time that is same PayPal. But while PayPal shied far from the grey area that is legal of gambling in America, NETELLER embraced it.
By 2005, the business was processing 80 % of online gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to grab of this US market completely after UIGEA made the processing of online gambling transactions illegal.
Gaming Industry Wants to See Regulation of Day-to-day Fantasy Sports
Yahoo has joined a growing number of major companies trying to break into the fantasy that is daily industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned daily dream recreations from a little niche product towards the fastest growing portion for the fantasy sports industry.
Now, using the valuations of each of these companies reaching $1 billion or more, the video gaming industry is starting to take notice, with some believing that the daily fantasy games deserve the same sorts of strict regulation casino organizations deal with on a daily basis.
In accordance with officials at many major gaming firms, there’s absolutely nothing actually incorrect with day-to-day fantasy sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.
However, they think that legislation is an important part of any sort of gambling product, something they feel pertains 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 believe traditional sports betting must certanly be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK therefore the other is maybe not. Drawing some synthetic line between the two makes no sense as a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites suggest 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 money that is real.
That argument seems to have a lot of sway, as sports leagues and media organizations are both getting on board en masse: most leagues now have partnerships with one or more internet sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their own DFS services and products in recent days.
But you will find those that are taking a better glance at the growing industry.
In Nevada, the state gaming control board is analyzing the legality of DFS games, though the industry thinks it’s quite clear that the contests are legal under a fantasy sports exemption within the 2006 Unlawful Internet Gambling Enforcement Act.
‘When you start offering daily dream contests, then you begin to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When opportunity starts to govern the outcome more than skill, you have a kind of video gaming, and that’s once the need for regulation kicks in.’
Lobbyists for the fantasy recreations industry dispute that characterization, nevertheless, saying that their games are clearly more about skill than luck.
‘ They’re nothing like games of opportunity, where in spite of how skillful the players is, winning or losing almost always comes down to luck,’ said Jeremy Kudon, a partner 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 declaration, they stated on the fantasy sports industry as our products are fundamentally separate from, and never competitive with, gambling enterprises and gaming organizations. that they work working together with officials within the video gaming industry ‘to educate them’
Lawsuits Target Free Money Marketing Promotions
But you can find other threats to the industry too.
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 exactly how deposit bonuses work.
And while the Fantasy Sports Trade Association believes daily dream games should be legal and do not represent gambling, even they’ve expressed concerns over the advertising campaigns used by the 2 major internet sites.
‘The money motivation ended up being never an element that is key of sports,’ said FSTA President Paul Charchian. ‘ Now a lot of the advertising in daily fantasy sports is actually exceptionally focused on financial gain.’