21 Feb Penn Nationwide Scoops Up Illinois Games Operator, Posts Strong Q2 Financials
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 video gaming terminals (VGTs), for an undisclosed cost. 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 profits from hawaii’s VGTs will be held in limbo until they are able to agree terms, Penn National is looking to get its own slice of the industry that is lucrative.
The deal, for an undisclosed all-cash deal, 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 alcohol license is allowed to use a VGT, and it’s big business. But that reality has established 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, 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 amongst the VGT operators that are largest in Illinois, produced very nearly $10 million in income for the financial 12 months ending June 30th.
According to Jay Snowden, chief operating officer of Penn National, the acquisition represents the phase that is latest in a long-term strategy for ‘growth through accretive acquisitions.’
In April, the company consented to buy the Tropicana in Las Vegas for $360 million, making it the operator’s second Sin City property. The organization first bought off the debt for and in of 2011 finalized its purchase of the M Resort and Casino on the South Las Vegas Strip june.
Penn nationwide currently operates 26 casino, racinos, and racetracks in 16 US and one Canadian jurisdiction, with the majority found in the Midwest as well as the South of the United States.
Positioned for development
The offer will further cement the business’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 potentially other states where this form of gaming is authorized.
‘PSG is one of Illinois’ many respected VGT operators, with a strong track record of regulatory compliance and a reputation for dependable night and day service backed by among the industry’s many experienced groups,’ he added.
Penn nationwide’s current financial performance has 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 into the second half of the 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 10 august
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 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 obtaining the light that is green UK financial regulators.
Optimal received approval to acquire Skrill’s US company from American regulators in June. Both companies provide their payment solutions to your new US online video gaming 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. A month after the Optimal deal was announced in April, Skrill completed the acquisition of UK competitor Ukash.
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 space as 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 Really a Defensive Move’
Optimal Payments has denied that the acquisition is a defensive move, citing steady growth. Instead, analysts have said the company that is enlarged which marries two of the UK’s biggest digital re payment services, will benefit from greater scale. It’s estimated the combined team will have a cash flow of around £117 million ($182 million); Optimal’s standalone figure is around £58 million ($90 million).
The offer will alleviate both companies’ reliance on the online gambling industry, consolidating their more main-stream ecommerce interests.
‘We’re becoming more appropriate in the space that is e-commerce we see organic growth both there and in gaming after the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.
Optimal also really wants to minimize its current dependence on an unnamed customer that is asian which reportedly now represents over 33 per cent of this organization’s product sales.
Online Gaming Payments Giant
‘Over the last four years, we have effectively delivered significant growth in revenues and earnings for our shareholders,’ said Leonoff. ‘This growth lead from performing our strategy to generate high levels of natural growth also to supplement this with accretive purchases.
‘The purchase of club player casino bonus codes 2018 Skrill will produce a tech that is global within the fast growing digital payments space and we think represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely worked up about the future prospects for the business.’
NETELLER had been formed back in 1999, at the time that is same PayPal. But while PayPal shied away from the grey area that is legal of gambling in America, NETELLER embraced it.
By 2005, the company was processing 80 percent of online gambling transactions globally, which accounted for 95 percent of its revenue flow, but was forced to pull out of this market that is US after UIGEA made the processing of online gambling transactions unlawful.
Gaming Industry Wants to See Regulation of Constant Fantasy Sports
Yahoo has joined an increasing number of major businesses wanting to break to the fantasy that is daily industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned daily fantasy recreations from the little niche item to the fastest growing part of the fantasy recreations industry.
Now, aided by the valuations of each of those organizations reaching $1 billion or more, the video gaming industry is needs to get sucked in, with some believing that the daily fantasy games deserve the same types of strict regulation casino companies deal with on a daily basis.
According to officials at many gaming that is major, there’s nothing actually wrong with daily dream sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.
However, they think that legislation is a part that is important of sort of gambling product, one thing they feel applies to DFS sites just up to it does a casino or racetrack.
‘we think daily fantasy sports betting should just be legal like I think traditional sports betting must be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK while the other is perhaps not. Drawing some line that is artificial 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 tasks are totally legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to provide money that is real.
That argument seems to have a lot of sway, as sports leagues and media companies are both getting on board en masse: most leagues now have partnerships with several web sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have launched their very own DFS services and products in recent weeks.
But you can find those who are taking a better look at the growing industry.
In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry thinks it is quite clear that the contests are legal under a fantasy sports exemption in the 2006 Internet Gambling Enforcement that is unlawful Act.
‘When you begin offering day-to-day dream contests, then you begin to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When possibility begins to govern the outcome more than skill, you have a type of gaming, and that’s when 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 luck,’ stated 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 stated which they work working with officials into the video gaming industry ‘to educate them in the fantasy sports industry as our items are basically separate from, and never competitive with, gambling enterprises and gaming businesses.’
Legal Actions Target Free Money Marketing Promotions
But you can find other threats to your 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 business’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 be legal and don’t constitute gambling, even they’ve expressed issues over the marketing campaigns employed by the two major web sites.
‘The money motivation had been never a key factor of fantasy sports,’ said FSTA President Paul Charchian. ‘ Now a lot of the marketing in daily fantasy sports is actually excessively concentrated on financial gain.’