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 fee. The company adds the purchase 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 large tax revenues from the state’s VGTs will be held in limbo until they can agree terms, Penn nationwide is looking to get its own slice with this profitable industry.
The deal, for an undisclosed all-cash deal, 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 license is permitted to use 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, when compared with the combined $118.1 million in revenue of Illinois’ ten gambling enterprises, in accordance with 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 one of the biggest VGT operators in Illinois, generated 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 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 of 2011 finalized its purchase of the M Resort and Casino on the South Las Vegas Strip june.
Penn nationwide currently runs 26 casino, racinos, and racetracks in 16 US and one Canadian jurisdiction, with almost all located in the Midwest therefore the South of the United States.
Positioned for Growth
The deal will further cement the company’s position in Illinois, said Snowden. ‘We believe this acquisition will give you us a solid platform for future growth in the Illinois VGT market and possibly other states where this form of gaming is authorized.
‘PSG is certainly one of Illinois’ most VGT that is respected, with a strong track record of regulatory compliance and a reputation for reliable night and day service backed by among the industry’s most experienced groups,’ he added.
Penn National’s current performance that is financial 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 growth in the second half with this 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 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 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 services to your new US online video gaming markets.
The deal highlights a period of consolidation in the electronic 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 very troublesome danger. The ‘wave and pay’ system allows users to load credit card details onto their device, acting as a de facto e-wallet.
‘ Not Just a Defensive Move’
Optimal Payments has denied that the acquisition is a defensive move, citing steady growth. Instead, analysts have said the enlarged business, which marries two of the UK’s biggest electronic re 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 companies’ reliance on the gambling that is online, consolidating their more main-stream e-commerce interests.
‘We’re becoming more relevant in the space that is e-commerce we see organic growth both here and in gaming following the deal,’ Joel Leonoff, leader of Optimal, insisted recently.
Optimal also desires to minimize its present dependence on an unnamed customer that is asian which reportedly now represents over 33 per cent associated with the company’s product sales club player casino free codes.
Online Gaming Payments Giant
‘Over the past four years, we have effectively delivered growth that is significant revenues and earnings for our investors,’ said Leonoff. ‘This development lead from performing our strategy to generate high levels of organic growth also to supplement this with accretive purchases.
‘The acquisition of Skrill will develop a tech that is global within the fast growing digital payments space so we believe 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 Company.’
NETELLER ended up being formed back in 1999, at the time that is same PayPal. But while PayPal shied far from the grey legal area of online gambling in America, NETELLER embraced it.
By 2005, the company was processing 80 per cent of online gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to take out of the US market completely after UIGEA made the processing of online gambling transactions illegal.
Gaming Business Desires to See Regulation of Daily Fantasy Sports
Yahoo has joined an increasing number of major businesses trying to break into the day-to-day fantasy sports industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have actually turned daily dream sports from a little niche item towards the quickest growing portion associated with fantasy activities industry.
Now, utilizing the valuations of each of those companies reaching $1 billion or more, the video gaming industry is beginning to get sucked in, with some believing that the daily fantasy games deserve the same types of strict regulation casino businesses deal with on a basis that is regular.
In accordance with officials at many major gaming firms, there’s absolutely nothing really wrong with daily fantasy sports (DFS), and they don’t desire to see the offerings banned or restricted from the marketplace.
However, they believe that legislation is a part that is important of sort of gambling product, one thing they feel relates to DFS sites just up to it does a casino or racetrack.
‘I think daily fantasy sports betting should be appropriate, simply like I believe traditional sports betting should be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK while the other is perhaps not. Drawing some line that is artificial the two makes no feeling being a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites state that their tasks are completely 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 seemingly have a lot of sway, as sports leagues and media organizations 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 products in recent weeks.
But you can find people who are taking a closer look at the industry that is growing.
In Nevada, the state gaming control board is analyzing the legality of DFS games, though the industry believes it really is quite clear that the contests are legal under a fantasy sports exemption within the 2006 Internet Gambling Enforcement that is unlawful Act.
‘When you begin offering 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, a form is had by you of video gaming, and that’s once the need for regulation kicks in.’
Lobbyists for the fantasy recreations industry dispute that characterization, nonetheless, 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 always 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 declaration, they said on the fantasy sports industry as our products are fundamentally separate from, and not competitive with, casinos and gaming businesses. that they work dealing with officials in the video gaming industry ‘to educate them’
Legal Actions Target Free Money Marketing Promotions
But you will find other threats to your 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 just how deposit bonuses work.
And while the Fantasy Sports Trade Association believes fantasy that is daily is legal plus don’t constitute gambling, even they have expressed issues on the advertising campaigns utilized by the 2 major web sites.
‘The money motivation had been never ever an element that is key of sports,’ said FSTA President Paul Charchian. ‘ Now a lot of the advertising in daily fantasy sports is actually extremely focused on financial gain.’