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 video gaming terminals (VGTs), for an undisclosed charge. The company adds the purchase to its collection of some 31,000 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 can agree terms, Penn National is seeking to get its own slice of this profitable industry.
The deal, for an undisclosed all-cash transaction, 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.
In Illinois, anywhere having a alcohol license is permitted to work a VGT, and it is big business. But that reality has established one thing of the 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 has three of those casinos, it’s a thought process of ‘if you can’t beat ’em, join ’em.’
PSG, which is probably the biggest VGT operators in Illinois, generated almost $10 million in cash flow for the fiscal 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 the company agreed to purchase the Tropicana in Las real-money-casino.club 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 jurisdiction that is canadian with the majority located in the Midwest and also the South of the United States.
Placed for Growth
The deal will further cement the company’s position in Illinois, said Snowden. ‘We believe this acquisition will provide us a solid platform for future development in the Illinois VGT market and possibly other states where this form of video 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 around the clock solution supported by one of the industry’s most experienced teams,’ he added.
Penn nationwide’s present economic 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 growth into 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 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 British 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, previously Moneybookers, will be finalized next Monday, August 10, after obtaining the green light from 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 US that is new online areas.
The deal highlights a period of consolidation into the digital re payments industry, as competition increases and innovation that is mobile disruption result in the pooling of resources attractive. In April, Skrill completed the purchase of UK competitor Ukash, a 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 payment room 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 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 company, which marries two of the UK’s biggest digital 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 gambling that is online, consolidating their more mainstream e-commerce interests.
‘We’re becoming more appropriate in the e-commerce room and we see organic growth both here and in gaming after the deal,’ Joel Leonoff, leader 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 associated with company’s sales.
Online Gaming Payments Giant
‘Over days gone by four years, we have effectively delivered significant growth in profits and earnings for our 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 acquisition of Skrill will produce a tech that is global within the fast growing digital payments space so we think represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely worked up about the prospects that are future the business.’
NETELLER was formed back 1999, at the same time as 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 % of online gambling transactions globally, which accounted for 95 percent of its revenue flow, but was forced to grab of the market that is US after UIGEA made the processing of online gambling deals illegal.
Gaming Business Desires to See Regulation of Frequent Fantasy Sports
Yahoo has joined an increasing number of major organizations trying to break to the fantasy that is daily industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have actually turned day-to-day fantasy activities from a little niche item to your quickest growing part associated with fantasy activities industry.
Now, because of the valuations of each of those companies reaching $1 billion or more, the gaming industry is beginning to take serious notice, with some believing that the daily fantasy games deserve the exact same kinds of strict regulation casino companies deal with on a basis that is regular.
Based on officials at many major gaming firms, there’s absolutely nothing really incorrect with day-to-day fantasy sports (DFS), and they don’t want to see the offerings banned or restricted through the marketplace.
However, they genuinely believe that regulation is an important part of any sort of gambling product, one thing they feel pertains 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 do believe traditional sports betting should be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK plus the other is perhaps not. Drawing some line that is artificial the two makes no feeling as 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 provide 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 a number of sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their very own DFS services and products in recent days.
But you can find those who 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 is quite clear that the contests are legal under a fantasy sports exemption in the 2006 illegal Internet Gambling Enforcement 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 starts to govern the outcome more than skill, you have a form of video gaming, and that’s if the need for regulation kicks in.’
Lobbyists for the fantasy sports industry dispute that characterization, nonetheless, saying that their games are clearly more about skill than luck.
‘ They’re nothing like games of opportunity, where no matter how skillful the players is, winning or losing always precipitates to luck,’ stated Jeremy Kudon, someone at Orrick who lobbies for the Fantasy Sports Trade Association.
For their part, FanDuel and DraftKings issued a joint statement for the Reuters report.
In that statement, they stated they work working with officials into the gaming industry ‘to educate them regarding the fantasy sports industry as our items are fundamentally separate from, and not competitive with, gambling enterprises and video gaming businesses.’
Legal Actions Target Free Money Marketing Promotions
But there are 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 just how deposit bonuses work.
And while the Fantasy Sports Trade Association believes daily fantasy games should really be legal plus don’t constitute gambling, even they have expressed concerns within the marketing promotions utilized by the 2 major internet sites.
‘The money motivation ended up being never a key element of dream sports,’ said FSTA President Paul Charchian. ‘ Now a lot of the advertising in daily fantasy sports is really exceptionally concentrated on monetary gain.’