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Published febrero 21, 2020

Penn Nationwide Scoops Up Illinois Games Operator, Posts Strong Q2 Financials

Penn Na<span id="more-1678"></span>tionwide Scoops Up Illinois Games Operator, Posts Strong Q2 Financials

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 movie gaming terminals (VGTs), for a fee that is undisclosed. The company adds the acquisition to its collection of some 31,000 video gaming devices in 26 facilities across America.

While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that large tax profits from hawaii’s VGTs will be held in limbo until they could agree terms, Penn nationwide is looking to get its very own slice of this industry that is lucrative.

The deal, for an undisclosed transaction that is all-cash 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.

Big Business

In Illinois, anywhere with a alcohol permit is allowed to operate a VGT, and it’s big business. But that reality has generated 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 gambling enterprises, according to 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 very nearly $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 latest phase in a long-term strategy for ‘growth through accretive acquisitions.’

In April, the company agreed to buy the Tropicana in Las Vegas for $360 million, making it the operator’s second Sin City property. The company 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 National currently runs 26 casino, racinos, and racetracks in 16 American and one jurisdiction that is canadian with the majority located in the Midwest and the South of the United States.

Placed for Growth

The offer will further cement the business’s position in Illinois, said Snowden. ‘We believe this acquisition will provide us a platform that is solid future development in the Illinois VGT market and possibly other states where this form of gaming is authorized.

‘PSG is certainly one of Illinois’ many respected VGT operators, with a strong track record of regulatory compliance and a reputation for reliable around the clock 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 just 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 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 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 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 obtaining the light that is green UK economic regulators.

Optimal received approval to acquire Skrill’s US company from American regulators in June. Both companies offer their payment services towards the new US online gaming markets.

The deal highlights a period of consolidation within the electronic payments industry, as competition increases and innovation that is mobile disruption make 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 payment room being a threat that is highly disruptive. The ‘wave and pay’ system allows users to load credit card details onto their device, 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 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 offer will relieve both businesses’ reliance on the gambling that is online, consolidating their more mainstream ecommerce interests.

‘We’re becoming more appropriate in the e-commerce room and we see organic growth both there and in gaming following the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.

Optimal also desires to minimize its current reliance upon an unnamed customer that is asian which reportedly now real-money-casino.club represents over 33 per cent for the company’s product sales.

Online Gaming Payments Giant

‘Over the last four years, we have effectively delivered growth that is significant profits and earnings for the shareholders,’ said Leonoff. ‘This development resulted from executing our strategy to generate high quantities of organic growth and also to supplement this with accretive acquisitions.

‘The acquisition of Skrill will create a global tech champion within the fast growing digital payments space and we believe represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely worked up about the prospects that are future the business.’

NETELLER ended up being formed back in 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 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 unlawful.

Gaming Business Desires to See Regulation of Constant Fantasy Sports

Yahoo has joined a growing number of major organizations trying to break into the fantasy that is daily industry. (Image: Eric Risberg/AP)

FanDuel and DraftKings have turned daily dream activities from the little niche product to your quickest growing section of this fantasy recreations industry.

Now, because of the valuations of each of those organizations reaching $1 billion or more, the video gaming industry is just starting to take notice, with some believing that the daily fantasy games deserve the same sorts of strict regulation casino businesses deal with on a regular basis.

In accordance with officials at many gaming that is major, there’s nothing actually incorrect with daily dream sports (DFS), and they don’t really want to see the offerings banned or restricted through the marketplace.

However, they think that regulation is an important part of any sort of gambling product, something they feel pertains to DFS sites just up to it does a casino or racetrack.

‘we think daily fantasy sports betting should be legal, just like I believe conventional sports betting should really be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK therefore the other is not. Drawing some synthetic line between the two makes no sense as being a matter of law or policy.’

DFS Embraced by Leagues, Media Titans

All major DFS sites state that their activities are entirely 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 appears to have lots of sway, as sports leagues and media companies are both getting on board en masse: most leagues now have partnerships with one or more web sites, ESPN has a major advertising and content deal with DraftKings, and both Yahoo and CBS have launched their very own DFS products in recent months.

But you will find people who are taking a better look at the industry that is growing.

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 into the 2006 Unlawful Internet Gambling Enforcement Act.

‘When you begin offering daily dream contests, 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 have a kind of gaming, and that’s if the need for regulation kicks in.’

Lobbyists for the fantasy recreations industry dispute that characterization, however, saying that their games are clearly more about skill than luck.

‘ They’re not like games of chance, where regardless of how skillful the players is, winning or losing typically boils down to luck,’ stated Jeremy Kudon, somebody 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 statement, they stated on the dream sports industry as our products are fundamentally separate from, and never competitive with, casinos and gaming companies. that they work working with officials in the gaming industry ‘to educate them’

Legal Actions Target Free Money Marketing Promotions

But you will find other threats towards the industry too.

DraftKings is facing class action lawsuits in at least three states, including Massachusetts, Florida, and Illinois, from players whom 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 believes daily dream games ought to be legal and don’t represent gambling, even they’ve expressed concerns throughout the marketing promotions used by the 2 major internet sites.

‘The money motivation ended up being never an element that is key of sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the marketing in daily fantasy sports is truly extremely concentrated on monetary gain.’