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 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 large tax profits from hawaii’s VGTs will be held in limbo until they are able to agree terms, Penn nationwide is looking to get its own slice with this industry that is lucrative.
The deal, for an undisclosed all-cash transaction, might find 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 liquor license is permitted to operate a VGT, and it’s big business. But that reality has generated one thing of a challenge to the state’s casino industry club player casino sign up.
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, generated almost $10 million in income for the fiscal year 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 agreed to purchase the Tropicana in Las Vegas for $360 million, making it the operator’s second Sin City property. The company first bought off the financial obligation for and in June of 2011 finalized its purchase associated with M Resort and Casino on the South Las Vegas Strip.
Penn National currently operates 26 casino, racinos, and racetracks in 16 US and one jurisdiction that is canadian with the majority found in the Midwest and the South of the United States.
Placed for Growth
The deal will further cement the business’s position in Illinois, said Snowden. ‘We believe this acquisition will give you us a platform that is solid future development in the Illinois VGT market and potentially other states where this form of video gaming is authorized.
‘PSG is one of Illinois’ many VGT that is respected, by having a strong track record of regulatory compliance and a reputation for reliable 24 / 7 service supported by one of the industry’s many experienced groups,’ he added.
Penn nationwide’s recent monetary performance has made the investment community sit up and simply 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 into the face of increased mobile competition . (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 services to the US that is new online markets.
The deal highlights a period of consolidation into the digital 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, 30 days 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 re payment space being 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 Just a Defensive Move’
Optimal Payments has denied that the acquisition is a defensive move, citing constant growth. Instead, analysts have said the company that is enlarged 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 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 come across organic growth both here and in gaming following the deal,’ Joel Leonoff, leader of Optimal, insisted recently.
Optimal also would like to minimize its present reliance upon an unnamed customer that is asian which reportedly now represents over 33 per cent of 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 degrees of organic growth also to supplement this with accretive purchases.
‘The acquisition of Skrill will produce a global tech champion within the fast growing digital payments space and we think represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely excited about the future prospects for the Company.’
NETELLER ended up being formed back 1999, at the same time as 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 flow, but was forced to grab of the market that is US after UIGEA made the processing of online gambling transactions illegal.
Gaming Industry Wants to See Regulation of Frequent Fantasy Sports
Yahoo has joined a growing number of major businesses wanting to break into the fantasy that is daily industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned daily fantasy sports from the little niche product towards the fastest growing portion of the fantasy recreations industry.
Now, because of the valuations of each of the businesses reaching $1 billion or more, the video gaming industry is needs to take serious notice, with some believing that the daily fantasy games deserve the exact same types of strict regulation casino companies deal with on a basis that is regular.
In accordance with officials at many major gaming firms, there’s nothing actually incorrect with day-to-day dream sports (DFS), and they don’t want to see the offerings banned or restricted through the marketplace.
However, they believe regulation is a part that is important of sort of gambling product, one thing they feel applies to DFS sites just as much as it does a casino or racetrack.
‘I think daily fantasy sports betting should just be legal like I believe traditional sports betting ought to be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK as well as the other is maybe 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 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 seemingly have lots of sway, as sports leagues and media organizations 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 own DFS services and products in recent days.
But there are people 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 believes it really 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 providing daily dream contests, then you start to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When possibility starts to govern the outcome more than skill, you’ve got a form of gaming, and that’s whenever 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 comes down to fortune,’ stated Jeremy Kudon, someone 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 statement, they said on the dream sports industry as our products are fundamentally separate from, and never competitive with, casinos and gaming businesses. that they work working together with officials into the gaming industry ‘to educate them’
Lawsuits Target Free Money Marketing Campaigns
But there are other threats to your industry also.
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 thinks daily fantasy games is legal and don’t constitute gambling, even they’ve expressed concerns on the advertising promotions utilized by the two major web sites.
‘The money motivation had been never a key element of fantasy sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the advertising in daily fantasy sports is truly extremely focused on monetary gain.’