
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 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 big tax revenues from the state’s VGTs will be held in limbo until they are able to concur terms, Penn nationwide is seeking to get its very own slice with this industry that is lucrative.
The deal, for an undisclosed transaction that is all-cash 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.
Big Company
In Illinois, anywhere with a alcohol permit is permitted to use a VGT, and it’s really big business. But that reality has created something 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 has 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 nearly $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 the company agreed to purchase the Tropicana in Las Vegas for $360 million, making it the operator’s second Sin City property april. The organization first bought off the debt for and in June of 2011 finalized its purchase of https://real-money-casino.club/club-player-online-casino/ the M Resort and Casino on the South Las Vegas Strip.
Penn nationwide currently operates 26 casino, racinos, and racetracks in 16 American and one jurisdiction that is canadian with almost all located in the Midwest while the South of the United States.
Positioned for Growth
The offer will further cement the company’s position in Illinois, said Snowden. ‘We believe this acquisition will give you 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’ many respected VGT operators, having a strong track record of regulatory compliance and a reputation for dependable night and day service backed by one of the industry’s many experienced groups,’ he added.
Penn National’s present performance that is financial 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 growth 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 August 10
Optimal Payments acquisition of Skrill has gotten the go-ahead from British 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 getting the green light from UK monetary regulators.
Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies provide their payment solutions to the new US online video gaming areas.
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. In April, Skrill finished the acquisition 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 area being a very disruptive 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 growth that is steady. Instead, analysts have said the enlarged business, which marries two of the UK’s biggest digital re payment services, will benefit from greater scale. It’s estimated the combined group will 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 mainstream e-commerce interests.
‘We’re becoming more appropriate in the e-commerce room and we come across organic growth both here and in gaming after the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.
Optimal also would like to minimize its current reliance upon an unnamed customer that is asian which reportedly now represents over 33 % associated with organization’s product sales.
Online Gaming Payments Giant
‘Over the past four years, we have successfully delivered growth that is significant profits and earnings for the investors,’ said Leonoff. ‘This growth lead from executing our strategy to generate high degrees of natural growth and also to supplement this with accretive acquisitions.
‘The purchase of Skrill will develop a global tech champion within the fast growing digital payments space and we believe represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely excited about the prospects that are future the business.’
NETELLER ended up being 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 on the web 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 Industry Wants to See Regulation of Daily Fantasy Sports
Yahoo has joined an increasing number of major companies wanting to break in to the daily fantasy activities industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have actually turned day-to-day dream sports from the little niche item to your quickest growing part regarding the fantasy recreations industry.
Now, with the valuations of each of these businesses reaching $1 billion or more, the gaming industry is just starting to take serious notice, with some believing that the daily fantasy games deserve the same sorts 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 really incorrect with daily fantasy sports (DFS), and they don’t really want to see the offerings banned or restricted from the marketplace.
However, they believe that regulation is a part that is important of 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, simply like I think traditional sports betting ought to be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK as well as the other is maybe 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 suggest 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 offer money that is real.
That argument appears to have plenty of sway, as sports leagues and media companies are both getting on board en masse: most leagues now have partnerships with a number of internet sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their very own DFS products in recent months.
But there are people who are having a closer look at the growing industry.
In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry believes its quite clear that the contests are legal under a fantasy sports exemption into the 2006 Unlawful Internet Gambling Enforcement Act.
‘When you start providing fantasy that is daily, then you start 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 gaming, and that’s whenever 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 in spite of how skillful the players is, winning or losing almost always comes down to luck,’ 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.
For the reason that declaration, they stated which they work working with officials into the video gaming industry ‘to educate them on the fantasy sports industry as our products are fundamentally separate from, rather than competitive with, gambling enterprises and video gaming businesses.’
Lawsuits Target Free Money Marketing Campaigns
But you will 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 company’s aggressive advertising campaign, particularly due to misunderstandings over the nature of how deposit bonuses work.
And while the Fantasy Sports Trade Association thinks daily dream games should be legal and don’t constitute gambling, even they will have expressed issues within the advertising promotions used by the two major web sites.
‘The money motivation was never a key factor of dream sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the advertising in daily fantasy sports is truly extremely concentrated on monetary gain.’
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