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 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 their state’s VGTs will be held in limbo until they can agree terms, Penn National is seeking to get its own slice of this industry that is lucrative.
The deal, for an undisclosed all-cash deal, 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.
Big Business
In Illinois, anywhere with a liquor permit is permitted to work a VGT, and it’s really big business. But that reality has established something of the 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 casinos, according to 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 among the VGT operators that are largest in Illinois, produced very 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 April, the company agreed to buy the Tropicana in Las Vegas for $360 million, making it the operator’s 2nd las vegas property. The business first bought off the debt for and in June of 2011 finalized its purchase regarding the M Resort and Casino on the South Las Las vegas Strip.
Penn nationwide currently operates 26 casino, racinos, and racetracks in 16 US and one Canadian jurisdiction, with almost all found in the Midwest as well as the South of the United States.
Positioned 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 growth 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 night and day service backed by one of the industry’s many experienced groups,’ he added.
Penn National’s present monetary performance has made the investment community sit up and just 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 development in the 2nd 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 August 10
Optimal Payments acquisition of Skrill has gotten the go-ahead from UK financial regulators, as the payments industry looks to consolidate in the face of increased mobile competition . (Image: totallygaming.com)
NETELLER parent 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 light that is green UK financial regulators.
Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies offer their payment solutions to your US that is new online areas.
The deal highlights a time period of consolidation within the electronic re 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 re payment room as 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 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 company that is enlarged which marries two of the UK’s biggest digital payment services, will benefit from greater scale. It’s estimated the combined team will 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 online gambling industry, consolidating their more main-stream ecommerce interests.
‘we are becoming more relevant in the e-commerce space and we come across organic growth both there and in gaming after the deal,’ Joel Leonoff, leader of Optimal, insisted recently.
Optimal also really wants to minimize its current reliance upon an unnamed customer that is asian which reportedly now represents over 33 per cent associated with the business’s product sales.
Online Gaming Payments Giant
‘Over days gone by four years, we have effectively delivered growth that is significant revenues and earnings for the shareholders,’ said Leonoff. ‘This growth lead from performing our strategy to generate high degrees of organic growth and also to supplement this with accretive purchases.
‘The acquisition of Skrill will produce a global tech champion in the fast growing digital payments space and https://real-money-casino.club/club-player-online-casino/ we think represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely worked up about the future prospects for the Company.’
NETELLER was 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 company was processing 80 % of on line gambling transactions globally, which accounted for 95 percent of its revenue flow, but was forced to grab of this market that is US after UIGEA made the processing of online gambling transactions unlawful.
Gaming Industry Desires to See Regulation of Everyday Fantasy Sports
Yahoo has joined a growing number of major organizations trying to break in to the fantasy that is daily industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned day-to-day dream sports from the little niche product towards the fastest growing portion of the fantasy activities industry.
Now, aided by the valuations of each of the companies reaching $1 billion or more, the video gaming industry is just starting 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 regular basis.
In accordance with officials at many major gaming firms, there’s absolutely nothing really wrong with day-to-day fantasy sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.
However, they think that regulation is an important part of any sort of gambling product, something they feel relates 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 do believe traditional sports betting must certanly be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK plus the other is maybe not. Drawing some line that is artificial the two makes no feeling as being a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites state that their tasks are entirely legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to provide real cash rewards.
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 several internet 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 those who are going for 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 its quite clear that the contests are legal under a fantasy sports exemption within 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 possibility begins to govern the outcome more than skill, you do have a kind of video gaming, and that is whenever need for regulation kicks in.’
Lobbyists for the fantasy recreations industry dispute that characterization, but, saying that their games are clearly more about skill than luck.
‘ They’re not like games of opportunity, where in spite of how skillful the players is, winning or losing always boils down to luck,’ 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 declaration, they said which they work working with officials in the video gaming industry ‘to educate them on the fantasy sports industry as our products are fundamentally separate from, and not competitive with, casinos and video gaming businesses.’
Lawsuits Target Free Money Marketing Promotions
But there are other threats to 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 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 fantasy that is daily ought to be legal and never constitute gambling, even they will have expressed concerns throughout the advertising campaigns utilized by the two major web sites.
‘The money motivation ended up being never ever a important element of dream sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the marketing in daily fantasy sports is truly exceptionally focused on financial gain.’
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