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 video gaming terminals (VGTs), for an undisclosed charge. The company adds the acquisition to its collection of some 31,000 gaming devices in 26 facilities across America.
While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that large tax revenues from hawaii’s VGTs will be held in limbo until they can agree terms, Penn nationwide is looking to get its own slice of the lucrative industry.
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.
In Illinois, anywhere by having a liquor permit is allowed to use 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, compared 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 among the VGT operators that are largest in Illinois, produced very nearly $10 million in income for the financial 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 consented to buy the Tropicana in Las Vegas for $360 million, making it the operator’s 2nd Sin City property. The business first bought off the financial obligation 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 Canadian jurisdiction, with almost all found in the Midwest while the South of the United States.
Placed for development
The offer will cement the company further’s position in Illinois, said Snowden. ‘We believe this acquisition provides us a solid platform for future growth in the Illinois VGT market and possibly other states where this form of gaming is authorized.
‘PSG is one of Illinois’ most VGT that is respected, having a strong track record of regulatory compliance and a reputation for reliable around the clock service backed by one of the industry’s many experienced teams,’ he added.
Penn National’s current 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 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 establishment that is slots-only 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 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, formerly 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 services towards the new US online video gaming markets.
The deal highlights a time period of consolidation within the digital 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 payment space as being a very troublesome risk. The ‘wave and pay’ system allows users to load credit card details onto their handset, acting as a de facto e-wallet.
‘ Not a Defensive Move’
Optimal Payments has denied that the acquisition is a defensive move, citing steady 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 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 alleviate both companies’ reliance on the online gambling industry, consolidating their more mainstream e-commerce interests.
‘We’re becoming more relevant in the space that is e-commerce we see organic growth both here and in gaming after the deal,’ Joel Leonoff, leader of Optimal, insisted recently.
Optimal also desires to minimize its current reliance upon an unnamed customer that is asian which reportedly now represents over 33 percent regarding the company’s sales.
Online Gaming Payments Giant
‘Over days gone by four years, we have successfully delivered growth that is significant profits and earnings for our investors,’ said Leonoff. ‘This development lead from executing our strategy to generate high levels of natural growth also to supplement this with accretive acquisitions.
‘The purchase of Skrill will produce a global tech champion in the fast growing digital payments space so we think represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely stoked up about the prospects that are future the Company.’
NETELLER was formed back in 1999, at the time that is same PayPal. But while PayPal shied away from the grey appropriate area of on the web gambling in America, NETELLER embraced it.
By 2005, the business was processing 80 percent of on the web gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to pull out of the market that is US after UIGEA made the processing of online gambling transactions illegal.
Gaming Business Wishes to See Regulation of Everyday Fantasy Sports
Yahoo has joined a growing number of major organizations attempting to break in to the daily dream recreations industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned day-to-day fantasy sports from a little niche product to the quickest growing section of this fantasy sports industry.
Now, because of the valuations of each of the companies reaching $1 billion or more, the gaming industry is needs to take notice, with some believing that the daily fantasy games deserve the same types of strict regulation casino organizations deal with on a basis that is regular.
According to officials at many major gaming firms, there’s nothing really incorrect with daily dream sports (DFS), and they do not wish to see the offerings banned or restricted from the marketplace.
However, they believe legislation is a https://real-money-casino.club/club-player-online-casino/ 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 must be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK as well as the other is perhaps not. Drawing some synthetic line between the two makes no sense as a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites suggest 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 plenty of sway, as sports leagues and media companies are both getting on board en masse: most leagues now have partnerships with one or more sites, ESPN has a major advertising and content deal with DraftKings, and both Yahoo and CBS have launched their own DFS products in recent months.
But you will find people who are having a closer glance at the industry that is growing.
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 begin offering daily fantasy 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, there is a type of video gaming, and that’s once the need for regulation kicks in.’
Lobbyists for the fantasy sports industry dispute that characterization, nevertheless, 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 luck,’ stated Jeremy Kudon, someone at Orrick who lobbies for the Fantasy Sports Trade Association.
For their part, FanDuel and DraftKings issued a joint declaration 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 organizations. which they work working together with officials in the video gaming industry ‘to educate them’
Lawsuits Target Free Money Marketing Campaigns
But you can 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 exactly how deposit bonuses work.
And while the Fantasy Sports Trade Association believes fantasy that is daily should really be legal and do not constitute gambling, even they’ve expressed issues on the advertising campaigns employed by the two major web sites.
‘The money motivation ended up being never ever a key factor of dream sports,’ said FSTA President Paul Charchian. ‘ Now a lot of the advertising in daily fantasy sports is truly excessively concentrated on monetary gain.’