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 charge. 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 big tax profits from hawaii’s VGTs will be held in limbo until they can agree terms, Penn National is seeking to get its own slice of this profitable industry.
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 pubs and retail gaming establishments statewide.
In Illinois, anywhere with a alcohol license is allowed to work a VGT, and it’s really big business. But that reality has created something 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 gambling enterprises, 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 amongst the biggest VGT operators in Illinois, created nearly $10 million in income for the financial year 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 debt for and in of 2011 finalized its purchase of the M Resort and Casino on the South Las Vegas Strip june.
Penn nationwide currently operates 26 casino, racinos, and racetracks in 16 American and one jurisdiction that is canadian with the majority found in the Midwest and the South of the United States.
Placed for development
The deal will further cement the company’s position in Illinois, said Snowden. ‘We believe this acquisition will give you us a solid platform for future growth in the Illinois VGT market and possibly other states where this form of video gaming is authorized.
‘PSG is one of Illinois’ most respected VGT operators, by having a strong track record of regulatory compliance and a reputation for reliable 24 / 7 service supported by one of the industry’s most experienced teams,’ he added.
Penn nationwide’s current financial performance has made the investment community sit up and 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 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 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 within 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 light that is green UK economic regulators.
Optimal received approval to acquire Skrill’s US company from American regulators in June. Both companies provide their payment solutions towards the new US online video gaming areas.
The deal highlights a time period of consolidation in the digital payments industry, as competition increases and innovation that is mobile disruption result in the pooling of resources attractive. In April, Skrill completed the purchase of UK competitor Ukash, per month following 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 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 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 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 alleviate both organizations’ 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 after the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.
Optimal also wants to minimize its present reliance on an unnamed Asian customer, which reportedly now represents over 33 per cent for the organization’s product sales.
Online Gaming Payments Giant
‘Over the past four years, we have effectively delivered significant growth in revenues and earnings for our investors,’ said Leonoff. ‘This development resulted from performing our strategy to generate high degrees of organic growth and also to supplement this with accretive purchases.
‘The acquisition of Skrill will develop a global tech champion within the fast growing digital payments space and now we believe represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely worked up about the future prospects for the business.’
NETELLER had been formed back 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 business was processing 80 % of on the web 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 Wishes to See Regulation of Frequent Fantasy Sports
Yahoo has joined a growing number of major businesses attempting to break into the fantasy that is daily industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have actually turned fantasy that is daily from the little niche item to the fastest growing segment associated with fantasy recreations industry.
Now, with all the valuations of each of the businesses reaching $1 billion or more, the video gaming industry is needs to take notice, with some believing that the daily fantasy games deserve the exact same types of strict regulation casino organizations deal with on a basis that is regular.
In accordance with officials at many major gaming firms, there’s absolutely nothing really wrong with day-to-day dream sports (DFS), and they don’t really want to see the offerings banned or restricted through the marketplace.
However, they genuinely believe that legislation is a part that is important of 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 think conventional sports betting should be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let’s not pretend one is OK as well as the other is 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 state that their tasks are completely 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 seemingly have plenty of sway, as sports leagues and media businesses are both getting on board en masse: most leagues now have partnerships with more than one web sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their own DFS products in recent weeks.
But you will find people who are taking a better look at the growing industry.
In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry believes it 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 offering daily fantasy contests, 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 as soon as the need for regulation kicks in.’
Lobbyists for the fantasy sports industry dispute that characterization, however, saying that their games are clearly more about skill than luck.
‘ They’re in contrast to games of chance, where no matter how skillful the players is, winning or losing almost always club player casino no deposit 2015 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 joint statement for the Reuters report.
For the reason that statement, they stated they work working with officials into the video gaming industry ‘to educate them in the fantasy sports industry as our items are basically separate from, and never competitive with, casinos and gaming businesses.’
Legal Actions Target Free Money Marketing Campaigns
But you will find other threats to the 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 fantasy that is daily should be legal and don’t constitute gambling, even they’ve expressed concerns over the marketing promotions utilized by the two major web sites.
‘The money motivation ended up being never ever an element that is key of sports,’ stated FSTA President Paul Charchian. ‘ Now a lot of the advertising in daily fantasy sports is really exceptionally focused on financial gain.’