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Penn Nationwide Scoops Up Illinois Gambling Operator, Posts Strong Q2 Financials

Penn Na<span id="more-9103"></span>tionwide Scoops Up Illinois Gambling Operator, Posts Strong Q2 Financials

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 a fee that is undisclosed. 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 large tax profits from the state’s VGTs will be held in limbo until they are able to concur terms, Penn National is seeking to get its 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 bars and retail gaming establishments statewide.

Big Company

In Illinois, anywhere by having a alcohol license is allowed to work a VGT, and it’s really big business. But that reality has created one thing of a 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, 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 one of the biggest VGT operators in Illinois, produced very nearly $10 million in cash flow for the financial 12 months 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 business first bought off the financial obligation for and in June of 2011 finalized its purchase of this M Resort and Casino on the South Las Las vegas Strip.

Penn nationwide currently runs 26 casino, racinos, and racetracks in 16 American and one jurisdiction that is canadian with almost all found in the Midwest and 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 will give you us a solid platform for 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 respected VGT operators, having a strong track record of regulatory compliance and a reputation for reliable around the clock solution backed by one of many industry’s most experienced teams,’ he added.

Penn nationwide’s present monetary performance has made the investment community sit up and simply 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.

As well as the purchase regarding the Tropicana, Penn State opened Massachusetts’ first casino at the end of June. 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 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 parent 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 getting the green light from UK economic regulators.

Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies provide their payment solutions to your US that is new online markets.

The deal highlights a period of consolidation into the electronic re 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 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 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 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 offer will alleviate both companies’ reliance on the online gambling industry, consolidating their more main-stream ecommerce interests.

‘we are becoming more appropriate in the e-commerce space and we see organic growth both here and in gaming after the deal,’ Joel Leonoff, leader of Optimal, insisted recently.

Optimal also wants to minimize its present reliance upon an unnamed customer that is asian which reportedly now represents over 33 percent for the company’s product sales.

Online Gaming Payments Giant

‘Over the last four years, we have effectively delivered growth that is significant revenues and earnings for the investors,’ said Leonoff. ‘This growth 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 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 team is extremely stoked up about the prospects that are future the Company.’

NETELLER ended up being formed back 1999, at the same time as PayPal. But while PayPal shied far from the grey legal area of on the web 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 pull out of this US market completely after UIGEA made the processing of online gambling transactions unlawful.

Gaming Business Desires to See Regulation of Constant Fantasy Sports

Yahoo has joined an increasing number of major organizations attempting to break to the day-to-day dream activities industry. (Image: Eric Risberg/AP)

FanDuel and DraftKings have actually turned fantasy that is daily from a little niche item towards the quickest growing section associated with the fantasy activities industry.

Now, using the valuations of each of the organizations reaching $1 billion or more, the video gaming industry is starting to get sucked in, with some believing that the daily fantasy games deserve the same types of strict regulation casino companies deal with on a regular basis.

In accordance with officials at many gaming that is club player no deposit codes 2017 major, there’s absolutely nothing really wrong with daily fantasy sports (DFS), and they don’t really want to see the offerings banned or restricted through the marketplace.

However, they believe that legislation is a part that is important of sort of gambling product, one thing they feel relates to DFS sites just up to it does a casino or racetrack.

‘I think daily fantasy sports betting should be appropriate, simply like I believe traditional sports betting must certanly be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK and also the other is not. Drawing some line that is artificial the two makes no feeling being a matter of law or policy.’

DFS Embraced by Leagues, Media Titans

All major DFS sites suggest that their activities are completely legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to supply real money awards.

That argument appears to have lots 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 a major advertising and content deal with DraftKings, and both Yahoo and CBS have actually launched their very own DFS products in recent days.

But you can find those who are taking a better glance at the industry that is growing.

In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry thinks it really is quite clear that the contests are legal under a fantasy sports exemption into the 2006 Internet Gambling Enforcement that is unlawful Act.

‘When you begin offering fantasy that is daily, then you begin 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 do have a type of video gaming, and that is once the 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 in contrast to games of possibility, where no matter how skillful the players is, winning or losing typically comes down to luck,’ said 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.

For the reason that declaration, they said on the fantasy sports industry as our products are fundamentally separate from, and not competitive with, casinos and gaming businesses. that they work working together with officials into the video gaming industry ‘to educate them’

Legal Actions Target Free Money Marketing Campaigns

But you can find other threats towards the industry also.

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 must certanly be legal plus don’t represent gambling, even they will have expressed issues on the advertising campaigns used by the 2 major web sites.

‘The money motivation had been never a key element of fantasy sports,’ stated FSTA President Paul Charchian. ‘ Now a lot of the marketing in daily fantasy sports is actually exceptionally concentrated on monetary gain.’

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