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 a fee that is undisclosed. The company adds the acquisition 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 hawaii’s VGTs will be held in limbo until they could agree terms, Penn nationwide is wanting to get its own slice of the 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.
In Illinois, anywhere having a liquor license is allowed to work a VGT, and it’s really big business. But that reality has generated something of a 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, in accordance with 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 nearly $10 million in cashflow for the fiscal 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 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 of 2011 finalized its purchase of the M Resort and Casino on the South Las Vegas Strip june.
Penn National currently operates 26 casino, racinos, and racetracks in 16 US and one jurisdiction that is canadian with almost all found in the Midwest and the South of the United States.
Placed for Growth
The offer will further cement the company’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 video gaming is authorized.
‘PSG is certainly one of Illinois’ most respected VGT operators, with a strong track record of regulatory compliance and a reputation for dependable night and day service backed by one of many industry’s many experienced teams,’ he added.
Penn National’s present economic performance has made the investment community sit up and 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 development into the half that is second of year.
Along with the purchase regarding the Tropicana, Penn State opened Massachusetts’ first casino during the end of June. 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 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 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 green light from UK monetary 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 payments industry, as competition increases and innovation that is mobile disruption make 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 area 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 Really 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 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 organizations’ reliance on the gambling that is online, consolidating their more mainstream e-commerce interests.
‘we are becoming more appropriate in the space that is e-commerce we see organic growth both there and in gaming after the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.
Optimal also desires to minimize its present dependence on an unnamed Asian customer, which reportedly now represents over 33 per cent of the business’s product sales.
Online Gaming Payments Giant
‘Over days gone by four years, we have successfully delivered growth that is significant revenues and earnings for the shareholders,’ said Leonoff. ‘This growth lead from executing our strategy to generate high quantities of natural growth also to supplement this with accretive acquisitions.
‘The acquisition of Skrill will produce a global tech champion in the fast growing digital payments space and now we think represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely stoked 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 far from the grey area that is legal of gambling in America, NETELLER embraced it.
By 2005, the business was processing 80 per cent of on line gambling transactions globally, which accounted for 95 percent of its revenue flow, but was forced to grab of this US market completely after UIGEA made the processing of online gambling transactions illegal.
Gaming Business Desires to See Regulation of Frequent Fantasy Sports
Yahoo has joined an increasing number of major companies wanting to break into the day-to-day fantasy recreations industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned fantasy that is daily from the little niche product to the quickest growing part of this fantasy recreations industry.
Now, with all the valuations of each of those companies reaching $1 billion or more, the gaming industry is beginning to take serious notice, with some believing that the daily fantasy games deserve the exact same sorts of strict regulation casino companies deal with on a daily basis.
In accordance with officials at many gaming that is major, there’s nothing really wrong with daily dream sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.
However, they believe legislation is an important part of any 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 just be legal like I do believe traditional sports betting should really 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 sense being a matter of law or policy.’
DFS Embraced by Leagues, Media Titans
All major DFS sites state 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 seemingly have a lot of sway, as sports leagues and media companies are both getting on board en masse: most leagues now have partnerships with one or more web sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their very own DFS items in recent weeks.
But you will find 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, though the industry believes 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 start 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 chance begins to govern the outcome more than skill, a form is had by you of video gaming, and that is when the need for regulation kicks in.’
Lobbyists for the fantasy activities industry dispute that characterization, nonetheless, 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 typically precipitates to fortune,’ said Jeremy Kudon, a partner at Orrick who lobbies for the Fantasy Sports Trade Association.
For their part, FanDuel and DraftKings issued a joint statement for the Reuters report.
club player no deposit In that declaration, they said on the dream sports industry as our products are fundamentally separate from, rather than competitive with, casinos and gaming businesses. that they work working with officials in the video gaming industry ‘to educate them’
Legal Actions Target Free Money Marketing Promotions
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 business’s aggressive advertising campaign, particularly due to misunderstandings over the nature of how deposit bonuses work.
And while the Fantasy Sports Trade Association believes daily dream games should really be legal and never represent gambling, even they’ve expressed issues over the marketing promotions utilized by the two major web sites.
‘The money motivation was never ever an element that is key of sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the advertising in daily fantasy sports is really excessively focused on financial gain.’