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 cost. The company adds the purchase to its collection of some 31,000 video gaming devices in 26 facilities across America.
While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that large tax profits from their state’s VGTs will be held in limbo until they could concur terms, Penn nationwide is seeking to get its very 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 bars and retail gaming establishments statewide.
In Illinois, anywhere having a liquor license is permitted to use a VGT, and it’s 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, when compared with the combined $118.1 million in revenue of Illinois’ ten gambling enterprises, based on Fantini Gaming Research. For Penn National, which owns three of those casinos, it’s a thought process of ‘if you can’t beat ’em, join ’em.’
PSG, which is amongst the VGT operators that are largest in Illinois, created 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 latest phase 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 second Sin City property. The company first bought off the debt for and in June of 2011 finalized its purchase associated with M Resort and Casino regarding the South Las Vegas Strip.
Penn nationwide currently operates 26 casino, racinos, and racetracks in 16 American and one jurisdiction that is canadian with the majority located in the Midwest and also the South of the United States.
The deal will cement the company further’s position in Illinois, said Snowden. ‘We believe this acquisition will give you us a solid platform for future development in the Illinois VGT market and potentially other states where this form of gaming is authorized.
‘PSG is certainly one of Illinois’ most VGT that is respected, by having a strong track record of regulatory compliance and a reputation for reliable around the clock solution backed by one of the industry’s many experienced groups,’ he added.
Penn nationwide’s current performance that is financial made the investment community sit up and just 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 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 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 competition that is mobile . (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 light that is green UK monetary regulators.
Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies provide their payment services to the new US online video gaming markets.
The deal highlights a time period of consolidation within 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 acquisition 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 space as being a threat that is highly disruptive. The ‘wave and pay’ system allows users to load credit card details onto their handset, acting as a de facto e-wallet.
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 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 relieve both organizations’ reliance on the gambling that is online, consolidating their more main-stream ecommerce interests.
‘We’re becoming more appropriate 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 customer that is asian which reportedly now represents over 33 % associated with business’s sales.
‘Over the last four years, we have successfully delivered growth that is significant revenues and earnings for the shareholders,’ said Leonoff. ‘This growth lead from performing our strategy to generate high levels of organic growth also to supplement this with accretive acquisitions.
‘The purchase of Skrill will create a tech that is global within the fast growing digital payments space and now we think represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely excited about the future prospects for the business.’
NETELLER was 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 stream, but was forced to grab of this market that is US after UIGEA made the processing of online gambling transactions unlawful.
Yahoo has joined an increasing number of major businesses attempting to break in to the daily dream recreations industry. (Image: Eric Risberg/AP)
FanDuel and DraftKings have turned day-to-day fantasy activities from the little niche product to the quickest growing portion for the fantasy activities industry.
Now, using the valuations of each of these businesses reaching $1 billion or more, the video gaming industry is just starting to take notice, with some believing that the daily fantasy games deserve the same kinds of strict regulation casino organizations deal with on a regular basis.
According to officials at many gaming that is major, there’s absolutely nothing really wrong with daily fantasy sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.
However, they think that regulation is a part that is important of sort of gambling product, one thing they feel relates to DFS sites just as much as it does a casino or racetrack.
‘we think daily fantasy sports betting should be appropriate, simply 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 and also the other is not. Drawing some artificial line between the two makes no sense as a matter of law or policy.’
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 rewards.
That argument seems to have plenty of sway, as sports leagues and media companies 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 launched their own DFS products in recent days.
But there are those that 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 its quite clear that the contests are legal under a fantasy sports exemption in the 2006 Unlawful Internet Gambling Enforcement Act.
‘When you begin providing day-to-day fantasy contests, then you begin to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When opportunity begins to govern the outcome more than skill, you do have a kind of video gaming, and that is as soon as 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 nothing like games of chance, where regardless of how skillful the players is, winning or losing almost always comes down to luck,’ said Jeremy Kudon, somebody 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 https://real-money-casino.club/club-player-online-casino/ reason that statement, they stated that they work working with officials into the video gaming industry ‘to educate them regarding the fantasy sports industry as our products are fundamentally separate from, rather than competitive with, casinos and gaming businesses.’
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 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 daily dream games must certanly be legal and do not represent gambling, even they have expressed concerns on the marketing campaigns employed by the 2 major web sites.
‘The money motivation was never a key element of fantasy sports,’ said FSTA President Paul Charchian. ‘ Now a lot of the advertising in daily fantasy sports is actually exceptionally concentrated on monetary gain.’