Penn National Scoops Up Illinois Video Gaming Operator, Posts Strong Q2 Financials

February 21, 2020 by No Comments

Penn Na<span id="more-340"></span>tional Scoops Up Illinois Video Gaming Operator, Posts Strong Q2 Financials

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 are able to concur terms, Penn nationwide is wanting to get its very own slice of the lucrative industry.

The deal, for an undisclosed all-cash transaction, 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.

Big Company

In Illinois, anywhere by having a alcohol permit is permitted to work a VGT, and it is big business. But that reality has generated something of the challenge to the state’s casino industry.

The VGT industry raked in $72.8 million in revenue in July, in comparison 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 amongst the VGT operators that are largest in Illinois, generated 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 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 organization first bought off the debt for and in June of 2011 finalized its purchase associated with M Resort and Casino regarding the South Las Las vegas Strip.

Penn nationwide currently runs 26 casino, racinos, and racetracks in 16 American and one Canadian jurisdiction, with almost all located in the Midwest and the South of the United States.

Positioned for development

The deal will cement the company further’s position in Illinois, said Snowden. ‘We believe this acquisition will provide us a solid platform for future development in the Illinois VGT market and possibly other states where this form of gaming is authorized.

‘PSG is certainly one of Illinois’ many VGT that is respected, by having a strong track record of regulatory compliance and a reputation for dependable 24 / 7 service backed by among the industry’s many experienced groups,’ he added.

Penn National’s current performance that is financial 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 growth in the half that is second of year.

As well as the purchase associated with 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 Payments’ Skrill Takeover to Complete by 10 august

Optimal Payments acquisition of Skrill has gotten the go-ahead from British financial regulators, as the payments industry looks to consolidate in 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, previously Moneybookers, will be finalized next Monday, August 10, after having the green light from UK financial regulators.

Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies provide their payment solutions towards the new US online video gaming areas.

The deal highlights a period of consolidation into the digital payments industry, as competition increases and innovation that is mobile disruption make the pooling of resources attractive. In April, Skrill completed the acquisition of UK competitor Ukash, a month after the Optimal deal was announced.

The launch of Apple’s ‘wave and pay’ system on iPhone telecharger club player casino has spooked the digital wallets industry, which views the incursion of large non-traditional payment service provides into the re payment space being a highly disruptive hazard. 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 electronic re 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 businesses’ reliance on the gambling that is online, consolidating their more conventional e-commerce interests.

‘We’re becoming more relevant in the space that is e-commerce we see organic growth both here and in gaming following the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.

Optimal also would like to minimize its present reliance upon an unnamed Asian customer, which reportedly now represents over 33 per cent associated with organization’s 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 development lead from executing our strategy to generate high degrees of natural growth and to supplement this with accretive acquisitions.

‘The purchase of Skrill will develop a tech that is global in the fast growing digital payments space so we believe represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management group is extremely excited about the future prospects for the Company.’

NETELLER was formed back in 1999, at the time that is same PayPal. But while PayPal shied away from the grey legal area of on the web gambling in America, NETELLER embraced it.

By 2005, the company was processing 80 percent of on line 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 deals unlawful.

Gaming Business Wishes to See Regulation of Everyday Fantasy Sports

Yahoo has joined an increasing number of major companies trying to break into the fantasy that is daily industry. (Image: Eric Risberg/AP)

FanDuel and DraftKings have actually turned fantasy that is daily from a little niche item to the fastest growing portion for the fantasy sports industry.

Now, using the valuations of each of the organizations 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 regular basis.

Based on officials at many gaming that is major, there’s absolutely nothing actually wrong with day-to-day fantasy sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.

However, they genuinely believe that legislation is an important part of any sort of gambling product, something they feel applies to DFS sites just up to it does a casino or racetrack.

‘I think daily fantasy sports betting should just be legal like I think traditional sports betting should really be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK therefore the other is not. Drawing some synthetic line between the two makes no sense as being a matter of law or policy.’

DFS Embraced by Leagues, Media Titans

All major DFS sites suggest that their tasks are totally legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to provide real cash rewards.

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 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 own DFS products in recent months.

But there are people who are going for 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 it is quite clear that the contests are legal under a fantasy sports exemption into the 2006 Unlawful Internet Gambling Enforcement Act.

‘When you begin providing 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 begins to govern the outcome more than skill, you do have a type of video gaming, and that is if the need for regulation kicks in.’

Lobbyists for the fantasy activities industry dispute that characterization, nevertheless, saying that their games are clearly more about skill than luck.

‘ They’re not like games of possibility, where in spite of how skillful the players is, winning or losing typically precipitates to fortune,’ stated 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 reason that declaration, they stated they work working with officials into the gaming industry ‘to educate them on the fantasy sports industry as our items are basically separate from, and never competitive with, gambling enterprises and video gaming businesses.’

Lawsuits Target Free Money Marketing Campaigns

But you can find other threats to the industry as well.

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 how deposit bonuses work.

And while the Fantasy Sports Trade Association believes daily dream games ought to be legal plus don’t constitute gambling, even they’ve expressed concerns over the marketing campaigns utilized by the 2 major web sites.

‘The money motivation was never ever a important element of dream sports,’ stated FSTA President Paul Charchian. ‘ Now a lot of the marketing in daily fantasy sports is truly exceptionally concentrated on monetary gain.’

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