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

Penn Na<span id="more-9322"></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 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 the state’s VGTs will be held in limbo until they could agree terms, Penn National is looking to get its own slice of the profitable 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 pubs and retail gaming establishments statewide.

Big Business

In Illinois, anywhere having a alcohol permit is allowed to work a VGT, and it is 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, 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 among the biggest VGT operators in Illinois, created almost $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 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 2nd las vegas property. The company 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 nationwide currently operates 26 casino, racinos, and racetracks in 16 US and one Canadian jurisdiction, with almost all found in the Midwest as well as 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 growth in the Illinois VGT market and potentially other states where this form of video gaming is authorized.

‘PSG is one of Illinois’ most respected VGT operators, with a strong track record of regulatory compliance and a reputation for reliable around the clock solution supported by one of the industry’s many experienced groups,’ he added.

Penn National’s present financial performance has made the investment community sit up and simply 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 into the 2nd half of this year.

As well as the purchase associated with 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 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 obtaining the green light from UK economic regulators.

Optimal received approval to acquire Skrill’s US company from American regulators in June. Both companies offer their payment services to the new US online video gaming markets.

The deal highlights a time period of consolidation within the electronic payments industry, as competition increases and innovation that is mobile disruption result in the pooling of resources attractive. A month after the Optimal deal was announced in April, Skrill completed the acquisition of UK competitor Ukash.

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 re 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.

‘ Not a Defensive Move’

Optimal Payments has denied that the acquisition is a defensive move, citing constant growth. Instead, analysts have said the company that is enlarged which marries two of the UK’s biggest electronic 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 deal will relieve both organizations’ reliance on the gambling that is online, consolidating their more conventional ecommerce interests.

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

Optimal also really wants to minimize its present dependence on an unnamed Asian customer, which reportedly now represents over 33 per cent of this organization’s sales.

Online Gaming Payments Giant

‘Over the past four years, we have successfully delivered significant growth in revenues and earnings for the investors,’ said Leonoff. ‘This growth resulted from performing our strategy to generate high quantities of natural growth and to supplement this with accretive purchases.

‘The acquisition of Skrill will produce a global tech champion in the fast growing digital payments space so we think represents a transformational step forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely worked up about the future prospects for the Company.’

NETELLER was 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 company was processing 80 % of online gambling transactions globally, which accounted for 95 percent of its revenue flow, but was forced to take out of this US market completely after UIGEA made the processing of online gambling transactions illegal.

Gaming Industry Wants to See Regulation of Frequent Fantasy Sports

Yahoo has joined an increasing number of major organizations trying to break in to the day-to-day fantasy sports industry. (Image: Eric Risberg/AP)

FanDuel and DraftKings have actually turned fantasy that is daily from a little niche item to the fastest growing part of this fantasy recreations industry.

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

According to officials at many major gaming firms, there’s absolutely nothing really wrong with day-to-day dream sports (DFS), and they don’t wish to see the offerings banned or restricted from the marketplace.

However, they think 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 just be legal like I do believe traditional sports betting ought to be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK and the other is not. Drawing some artificial line between the two makes no sense as a matter of law or policy.’

DFS Embraced by Leagues, Media Titans

All major DFS sites suggest club player casino free bonus 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 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 very own DFS products in recent weeks.

But there are people who are having a better glance at the growing industry.

In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry thinks it 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 providing day-to-day 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 is if the need for regulation kicks in.’

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

‘ They’re nothing like games of opportunity, where regardless of how skillful the players is, winning or losing almost always comes down to luck,’ stated Jeremy Kudon, a partner 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 statement, they said which they work working with officials into the gaming industry ‘to educate them on the fantasy sports industry as our products are basically separate from, and never competitive with, casinos and gaming businesses.’

Legal Actions Target Free Money Marketing Promotions

But there are 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 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 thinks fantasy that is daily should be legal and don’t represent gambling, even they have expressed issues throughout the advertising promotions utilized by the two major web sites.

‘The money motivation was never 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.’