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

Penn Na<span id="more-9044"></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 National Gaming, Inc. will acquire Prairie State Gaming (PSG), an Illinois operator of movie gaming terminals (VGTs), for an undisclosed charge. 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 big tax profits from their state’s VGTs will be held in limbo until they can agree terms, Penn National is wanting to get its very own slice of the industry that is lucrative.

The deal, for an undisclosed all-cash deal, will see the Pennsylvania-based real-money-casino.club casino, racetrack, and racino operator acquire 1,100 terminals across a network of 270 different pubs and retail gaming establishments statewide.

Big Company

In Illinois, anywhere having a alcohol permit is permitted to use a VGT, and it’s big business. But that reality has established one thing 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, 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 biggest VGT operators in Illinois, generated almost $10 million in cashflow for the financial 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 consented to buy the Tropicana in Las Vegas for $360 million, making it the operator’s 2nd Sin City 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 National currently runs 26 casino, racinos, and racetracks in 16 US and one jurisdiction that is canadian with the majority 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 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 night and day service supported by among the industry’s many experienced groups,’ he added.

Penn National’s present 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 growth in the second half of this year.

Plus the purchase of this 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 in 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, 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 services to your US that is new online markets.

The deal highlights a time period of consolidation in the digital re 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, 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 as 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 Just a Defensive Move’

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 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 relieve both organizations’ reliance on the gambling that is online, consolidating their more main-stream ecommerce interests.

‘We’re becoming more appropriate in the e-commerce room and we come across organic growth both there and in gaming after the deal,’ Joel Leonoff, leader of Optimal, insisted recently.

Optimal also desires to minimize its present reliance on an unnamed customer that is asian which reportedly now represents over 33 % regarding the organization’s sales.

Online Gaming Payments Giant

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

‘The purchase of Skrill will create 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 excited about the prospects that are future the business.’

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

By 2005, the company was processing 80 per cent of on the web gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to take out of this market that is US after UIGEA made the processing of online gambling deals illegal.

Gaming Business Wants to See Regulation of Day-to-day Fantasy Sports

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

FanDuel and DraftKings have turned fantasy that is daily from a little niche product to the fastest growing segment regarding the fantasy activities industry.

Now, with all the valuations of each of those companies reaching $1 billion or more, the video gaming industry is just starting to take serious notice, with some believing that the daily fantasy games deserve the exact same types of strict regulation casino organizations deal with on a basis that is regular.

In accordance with officials at many gaming that is major, there’s absolutely nothing really wrong with day-to-day dream sports (DFS), and they do not wish to see the offerings banned or restricted through the marketplace.

However, they believe that legislation is an important part of any sort of gambling product, one thing they feel pertains 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 while the other is perhaps 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 state that their tasks 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 money that is real.

That argument appears to have plenty of sway, as sports leagues and media companies are both getting on board en masse: most leagues now have partnerships with a number of internet sites, ESPN has an advertising that is major content deal with DraftKings, and both Yahoo and CBS have actually launched their own DFS items in recent weeks.

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

In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry thinks its quite clear that the contests are legal under a fantasy sports exemption in the 2006 illegal Internet Gambling Enforcement 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 opportunity starts to govern the outcome more than skill, there is a kind of video gaming, and that is whenever need for regulation kicks in.’

Lobbyists for the fantasy activities industry dispute that characterization, however, 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 almost always boils 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 joint statement for the Reuters report.

For the reason that statement, they stated that they work working with officials into the gaming industry ‘to educate them on the fantasy sports industry as our products are fundamentally separate from, rather than competitive with, gambling enterprises and gaming businesses.’

Legal Actions Target Free Money Marketing Campaigns

But you can find other threats to your industry too.

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 just how deposit bonuses work.

And while the Fantasy Sports Trade Association thinks daily dream games must be legal and don’t represent gambling, even they will have expressed issues on the marketing promotions utilized by the 2 major sites.

‘The money motivation ended up being never an element that is key of sports,’ stated FSTA President Paul Charchian. ‘ Now a complete lot of the advertising in daily fantasy sports is actually excessively concentrated on financial gain.’