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

Penn Na<span id="more-1878"></span>tionwide 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 devices in 26 facilities across America.

While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that large tax revenues from hawaii’s VGTs will be held in limbo until they could concur terms, Penn National is looking to get its very own slice with this 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.

Big Business

In Illinois, anywhere having a liquor permit is permitted to work 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, when compared with 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 probably the VGT operators that are largest in Illinois, produced almost $10 million in cash flow 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 organization first bought off the debt for and in June of 2011 finalized its purchase regarding the M Resort and Casino regarding the South Las Vegas Strip.

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

Placed for Growth

The offer will further cement the business’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 VGT that is respected, having a strong track record of regulatory compliance and a reputation for dependable night and day service backed by among the industry’s many experienced teams,’ he added.

Penn nationwide’s current monetary performance has made the investment community sit up and take notice. Its Q2 results for 2015 have exceeded objectives, bringing in revenues of $701 million, and the company says it remains favorably positioned for continued development into the second half of the 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 slots-only establishment tacked onto the racecourse, and reported $6.1 million in gambling revenue in its first week of operation.

Optimal Payments’ Skrill Takeover to Complete by August 10

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:

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 having the light that is green UK economic regulators.

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

The deal highlights a period of consolidation into 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, a 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 room as 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 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 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 online gambling industry, consolidating their more conventional ecommerce interests.

‘we are becoming more relevant in the space that is e-commerce we come across organic growth both there and in gaming following the deal,’ Joel Leonoff, leader of Optimal, insisted recently.

Optimal also really wants to minimize its present reliance upon an unnamed Asian customer, which reportedly now represents over 33 percent for the business’s product sales.

Online Gaming Payments Giant

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

‘The acquisition of Skrill will develop 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 group is extremely stoked up about the future prospects for the Company.’

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

By 2005, the company was processing 80 percent of online gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to take out of the US market completely after UIGEA made the processing of online gambling transactions unlawful.

Gaming Industry Wishes to See Regulation of Frequent Fantasy Sports

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

FanDuel and DraftKings have turned fantasy that is daily from the little niche item towards the fastest growing section of this fantasy sports industry.

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

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

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

‘we think daily fantasy sports betting should just be legal like I believe old-fashioned sports betting should really be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK plus the other is not. Drawing some artificial line between the two makes no feeling being a matter of law or policy.’

DFS Embraced by Leagues, Media Titans

All major DFS sites suggest that their activities 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 money rewards.

That argument seems to have a lot of sway, as sports leagues and media organizations are both getting on board en masse: most leagues now have partnerships with several internet sites, ESPN has a major advertising and content deal with DraftKings, and both Yahoo and CBS have actually launched their very own DFS items in recent weeks.

But you can find people who are going for a better look 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’s 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 have a form of gaming, and that is if the 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 comes down to fortune,’ stated Jeremy Kudon, a partner at Orrick who lobbies for the Fantasy Sports Trade Association.

For their part, FanDuel and DraftKings issued a joint declaration for the Reuters report.

In that declaration, they said on the dream sports industry as our products are fundamentally separate from, and not competitive with, casinos and gaming businesses. they work using officials in the gaming industry ‘to educate them’

Lawsuits Target Free Money Marketing Promotions

But you can 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 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 fantasy games must certanly be legal and never represent gambling, even they’ve expressed issues over the marketing campaigns employed by the two major web sites.

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