Penn Na<span id="more-15049"></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 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 hawaii’s VGTs will be held in limbo until they could agree terms, Penn National is looking to get its own slice of this lucrative industry.

The deal, for an undisclosed transaction that is all-cash will dsicover 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 alcohol license is allowed to work a VGT, and it’s big business. But that reality has generated 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, 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 probably the VGT operators that are largest in Illinois, generated very nearly $10 million in cash flow for the financial year 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 business first bought off the financial obligation for and in June of 2011 finalized its purchase associated with the M Resort and Casino regarding the South Las Vegas Strip.

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

Placed for development

The offer will further cement the company’s position in Illinois, said Snowden. ‘We believe this acquisition will give you us a platform that is solid future development 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, by having a strong track record of regulatory compliance and a reputation for reliable night and day solution backed by one of the industry’s many experienced teams,’ he added.

Penn National’s present performance that is financial 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 development in the 2nd half of this year.

Plus 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 mobile competition . (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 getting the green light from UK financial regulators.

Optimal received approval to acquire Skrill’s US company from American regulators in June. Both companies provide their payment services to your US that is new online areas.

The deal highlights a 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. 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 payment space 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 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 company, which marries two of the UK’s biggest electronic 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 online gambling industry, consolidating their more mainstream ecommerce interests.

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

Optimal also really wants to minimize its present reliance on an unnamed customer that is asian which reportedly now represents over 33 % associated with business’s product sales.

Online Gaming Payments Giant

‘Over days gone by four years, we have effectively delivered significant growth in profits and earnings for our shareholders,’ said Leonoff. ‘This development resulted from executing our strategy to generate high quantities of natural growth also to supplement this with accretive acquisitions.

‘The purchase of Skrill will develop a global tech champion in the fast growing digital payments space and now we believe 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 far from the grey appropriate area of on line gambling in America, NETELLER embraced it.

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

Gaming Industry Desires to See Regulation of Frequent Fantasy Sports

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

FanDuel and DraftKings have turned fantasy that is daily from a little niche item to your quickest growing segment for the fantasy recreations industry.

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

According to officials at many major gaming firms, there’s nothing really incorrect with day-to-day dream sports (DFS), and they do not desire to see the offerings banned or restricted from the marketplace.

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

‘we think daily fantasy sports betting should just be legal like I 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 the other is perhaps not. Drawing some synthetic 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 that their tasks are entirely legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to provide money that is real.

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

But you can find those who are going for a closer look at the growing industry.

In Nevada, the state gaming control board is analyzing the legality of DFS games, though the industry believes it is quite clear that the contests are legal under a fantasy sports exemption within the 2006 Internet Gambling Enforcement that is unlawful Act.

‘When you begin offering fantasy that is daily, 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 when 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 in contrast to games of opportunity, where no matter how skillful the players is, winning or losing always boils down to fortune,’ said Jeremy Kudon, someone 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 statement, they said they work working with officials into the gaming industry ‘to educate them regarding the fantasy sports industry as our items are basically separate from, and not competitive with, casinos and video gaming businesses.’

Lawsuits Target Free Money Marketing Campaigns

But there are 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 company’s aggressive advertising campaign, particularly due to misunderstandings over the nature of just how deposit bonuses work.

And while the Fantasy Sports Trade Association believes fantasy that is daily is legal and do not constitute gambling, even they’ve expressed issues on the advertising campaigns used by the 2 major sites.

‘The money motivation had been never a important element of dream sports,’ stated FSTA President Paul Charchian. ‘ Now a lot of the marketing in daily fantasy sports is really extremely concentrated on monetary gain.’