Connect with us
SIS

Australia

US firm taking over Australian casino company

George Miller

Published

on

US firm taking over Australian casino company
Photo Source: CNBC.com
Reading Time: 4 minutes

 

The seemingly permanently advancing nature of the Australian gambling world has recently seen trouble. If you have been keeping an eye out for the news, you know that the recent Beijing crackdowns on the gambling within the Chinese borders have caused many, spenders and investors, to turn away from the industry. This has resulted, in turn, in the decrease in revenues that the Australian gambling firms have been seeing over the years. While real money casinos in Australia are seeing a rise in users the physical casinos have seen a lot of damage done to them. While not catastrophic, the crackdown has had its effect. The large scale divesting by shareholders has resulted in a loss of value for many shares of large companies. Crown, the large casino company from Australia, has also seen itself face trouble as a result. So it came like a fresh breath of air when an American resort company got in touch with Crown with an offer to but them out lock, stock, and barrel, in the past few months.

Wynn resorts makes an offer
Wynn Resorts is a huge American company. It owns and operates resorts and, more importantly, casinos, in some of the biggest gambling hotspots around the world. The company owns and operates large casinos in Las Vegas and Macau, and have been interested in expanding its operations further into the world. The time could not be better, as with the Australian physical casino market looking a little bleak has caused the price of acquiring them to become so much lower.
Despite this, the offer to the owners of Crown is still quite a staggering number. Wynn resorts are offering seven billion US dollars to Crown for the entirety of their operation. The offer seems to be more than generous, and it has been reflected in the share value of Crown. The only recently, the value of shares was only around $14, while after the news was released, the value of the shares jumped up to $24, as people scrambled to get their share of the pie and drove the prices of the shares sky high. And while the markets are going wild over Crown shares, the heads and shareholders of the company sit in their offices deliberating if the deal is good enough for them. Whatever they decide, this deal is a much welcome infusion into the industry, as the markets once more get excited about the casino-related news

A slow year for gambling
The past year has been slow for the gambling industry within Australia, a direct result of some of the more significant changes in the gambling regulations over the past years. The reforms in advertising and requirements have been causing a slow loss of customer base for physical casinos. These users are heading to a more comfortable online experience, but the result is the physical casino industry. The biggest slots machine manufacturer in the country, Ainsworth Game Technology, has already been seeing losses in revenue and is expecting the trend to continue in the near future.
But the regulations do not seem to be abating. Some are expecting even more regulation to hit sometime in 2019 or beginning of 2020, which might again cause some problems for the gambling industry in AU. With the regulation already diverting most of the casino revenue to offshore companies, because of the requirement for online casinos to be from foreign countries. Some companies have already been showing signs that the coming years might be a bit of a struggle.
But the potential of the industry is not getting any smaller. All that is being done is that the energy of the people is directed elsewhere – to non-Australian shores. The issue with regulation is thus quite apparent and obvious, but there isn’t much being done to change it, only the add more regulation. The government has an issue with the citizens gambling but is not taking constructive steps to limit or change the nature of the problem, instead of moving the responsibility for regulation to other countries, which is already damaging to the economy.

A new hope
Despite the issues with regulation, there is no doubt that the current deal that is taking place between Wynn Resorts and Crown is a good sign for the industry. With a large offer such as this being made to the Australian casinos, it must mean that the potential of the market has become of interest to the world’s largest players. And if the largest players are trying to get into Australia, it might be a chance for the industry to be able to revitalize itself. Or maybe the large scale companies such as Wynn Resorts have the necessary funds and economic advantages to be able to compete with international online casinos and offer services that online casinos cannot compete with.
Whatever it is, the current face of the casino industry will need to see some change and revitalization. As Australian casinos lose their users to online casinos from offshore companies, it is important for them to get a chance at operation again with the infusion of new blood and new funds into the industry. It is hard to compete with what online casinos are offering to their users: experience a casino from home. But if the physical casinos manage to figure out a way to offer something attractive enough to the people who play, they might be able to compete with them. Whether this is the experience of the tangibility of the markets, the real world experience of playing at a casino, or something else that a physical casino is able to provide that an online casino won’t be able to, is up for the industry to figure out on itself. But at this rate, the casinos are competing against themselves. After all, who needs to go to Vegas, when you can bring Vegas to you, through your screen?

Other entrants?
Is it possible that there might be other big, international companies interested in the Australian casinos? While there is no way to confirm this at the time, there are suspicions that are international companies are interested in Australia. After all, when 80% of the country is likely to be gambling and some point in the year, it becomes an attractive market for companies that deal in the industry. So it is not surprising the Wynn resorts is interested in entering the already established market, but Crown is not the only company dealing in casinos within Australia, and each one of them has the potential to be a solid way to enter the market.

Australia

The Stars Group Agrees to Acquire BetEasy Minority Interest; Settles Performance Payment

George Miller

Published

on

The Stars GroupThe Stars Group Agrees to Acquire BetEasy Minority Interest; Settles Performance Paymentand Penn National Gaming Enter Agreement for Online Betting and Gaming Market Access
Reading Time: 2 minutes

 

The Stars Group Inc. announced that it has agreed with the minority shareholders of BetEasy, its Australian-based sports betting business, to acquire the remaining 20% interest in the company for AUD$151 million. As part of this agreement, The Stars Group also agreed to pay AUD$100 million to settle the previously disclosed performance payment under the agreements for its 2018 acquisition of the initial 80% interest.

“I’m delighted to reach this agreement for our BetEasy business,” said Rafi Ashkenazi, Chief Executive Officer of The Stars Group. “The launch of BetEasy through our acquisitions of CrownBet and William Hill Australia in 2018 created one of the leading operators in Australia and increased our exposure to a high-growth regulated market. Matt Tripp’s entrepreneurial spirit and vision has guided BetEasy since he founded the business and we are glad he will oversee the transition as non-executive President,” concluded Mr Ashkenazi.

The Stars Group currently expects to complete the minority acquisition within 90 days following the earlier of either the issuance of The Stars Group’s audited financial statements for the year-ended December 31, 2020 or the completion of the previously announced board-recommended all share combination of The Stars Group with Flutter Entertainment Plc. The purchase price will be settled in cash unless it follows the completion of the combination, in which case Flutter may elect to settle in cash, Flutter ordinary shares or a combination of the same.

In addition to the acquisition of the remaining interest, The Stars Group will settle the performance, or earn-out, payment to the minority shareholders for AUD$100 million. The performance payment, which could have reached AUD$232 million, was subject to certain performance conditions primarily related to BetEasy’s EBITDA.

Also as part of the agreement, The Stars Group will repay AUD$56.9 million of outstanding BetEasy minority shareholder loans.

Matt Tripp, BetEasy’s CEO, will provide ongoing leadership as the non-executive President of BetEasy beginning January 1, 2020, with Andrew Menz, who previously served as BetEasy’s Director of Strategy & Regulatory Affairs, as his successor in the CEO role. Mr Menz was previously the Legal and Corporate Affairs Director of Betfair Australia and was at the forefront of the establishment of Responsible Wagering Australia, a key group for Australia’s online wagering industry.

“I’m pleased to see our long-term succession plan come to fruition.  Andrew Menz brings deep commercial and regulatory experience which leaves BetEasy in a strong position to continue delivering profitable growth,” said Matt Tripp. “I know that this business, which we founded back in 2013, is in very capable hands with a strong executive team and the backing of The Stars Group, who have been terrific partners and global leaders in this industry,” he concluded.

 

Continue Reading

Australia

Australian Government to Legislate Self-exclusion Register

Niji Narayan

Published

on

Australian Government to Legislate Self-exclusion Register
Photo Source: thesslstore.com
Reading Time: < 1 minute

 

The Australian government is going to legislate an online “National Self-Exclusion Register,” that will allow people to ban themselves from online gambling sites and apps.

“As much as possible Government policy should preserve Australians’ ability to enjoy a punt while putting in place sensible and targeted measures to prevent and support gamblers facing significant risks of harm,” Anne Ruston, Minister for Families and Social Services said.

“It is a measure that we believe will motivate gamblers to have periods where they do not gamble online at all as a way of changing their behaviour and minimising the risk they face of gambling-related harm,” Anne Ruston added.

“This legislation is an important step to help Australian gamblers minimise their risks. Once the Register is operational ACMA will regulate licensed interactive wagering providers so they comply with the legislation and make sure people receive the support they need,” Paul Fletcher, Minister for Communications, Cyber Safety and Arts said.

All costs to set up and administer the Register will be recovered from interactive wagering providers to ensure they contribute their fair share and encourage them to provide safe environments for their customers.

Continue Reading

Australia

ACMA Issues First Directions for ISPs to Block Unauthorised Offshore Sites

Niji Narayan

Published

on

ACMA Issues First Directions for ISPs to Block Unauthorised Offshore Sites
Reading Time: < 1 minute

 

The Australian Communications and Media Authority (ACMA) has issued notices to Internet service providers (ISPs), under Section 313(3) of the telecommunications act, to take steps to prevent their customers from accessing unauthorised offshore sites “Emu Casino” and “Fair Go Casino.”

ACMA said that the two sites it was targeting offered casino-style games, which are prohibited by the Interactive Gambling Act.

Section 313(3) has previously been employed to block access to child abuse material, tackle online fraud and prevent the spread of malware. The government in mid-2017 released guidelines for the use of the power by Commonwealth agencies, following an incident where a notice issued by the Australian Securities and Investments Commission (ASIC) saw hundreds of thousands of sites erroneously blocked.

“Emu Casino and Fair Go Casino are illegal sites that target Australians, and between the two we have received more than 50 complaints about their conduct,” ACMA’s chair Nerida O’Loughlin said.

Continue Reading
Advertisement
NSoft

Global Gaming Industry Newsletter – Weekly Digest (sent every Wednesday)

Please select all the ways you would like to hear from European Gaming Media and Events:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here. Read more about European Gaming Media and Event's Privacy Policy and Terms of Service.

Subscribe to our News via Email

Enter your email address to subscribe to our news and receive notifications of new posts by email.

Latest by author

Trending

European Gaming Media and Events is a leading media and boutique event organizer in the European Union with a monthly reach of +50,000 readers. The official company (PROSHIRT SRL), has been listed for 4 years in a row among the top 3 Advertising and market research agencies in the local Top Business Romania Microcompanies based on the Financial Reports.

Contact us: [email protected]

Copyright © 2015 - 2019 European Gaming Media and Events. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania

Notice for AdBlock users

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.