Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. Continue reading to discover a blockbuster US acquisition, further interest in the pending Netherlands market and more penalty fees handed out by the Swedish regulator.
Eldorado Resorts has confirmed its merger agreement with Caesars Entertainment valued at $17.3bn, comprised of $7.2bn in cash, approximately 77 Eldorado common shares and the assumption of Caesars outstanding net debt.
Lauding the increased scale and geographic diversification, subject to regulatory approval and closing conditions the transaction is expected to be complete in the first half of 2020, achieving approximately $500m of synergies in the first year and affording Eldorado and Caesars shareholders approximately 51 per cent and 49 per cent of the combined company’s outstanding shares, respectively.
Set to utilise the “iconic, global brand” of Caesars, the company is to be headquartered in Reno, Nevada, while retaining a significant presence on Las Vegas, with the combined entity to be led by Eldorado chairman Gary Carano, CEO Tom Reeg, COO Anthony Carano, CFO Bret Yunker and CLO Edmund Quatmann.
The UK Gambling Commission has released its 2018/18 Enforcement Report titled ‘raising standards for consumers,’ intended as a support tool that the industry can use and digest the lessons to be learned for the future.
Providing a detailed overview of the work undertaken by the regulator over the past year, it comes as the authority has handed out £2.8m in penalty packed this month alone, with social responsibility and money laundering failures seeing Platinum Gaming and Gamesys penalised £1.6m and £1.2m respectively.
The report provides industry stakeholders on a number of key disciplines central to UK gambling policy and standards, namely safer gambling, AML, marketing and advertising, illegal activities, affordability and compliance.
On each of these examples the UKGC details clear expectations for operators, good practice guidelines and notable cases against licensed incumbents, as well as work carried out in each of the areas.
Dutch gaming authority, Kansspelautoriteit, has provided a further update regarding the pending legalisation of online gambling, after reporting that it has received 183 notifications from interested parties who are considering submitting an application for offering online gambling.
Of those, 89 come from companies outside of the Netherlands’ borders, with 83 of the interested parties holding an online gambling licence abroad.
Application costs are to be set at €45,000 with a financial guarantee of €830,000 having to be issued, as the Ksa stresses that despite the number of interest notifications received it does not guarantee that each will be granted a permit.
Applicants are to be tested for reliability and integrity as well as certain conditions in the field of business operations, including if there’s an addiction prevention policy, if player credit is separated from other funds, how player identification works and how quality assurance is arranged.
Swedish gambling regulator the Spelinspektionen has issued further warnings and combined penalty fees of SEK 33m (£2.7m) in relation to bonus rules violations, with NGG Nordic, an operational subsidiary in the Betsson Group, and SkillOnNet the latest to fall foul.
Taking its total number of penalties for such violations to seven different organisations, the authority found that the licence holders have violated legislation by offering their customers bonuses on repeated occasions.
Stressing that breaches were deemed as serious, NGG Nordic received a warning and a SEK 19m (£1.6m) penalty fee, with SkillOnNet also hit with a warning as well as an accompanying SEK 14m (£1.1m) penalty.