Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. Today’s entry takes a look at an Australian and Canadian acquisition, as well as a US lawsuit settlement and a study into casinos and gambling in Virginia.
A new study undertaken by the Joint Legislative Audit and Review Commission has looked into the potential impacts of casinos and gambling in Virginia, with the state’s general assembly expected to debate each next year.
Introduced by Governor Ralph Northam last year, legislature will have to vote to reenact the bill to proceed the issue forward, with SB 1126 giving regulatory rights to the Virginia Lottery Board.
Developed in conjunction with national gaming consultant The Innovation Group, the study identifies Bristol, Danville, Norfolk, Portsmouth and Richmond as prime locations where resort-style casinos could be built and sustained.
Assuming an initial $200m to $300m capital investment and an annual gaming revenue state tax rate in the line with the national median at 27 percent, the five casinos are projected to annually generate approximately $970m in net gaming revenue and around $260m in gaming tax revenue for the state.
About one-third of total revenue is projected to be generated by out-of-state visitors, with Danville and Bristol to be big beneficiaries due to having small local markets. However, both would be vulnerable if developments were to occur in North Carolina and Tennessee.
The Stars Group has agreed a deal with the minority shareholders of its Australian-based sports betting business BetEasy, which sees the firm acquire the remaining 20 per cent interest in the company for AU$151m (£79.5m).
As part of this agreement, Stars has also agreed to pay AU$100m (£52.6m) to settle a previously disclosed performance payment under the agreements for its 2018 acquisition of the initial 80 per cent interest.
“I’m delighted to reach this agreement for our BetEasy business,” commented 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.”
Wynn Resorts is to receive $41m – including $20m from Steve Wynn – as settlement for a derivative lawsuit filed on behalf of the company.
The total includes $20m from founder and former CEO Steve Wynn and $21m from insurance carriers, less certain fees and costs.
The settlement also credits Wynn Resorts with $49m as a result of corporate governance enhancements undertaken after the filing of the lawsuit, and further enhancements agreed to by the company pursuant to the settlement.
Neither the company nor its current or former directors and officers were determined to have committed any wrongdoing in connection with the settlement.
Additionally, Wynn Resorts has agreed to amend its bylaws to require the separation of the role of the chairman and CEO – positions that Steve Wynn had held concurrently – and stipulate a majority vote of the shareholders for the election or re-election of directors, except in the case of a proxy fight.
Pollard Banknote has entered into an agreement to purchase digital products provider mkodo for £7.8m (CDN $13.4m), prior to standard working capital adjustments and potential future earn-out payments based on certain EBITDA targets.
The Winnipeg, Canada, headquartered firm expects to complete the purchase towards the early part of 2020’s first quarter, subject to regulatory and third-party consents. The purchase is expected to be accretive to Pollard Banknote’s net income prior to amortisation of related purchase price accounting adjustments.
“We are very excited to have the talented mkodo team join Pollard and we look forward to their proven gaming focused technology and vast experience helping us broaden our portfolio of lottery and gaming solutions,” stated Doug Pollard, co-chief executive officer of Pollard Banknote.