Gambling in the USA

Golden Nugget Online Gaming To Become Public

Published

4 years ago

June 29, 2020

George Miller

Reading Time: 4 minutes

Landcadia Holdings II, Inc. to Acquire Golden Nugget Online Gaming

Tilman J. Fertitta and Landcadia Holdings II, Inc. announced today that Landcadia II has entered into a Purchase Agreement to acquire Golden Nugget Online Gaming, Inc. (“GNOG”), a US online real money casino owned by Tilman Fertitta, recognized by both its peers and customers alike as the industry leading online casino that brought Live Dealer to the US market place. Landcadia II is a publicly traded special purpose acquisition company co-sponsored by Fertitta Entertainment, Inc. and Jefferies Financial Group Inc.

GNOG will become only the second pure publicly traded online casino company in the US. The transaction is expected to close in the third quarter of this year. Upon closing, Landcadia II intends to change its name to Golden Nugget Online Gaming, Inc. and its Nasdaq trading symbol to GNOG.

“GNOG is one of the best positioned companies to capitalize on this massive online gaming opportunity in the US,” said Rich Handler, Co-Chairman of Landcadia II and CEO of Jefferies LLC. “We at Jefferies couldn’t be more thrilled to partner with Tilman and bring this great opportunity to the public markets.”

Golden Nugget is a household name throughout the United States and its iGaming business is a well-established leader in New Jersey, the largest online gaming market in North America. GNOG has obtained market access, subject to regulatory approval, to Pennsylvania and Michigan and anticipates launching its online casino brand in each of those new markets in early 2021.

GNOG is known among its industry peers as the preeminent operator in the US online gaming market, having won the EGR North America Top Operator Award for three consecutive years. GNOG is known for its innovation, including initiating Live Dealer, Live Casino Floor gambling and a number of exclusive slot machine games to mobile devices, tablets and computers throughout New Jersey, as well as its top-notch 24/7 customer support.

Tilman J. Fertitta will remain GNOG’s Chairman and CEO, and Thomas Winter, who was brought in to develop Golden Nugget’s online gaming business, will continue to serve as GNOG’s President. During the seven years since Thomas Winter started Golden Nugget’s iGaming business in New Jersey, revenues and profitability have grown each year despite facing competition with greater financial resources. According to Mr. Fertitta, “Golden Nugget is one of the most time-honored brands in the gaming business today. When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business. Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business.”

GNOG Highlights

Started operation in New Jersey Q4 2013
Became profitable in 2016
First online gaming company to launch Live Dealer in the US
Won Industry award as top operator 3 years in a row
First to launch Live Casino Floor in US
Net Income of over $11 million in 2019

Key Transaction Terms

The transaction values the combined company at an anticipated pro forma enterprise value of approximately $745 million, or 6.1x GNOG’s estimated 2021 revenue of $122 million. The consideration payable to the parent entity of GNOG will consist of a combination of cash and rollover equity in Landcadia II. Upon completion of the transaction, Tilman J. Fertitta, Chairman and CEO, will, through the parent entity of GNOG, hold a controlling economic interest (through an Up-C structure described below) and a controlling voting interest in the combined company. The combined company will have a dual-class share structure with super voting rights for Mr. Fertitta.

Landcadia II will be assuming $150 million of GNOG debt of and will pay down at closing an additional $150 million of its debt, plus pay prepayment fees, transaction fees and expenses. Subject to redemptions, there is approximately $321 million currently held in Landcadia II’s trust account. Upon payment of the purchase price, debt repayment and transaction fees and expenses, the combined company will have at least $80 million on its consolidated balance sheet at closing and an anticipated pro forma equity market capitalization of nearly $700 million.

The transaction will be structured as an Up-C where an entity indirectly owned by Mr. Fertitta will retain common units of a partnership managed by the combined company and an equal number of non-economic voting shares in the combined company. The combined company will also enter into a customary tax receivable arrangement with such entity indirectly owned by Mr. Fertitta, which will provide for the sharing of tax benefits relating to certain pre-combination tax attributes, as well as tax attributes generated by the transaction and any subsequent sales or exchanges by the entity indirectly owned by Mr. Fertitta of their equity interests, as those attributes are realized by the combined company.

The transaction has been unanimously approved by the Board of Directors of Landcadia II, upon the unanimous recommendation of a committee comprised solely of Landcadia II’s disinterested independent directors (the “Committee”). The transaction will require the approval of a majority of the outstanding shares of Landcadia II, excluding shares beneficially owned by Tilman J. Fertitta and Jefferies Financial Group, and is subject to customary closing conditions, including certain regulatory approvals. Jefferies LLC is acting as exclusive financial and capital markets advisor to Landcadia II. Haynes and Boone LLP is acting as legal advisor to GNOG. White & Case LLP is acting as legal advisor to Landcadia II. Houlihan Lokey, Inc. is serving as financial advisor to the Committee of Landcadia II.

SOURCE Landcadia Holdings II, Inc.

Detroit casinos

Detroit Casinos Report $109.44M in April Revenue

Published

2 days ago

May 16, 2024

GamingAmericas.com

detroit-casinos-report-$109.44m-in-april-revenue

The three Detroit casinos reported $109.44 million in monthly aggregate revenue (AGR) for the month of April 2024, of which $107.87 million was generated from table games and slots, and $1.57 million from retail sports betting.

The April market shares were:

MGM, 46%
MotorCity, 30%
Hollywood Casino at Greektown, 24%

Monthly Table Games, Slot Revenue, and Taxes

The casinos’ revenue for table games and slots for the month of April 2024 decreased 1.6% when compared to the same month last year. April’s monthly revenue was 11.8% lower when compared to the previous month, March 2024. From Jan. 1 through April 30, the Detroit casinos’ table games and slots revenue decreased by 1.6% compared to the same period last year.

The casinos’ monthly gaming revenue results were mixed compared to April of last year:

MGM, down 0.7% to $49.86 million
MotorCity, down 4.5% to $32.68 million
Hollywood Casino at Greektown, up 0.6% to $25.33 million

In April 2024, the three Detroit casinos paid $8.74 million in gaming taxes to the State of Michigan. They paid $8.88 million for the same month last year. The casinos also reported submitting $12.8 million in wagering taxes and development agreement payments to the City of Detroit in April.

Monthly Retail Sports Betting Revenue and Taxes

The three Detroit casinos reported $15.28 million in total retail sports betting handle, and total gross receipts were $1.57 million for the month of April. Retail sports betting qualified adjusted gross receipts (QAGR) were up by $1.5 million in April when compared to the same month last year. Compared to March 2024, April QAGR was down by 1.7%.

April QAGR by casino was:

MGM: $475,492
MotorCity: $516,812
Hollywood Casino at Greektown: $578,131

During April, the casinos paid $59,362 in gaming taxes to the state and reported submitting $72,554 in wagering taxes to the City of Detroit based on their retail sports betting revenue.

Fantasy Contests

For March 2024, fantasy contest operators reported total adjusted revenues of $494,162 and paid taxes of $41,510.

Gambling in the USA

CogniPlay Launches New Social Casino Platform

Published

3 days ago

May 15, 2024

GamingAmericas.com

cogniplay-launches-new-social-casino-platform

CogniPlay has today announced the official launch of their new software product, which aims to provide a robust online sweepstakes or social gaming platform to their clients.The system is designed to be modular, allowing customers to tailor their brand and offering to what they believe will give them optimal performance.

The rise of sweepstake casinos in the US is continuing to gather pace and many companies from real money gaming are investigating the business model and the potentially lucrative revenue opportunity. With no standout platform solution currently on the market, CogniPlay looks to serve clients a full white label style solution with every detail taken care of. Brands like Chumba and Pulsz are already seeing tremendous success and CogniPlay gives an extremely efficient route to market for potential new sweepstake casino owners.

The CogniPlay system has several key integrations which help to deliver the product, including games integrations with the likes of Pragmatic Play, BetSoft, Mascot Gaming and many more, giving them 100s of games for their clients. There are other integration options for their customers to pick from too, including affiliate programme software, CRM platforms and associated products, KYC, ID verification, Geo-IP systems, Gamification, and customer support.

They also have a very long and extensive development pipeline which will see the product offering develop at pace, giving clients an extensive list of options and USPs, and of course giving players a great user experience as a result.

As well as the platform itself the CogniPlay team, due to their considerable experience, also offer a whole host of managed services, with almost a menu that clients can choose from to fill any gaps in their own skillsets or experience.

It is also this experience that CogniPlay hopes to utilise to great effect to provide industry-leading client management to build successful relationships and partnerships with their clients. CogniPlay’s Chief Executive Officer Allan Turner said, “We are very proud to take the CogniPlay product to market and are excited that people who want to start a new social or sweeps brand can get in touch with us to see what we can do for them, or in fact established brands that are unhappy with their existing provider.

Our underlying principles are that we want to provide the most flexible platform in the space, to enable our clients to create the product they want to have, not for us to dictate the product to them. The two other main areas of focus are that we want to be the most future-proof product on the market with plans for any regulatory or legal changes that may arise in the future, and that we have all the right safeguards in place to ensure that we look after both our clients and players with our responsible gaming setup.

This of course means having the right tech and processes in the key areas of KYC, Geo-IP tech, anti-money laundering, fraud, risk assessment and ID verification.”

Gambling in the USA

XSOLLA RELEASES QUARTERLY INSIGHTS REPORT ON THE FUTURE OF GAMING AND GAME DEVELOPMENT: A PRELIMINARY ANALYSIS OF SPRING 2024 METRICS AND UPCOMING TRENDS

Published

4 days ago

May 14, 2024

GamingAmericas.com

xsolla-releases-quarterly--insights-report-on-the-future-of-gaming-and-game-development:-a-preliminary-analysis-of-spring-2024-metrics-and-upcoming-trends

Key trends include the fast-growing mobile gaming segment, the impact of recent regulations, the integration of blockchain and AI, and the investments in equity and inclusion across the gaming industry.

Xsolla, a global video game commerce company, published the Spring 2024 edition of “The Xsolla Report: The State of Play” today. Launched on the heels of the Game Developers Conference (GDC) 2024, this extensive report provides invaluable insights into the emerging trends and pivotal shifts impacting the gaming industry in the short and long term. It sets the stage to significantly shape the future of mobile gaming, deepen academic connections within the gaming ecosystem, and redefine investment patterns.

In an era where mobile gaming commanded a 49% share of the global market in 2023, this edition of “The State of Play” sheds light on the evolving landscape of mobile gaming. The report navigates through the advancements in global compliance and regulation, including the Digital Markets Act in Europe’s new player engagement strategies, offering a glimpse into the potential future of mobile gaming monetization and distribution. It discusses the impact of cross-platform play and the importance of innovative monetization models, providing actionable insights for developers and industry stakeholders.

“The State of Play” emphasizes the importance of academia in the growth and diversification of the gaming industry. It explores how educational programs and initiatives develop talent and promote diversity and inclusivity within the gaming community. This edition underlines the symbiotic relationship between the gaming industry and academic institutions, highlighting programs that significantly impact students and the industry.

Berkley Egenes, Chief Marketing and Growth Officer at Xsolla, comments: “As we introduce the latest edition of ‘The State of Play,’ we’re not merely sharing industry insights but advocating for a transformative vision: Equal Access for Everyone. This initiative goes beyond our commitment to innovation and growth within the gaming industry. It’s about breaking down barriers to ensure that every developer, regardless of company size, has the opportunity to showcase their creativity and reach a global audience. Our focus is on providing platforms and tools that foster creative opportunities, international exposure, and the development of unique projects, ensuring that the future of gaming is accessible to all. We aim to empower every player and developer worldwide, ensuring the gaming landscape is as diverse and dynamic as its community.”

The report offers an in-depth analysis of the gaming industry’s current investment climate, including funding trends, mergers, and acquisitions. It outlines the shifts in investment patterns, from the heights of the pandemic-induced boom to a more measured approach in 2024. “The State of Play” provides a roadmap for navigating the industry’s financial aspects, offering insights into strategic investment opportunities and forecasting future trends.

Featuring expert commentary from industry voices like:

Mukul Aurora, Co-founder of Appsoleut Games;
Mariusz Gasiewski, CEO of Mobile Gaming and Apps Lead at Google;
Karla Reyes, Founder and Studio Director,

Anima Interactive, the Xsolla Report: The State of Play is now available for complimentary download. To secure your copy and gain invaluable insights into the gaming industry, visit our website.