WMS and Stratosphere expected to receive Nevada licences today

Posted on September 20, 2012 by r.weston

Service provider and operator go before NGC after being among last to receive recommendation from outgoing Gaming Control Board chairman Mark Lipparelli

The owner of Las Vegas’ Stratosphere Casino is expected to become the third licensed online poker operator in the US later today, while WMS Gaming is set to become the fifth licensed service provider.

Online poker marketing affiliate PokerTrip Enterprises is also set to become the first licensed affiliate in the Silver State at the Nevada Gaming Commission (NGC) hearing, having become the last companies to receive recommendations from Nevada Gaming Control Board chairman Mark Lipparelli, whose impending departure was exclusively revealed by eGR North America on Tuesday.

American Casino & Entertainment Properties (ACEP), the holding company for the Stratosphere, Vegas-based PokerTrip Enterprises and Illinois-based WMS Gaming all received approval from Nevada’s Gaming Control Board earlier this month and are expected to meet little opposition from the NGC.

ACEP had originally applied for both operator and service provider licences in February, but has since requested to withdraw its service provider application. The Stratosphere owner would be the third licensed online poker operator following the licenses awarded to South Point Poker and Monarch last month.

WMS Gaming would become the fifth licensed service provider after Bally Technologies, IGT, Shuffle Master and payment processor Global Cash Access. WMS has provided slot machines, video terminals and game software for land-based and online casino operators since 1999.

Earlier this year it announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, and acquired online gaming content developer Jadestone Group, as well as social and mobile game developer Phantom EFX.

WMS’ egaming division Williams Interactive, launched in July, launched two social casino games on Facebook and its UK-facing brand Jackpot Party has released several online slots this year.

Lipparelli, who spoke at eGR NA’s Power Summit in Laguna Beach last wekek, has overseen the awarding of all the online poker licenses so far. In a statement, Nevada Governor Brian Sandoval said: “Mark has dedicated himself every day for four years to working to maintain Nevada’s leadership in the gaming industry and I thank him for his loyal service to the state.”

Earlier this week, Vintage Vegas Gaming, the company that owns former World Series of Poker host Binion’s Gambling Hall & Hotel in Las Vegas, became the latest operator to file an application for licensure.

Fitch suggests Caesars Interactive spin-off is “logical”

Posted on September 6, 2012 by t.washington

Global ratings agency says spin-off of Caesars’ online business is logical precursor to debt restructuring

Caesars Entertainment has been downgraded from a stable to a negative outlook by Fitch Ratings, with the global agency stating that a spin-off of the US casino giant’s online arm could be a “logical precursor to a restructuring”.

The outlook issued yesterday reflects Fitch’s concern over the operator’s debt levels, and emphasised the need to monetise its fledgling online business.

It said that by spinning off the interactive business, Caesars – which faces long-term debt of around US$20bn – could avoid having to extract value out of it and not risk the entity being pulled into the debt restructuring proceedings.

Caesars Interactive Entertainment (CIE) is a non-wholly owned subsidiary of the parent company, Caesars Entertainment. It sold an undisclosed percentage of its business to Ohio casino group Rock Gaming in March for US$60.8m.

In its most recent financial results, Caesars’ saw net revenues from its ‘other’ operations, including social and online, more than treble year-on-year to $64.7m.

CIE began preparing for online gambling regulation in the US when it acquired a 51% stake in social games developer Playtika last May before making it a fully-owned subsidiary by securing the remaining 49% in Q4 2011. The operator also owns the Word Series of Poker brand through which it offers real-money online poker in the UK, France and Italy.

It renewed B2B deals with Dragonfish and Barrière earlier this year with one eye on impending United States legislation, and has applied for an online poker operator licence in Nevada and is expected to be recommended for approval by the state’s Gaming Control Board next month.

In a report to investors, Fitch said it believes most of Caesars’ current equity value is attributable to the online business, which requires the progression of regulation on a state-by-state or federal level in order to realise profits in the US.

In March 2011 CIE received approval from both the Nevada Gaming Commission and Nevada State Gaming Control Board for its partnership with 888′s B2B arm Dragonfish in non-US markets, making it the first approved partnership between a Nevada licensee and an overseas egaming business.

Shuffle Master recommended for Nevada licence

Posted on July 12, 2012 by r.weston

Collapse of Ongame acquisition did not affect supplier’s application – Paddy Power recommended for finding of suitability

Shuffle Master and Paddy Power have been given preliminary approval on their respective applications in the state of Nevada following a Gaming Control Board (GCB) meeting.

It had been speculated that Shuffle Master’s decision to pull out of a deal to acquire bwin.party-owned poker network Ongame could impact on the success of its application, however the gaming manufacturer received unanimous approval for its application and will now hope for final approval when it goes before the Nevada Gaming Commission (NGC) on 26 July.

If approved by the NGC, the company will join Bally Technologies and International Game Technology (IGT) in being cleared to offer intrastate online poker. Despite pulling out of the deal for Ongame due in part to “Uncertainty surrounding the timing of legalization and the rollout of online poker in the US at both the state and federal levels,” Shuffle Master has confirmed that it is still considering B2B poker opportunities

The company’s chief strategy officer Lou Castle noted that while it looks at poker options, Shuffle Master will simultaneously push forward with plans to bring its table games to freeplay social gaming sites before moving to convert play-money customers to real-money players.

Paddy Power, meanwhile, has cleared an important first hurdle in the licensing process after being granted suitability approval by the NGCB yesterday.

The operator had previously sounded out the possibility of obtaining manufacturer and mobile licences, although it is unclear whether this is still its intention. It had previously looked at buying American Wagering – whose mobile app Leroy’s App received GCB approval last year - before William Hill came in for the sportsbook.

Chief executive Patrick Kennedy described the United States as “A key potential new market for us,” noting in yesterday’s meeting that it had never taken a bet from the United States.

According to Vegas Inc, GCB chairman Mark Lipparelli said of Paddy Power’s application: “There are lingering questions and concerns on the background side…but the company has met the standard for suitability.”

Paddy Power has software deals with Playtech, and the London-listed software provider was cited in concerns about JV partner William Hill’s application earlier this year, although the GCB has not indicated whether Playtech represents one of the concerns in this particular case.

Tom Victor

Shuffle Master to hear Nevada fate

Posted on July 6, 2012 by r.weston

Licence application on Gaming Control Board agenda for 11 July

Shuffle Master’s applications for egaming manufacturer and service provider licences in Nevada will be considered by the Gaming Control Board (GCB) on Wednesday.

If recommended by the GCB, the Nevada Gaming Commission could act on its applications at its next meeting on 26 July, meaning US supplier Shuffle Master could become the third company to be awarded an egaming licence in Nevada after Bally Technologies and IGT were given the first two last month.

Paddy Power’s application for a preliminary finding of suitability for a Nevada licence will also be heard at next week’s meeting, as will the IT service provider licence application from cloud computing provider NetEffect.

Paddys, whose MD of online and technology Peter O’Donovan has revealed has invested “significant time and resources” in reaching this stage of the application process, has also withdrawn its application for former COO Breon Corcoran’s preliminary finding of suitability as a director. Corcoran, who left the company last November and will take over as Betfair’s new CEO on 1 August.

It remains unclear whether the lack of an online poker offering will affect Shuffle Master’s Nevada licence application. Both Bally and IGT can offer online poker, with Bally acquiring Chiligaming’s iGaming Platform in February this year and having integrated Winamax’s offering to the platform to power Golden Nugget’s freeplay poker offering, and IGT buying the Entraction Poker network last year.

Last week, Shuffle Master’s deal to acquire the bwin.party-owned Ongame Poker Network collapsed, whith CEO Gavin Isaacs saying this was due to the uncertain economic climate.

Despite Nevada issuing its first egaming licences to service providers last month, Isaacs also cited the slow progress of US regulation as a reason behind the collapse, explaining: “Although we believe in its eventuality, there is also uncertainty surrounding the timing of legalisation and the rollout of online poker in the US at both the state and federal levels.”

888 announces WMS partnership

Posted on July 2, 2012 by t.washington

Operator signs second major partnership in the US – will see launch of free-play offering ahead of intrastate or federal legislation

888 has announced its second major partnership in the United States, signing a deal with WMS Gaming which will see the solutions provider offer 888’s online poker product to land-based casinos in the market.

The product will initially only be available as a free-play solution, but will allow casinos to launch real-money poker once federal or intrastate regulation is passed, and licences have been secured.

Commenting on the deal 888 CEO Brian Mattingley (pictured) said: “WMS is one of the main gaming suppliers in America, with a network of relationships with land-based operators that is second to none. The combination of 888′s cutting edge online poker platform and WMS’ customer relationships, marketing and distribution capabilities, provides the opportunity to build a substantial online presence.

“By deploying our joint online poker solution, casino operators in the United States will be able to provide their customers with a robust and secure network with the liquidity and games offering to give the best possible player experience,” Mattingley explained.

WMS president Orrin J. Edidin said that the deal would be invaluable for land-based operators looking to move online, explaining: “Aligning our efforts with 888 Holdings will allow WMS to provide our casino operator customers with the capabilities and benefits from one of the world’s most experienced online poker operators which will significantly support their efforts to benefit from online poker in the United States as it becomes legal.”

Following the announcement of the deal analyst Nick Batram of Peel Hunt reiterated his firm’s ‘Buy’ recommendation, explaining that the deal gave 888 scope to further enhance its US presence: “It is possible that the relationship with WMS could be developed further, the US group’s other partners include brands such as Hasbro, Warner Bros, Fremantlemedia and CBS,” adding that “There is no mention of the word exclusive and this is very much 888’s strategy in the US.”

“Whilst the true value of the deal with WMS will only be realised if online poker legislation develops positively, the deal reflects the growing presence of 888 in the online gaming market,” he concluded.

Both 888 and WMS have submitted applications for Nevada licences, with 888 having already secured approval from the state’s Gaming Control Board and Gaming Commission for its existing deal with Caesars Interactive – the first partnership between a Nevada-licensee and a foreign egaming operator. The deal – first signed in September 2009 – originally only covered Caesars’ European-facing poker operations, but was extended to cover the US market in January this year.

It follows Mattingley’s admission that the operator was in talks over a “nationwide” B2C deal and it further strengthens the operator’s foothold in the US market, and continues the company’s impressive turnaround under the operator’s former deputy chairman.

Since taking over from Gigi Levy, who has now also stepped down from the 888 board, Mattingley has overseen three consecutive quarters of record revenues, resulting in his official appointment as group CEO in March this year.

Mattingley has been bullish about 888 being the first operator to launch in the US market, with the company also in talks with a number of other casino groups including Trump Entertainment to acquire additional B2B clients and launch its own poker offering.