GVC and Ladbrokes Coral agree £4bn merger

Global gaming group GVC and UK bookmaker Ladbrokes Coral have now agreed a £4bn merger deal following months of speculation.

Under the agreed deal, GVC has valued the firm at 160.9p a share, with additional loan notes included at an extra 42.8p per share. The companies said the merger would result in cost savings of at least £100m a year.

This merger would lead to GVC owning 53.5% of the combined group, with Ladbrokes Coral shareholders owning 46.5%; GVC Chief Executive Kenneth Alexander will be heading up the combined group.

Existing Ladbrokes Coral shareholders will be entitled to 32.7p in cash, a further 0.141 ordinary shares in GVC and a contingent entitlement of up to a further 42.8p.

However, both companies have confirmed that the final acquisition cost is dependent on the outcome of the UK government’s long-awaited triennial review into the gambling industry, where it is expected to announce the implementation of restrictions on fixed odd betting terminals.

At present, GVC employs 2,800 staff and contractors in 15 offices internationally, while Ladbrokes has over 3,700 betting shops employing more than 25,000 staff around the UK.

Releasing a joint statement on the acquisition agreement on the GVC website, Kenneth Alexander, CEO of GVC said: "The creation of one of the world’s largest listed sportsbetting companies, combining a portfolio of established brands, proven technology and leading market positions in multiple geographies, is a truly exciting prospect.

“GVC has a proven track record of creating shareholder value through the successful integration of acquired businesses and the GVC Board believe this transaction will create further value for our shareholders and those of Ladbrokes Coral."

John Kelly, Chairman of Ladbrokes Coral added: "The Ladbrokes Coral Board believes that the proposed combination with GVC accelerates our strategy to improve the customer experience, drive faster online growth and build a more diverse and extensive international portfolio of businesses.

“The acquisition has compelling strategic rationale allied to an opportunity to use the best of both from proven management teams and will create material shareholder value. It secures earlier delivery of our long-term value potential, which is why the Board of Ladbrokes Coral has unanimously recommended GVC's offer."

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Colombian Gambling Regulator Coljuegos Issues Sixth Online Gambling Operating License

The gambling regulatory body of Colombia, Coljuegos, has granted its sixth online sports betting license. The president of Coljuegos, Juan B. Pérez Hidalgo, revealed that the sixth iGaming operating license was awarded to Grupo Empresarial Geonline SAS, which operates the online gambling website mijugada.co.

For the time being, six websites legally operate in the online gambling market of Colombia, which became the first country in Latin America to regulate this type of betting. The president of the country’s regulatory authority further revealed that two more applications for operating licenses had been submitted and were being reviewed and shared that the country’s watchdog expected that twenty authorized online gambling platforms would exist in 2018.

As mentioned above, Mijugada has become the sixth online betting website to be given the nod in Colombia, following five other websites, including Wplay.co, Betplay.com.co, Zamba.co, Colbet.co and Codere.com.co. The online gambling operating licence is to provide the operator with the chance to provide its Internet-based to local players for a three-year period, while the contract’s value is estimated to about COP3.7 billion.

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Victoria Racing Industry Officials Share Concerns of New Point-of-Consumption Tax

Officials from the Victorian horse racing industryhave raised a red flag that new online betting taxescould have negative influence on the operators’ performance in the market, which on the other hand could cost millions of dollars that the local racing industry was supposed to get as funding.

As reported by The Sydney Morning Herald, many Australian states have made steps towards introduction of a point-of-consumption tax estimated to 15%, which basically means that for the first time ever, the state where an online wager is placed is to be granted with part of players’ losses.

For the time being, it is South Australia which has implemented the point-of-consumption tax, with the latter already being in force there. The next Australian state which is to implement the new 15% tax in January 2018 is Western Australia. Queenslandis also to become part of the states which are to add the point-of-consumption tax to their gambling landscape. The states of New South Wales and Victoria are also expected to introduce similar tax.

However, as mentioned above, the racing industry’s players in the state of Victoria have shared their concerns about the possible negative impact that such a tax could inflict on their betting revenues in case it is implemented there. According to industry officials, the companies that will most seriously suffer from the negative impact of the new 15% tax, are the online corporate bookmakers, such as CrownBet, William Hill, Ladbrokes and SportsBet, which have been rapidly growing and are licensed in the Northern Territory that features lower taxes.

Lately, Australia’s online bookmakers have boosted their efforts to persuade Government leaders in the state of Victoria to consider imposing a lower rate of the new tax than 15%. The new 15% point-of-consumption tax has its supporters, too, with them claiming that its implementation is very important, as it would bring balance to the online gaming industry.

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Macau Positioned to Break All-Time Casino Win Record in 2019, Analysts Opine

But with the crusade against junkets transporting VIP high rollers to the region easing, and Macau ready to post its first annual growth in four years, gaming analysts are bullish looking to the future.

While casino wins diminished to $27.9 billion last year, a $17.1 billion loss compared to the 2013 high, the return of VIPs, paired with casino resorts better catering to more of the mass market, is fueling some rather lofty revenue expectations. Macau gaming in 2017 is up 19.5 percent through November, and should that rate hold through December, the market will post a $33 billion win.

According to the consensus of 10 Bloomberg analysts, there’s more where that came from.

“The VIP is making a strong comeback,” Bloomberg Intelligence Gaming and Lodging Analyst Margaret Huang said this week. “As we move forward to 2018, we’re certainly seeing some drivers that could make that sustainable.”

The average prediction of the gaming experts calls for an additional 14 percent growth in 2018, and a possible record-breaking year in 2019, with the $45 billion ceiling being broken through. Experts at Morgan Stanley believe that number could hit $53 billion by 2022.

While Huang says VIPs still reign supreme, she added that general tourism and business travel is playing a more substantial role. “It’s not just the VIPs. It’s the new resorts on the Cotai Strip that’s drawing that crowd (mass market),” Huang stated.

Continued Investment

The sense of optimism among Macau analysts is being validated by the ongoing commitments from the enclave’s six licensed casino operators. Those who know the industry best, the research executives at the companies that have billions of dollars invested in Macau, remain positive on the region’s outlook.

Sands China, the operating arm of billionaire Sheldon Adelson’s Las Vegas Sands empire, is spending $1.1 billion to transform the aging Sands Cotai Central resort into a London-themed property. Late to the game in Cotai, MGM will open its $3.3 billion integrated casino resort next month.

China Concerns

The outlook across Macau is promising, but that’s not to say the market is a sure bet.

A lingering unease comes from mainland China. Questions remain whether the federal government will reignite its crackdown of the flow of VIPs, and potentially mandate that more stringent regulatory oversights are implemented.

Macau’s local officials are doing everything in their power to keep the People’s Republic satisfied that its gaming industry is properly regulated. The special administrative region recently announced two in-depth reviews of gaming ahead of the 2020 and 2022 licensing renewal period.

Amid the VIP crackdown that lasted between 2014 and last year, many junkets closed up shop. In 2013, there were nearly 250 junket operators, but today, that number is just 126.

“Operators are learning to be smart,” Huang explained. “China’s regulatory risks are always looming in the background.”

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London Casino Playboy Bunny Told to Hop Off After Affair with Married Millionaire Mogul Comes to Light

It’s an iron-clad rule at the club, and dealers must agree to abide by it when they work at the exclusive gaming venue.

According to several British tabloids, Jack caught the eye of what she described as one of England’s wealthiest businessmen, whom she refused to identify. After the two met, she says he pursued her relentlessly, even tracking down her home address.

He lavished gifts and attention on Jack, but that soon turned to requests for sex on the instant messenger service WhatsApp.

With Jack maintaining she was unaware he was married, the two began an affair and spent time at four-star hotels, according to the former casino worker. She claims that for her birthday, the mystery tycoon gave her  £1,000 ($1,350) as a present.

Caught on Surveillance

Ironically, it was at a rival casino where the duo’s relationship was discovered. Someone spotted the two at the Colony Casino and informed the Playboy Club management, who confronted the employee.

She initially denied the affair at the request of the millionaire, but Playboy requested closed circuit video from the other casino and identified her. She told the British tabloid The Sun that her paramour said he could protect her.

“He said he had spoken to them and they wouldn’t hand any pictures over,” she said. “But they did. My reputation has been tarnished.”

She was immediately fired for “gross misconduct” for breaching the Playboy Club’s strict policy of no intermingling with clients.

Bad Day Gets Worse

Shortly after she was canned by her employer, the man responsible for her termination dumped her, reportedly telling her “to find someone her own age.”

“I am heartbroken, I’ve been through so much,” she told The Sun. “It was hard losing my job, but even harder losing him.”

She denied knowing he was married, and said had he told her, she would have never agreed to be with him.

“Perhaps he has done this before, I don’t know,” she told the newspaper.

Oh, perhaps.

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New Jersey Casino Commission Approves Hard Rock Atlantic City Ownership Deal

During a meeting yesterday in Atlantic City, the CCC’s three-member board unanimously approved allowing Boardwalk 1000 LLC to own the property, while Hard Rock International will be responsible for its gaming operations.

Boardwalk 1000 is the entity formed by Hard Rock and private investors Jack Morris and Joe Jingoli. Because Hard Rock doesn’t fully own the Boardwalk resort, the Florida-based company owned by the Seminole Tribe had to submit and gain approval from the CCC.

For the Commission to accept such an arrangement, both entities must obtain casino licenses from the state, and the gambling operator must own at least a 10 percent stake in the resort. Boardwalk 1000 and Hard Rock have both recently applied for those licenses.

About Jack and Joe

New Jersey officials were more than happy to learn that Jack Morris and Joe Jingoli were involving themselves in the revitalization of Atlantic City and the purchase of the Taj Mahal. Garden State natives, the two businessmen are successful real estate developers who have invested throughout the state.

Jingoli lived in Atlantic City for many years, and his firm, Joseph Jingoli and Son, is the contractor for Stockton University’s $220 million Atlantic City Gateway Project. The residential campus, academic building, and business complex is being built on the site of the old Atlantic City High School.

Hard Rock Atlantic City, which is currently undergoing a massive renovation to transform the former Taj’s minarets and onion domes into a rock ‘n’ roll-themed resort, isn’t Jingoli’s first experience working with a casino. The developer has assisted in various gaming venue projects, including Upstate New York’s Seneca Niagara, and Pennsylvania’s Sands Bethlehem and Parx Casino.

Morris specializes in residential and commercial real estate, with a focus on developing financially challenged communities. The chance to help Atlantic City was a no-brainer, and one that he feels very confident about.

“This is going to be a game-changer,” Morris said last summer. “Not just for Atlantic City, but for the people of New Jersey.”

Both Jingoli and Morris believe conventions are key in revitalizing the oceanfront town. They hope the large corporations located in Philadelphia and New York City will be enticed by Atlantic City’s new amenities, which are accessible via a short drive compared to a flight to Las Vegas or elsewhere.

Finally, Hard Rock CEO Jim Allen is certainly no stranger to Atlantic City, as the gaming executive grew up washing dishes in the seaside town. He now works in Florida where the Seminoles are located, but says he’ll be in Atlantic City often.

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