The complaint, filed in federal district court in Philadelphia, alleges that David Roda, who served as Senior Backend Architect and Director of Backend at PNG during a near three year stint, breached confidentiality duties  

“Insider trading undermines faith in our financial markets and harms ordinary investors who play by the rules,” said Jennifer Williams, US Attorney for the Eastern District of Pennsylvania. 

“As alleged, David Roda placed himself above the law by using information to which he had privileged access to cheat the market and other investors.”

It is said that Roda learned in early July 2021 that a potential PNG takeover of Score Media and Gaming was on the cards, and was warned not to trade on that information.

However, 500 out-of-the-money call options were purchased in the weeks and days leading up to the announcement of the acquisition, with Roda also said to have tipped long-time friend Andrew Larkin, also charged by the SEC, who subsequently bought 375 Score Media shares.

According to the SEC’s complaint, the company’s stock price increased nearly 80 percent after the two companies publicly announced their deal, following which Roda and Larkin sold their holdings for profits of $560,762 and $5,602, respectively.

“As we allege in our complaint, Roda was entrusted by his employer with critical, market-moving information, and he betrayed that trust by using the information to trade and also tip his friend so they could both profit,” noted Scott Thompson, Co-Acting Regional Director of the SEC’s Philadelphia Regional Office. 

“When employees like Roda misappropriate and trade on confidential information, it erodes market confidence. The SEC remains committed to finding, investigating, and charging those who engage in insider trading.”

Both Roda and Larkin agreed to pay disgorgements and other penalties related to the charges. Larkin did not concede guilt, but did agree to pay $11,000 in fines. The total amount of Roda’s payment will be determined at a later date.

“David Roda allegedly traded on material, non-public information and made out like a bandit,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. 

“Insider trading like that is patently unfair to investors and a direct threat to the integrity of our financial markets. 

“The FBI takes this crime seriously, and if you decide the risk of such illegal behaviour is worth the potential reward, know that we will investigate and ensure you’re held accountable.”

This follows allegation of insider trading related to MGM Resorts International’s acquisition of Swedish company LeoVegas. Last week, LeoVegas said it was fully cooperating with Swedish authorities overseeing the investigation.

The post Ex-Penn National Gaming employee charged with insider trading appeared first on CasinoBeats.

The operator says that, excluding impacts from Hurricane Ida and regional flare ups of the Delta variant, it saw a continuation of the trends from prior quarters, including growth in VIP segments and younger demographics.

Among the developments achieved by the group through Q3 are Barstool Sportsbook launches in the five states of Colorado, New Jersey, Tennessee, Virginia, and Arizona; opening of Pennsylavania’s Hollywood Casino York; and continued roll-out of cashless, cardless, and contactless technology.

This was added to following the quarter’s close, with the group’s $2bn Score Media and Gaming transaction closing as the firm bids to become “North America’s leading digital, entertainment, sports content, gaming, and technology company”.

“Excluding the impact of Hurricane Ida and the Delta variant in the quarter, we saw a continuation of the trends from prior quarters including growth in our VIP segments and our younger demographics,” commented Jay Snowden, president and CEO of PNG.

“Our VIP segment grew by 33 per cent compared to Q3 2019, fueled by increases in both the number of guests playing at higher levels and the frequency of their visitation. 

“Additionally, we are experiencing continued engagement with our younger customers, who are generating new growth, and more than offset any declines in Q3 of our older core gaming customers due to the Delta variant.”

Headline figures within PNG’s second quarter include revenue of $1.51bn, representing an increase from both 2020 and 2019, which came in at $1.12bn and $1.35bn, respectively.

This included $1.25bn (2020: $993.6m & 2019: $1.08bn) from the group’s gaming segment, as well as $255.6m (2020: $136.1m & 2019: $266m) from its food, beverage, hotel, and other section.

Net income of $86.1m compares to $141.2m in the prior year, as well as $43.7m in 2019, with adjusted EBITDA and adjusted EBITDAR reaching $364.3m and $480.3m compared to $52.7m and $72.4m two years ago, respectively.

“While July was a record month, the second half of August and September was impacted by Hurricane Ida and regional flare-ups of the Delta variant, which reduced property adjusted EBITDAR and Adjusted EBITDAR margins by an estimated $30m and 85 basis points, respectively,” Snowden stated.

“As the operating environment has normalised, we have seen improved results in October. Further, other segment results included a $12.5m lobbying expense to support the California sports betting initiative and $7.5m in expenses related to new state launches of our Barstool Sportsbook app.”

For the year-to-date, the company has also documented a series of increases, with revenue reaching $4.33bn (2020: $2.55bn & 2019: $3.96bn), and net income up to $375.7m (2020: -$681.8m & 2019: $136m).

Adjusted EBITDA through the nine months ending September 30, 2021, closed at $1.17bn from 2020’s $419.1m and 2019’s $934.8m, with adjusted EBITDAR reaching $1.51bn (2020: $729.4m & 2019: $1.2bn).

“Importantly, October reflects more of what we saw in the first half of the third quarter with strong property level performance across our segments somewhat offset by new competition in Colorado and Indiana as well as the residual impact of gaming expansion in Pennsylvania,” Snowden added.

“Meanwhile, our retail Barstool Sportsbook concepts have stimulated database growth and increased frequency of visitation in the younger segments, while boosting gaming and food and beverage spend.”

The post Core businesses impress as PNG reflects on Q3’s ‘significant milestones’ appeared first on CasinoBeats.

The agreement was initially slated for completion during the first quarter of 2022 after first being detailed in August, however, following recent approvals, including that of the Supreme Court of British Columbia, that date has been brought forward significantly.

The deal will see Score shareholders receive $17 in cash and 0.2398 shares of PNG common stock for each share, which implies a total purchase consideration of $34 per each based on a five-day volume weighted average trading price as of July 30, 2021. 

Current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares. 

John Levy, chair and CEO of theScore, explained: “It is a truly exciting time to join Penn National and collaborate with their team to build a highly innovative and first-of-its-kind sports media and gaming company. 

“There is natural alignment between the two companies, and we are perfectly positioned to capitalise on the growing entertainment opportunities across mobile sports media, sports betting and online casino. 

“We believe the combined company is well-positioned to continue growing our business across North America, including the expected opening of sports betting and igaming in Ontario later this year.”

PNG says that the acquisition is intended to fortify its digital media and gaming strategy, as the group looks to create “a complete one-stop entertainment destination”.

Furthermore, it is hoped that by pairing its newly purchased entity with Barstool Sports will enable the group to generate heightened engagement and enhanced customer acquisition and retention across its media and gaming properties.

“We’re excited to be creating this powerful new entertainment flywheel that will provide us with multiple growth channels that transcend our current business verticals,” commented Jay Snowden, president and CEO of Penn National Gaming. 

“We look forward to entering the Canadian gaming market, which represents a compelling new opportunity, and are proud to have John Levy and his family and their entire team bring their best-in-class technology, unique perspective and skill sets to our Penn National family.”

The post Penn National closes $2bn Score Media and Gaming transaction appeared first on CasinoBeats.

Subject to approval by theScore’s shareholders at a special meeting, the receipt of a final order from the Supreme Court of British Columbia, and satisfaction or waiver of the other conditions to closing contained in the arrangement agreement with Penn National, the arrangement is expected to close on October 19, 2021. 

The special meeting is scheduled for October 12, which will be conducted via live audio webcast online. During this, shareholders will be able to hear the meeting live, and registered shareholders and appointed proxy holders will be able to submit questions on procedural matters and cast a vote. 

In August of this year, Penn National Gaming entered into a definitive agreement to purchase Score Media and Gaming for approximately $2bn in cash and stock. 

As part of the acquisition agreement, Score shareholders will receive $17 in cash and 0.2398 shares of PNG common stock for each share, a total purchase consideration of $34 per each based on a five-day volume weighted average trading price as of July 30, 2021. 

At the time of the definitive agreement, Jay Snowden, president and CEO of Penn National, noted: “We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America.

“theScore’s unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content.

“We are now uniquely positioned to seamlessly serve our customers with the most powerful ecosystem of sports, gaming and media in North America, ultimately creating a community that doesn’t currently exist.

“Users will enjoy a unique mobile sports betting and icasino platform with highly customised bets and enhanced in-gaming wagering opportunities, along with highly engaging, personalised sports and entertainment content, and real time scores and stats.”

The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022. 

Upon completion, current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares. 

It was also confirmed that theScore will continue to be operated as a stand-alone business and led by the Levy family “with the same operating philosophy that has driven the company’s success to date”.

The post Penn National gains Canada Act Approval for theScore acquisition appeared first on CasinoBeats.

17.2

Vici Properties is to acquire MGM Growth Properties for a total consideration of $17.2bn, following ”transformational agreements” inked with MGP and its controlling shareholder MGM Resorts international.

As part of the agreement, MGM Resorts will receive cash proceeds of approximately $440m, and will own an estimated one per cent stake in the Vici operating partnership, worth in the region of $370m. 

The transaction, which has been approved by the board of directors of MGM Resorts, MGP and Vici, is expected to close in the first half of 2022, subject to customary closing conditions, regulatory approvals and approval by stockholders of the latter.

Simultaneous with the closing of the transaction, Vici will enter into an amended and restated triple-net master lease with MGM Resorts. This will have an initial total annual rent of $860m, inclusive of MGP’s pending acquisition of MGM Springfield, and an initial term of 25 years, with three 10-year tenant renewal options.

2

Penn National Gaming entered into a definitive agreement to purchase Score Media and Gaming for approximately $2bn in cash and stock.

Under the terms of the agreement, Score shareholders will receive $17 in cash and 0.2398 shares of PNG common stock for each share, which implies a total purchase consideration of $34 per each based on a 5-day volume weighted average trading price as of July 30, 2021. 

The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022. 

Upon completion, current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares. 

34

The online gambling participation rate increased by three per cent in July 2021 compared to the previous year, whilst in-person participation is down eight per cent points to 34 per cent as revealed by new data released by the UK Gambling Commission.

The findings were based on the regulator’s quarterly telephone survey conducted by Yonder Consulting. A nationally representative sample of 4,010 adults aged 16 and over were interviewed via telephone in September 2020, December 2020, March 2021 and June 2021.

The majority of the data for the year to June 2021 was collected during some element of lockdown or restricted activity level. 

Responding to the new statistics, Anna Hemmings, chief executive at GamCare, emphasised that the impact from the pandemic is ‘yet unclear’ as to whether it will be short-term or long.

19

Scientific Games documented the acquisition of Sydney-based slots studio Lightning Box, as the group looks to make further progress on a quest to become “the igaming industry leader”.

The purchase was praised as a “key step forward” in Scientific Games’ aim to become a content-led sustainable growth company, and comes as it looks to “capitalise on its largest growth opportunities with a focus on digital markets”.

Following last month’s proposal to acquire the remaining 19 per cent of SciPlay that it does not currently own, the addition of Lightning Box will further boost the group’s in-house studios “with even more talented game makers”.

2.5

Caesars Entertainment lauded the strength of its regional markets, as well as a “dramatic improvement” in Las Vegas, as the group details a significant improvement in its second results when contrasted to the COVID-19 ravaged period from one year earlier.

For the second quarter ending June 30, 2021, net revenue came in at $2.5bn (2020: $127m), with net income of $71m contrasted to a loss of $100m, and same-store adjusted EBITDA finishing up at a record $1bn, a significant swing from 2020’s loss of $131m.

In the casino operator’s Las Vegas segment, Caesars has reported same-store revenue of $855m and adjusted EBITDA of $423m, with its regional section documenting revenue and adjusted EBITDA of $1.5bn (2020: $114m) and $621m (2020: -$8m), respectively.

For Caesars Digital, the group’s sports betting and online gaming segment, same-store net revenue was $117m (2020: $11m), and adjusted EBITDA at $2m (2020: $5m).

74

International Game Technology heaped praise of the “vitality of our portfolio,” after revenue through the year’s second quarter topped the $1bn barrier.

This represented a 74 per cent uptick from 2020’s $600m, as the group’s global lottery segment delivered its second-highest revenue and profit levels driven by strong player demand.

Revenue for the segment rose 58 per cent to $725m (2020: $460m), due to 35 per cent growth in same-store sales, with its global gaming section seeing revenue come in at $316m, up 12 per cent from the prior year and 19 per cent sequentially on continued recovery trends.

With global gaming returning to profitability as the group’s progressive recovery continues, IGT updates that digital and betting revenue increased 41 per cent in the quarter.

990.1

Wynn Resorts cited “significant pent up demand for travel and leisure experiences,” as the operator voiced its delight at a “strong return” for its US casino operations.

In addition, the group also detailed encouragement at the recovery of its Macau-based gaming interests, while asserting that its WynnBet online casino and sports betting entity stands poised to enter additional US regions during the coming weeks and months.

These comments come as the firm documents its performance through the year’s second quarter, which shows a significant surge in revenue to $990.1m from the $85.7m recorded during the COVID ravaged period from one year earlier.

Breaking down this figure further, each reporting segment of casino; rooms, food and beverage, and entertainment, retail and other; demonstrated significant improvements to $602.7m (2020: $9.4m); $137.7m (2020: $17.4m), $149.1m (2020: $24m), and $100.4m (2020: $34.8m) respectively.

Net loss attributable to Wynn Resorts was $131.4m compared to $637.6m from 2020, excluding the impact of $75.7m of expense related to a commitment to pay salary, tips, and benefits continuation for all of our US employees from April 1 until May 15, 2020. Adjusted Property EBITDA was $206.9m contrasted to 2020’s loss of $322.9m.

The post Financial updates, acquisitions & participation data: <br> the week in numbers appeared first on CasinoBeats.

Under the terms of the agreement, Score shareholders will receive $17 in cash and 0.2398 shares of PNG common stock for each share, which implies a total purchase consideration of $34 per each based on a 5-day volume weighted average trading price as of July 30, 2021. 

The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022. 

Upon completion, current PNG and Score shareholders will hold approximately 93 per cent and seven per cent, respectively, of the company’s outstanding shares. 

“We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America,” explained Jay Snowden, president and CEO of Penn National. 

“theScore’s unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content.

“We are now uniquely positioned to seamlessly serve our customers with the most powerful ecosystem of sports, gaming and media in North America, ultimately creating a community that doesn’t currently exist.

“Users will enjoy a unique mobile sports betting and icasino platform with highly customised bets and enhanced in-gaming wagering opportunities, along with highly engaging, personalised sports and entertainment content, and real time scores and stats. 

Adding: “Operators that have achieved early online market share have done so primarily through first mover advantage, leveraging existing customer databases and significant marketing spend.

“We believe the long-term winners will be defined by best-in-class products, bespoke content, efficient customer acquisition, multi-platform reach and broad market access.”

PNG says that the acquisition will permit the firm to better manage all critical aspects of its technology stack, which it asserts will lead to greater control over its product development roadmap, reduced costs, and an enhanced customer experience.

It is also confirmed that theScore will continue to be operated as a stand-alone business, headquartered in an expanded Toronto office, that will continue to be led by the Levy family “with the same operating philosophy that has driven the company’s success to date”.

John Levy, chairman and CEO of theScore, explained, “This deal brings together two companies that share a vision for how media and gaming intersect, and we could not be more excited to join the Penn National family.

“I’m proud of theScore team and all of our accomplishments, and believe the time is right to take the next step and align with a company in Penn National with the resources and scale to accelerate our business. 

“We are excited to join forces with Penn to form the most powerful media and gaming company in North America.

“We’ve built an innovative, technology-led integrated media and gaming business that has us poised for success across North America, including the highly anticipated upcoming rollout of commercial sports betting in Canada. 

“With Penn’s support, we will continue to invest in building our Canadian operations, growing our footprint and expanding our workforce. On a personal note, Benjie and I are very much looking forward to continuing to head up theScore as part of the new combined company.”

The post Score Media & Gaming to be acquired by Penn National in $2bn deal appeared first on CasinoBeats.

Following Royal Assent, the vote will permit the Canadian gaming industry to begin working with provincial partners to offer single-event wagering to sports betting fans.

The Canadian Gaming Association has lauded the moment as a “major milestone and achievement” for the Canadian gaming industry, and thanked “many government leaders, individuals and organisations” for the effort that led to the passage.

Paul Burns, president and CEO of the CGA, explained: “The CGA has been working to legalise single-event sports betting for more than 10 years and Bill C-218 benefited from a groundswell of broad stakeholder support from across Canada. 

“The need for regulation, oversight, player protection, and the creation of economic benefits for Canada was understood by everyone involved in the legislative process, which is why the bill was successfully passed.”

The British Columbia Lottery Corporation says it is gearing up to add the offering to its Play.Now.com online gambling portal, but assures that it will “continue to prioritise the health of players”.

“This is a huge win for PlayNow.com players, and British Columbians overall,” says Lynda Cavanaugh, BCLC’s interim president and CEO. “We’re excited to soon provide our players these new offerings on PlayNow.com, which is BC’s only legal gambling website and delivers important revenue back to the province of BC to support things like healthcare, education and community programs.”

Elsewhere, the impending legalisation of single-event sports betting has been lauded as a “historic moment” by Score Media and Gaming, with the “important legislation” to drive business, technology innovation, employment and economic growth.

“Canadians will now be able to reap the numerous benefits resulting from a comprehensive, regulated sports betting framework that protects consumers, creates jobs and generates critical tax revenue,” explained John Levy, theScore chairperson and CEO.

“The passing of this legislation is momentous, and we are confident that Canada will embrace legal sports betting and become a leader in this rapidly developing and cutting-edge industry.

“We look forward to continuing our collaboration with the provinces to ensure the establishment of a safe marketplace that provides a suite of reliable and trusted options for consumers.”

The post CGA, BCLC and theScore on Canada’s ‘historic moment’ appeared first on CasinoBeats.

The legislation proposes amendments to Canada’s Criminal Code to give provinces and territories the ability to offer single-event sport betting products, as well as the discretion to manage the activity in their respective jurisdictions.

Confirming that Ottawa’s House of Commons is set to undertake a final review of the bill, the Canadian Gaming Association said in a statement earlier in the week: “The CGA is pleased that the federal government has recognised the urgent need to amend the Criminal Code to offer safeguards to Canadians as well as an economic recovery tool for the provinces.”

With far-reaching support gathered, from Canadian casinos to major professional sports leagues, Ontario Premier Doug Ford has said that the appetite of Canada’s most populous province could no longer be met alone by the Ontario Lottery & Gaming Corporation, which currently enjoys a monopoly.

theScore estimates a market potential for online gaming in Canada of between US$3.8bn and US$5.4bn in annual gross gaming revenue, based on historical data extrapolated from legal online gaming markets in the US and further afield.

“Canadians deserve a modernised and regulated sports betting market and we commend the federal government for their efforts to legalise single-event wagering,” commented John Levy, founder and CEO of theScore.

“There is now clear cross-party support and strong momentum to amend Canada’s outdated federal laws and enable the legal sports betting market to flourish. As the leading mobile sports brand in Canada, we are eager to bring theScore Bet to our fans and offer them our best-in-class sports betting experience.”

The post Canadian sports betting progress gets theScore backing appeared first on CasinoBeats.

The debut, documented as recently as earlier this month when the firm added Colorado to a base of operations that has also take the entity live in New Jersey, continues on ongoing agreement alongside Penn National Gaming.

theScore Bet secured market access to offer mobile sports betting in Indiana via a previously announced multi-state market access framework agreement with the Pennsylvania headquarter casino operator.

Furthermore, theScore has leveraged sportsbook platform technology provided by sports betting and igaming supplier Bet.Works to support its Indiana launch, continuing an ongoing link-up that saw the firm become its technology platform partner in 2018.

Promising an “immersive and holistic mobile sports betting offering,” theScore Bet’s Hoosier State offering includes a wide range of pre-game and in-play betting across all major sports leagues and events, and a comprehensive variety of bet types.

“This launch comes just weeks after we introduced theScore Bet to fans in Colorado, a huge testament to the best-in-class technology, multi-state infrastructure, and product development team supporting our ongoing expansion,” explained John Levy, founder and CEO of theScore.

“Indiana is the first state we’ve launched in under our multi-state market access agreement with Penn National Gaming and we’re excited to showcase our incredible and unique combination of media and gaming to this passionate fan base.”

At the start of the month theScore Bet launched in the Centennial State, following a seperate market access agreement inked earlier in the year.

Obtaining approval from the Colorado Limited Gaming Control Commission in March, the green-light followed the firm securing a link-up with a subsidiary of US gaming operator Jacobs Entertainment.

Under the agreement, JEI will receive a percentage of revenue derived from theScore Bet’s mobile sports betting operations in Colorado, subject to certain annual minimum guaranteed amounts, and an initial upfront fee. The agreement spans an initial term of 10 years, extendable for two successive five-year renewal terms at theScore’s option.

The post Indiana launch continues theScore’s multi-state roll-out appeared first on CasinoBeats.

Obtaining approval from the Colorado Limited Gaming Control Commission in March, the green-light followed the firm securing a link-up with a subsidiary of US gaming operator Jacobs Entertainment.

Under the agreement, JEI will receive a percentage of revenue derived from theScore Bet’s mobile sports betting operations in Colorado, subject to certain annual minimum guaranteed amounts, and an initial upfront fee. The agreement spans an initial term of 10 years, extendable for two successive five-year renewal terms at theScore’s option.

JEI’s operations in the Centennial State include The Lodge Casino and The Gilpin Casino, both located in Black Hawk.

Furthermore, theScore Bet will continue a multi-state rollout with its upcoming launch in Indiana under its multi-state market access framework agreement with Penn National Gaming, pending regulatory approval.

“The passionate sports fans of Colorado are going to love theScore Bet and we’re thrilled to begin our multi-state rollout here, right in time for football season,” said John Levy, founder and CEO of theScore. 

“The way we’ve uniquely fused media with gaming delivers a totally unrivaled product for fans, unlike anything else in market today. theScore is already the sports app of choice for a huge number of fans in Colorado, and we’re confident theScore Bet is going to quickly become their favourite sportsbook too.”

Last month online and retail sportsbooks in the region combined to generate $59.2m in wagers during the third month of operation, up 55.2 per cent from $38.1m in June, resulting in $2.4m in net betting proceeds, increasing 11.4 per cent from $2.2m in June, and producing $241,867 in state taxes. 

Limited to online betting on fringe sports through June, Colorado’s sportsbooks had combined to take in $63.8m in wagers, yielding $3.1m in net proceeds, during the industry’s first two months.

The post Coloradan debut begins theScore’s multi-state roll-out appeared first on CasinoBeats.