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PlayAGS REJECTS INSPIRED’S $370 MILLION OFFER

PlayAGS’ David Lopez Inspired

Gaming supplier PlayAGS has rejected a takeover offer from game developer Inspired Entertainment. The deal would have cost Inspired $370 million, or $10 per share in cash. The offer was first reported by Reuters.

Although the offer was rejected, PlayAGS emphasized that it was only that specific offer that was rejected, and the company would remain in negotiations with Inspired. In a statement released by PlayAGS, the management and board noted they would do everything possible to create shareholder value and would listen to any and all offers.

Inspired Entertainment’s Lorne Weil

Immediately after news of the offer broke August 12, PlayAGS shares soared 31 percent to $7.88, up from the previous day’s closing price of $6. Alternatively, Inspired share price declined almost 6 percent to $12.56. Last week, PlayAGS was trading around $8.10 and Inspired at $11.56.

Nevada-based PlayAGS, which first went public back in 2018, is backed by investment firm Apollo Global Management, which also operates the Venetian in Las Vegas. Due to Covid-related impacts, the company is worth just 20 percent of its 2019 market value, but is steadily climbing back, having reported $76.6 million in secondquarter earnings. PlayAGS products include slot games, innovative table games and other gaming solutions.

PlayAGS is led by CEO David Lopez and has a market cap of $279.34 million.

Inspired, which is based in New York, has a market value of approximately $400 million, providing gaming solutions in over 30 jurisdictions. Its main products are virtual sports games and mobile gaming. It recently reported $71.3 million in quarterly revenue.

Inspired Entertainment is led by CEO Lorne Weil, a former CEO at Scientific Games. The company has a market cap of $337.75 million.

During an earnings call on August 10, Inspired CFO Stewart Baker had alluded to potential growth possibilities for the company.

“We are certainly willing to use capital for M&A if it’s something that strategically fits with what we are trying to do,” said Baker. “And there seem to be a lot of things around right now presenting themselves as possibilities.”

Indian Gaming Revenue Breaks Record

The revenue from Indian casinos in the U.S. jumped 40 percent in FY 2021 from the previous year, reaching a record high of $39 billion. Of course, 2020 was the first year of Covid, but the 2021 revenues were also a 13 percent increase compared to FY 2019. That is the highest in Indian gaming history.

The revenues for FY 2021 were compiled from independently audited statements of 510 casinos owned by 243 federally recognized gaming tribes across 29 states.

It was a year where the greatest increase in revenue followed the year of its greatest decrease, which had been created by the pandemic forcing the closure of nearly all casinos nationwide for weeks or months.

National Indian Gaming Commission (NIGC) Chairman E. Sequoyah Simermeyer and Vice Chair Jeannie Hovland made the record announcement live on August 10 at the Oklahoma Indian Gaming Association Tradeshow and Conference (OIGA) in Tulsa.

Simermeyer declared, “NIGC recognizes this year’s rebound has not been felt equally by all tribes. We are committed to helping all tribal operations benefit from the regulatory lessons learned over the past two years.” The chairman added, “As we seek to build the regulatory workforce’s preparedness, all parts of the Indian gaming industry have a responsibility to learn from the experiences of tribes who have forged the path so we preserve those lessons and ensure we retain that knowledge for generations to come.”

Hovland added, “The industry has much to celebrate and be proud of. With 43 gaming operations reporting GGR greater than $250 million and accounting for more than 50 percent of total revenues, this year’s revenues underscore the wide diversity in gaming operations across Indian Country.”

According to a press release from NIGC: “With the pandemic still at the top of mind for tribes, Indian gaming continues to show its resiliency through innovative operational advancements and the steadfast leadership of tribal regulatory authorities.”

PENN NATIONAL REBRANDS AS PENN ENTERTAINMENT

Penn National Gaming announced that it has changed its name to Penn Entertainment, after announcing mixed results for the second quarter. The company’s name change is meant to reflect the expansion of Penn’s business to include diverse sports betting, media assets and other changes.

“Today is an exciting day for us as we become Penn Entertainment, Inc.,” said Jay Snowden, the company’s president and CEO. “Over the past few years, Penn has transformed our business through a highly differentiated strategy focused on organic cross-sell opportunities, which is reinforced by our investments in market-leading retail casinos, sports media assets, owned technology, including a state-ofthe-art, fully integrated digital sports and online casino betting platform, and an in-house iCasino content studio.

“Our new name maintains ties to our legacy while better reflecting our evolution into North America’s leading provider of integrated entertainment, sports content and casino gaming experiences.”

The announcement came as Penn revealed second-quarter results showing an 87 percent drop in net income year-over-year—$26.1 million, compared to $198.7 million for the same quarter a year ago. Those results reflect a $167 million share repurchase for the quarter, and as Snowden noted, net revenue of $1.6 billion, up 5.2 percent from the same quarter last year.

“Last month, we successfully transitioned theScore Bet in Ontario to our own fully integrated, proprietary tech stack—reflecting a key achievement in our strategic roadmap. Our strong operating performance and balance sheet enabled us to opportunistically repurchase $167 million of stock in the quarter under our $750 million share repurchase authorization. Based on our second-quarter performance and our outlook for the remainder of the year, we are reiterating our 2022 revenue and adjusted EBITDAR guidance range of $6.15 billion to $6.55 billion and $1.875 billion to $2 billion, respectively.”

Snowden also highlighted a large increase in its mychoice player’s club database. “Our mychoicedatabase has increased by over 1.2 million registrations over the last four quarters, driven by both our retail properties and new interactive offerings, providing significant opportunities for future growth,” he said.

Snowden also highlighted PENN’s omnichannel growth and the development of the company’s cashless wagering ability. “Our three C’s—cardless, cashless, and contactless technology—and omnichannel engagement continued to drive our growth,” he said.

CHUN: MACAU SLOT SUPPLIERS FACE MICROCHIP SHORTAGE

Macau gaming manufacturers are facing a critical shortage of microchips caused by supply-chain issues surrounding the global Covid-19 pandemic, according to Jay Chun, president of the the head of their lobbying arm. Macau Gaming Equipment Manufacturers Association

Jay Chun, president of the Macau Gaming Equipment Manufacturers Association, noted the microchip shortage in an interview with GGRAsia. “The biggest problem (for slot manufacturers) comes from delay in component supply, due to a global chip shortage,” said Chun, who also is chairman of Paradise Entertainment, which manufactures equipment under the LT Game brand.

Chun said his company is experiencing months of delay in the delivery of microchips, which run the logic board and bill validators on slot machines. “Various sectors are competing for chips from a limited (supply) capacity,” he told GGRAsia. “Many sectors—not only us— need chips for their production. The automotive industry, for instance, is a sector that has a very robust demand for chips.”

Chun added that a “big problem” for slotmakers lies in gaming’s regulatory structure. “After you gather every component, you need to have it certified; and after it is certified, you cannot change (the components), which means, you cannot use one type of chip today and another the next day,” he said.

ALL-IN DIVERSITY REPORT REFLECTS CHANGES, GOOD AND BAD

The All-In Diversity Project, an industry-led, not-for-profit initiative based in London that seeks to benchmark diversity, equality and inclusion across the global betting and gaming industry, has just released its third report on the sector’s workforce.

Traditionally an annual survey, this year’s report covers the extended period 2020/21 to allow for the impact of the pandemic.

The latest findings continue to showcase the gambling sector as an effective barometer of emerging global trends, technology and changes in society and their impact on the workplace. Key trends reflected in the latest All-Index include Gen Z, “the Great Resignation” and the Menopause, and their short to long-term impact on the workplace.

This year’s All-Index report recorded the widest gap between males and females in the industry, with the number of males (56 percent) exceeding the number of females (43 percent) for the first time in five years—the biggest gap exists at entry level, which is a real cause for concern when looking at long-term prospects for role models, mentors and talent pools.

For the first time, the number of individuals identifying as non-binary is significant enough to register a measurable value. At leadership level, females make up 29 percent of executive roles and 32 percent of non-executive roles. If the All-Index is a benchmark for the industry, then it is closer than ever before to hitting 30 percent female representation at executive board level, and in the case of non-executive roles, has surpassed it.

The latest report highlights the impact of the following:

• The number of organizations offering company-paid sick leave has dropped from 95.83 percent (2019) to 84.38 percent, while the number of organizations with a policy on flexible working has increased from 75 percent (2019) to 84.38 percent.

• Other significant shifts reflect changing views and attitudes in society, with maternity leave now starting to be replaced with the more generic “parental leave”—including same-sex couples.

• There has also been a noticeable shift from passive policy to active awareness and practice. While the number of organizations with equal opportunities and anti-discrimination policies has dropped, the number providing practical training and guidance in these areas has gone up, together with an increased focus on addressing harassment/bullying, challenging behavior/language, and cultural stereotyping.

The full report is at allindiversityproject.com/ all-index.

ARISTOCRAT LAUNCHES DRAGON LINK IN MANILA

Aristocrat Gaming introduced its award-winning Dragon Link slot product to Asian customers at a special showcase event July 19 at the Solaire Resort & Casino in Manila, Philippines.

The progressive link, featuring the popular and much-copied “Hold & Spin” game mechanic, will soon be launched to customers across Asia.

The “Dragons” showcase was hosted by Aristocrat executives, and featured three days of demonstrations and networking with Asian customers.

John Stevanja, director of product marketing and strategy APAC at Aristocrat, said, “Customers were very excited to see Dragon Link—it has had phenomenal success in other markets globally— and we’ve built this version specifically for the Asian markets with player-selectable denominations, market-attuned jackpot profiles and cost-tocover configurations to suit all venue types. It’s our most configurable game ever built for Asia.”

Dragon Link is launching exclusively on the MarsX cabinet. It features four Asian-themed base games—Autumn Moon, Golden Century, Happy & Prosperous and Panda Magic.

IGT DOMINATES AT ARGENTINA’S NEWEST CASINO

International Game Technology announced last month that Argentina’s newest casino, Nuevo Casino Alberdi in Salta, recently opened with a slot floor consisting of 70 percent IGT slot games and cabinets.

“When planning the entertainment for our gaming floor, Nuevo Casino Alberdi knew IGT’s high-performing content and versatile cabinets needed to be prominent throughout our casino and highly accessible for our players,” said Alexis Beber, Nuevo Casino Alberdi general manager. “As guests enter our casino, they are greeted with a choice of dazzling IGT games on the CrystalSlant 32, CrystalCurve, CrystalDual 27 and Cobalt 27 cabinets; it’s a very inviting environment that our players are readily embracing.”

Of the 140 IGT games on Nuevo Casino Alberdi’s gaming floor, some of the standouts include the Olympus Link four-level progressive game with two base game themes and player-favorite mechanics on the CrystalDual 27 and Cobalt 27 cabinets; the high-energy Bubble Blast Link on the CrystalCurve Cabinet with two free game features and scaling bonus prizes and jackpots; the latest games in the Argentina Treasure Box and Super Wheelmania families on the CrystalSlant 32 cabinet; and high-performing standalone core themes on the CrystalCurve cabinet such as Hexbreaker 3, Golden Jungle Grand, Magic of the Nile, Coin O Mania and more.

JACKPOT DIGITAL TO INSTALL 2 ETGS AT BUFFALO BILL’S

Jackpot Digital Inc. recently announced that it has signed a licensing agreement with Buffalo Bill’s Casino Resort, located in Primm, Nevada, to install two Jackpot Blitz electronic table games (ETGs).

The licensing agreement is subject to obtaining the customary regulatory approvals.

Buffalo Bill’s is one of three properties that make up Primm Valley Casino Resorts, in a large resort area located on the Nevada side of the Nevada/California border.

Primm Valley Casino Resorts is part of Affinity Gaming Group, which owns eight destination casino resorts around the United States.

“We are excited to be working with Buffalo Bill’s Casino Resort, our first official agreement signed with a Nevada property,” said Jackpot Digital President & CEO Jake Kalpakian. “Buffalo Bill’s is yet another new casino added to our growing list of customers, and Nevada is clearly a key addition to our growing roster of new jurisdictions. We are confident Jackpot Blitz will have a large footprint in Nevada, and expect to be in all markets, both large and small.”

AGA, AGEM GOLF EVENT RAISES OVER $150,000 FOR ICRG

The AGEM & AGA Golf Classic Presented by JCM Global came roaring back in 2022, raising $180,000 for the International Center for Responsible Gaming (ICRG). To date, the event has raised nearly $2.5 million to support the ICRG and its research into problem gambling. The figure does not include a $200,000 donation from Caesars, announced during the event.

“I would like to acknowledge the amazing partnership that we have with JCM Global and the other title sponsors AGA and AGEM,” said ICRG President Art Paikowsky. “We saw an amazing 73 percent revenue growth over the prior year thanks to all of the sponsors and the 144 golfers at this sold-out event. These funds will go a long way in supporting our mission of funding scientifically based research to better inform the industry, regulators, legislators and the media.”

The event drew a broad range of support from across the regulated gaming industry spectrum, with operators, suppliers and independent test labs from across the country coming together to support the event and the ICRG’s mission.