Tag Archive : Close

GiG Sale of B2C Business on Track to Close Mid-April

Gaming Innovation Group’s (GiG) sale of its B2C gaming and sports betting brands to Betsson was this week approved by antitrust regulators, enabling the deal to close by mid-April.

GiG announced in mid-February plans to offload its B2C division to Betsson in a bid to focus on its B2B operations. The move would help the company “reduce complexity and improve efficiency.”

Under the terms of the deal, Betsson, which already operates a multi-brand online casino and sports betting portfolio, has agreed to pay €33 million to acquire GiG’s B2C operations. The purchase amount includes €22.3 million in cash payment, €8.7 million in prepaid platform fee, and €2 million in cash deposit securing GiG’s Spanish casino license.

GiG said this week that it would use part of the proceeds from the sale of its B2C operations to repay its SEK300 million 2017-2020 bond, which would help it strengthen its balance sheet and reduce significantly the financial leverage ratio.

GiG’s B2C operations include the Rizk, Guts, Kaboo, and Thrills online casino and sports betting brands. Under the terms of the sale, Betsson will keep all four websites operational on GiG’s proprietary iGaming platform for the first 30 months after the transaction closes.

During the first 24 months, Betsson will pay a premium platform fee based on net gaming revenue generated. Based on estimated platform fees, GiG could trouser up to €50 million from the sale of the four brands.

Freeing Up Resources to Spearhead B2B Growth

GiG has previously explained that its decision to divest its B2C business was a result of a strategic review as the company seeks to “reduce complexity and improve efficiency.”

The online gambling group has also pointed out that the sale of the four iGaming and wagering brands would free up resources and enable it to fully dedicate its attention to driving and growing its B2B business, and thus secure stable and sustainable earnings and profit margins.

According to GiG, there is a “large and sustainable addressable market” for its platform business as iGaming continues to become a regulated industry in more and more countries around the world.

As part of its strategic review, GiG has also decided to make its platform “sportsbook agnostic” and to partner up with betting technology providers in a bid to offer its clients the best possible wagering solutions.

Under the deal for the sale of GiG’s B2C brands, Betsson will integrate its sportsbook solution onto GiG’s platform. As a result, the two companies will be able to sell their B2B solutions without creating conflict in the B2C vertical.

Commenting on their decision to offload their B2C brands, GiG CEO Richard Brown said previously that the deal would enable them to focus on their growth in the B2B sector and that while offering both B2B and B2C products had synergies in the past, the “current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts and our ability to sign new customers.”

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Cambodian Casinos Ordered to Close as Covid-19 Cases Rise

Cambodian Prime Minister Hun Sen today ordered the nationwide closure of casinos as the tally of coronavirus cases keeps climbing in the Southeast Asian nation.

The country reported four new Covid-19 cases on Monday, bringing the total number of infected people to 107.

One of the latest cases included a 30-year-old man who had worked at a casino and a karaoke club near Cambodia’s border with Thailand, according to a statement from the country’s Ministry of Health.

The temporary closure of Cambodia’s casinos becomes effective from 23:59 pm on April 1, Prime Minister Hun Sen said during a news conference held earlier today.

The Asian country’s top official said that he “would like to clarify to various gamblers that if you want to gamble, do it tonight […] there is still tonight and tomorrow night.”

Cambodia is among the late adopters of stern measures to arrest the advance of the coronavirus after Prime Minister Hun Sen had tried to downplay the seriousness of the disease early on. The official had even criticized local coverage of the global pandemic for blowing it out of proportion.

Coronavirus cases have begun to increase rapidly in Cambodia in recent days, which necessitated urgent measures to help stem the spread of the virus. Last week, the country’s government ordered the temporary closure of restaurants and bars and introduced limits to entry visas for foreigners.

Tax Exemptions During Shutdown

Prime Minister Hun Sen said today that the Finance Ministry will work with the country’s casinos on tax exemptions while they are closed. In recent years, Cambodia has become a boon for casino gaming activity, drawing patrons mainly from Mainland China, but also from other countries in the region.

The country’s leader said that the casino closures were only temporary and that the gambling venues would be allowed to resume operations once “the situation stabilizes.”

As of December 2019, there were 125 casinos operating around Cambodia, the majority of them run by Chinese nationals. Most of the gambling venues are located along the nation’s borders and in the Sihanoukville Province in the southwest.

The only casino resort located in Cambodia’s capital Phnom Penh is operated by gaming and hospitality operator NagaCorp. The property generated an estimated $1.8 billion in revenue in 2019.

The temporary shutdown of Cambodia’s casinos comes as a fresh heavy blow to its gaming industry after Prime Minister Hun Sen banned the provision of online gambling services from within the country late last year.

The move resulted in thousands of people losing their jobs and dozens of casinos around Cambodia closing. Most of the country’s online gaming businesses were set up by Chinese companies and targeted gamblers from China where digital gambling is prohibited.

Source: Cambodia PM orders casinos shut down as coronavirus cases climb

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After panicked crowds swarm Denver liquor stores and dispensaries, mayor reverses order to close both

Denver Mayor Michael Hancock changed course drastically Monday evening after announcing earlier in the day that liquor stores and recreational marijuana dispensaries would close across the city in an attempt to slow the spread of coronavirus.

His office made a new announcement around 5 p.m. via Twitter, saying that liquor and marijuana stores “with extreme physical distancing in place” will be exempt from the mandated citywide closure of non-essential businesses starting at 5 p.m. Tuesday and continuing through April 10.

The definition of extreme is six feet, or the normal amount of social distancing that’s now recommended, the city clarified.

Read the rest of this story on MercuryNews.com.

Liquor stores, recreational dispensaries to close in Denver until mid-April

Denver Mayor Michael Hancock on Monday ordered residents to stay in their homes and announced that non-essential businesses such as liquor stores and recreational marijuana dispensaries would close across the city starting Tuesday.

The closure will take effect at 5 p.m. Tuesday and continue through April 10. Restaurants and bars will still be able to sell alcohol, including wine, beer and cocktails, following an executive order from Gov. Jared Polis on Friday.

Restaurants and bars offering food and drinks for takeout or delivery are considered essential businesses and will remain open for those services, Hancock clarified during his press conference on Monday. Even though liquor stores remain open alongside essential businesses in other states, in Denver, they will close.

Read the rest of this story on DenverPost.com.

All Nevada Casinos Ordered to Close amid Covid-19 Outbreak

Casinos in Nevada that had chosen to remain open amid the global coronavirus crisis were forced to bring their operations to an abrupt halt after Gov. Steve Sisolak, in an unprecedented move, ordered the statewide closure of casinos and all other non-essential businesses.

Slot machines across the Silver State turned dark at midnight Tuesday. At noon today, Nevada’s more than 400 casinos are, too, set to be shut for 30 days.

Several major casino companies announced the closure of their properties in the days leading up to Gov. Sisolak’s order, including Wynn Resorts and MGM Resorts International.

Wynn said Sunday night that it would shutter its Wynn Las Vegas and Encore resorts on the Strip for at least 14 days in the face of the Covid-19 spread, while MGM closed its Strip properties for an unspecified period of time.

But others, including gaming and hospitality powerhouses Las Vegas Sands and Caesars Entertainment Corp., said that they would keep their casino properties on and off the Las Vegas Strip open and that they have upped their sanitation efforts to help contain the spread of the dangerous virus that has claimed one life in Nevada so far and at least 108 lives nationwide.

Caesars Closes Properties Across North America, Las Vegas Sands to Pay Employees during Closure

Following news about the imminent closure of all Nevada casinos, Caesars issued a statement on its official website Tuesday night to inform guests and staff that it would temporarily shut down all its properties across North America.

The company’s CEO, Tony Rodio, said that “it has become clear that we must take this extreme action to help contain the virus and protect the safety and well-being of our team members and guests.”

In a letter sent to employees, Caesars said that all full-time, part-time, and regularly scheduled employees would continue to be paid and that their benefit eligibility would not be affected for “up to two weeks.”

Las Vegas Sands, too, issued a statement regarding the closure of its the Venetian and the Palazzo resorts in Las Vegas, saying that its decision was in line “with recent guidelines from federal and state governments.”

The company also noted that it will be paying its team members during the period of closure and that “no layoffs or furloughs are being contemplated and the closure will not impact health care eligibility.”

Station Casinos, Penn National Gaming, and The Cosmopolitan of Las Vegas will, too, pay staff during the closure period.

While some gaming and hospitality companies are willing to pay their employees during the statewide shutdown, other workers in the sector would not be so lucky, which could bring serious financial issues to many Nevada families.

Please, Stay Home for Nevada.

In his Tuesday address to Nevada residents, Gov. Sisolak said that his order will cause a lot of distress, but it is right thing to do to help contain the spread of the coronavirus.

The state’s top official went on:

I ask you: What are you willing to do to save your own life and the lives of those you love? We absolutely must take this step for every Nevadan’s health and safety. Please take this seriously. Lives are at stake, and with each passing day, this pandemic is growing. Please, stay home for Nevada.

The Culinary Workers Union Local 226, which represents more than 60,000 hospitality workers across Nevada, said Tuesday that it supports Gov. Sisolak’s decision to order the closure of multiple non-essential properties and that health and safety are priorities as we face this global crisis.”

Following the announcement about the statewide closure of casinos, Bill Miller, President and CEO of the American Gaming Association urged the federal government to act swiftly to bring relief to our friends, neighbors, and colleagues in Nevada and all across America whose livelihoods have been severely impacted by these hard but necessary actions.”

Source: Sisolak orders statewide shutdown of casinos, other nonessential businesses

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