{"id":14517,"date":"2014-09-09T11:10:48","date_gmt":"2014-09-09T19:10:48","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=14517"},"modified":"2020-10-16T06:51:17","modified_gmt":"2020-10-16T14:51:17","slug":"cant-stop-the-consolidation","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/cant-stop-the-consolidation\/","title":{"rendered":"Can’t stop the consolidation"},"content":{"rendered":"

\"Slot\"<\/a>Continuing the shrinkage of the manufacturing sector<\/a>, Global Cash Access<\/strong> is taking another chess piece — Multimedia Games<\/strong> — off the board. GCA will pay $1.1 billion for Multimedia, which specializes in VLTs for racinos and tribal markets.The price represented a 31% premium<\/a> to Multimedia’s share price at Friday’s closing bell … which should deter other bidders. (Analyst Todd Eilers<\/strong> thinks otherwise<\/a>.) The company, which is based in Austin<\/strong>, Texas<\/strong>, will continue to operate game development from the Lone Star State, while direction of the combined companies will be done from Las Vegas<\/strong>.<\/p>\n

As its name suggests, “GCA provides casino customers access to cash through ATMs, point-of-sale and debit-card transactions as well and offers slot-machine ticket redemption and jackpot kiosks.” $19 billion is estimated to flow through its machines.\u00a0\u201cIt\u2019s a space that\u2019s been consolidating, and this is one of the better assets in my view,\u201d said Sidoti & Co<\/strong>. gaming analyst Matt Kempler<\/strong>. Its also a logical one, since GCA and Multimedia’s areas of specialization will complement, not duplicate one another.<\/p>\n

Union Gaming Group<\/strong> analyst Robert Shore<\/strong> disagrees.\u00a0\u201cGCA isn\u2019t a slots company, they\u2019re a processing company.\u00a0They have synergies with slots, but I\u2019m not sure how it\u2019s going to work out. I thought it would be a bigger slots company.\u201d GCA is projecting 20% ROI<\/a> from the merger. The deal comes with an $11 million breakup fee — one that escalates to $32.5 million if the transaction doesn’t close.<\/p>\n

GCA has kept a low profile for several years now, after a scandal in Arizona<\/strong> in which is was found to have committed fraudulent transactions, misled regulators … in addition to a long list of other misdeeds<\/a>. It’s been able to regain some of its luster<\/a>, although it\u00a0was\u00a0a long process.<\/p>\n

* With four new racinos in the market, Ohio<\/strong>‘s gaming revenue grew 37% last month. While still weak, at $105 per slot per day, Pinnacle Entertainment<\/strong>‘s Belterra Park<\/strong> is showing incremental improvement. Revenues at Penn National Gaming<\/strong>‘s Hollywood Columbus<\/strong> improved 7% and Hollywood Toledo<\/strong> was flat,
\n\"Harddespite a superior performance at the slots ($208\/slot\/day). Horseshoe Cleveland<\/strong> had a strong August<\/a>, up 8%, but Horseshoe Cincinnati<\/strong> took a big hit, down 16%. Caesars Entertainment<\/strong>‘s Thistledown Racino<\/strong>\u00a0(-5%) appears to be losing business to Hard Rock Rocksino Northfield Park<\/strong>, which grossed nearly $17 million to Thistledown’s $11 million. Penn’s newest racino, Hollywood Dayton<\/strong>, hasn’t been in the market long enough to have made more than a token impact, at $2 million, although it did an eye-popping $466\/slot\/day<\/a> in its three days of play. Small wonder that experts think Ohio is on pace to be a $2 billion\/year casino market<\/a>.<\/p>\n

Above-average performers in Ohio include Thistledown ($313\/slot\/day), Hard Rock Rocksino ($237\/slot\/day), Miami Valley Gaming<\/strong> ($224\/slot\/day) and Horseshoe Cleveland ($207\/slot\/day).\u00a0MTR Gaming<\/strong>‘s Scioto Downs<\/strong> ($187\/slot\/day)\u00a0didn’t quite make the cut.<\/p>\n

* Foxwoods Resort Casino<\/strong> is reportedly liquidating assets as the risk of defaulting on interest payments looms.<\/p>\n

* It may have been years in coming but the Tohono O’odham Nation<\/strong> has broken ground on its long-sought Glendale<\/strong> casino.<\/p>\n","protected":false},"excerpt":{"rendered":"

Continuing the shrinkage of the manufacturing sector, Global Cash Access is taking another chess piece — Multimedia Games — off the board. GCA will pay $1.1 billion for Multimedia, which specializes in VLTs for racinos and tribal markets.The price represented … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[109,166,165,7,158,71,69,30,111,25,8,20],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/14517"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=14517"}],"version-history":[{"count":6,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/14517\/revisions"}],"predecessor-version":[{"id":28182,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/14517\/revisions\/28182"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=14517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=14517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=14517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}