Gaming Report: Delta Corp Invests ₹69.70 Crores in Essel Group’s Jalesh Cruises, West Virginia Lawmakers Clear Online Gaming Bill & More

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  • Namita Ghosh March 13, 2019
  • 3 minutes Read

The Indian gaming sector is only getting bigger with companies looking to expand their presence. After picking up a stake in fantasy game platform HalaPlay recently, Delta Corp, the leading, and country’s only BSE-listed gaming and casino firm has now gone ahead to invest ₹69.70 Crores ($10 Million) in Essel Group’s Jalesh Cruises Mauritius Ltd (JCML). The purchase deal was made last week through Delta subsidiary, Gaussian Software Pvt. Ltd., and will come through by June 30th.

In the U.S., West Virginia lawmakers have passed a gaming bill. The second bill tabled in the state since last year, the legislative proposal now needs signatory approval of governor Jim Justice to become law. Meanwhile, in Michigan, the proposal to legalize online gambling in Michigan received a favorable response in the recent House Regulatory Reform Committee meeting.

For UK-listed online gaming operator 888 Holdings, 2018 brought a record revenue inflow, even though its poker and bingo revenues posted a double-digit decline.

Delta Corp Invests 69.70 Crores in Essel Group’s Jalesh Cruises

India’s casino and gaming giant Delta Corp has acquired ₹69.70 Crores ($10 Million) worth equity shares from Jalesh Cruises Mauritius Ltd (JCML). The purchase deal was made last Friday through Gaussian Software Pvt. Ltd., a subsidiary of Delta, and will come through by June 30th.

 

Jalesh Cruises

According to a Business Standard report, after the announcement was made on March 8, the Delta Corp shares rose 1.20% to ₹257.50 on BSE where the S&P BSE Sensex was up 232.55 points.

Delta Corp said that its Gaussian Software will subscribe 1o Million equity shares of JCML and complete the acquisition in one or more tranches. This will give the company a 25% stake in JCML.

Notably, in January, Essel Group-backed Zen Cruises Pvt. Ltd. announced the launch of Jalesh Cruises, its first premium brand of leisure cruises with a fully-equipped casino.

The JCML which is promoted by Amit Goenka proposes to acquire cruise ships and operate cruise services across various destinations, from India and the Middle East. Replete with entertainment and hospitality services, these cruise ships will also offer casino and gaming facilities.

JCML that was incorporated on December 16,2011 to undertake investment business has, as part of the agreement, obtained the right to be the preferred partner of Gaussian for managing and operating the casinos and similar gaming services on cruise ships.

For Delta Corp, the acquisition seems part of a bigger plan to grab a more significant share of the country’s growing gaming and casino market. It acquired Gaussian Network just 30 months back. For Gaussian Network that also operates India’s major online poker site, Adda52, this is the second big investment within a matter of days. Last week, Delta and Gaussian collectively acquired 32,000 equity shares in fantasy sports platform, HalaPlay. The same day, it also announced a joint venture with MGM Resorts and Caesars Entertainment for developing casino resorts in India.

 

West Virginia Online Gaming Bill Edges Close to Approval

Lawmakers in West Virginia have passed one of the most comprehensive gaming bills in the U.S. One legislative step away from becoming a law, this latest effort now faces a huge, familiar obstacle in the form of governor Jim Justice.

West Virginia

The West Virginia Lottery Interactive Wagering Act that envisages opening up the state to regulated online casino gaming and poker was passed with an overwhelming majority by the state General Assembly towards the end of its 2019 legislative session. The proposal now sits in the office of Gov. Justice, and it’s his signature of approval that stands between legalisation of online gaming.

While Gov. Justice did not veto the previous, February 2018 Bill that proposed regulated online and in-person sports betting, he did not sign it either and delayed the bill. Critics cite Gov. Justice as having a conflict of interest since his family owns the legendary Greenbriar Resort that operates betting.

The Resort has in the past, hosted NFL’s training camps and the annual PGA Tour event. Evidently, Gov. Justice was hoping that the Bill would be reworked to include more favorable terms for professional sports leagues.

For now, Gov. Justice has not come out publicly with an opinion or plans for the present Bill. While lawmakers could override a veto coming from his office, struggles in legalising gaming in the U.S. state continue.

 

Michigan Inches Closer to Legalising Online Gambling

In 2018, the U.S state of Michigan was on the verge of legalizing online gambling but fell short after Governor Rick Snyder vetoed the proposed Bill. Not giving up, supporters of regulated online gaming in the state including Representative Brandt Iden took on work to resurrect the legislation this year. Iden has recently filed the companion online gambling bills in the House, even as the Bills were filed in the Senate by Senator Curtis Hertel last week.

Michigan

The introduction of the bills led to the first discussion on the issue, in the House Regulatory Reform Committee on Tuesday, and has received a favorable response.

The Committee during its meet went through testimony on several gambling bills. Though no vote was taken on Iden’s proposed legislation, the hearing ended with committee members responding positively to the Bill.

Iden who sponsored the House Bill identified three main benefits of legalization- it would keep Michigan competitive, protect consumers, and generate new tax revenue. Iden also reminded the committee that both the chambers had passed his bill last session before the governor vetoed it.

Meanwhile, representatives from the three casinos operations in Detroit, MGM, Greektown, and Motor City have all supported the Bill. The casinos came on-board recently, after a compromise with tribal operators.

888’s Profits Climb Up As Revenue Falls

UK-based online gambling operator 888 Holdings have released figures on its earnings for 2018 that reflect a record revenue inflow in the year despite a double-digit decline in the company’s poker and bingo markets.

888 Holdings

According to the latest report, 888’s overall revenue touched $529.9 Million last year. While this is a 2% decline from 2017’s result, adjusted earnings improved the company’s revenue by 6%, i.e. by $107.1 Million and adjusted profit before tax increased 11% to $86.7 Million, while actual pre-tax profits neared $108.7 Million.

The report has evoked a positive response from investors, and the company’s shares closed with a 2.5% increase on Tuesday’s trading, to 166.7p.

As far as 888’s B2C product verticals are concerned, the reports illustrate a mixed picture. While casino sector gained 8% to $317.6 Million and sports betting increased by 6.4% to $80.3 Million, poker declined by a massive 37% to $49 Million, and Bingo was down by 17.5% to $32.4 Million. The Dragonfish B2B Bingo division also reported a revenue fall of 8% to $50.6 Million.

Calling the decline “headwinds in some areas of business,” 888’s new CEO Itai Pazner praised his company’s performance. He dismissed the decline in the company’s UK revenue by 16% to $170.6 Million to its ‘diversification strategy.’

The report also indicates that 888’s revenue from Europe, Africa and the Middle East was up by 7% to $228.9 Million while in the U.S. it improved by 4% to $48.1 Million and the revenue from rest of the world fell 10% to $14.3 Million. This was partly due to 888’s exit from Australia’s regulated online betting market.

On the other hand, Spain which is 888’s biggest market outside the UK accounted for 13% of its revenue last year and improved by 8% to $68 Million. The figures would have been higher had the company not suffered from a decline in the Spanish-facing poker business, attributed to its delay in entering the EU liquidity pool.

While 888’s Italy-licensed operations posted a revenue hike of 29% in 2018 mainly due to the launch of its poker vertical in January 2018, the company foresees a dip in its market in Italy owing to new gambling taxes and a blanket ban on advertising.

Following the UK’s ongoing Brexit issue, 888 has announced that it has taken steps to ensure continued access to EU markets, and also spelled a bright potential in the U.S. where it plans to expand operations.

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