Gaming Report: TSG Rebrands BetStars to PokerStars Sports & More

The Stars Group (TSG), the parent company of PokerStars, has rebranded its sports betting brand BetStars. This is part of the group’s move to build a more cohesive brand image for all its sub-brands.

The COVID-19 outbreak is raging across the U.S. that has now overtaken other severely impacted countries like China and Italy in the number of infected cases. Despite the crisis, lotteries continue to operate in the 45 U.S. states where state-run lotteries are legal. Stop Predatory Gambling, a leading anti-gambling group, is demanding that all state-run lotteries should be suspended while the country is fighting such a critical health epidemic. The group has written to the Governor of each of these 45 lottery-states for the same.

Meanwhile, the Chairman of Hard Rock International, Jim Allen, has predicted that regional casinos may open sooner. Still, it could take a full year for the casino sector to spring back into its pre-Coronavirus scale, according to him.

Nevada’s governor Steve Sisolak is in no hurry to reopen business activities in the state. While addressing a press conference on April 21, he refuted the rumors that the gambling state would be resuming usual business activities, including the reopening of the casinos in May. Sisolak clarified that the reopening would be carried out in a phased manner depending upon the status of Coronavirus spread in the district.

In other news, Gaming and Leisure Properties Inc. (GLPI) has completed the acquisition of Tropicana Las Vegas Casino Hotel Resort from Penn National Gaming for $307 Million in rent credits.

In the U.K., the Parliamentary All Party Betting & Gaming Group (APBGG) has initiated a review of the UK Gambling Act 2005.

The Stars Group Rebrands Sports Betting Arm BetStars to PokerStars Sports

The Stars Group (TSG), the parent company of poker giant PokerStars, has rebranded its sports betting sub-brand BetStars to PokerStars Sports. According to reports, the company was planning this move for six months now, as part of its strategy to build a collective brand image under the PokerStars name.

The move has been affected across all of TSG sites in the UK, Spain, and other domains where BetStars was active. All BetStars users are being automatically redirected to the PokerStars Sports website.

Even the company’s corporate website and BetStars’ online poker clients have been upgraded to reflect the new PokerStars Sports logo.

PokerStars had ventured into sports betting for the first time in December 2015 by launching BetStars as its official sports betting brand. The brand was initially available only in select jurisdictions like the global client, Europe, and the UK and soon extended operation to other regions like Italy and Spain.

In the U.S., TSG launched BetStars for the very first time in September 2018, but it was only available to players in New Jersey.

TSG had announced its plan to retire the BetStars brand last year. At that time, CEO Rafi Ashkenazi, while addressing the company’s Q2 call with investors, said that the company was targeting to promote two master brands – PokerStars and Sky Betting and Gaming.

TSG has further confirmed that another of its sub-brands, Australia-facing BetEasy would be absorbed with Flutter Entertainment’s Sportsbet, once the TSG-Flutter merger is completed.

U.S Based Anti-Gambling Group Demands Suspension of State Lotteries

U.S-based anti-gambling group, Stop Predatory Gambling, has demanded the suspension of all state-run lotteries during the ongoing Coronavirus health emergency. The group has voiced its demand in letters to each governor whose office is in a lottery state.

National Director of the non-profit organization that is headquartered in Washington, Les Bernal, said, “It is essential that these games be shut down between now and at least 30 days after federal stimulus payments are received by American families. There is a mountain of facts showing many citizens gamble on the lottery to change their financial condition, and even more so when they are feeling a sense of desperation.”

There are 45 states in the U.S. running state-operated lotteries. Since the lottery programs benefit other areas like public education, services for senior citizens, etc., the governors across the country have deemed lotteries essential businesses.

Contradicting Bernal’s stance, Director of Maryland State Lottery and Gaming Control Agency, Gordon Medenica, said, “That’s the primary reason lotteries exist, to make money for good causes.” Though Maryland has suspended gambling adverts, it is still selling tickets.

However, according to Bernal, state governments have turned a nation of small earners, who could be small savers, into a land of habitual gamblers. “We strongly urge you to act now, before the assistance that American families will be receiving ends up being taken by state lottery tickets, rather than invested in immediate needs and churned through our economy for the benefit of everyone.”

Leading Casino CEO Says Casinos Will Take One Year Before Normalizing Operations

As casinos across the world remain closed in the wake of the COVID-19 outbreak, the CEO of Hard Rock International, Jim Allen, has predicted that the casino industry will take at least a year before bouncing back to full operations.

In a statement to CNBC on Wednesday, Allen said, “There’s going to be a real challenge, especially here in the United States, as far as ramping the business back up. And frankly, we’re planning on that taking at least a year.”

Pointing to a 12% occupancy rate at the reopened Hard Rock Hotel Shenzhen in China as an example, Allen said that Hard Rock has properties all over the world and had a good idea of what was coming right as the Coronavirus outbreak began to spread.

Hard Rock International was acquired by Seminole Tribe of Florida in 2007. The company owns and runs hotels, casinos, and Hard Rock cafes across numerous international locations. Its most profitable properties remain its six casinos in Florida.

According to Allen, these regional casinos would rebound before the rest of the industry. The other business, he added, would not pick up as quickly, and even once casinos open, the precautionary social distancing norms would keep the numbers lower than usual.

Nevada Governor Announces Phased Opening; Casinos to Remain Closed

The Governor of Nevada, Steve Sisolak, has clarified that the U.S. state would adopt a phased approach in reopening businesses and other activities. Addressing the media with a team of health experts in attendance, Sisolak did not give a clear indication on the reopening date but underlined that the stay-at-home directive will remain in place till at least April 30. He also confirmed that casinos and other non-essential businesses would remain closed until further notice.

Sisolak was optimistic about the situation in Nevada but pointed out bluntly that the administration needs to see a decline in COVID-19 cases and meet the federal guidelines to begin phased reopening. Praising hotel-casino properties for taking proactive steps to protect their staff and guests, he explained that Nevada was still in phase zero. “We are in a better spot than we were six weeks ago,” he said. However, he added, “The emergency is not over yet, but it has entered a new phase.”

The governor’s announcement not to reopen casinos comes at a time when Wynn Resorts CEO Matt Maddox has called for the conditional reopening of Nevada casinos by mid-to-late May to reduce the mounting losses that the operators are facing.

Incidentally, when Sisolak ordered a complete lockdown of Nevada on March 17, Goodman had opposed the move. She has been actively advocating that casinos and businesses should be reopened as soon as possible.

Goodman’s strong stance notwithstanding, Sisolak has stood his ground, categorically ruling out the reopening of casinos and businesses unless the growth curve of COVID-19 in Nevada is brought under control. He emphasized that the administration is planning a phased reopening of Nevada and would be announcing plans for the same. “Once the curve is flattened, our goal is to keep it that way.”

You can watch the press conference below.

Gaming and Leisure Properties Acquires Tropicana Las Vegas Casino Hotel Resort

Real estate investment trust, Gaming and Leisure Properties, Inc. (GLPI) has completed the acquisition of Tropicana Las Vegas Casino Hotel Resort. The company has bought the casino resort from Penn National Gaming for $307.5 Million in rent credits. The rent credits are set to be applied to rent due under the two companies’ existing leases for May through November.

Commenting on this, GLPI’s chairman and CEO, Peter Carlino, said, “GLPI believes its collaborative and mutually beneficial outcome with Penn National provides us and our investor base greater visibility and predictability for rent receipts over the remainder of 2020.

We are also grateful to our credit facility lenders for their support in facilitating the transaction with Penn National in a manner that acknowledges the unforeseen circumstances, and that represents a unified spirit of cooperation to overcome the challenges presented by COVID-19.”

According to the lease agreement, Penn National will retain control of Tropicana’s day-to-day operations and will manage the property for two years with the option of up to three one-year extensions, or until Tropicana is sold. GLPI will conduct a sale process for Tropicana, including the property’s casino and hotel business.

The lease agreement also specifies the net proceeds that Penn National would receive should GLPI find a buyer and enter a formal agreement for the resorts sale during the first two years of the sale process.

Several Las Vegas Strip properties like the MGM Grand, Mandalay Bay, the Bellagio, and the Circus Circus have been sold recently. Experts believe these types of asset sales could become more common as casinos are forced to deal with the COVID-19 pandemic.

UK’s APBGG to Review Gambling Act 2005

The Parliamentary All Party Betting & Gaming Group (APBGG) has commenced a review of the UK Gambling Act 2005 to ensure that the laws are relevant to the technical and social developments since its conception almost 15 years ago.

The review was one of the promises made by the Conservative Party in its election manifesto during the general elections last year. The party has come good on that promise now that it has entered into power.

According to APBGG Co-chairman Philip Davies, the group will hold a series of meetings with industry stakeholders and players to form a well-rounded opinion. “As co-chairman of the All Party Betting and Gaming Group, I believe it is essential that any review of the 2005 Gambling Act is based on evidence, the purpose of these sessions to help inform the government in their work in this area. We want to listen to the legitimate concerns people have of the gambling industry as well as ensure the industry gets a fair hearing as well.”

As part of the process, the APBGG will conduct surveys and collect written evidence on the APBGG website from stakeholders across the industry, including operators and charities.

The review will take place online due to the current lockdown measures in the UK. The APBGG review aims to prepare the ground for the government’s upcoming review of the legislation that will be done by the Department for Digital, Culture, Media & Sport (DCMS). It is aiming to complete its review and report by this winter.