Indy Gaming: Slot companies’ proposed merger briefly fires up investors
The investment community was abuzz over a potential merger between two rival gaming equipment suppliers. The fervor lasted less than 12 hours. Inspired Entertainment offered AGS $10 per share, but AGs rejected the offer. Stifel Financial gaming analyst Jeffrey Stantial wrote that the merger is unique in that there is no overlap between the two companies product-wise. Truist Securities gaming analysts Barry Jonas said Inspired is focused on its European business, while AG's is concentrated in the North American gaming market. AG went public in 2018 at an initial price of $16 per shares.
AGS has been CEO since 2014. Lopez has upped the company's profile through its "GameOn" investor events. Inspired Gaming has its roots in the former management of Scientific Games. The company is actively pursuing acquisitions.
Inspired and AGS are considering a $370 million acquisition. The gaming supplier sector was once very consolidative, but now it's less so. The investment community is jolted by the news. B Riley Financial gaming analyst David Bain believes the transaction is still early in scope. He notes that the buyer must do due diligence.
Fontainebleau Las Vegas developer Jeffrey Soffer has reduced the scope of the planned 245,000 square feet of retail space. Fontaineblue announced plans for a 90,00 square-foot shopping district inside the north Strip hotel-casino. The 67-story property is expected to open late next year with 3,700 hotel rooms, a 173, 000-square-ft casino and 550, thousand square of convention space, and 25-acre site by the fourth quarter of 2023.
Penn Entertainment is exercising its option to buy 64 percent of Barstool Sports. BarStool has sports wagering operations in 12 states and has earned $39.6 million in revenue over the last three months. Caesars Entertainment operates sports betting at M Resort and the two Jackpot properties in Nevada. Dave Portnoy is the subject of sexual harassment allegations. He is currently a content-focused figure at BarSTool. His contract with Penn runs through 2025. He raised $42 million during the pandemic.
Macquarie Securities believes Las Vegas casinos are better prepared to handle a downturn than in prior cycles. Madison Square Garden Entertainment is exploring a spinoff of its live entertainment business. Three inductees to the Gaming Hall of Fame will be honored at the Global Gaming Expo in October. The American Gaming Association announced the inductions last week. They are former Everi Holdings CEO Michael Rumbolz, former Scientific Games and SHFL CEO Gavin Isaacs and former Isle of Capri CEO Virginia McDowell.
Bally's Corp. donated $600,000 to the International Center for Responsible Gaming. The money will support a research program on gambling among young adults and the usage and effectiveness of responsible gambling tools.