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The casinos say they want the current iLottery games halted by Tuesday or they will “consider all actions” available to them. Read a letter from Pennsylvania's 13 licensed casinos arguing the state's new iLottery online games violate state law. “In virtually every way imaginable, Lottery's iLottery program mimics a casino operation offering simulated casino-style games in direct contravention of (the law's) express prohibition on Lottery offering ‘interactive lottery games which simulate casino-style games,”’ the casinos wrote. They said 18-year-olds are allowed to play, where bettors must be at least 21 to play in a Pennsylvania casino. They also argued the games are competing with their own ability to run online games — which will require them to pay a $10 million licensing fee. Casinos expressed similar concerns about the games infringing on their business when the law was being debated last year. The law said the state lottery may not offer games that simulate casino-style lottery games, specifically roulette, poker, blackjack or slots. The casino operators said in the letter to Hassell, whose agency includes the lottery, that payout percentages in iLottery match those for casino floor slots and they use two “key casino tools” — free play and a patron-loyalty program. “Moreover, Lottery has been heavily marketing its casino-style games, free play and rewards program through direct mail, email, and television advertising,” and through a digital marketer to encourage player registration, the casinos told Hassell. “Overall, the games essentially have the same backbone as a slot machine; an outcome that is determined by a random number generator with animated graphics and computer operations used to provide a visual depiction of that outcome,” the casinos alleged. The iLottery games began last month, with prizes up to $250,000 and plays costing as little as a penny. So far, 40,000 people have registered online, which is required to play the games.
For the original version including any supplementary images or video, visit http://www.mcall.com/business/mc-biz-casinos-say-new-state-ilottery-violates-law-20180628-story.html
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Rallye had 11.7 billion euros of net debt, or 104 percent of equity. Their balance sheets won’t be helped by the prospect that the new plan is likely to involve sale and leaseback deals on stores, which could drive rental payments higher. It is worth noting that British supermarkets Tesco Plc and J Sainsbury Plc are going the opposite way: increasing the proportion of their portfolios that are freehold in order to contain future rent increases. The company will also continue to have the complex structure that involves Rallye holding a 51.1 percent share, and relying on dividends from Casino to service its own debt obligations. The company has a long way to go to fully address both of these problems. But there’s a third issue on the horizon. Casino's valuation has fallen behind that of Carrefour this year Although Casino is upbeat on the profit outlook in the French grocery market, the environment nevertheless remains challenging, and could become even more so if Carrefour SA's turnaround plan starts to bear fruit. Its rival on Monday announced a tie-up with Alphabet Inc.'s Google to sell its food through the internet giant's platforms. Given these headwinds, Casino must execute the disposal plan seamlessly. It would also be wise to use any additional proceeds from the asset sales in 2019 to continue to pay down debt, rather than return cash to shareholders. The attention of short sellers can be hard to shake off, and the company needs to concentrate on building enough firepower to defend itself from the next onslaught.
For the original version including any supplementary images or video, visit https://www.bloomberg.com/view/articles/2018-06-12/casino-finds-short-sellers-are-tough-to-shake
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