Rank Sells Hard Rock to Seminoles
U.K.-based leisure company Rank Group has agreed to sell its Hard Rock Café and casino business to the Seminole Tribe of Florida for $965 million. Rank said the Hard Rock disposal was part of its plan to overhaul; it will focus instead on the impending casino liberalization in the United Kingdom. Following the sale, Rank intends to return $688 million to shareholders via a special dividend, the equivalent to $1.27 a share. Seminole Gaming Chief Executive Jim Allen was reported as saying the group intended to expand the hotel and café business through selected vacation destinations around the world, and would expand Hark Rock casinos internationally, but not in Britain. Allen said gaming was the main revenue earner for the tribe, which also produces citrus, cattle and tobacco.
PayPoint Buys Metacharge
Payment collection network PayPoint Plc announced last week the purchase of Metacharge, a payment processor that services some 500 merchants, primarily based in the United Kingdom. PayPoint is a LSE-listed company that services a network of over 15,000 outlets used primarily for the cash payment of bills and services. U.K.-based commercial law firm Bond Pearce advised PayPoint on the £8.4 million sale.
Betinternet.com Reports Improvements
In its trading update for the first six months ending Nov. 26, 2006, Isle of Man-based Betinternet.com plc (BET.L) reported profitability at an EBITDA level--a significant improvement on the same period last year. Specific figures, however, were not disclosed. The company attributes the growth to its focus on the European market during a time when the United States passed prohibitive Internet gambling legislation. European Wagering Services (EWS), Betinternet's pari-mutuel operation, performed particularly well in the period, with a sustained increase in turnover through the Isle of Man-based hub, according to the company.
Gaming and Casino Fund Grows Steadily
The Gaming and Casino Fund (NASDAQ: GACFX) gained 13.74 percent in the three-month period ending Nov. 30, 2006, outperforming the Morningstar U.S. Mid-Cap Growth category average by more than four percent. The GACF beat the average of comparable funds for one month, three months, and since its inception date on March 31, 2006. The Fund invests at least 80 percent of its assets in casinos, gaming manufacturers, pari-mutuel companies and lottery support systems as well as electronic/video game developers, manufacturers, and distributors. It is the only U.S. mutual fund to specialize in the gaming and casino industries.