Mr. Jones

Pala Casino Tries to Keep Up with the Joneses with $170 Million Expansion to Southern California Resort

JULY 30, 2017 BY KEVIN HORRIDGE

Excerpt:

#
Gambling Sunny in California

The Pala Casino announcement is just the latest in a laundry list of resort overhauls in Southern California.

Pechanga’s current renovation is costing the tribal group $285 million. Construction is also taking place at the Barona Casino & Resort, Sycuan Casino, and Viejas Casino & Resort, all properties which are located in the San Diego area. Those tribes, however, aren’t revealing how much money they’re spending.

The Pala Band of Mission Indians says it needed to update its property to adapt to customer demand. Speaking to the pool area, which will be transformed to resemble a space typically found at major resorts in Las Vegas and to include bars, fire pits, and cabanas, Pala CEO Bill Bembenek explained that visitors are looking for a more luxurious experience.
#
Slow Rollout

Pala Interactive, the tribe’s internet gaming division, has been operating in New Jersey through a partnership with Borgata since the fall of 2014. PalaCasino.com has been one of four live websites under the land-based resort, the others being BorgataCasino.com, BorgataPoker.com, and NJ.PartyPoker.com.

The New Jersey PalaPoker.com rollout was delayed for several years, while waiting for the arrival of PokerStars. But since the company’s poker site launch last month, traffic has been slow-to-nonexistent: according to PokerScout, PalaPoker is averaging just two players a week on average.
While New Jersey’s Division of Gaming Enforcement doesn’t break down internet gaming revenues by site, Borgata’s partners have generated $23.48 million in year-to-date income. Only the Golden Nugget ($33 million) has made more from iGaming.
#
Read full article at link above

How Well Is Pala Interactive Doing?

It's hard to know how well Pala's online gaming business is doing.  But we can infer some things from the news.

From this article:

uspoker.com - Will A Hard Rock-Branded Online Casino In New Jersey Flourish Or Flounder?

Excerpt:

Latecomers have gained significant market share

The NJ online poker and casino industries consisted of far fewer sites in November 2013, the month when the first wave of regulated sites went live. And all of them have performed admirably.

Pala Casino launched in November 2014. Despite being a relatively unknown quantity in New Jersey, the San Diego-based brand now accounts for a significant portion of Borgata AC online casino revenue.

How much? According to the latest US iGaming Tracker report from Eilers & Krejcik Gaming, the casino has captured 15 percent of Borgata’s online market share, which translates into roughly $5.6 million in revenue generated per year.

----
You can read the entire article at the link above.

So, after an alleged $100 million investment by the Pala Band of Mission Indians about 4 years ago Pala Interactive seems to be generating about $5.6 million a year in revenue, at least in New Jersey.

MGM Buys Stake in Borgata

MGM To Acquire Boyd Gaming's 50-Percent Stake In Borgata

Excerpt:

Borgata also has the largest online gambling business in the state. It’s one of five online casino operators there. Borgata had $45.7 million in online gaming revenue in 2015, nearly a third of the state’s total. The licensed online gaming sites under the Borgata are Borgatacasino.com, Borgatapoker.com, NJ.Partypoker.com, palacasino.com and palabingousa.com.

In February it was announced that Borgata would migrate from the Party platform to United Kingdom-based GAN, formerly GameAccount Network. The launch of the GAN-Borgata product is expected in the second quarter of this year. Borgata also has a partnership with Pala Interactive, an online gaming company from the Pala Band of Mission Indians in California.

Read More Here:

MGM To Acquire Boyd Gaming's 50-Percent Stake In Borgata

Pala Online Poker In The News

Pala Interactive and Online Poker in California in the news.

Pala Band of Mission Indians Continues to Support Assemblyman Gray's AB 2863 Internet Poker Legislation


pokernews.com - Nevada, New Jersey Welcome Former Ultimate Bet Brass

#
Borgata, which uses bwin.party as its online poker operator in New Jersey, is making the switch to Pala Interactive, Martyn Hannah of eGR North America reported — note the linked article is behind a paywall. Pala's Chief Executive Officer is Jim Ryan, who also served as CEO of UB's parent company, Exscapa. The switch will reportedly be made "by the end of the second quarter."

Borgata operates the leading online poker room in New Jersey, totaling more than $31 million in revenue since launch and leading second-place Caesar's in each calendar month of 2015.

As such, bwin.party reps are apparently not conceding the lucrative Borgata contract. Hannah quoted one rep as saying there has been "no change" in the company's relationship with Borgata as parent company GVC Holdings awaits licensing in the state. The popular casino has used bwin.party as its online poker provider since launching.

Ryan claims to have left his role as CEO in 2006, before the infamous superuser scandal at UB broke, at which point he said he was acting as merely a court-appointed inspector.
#
Read Full Article Here -->Nevada, New Jersey Welcome Former Ultimate Bet Brass


PokerFuse - GAN Deal Raises Doubts over Borgata/Partypoker Partnership

#
The Borgata and its free-play online casino partner GAN have extended their deal to cover real-money online gaming. The deal has led to suggestions that the Borgata/Partypoker partnership in New Jersey may be coming to an end.

GAN will power the online casino platform with Pala Interactive providing online poker, according to a report in eGaming Review.

Read Full Article Here-->PokerFuse - GAN Deal Raises Doubts over Borgata/Partypoker Partnership


parttimepoker.com - New Jersey DGE January 2016 Gaming Results

#
The Borgata and Party Poker including Pala Entertainment combination continued as the leading revenue producing I-Gaming site(s) in New Jersey with a 31.2% share (First in poker and casino games). Caesar’s Interactive (CIE) held second place with 22.0% (Second in poker, fourth in casino games).
#

Read Full Article Here-->parttimepoker.com - New Jersey DGE January 2016 Gaming Results

Pala Interactive In The News

Borgata, Pala Indians OK'd for online gambling

By WAYNE PARRY, Associated Press Wednesday, November 5, 2014

ATLANTIC CITY, N.J. (AP) — New Jersey gambling regulators have approved a California Indian tribe's request to offer Internet gambling in conjunction with Atlantic City's top casino.

The state's Gaming Enforcement Division has authorized Pala Interactive to team with the Borgata to offer online gambling in New Jersey.

The Pala Band of Mission Indians will be the first Indian tribe to engage in online gambling in New Jersey. The enforcement division signed an order approving the arrangement last Friday.

"Hopefully we're going to surprise and delight and build some meaningful market share in New Jersey," said Jim Ryan, the company's CEO. He formerly ran the bwin.party online gambling company with which the Borgata already is partnered for online gambling in New Jersey.

The tribe runs the land-based Pala Casino and Spa in San Diego County, California, and wanted to expand its brand onto the Internet, Ryan said.

Read Full Article Here-->Borgata, Pala Indians OK'd for online gambling

More News Links:

Pala Interactive Partners with Borgata Hotel Casino & Spa to Offer New Jersey Internet Gaming - Pala Granted Transactional Waiver by Division of Gaming Enforcement

New Jersey DGE Gives Conditional Approval to Borgata, Pala Interactive Partnership