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Amaya buying PokerStars, Full Tilt owner for $4.9B

By WTOP Staff

NEW YORK (AP) — The owner and operator of the PokerStars and Full Tilt Poker brands is selling itself to Amaya Gaming Group Inc. in a $4.9 billion deal that is part of its plan to hopefully return to the U.S. market after a dustup with federal authorities three years ago.

PokerStars and Full Tilt ran into some trouble in April 2011 when the U.S government seized their websites and charged executives at the companies and people that move money for them with fraud and money laundering. In July 2012 PokerStars reached a settlement with the Justice Department in which it agreed to pay the government $547 million over three years. At the time the company said that the money was to be used in part to reimburse former U.S. customers of Full Tilt Poker, whose assets PokerStars had acquired.

Amaya said late Thursday it believes the acquisition will expedite the entry of PokerStars and Full Tilt Poker into regulated markets in which it already has a footprint, especially the U.S. Amaya makes gaming machines and systems, and says the PokerStars business is complementary with little overlap.

Internet gambling in U.S. has been off to a slower than anticipated start, with experts saying that it is being held back by illegal offshore operators who are continuing to draw users and siphon off millions of dollars. The first legal online U.S. poker company opened a little over a year ago. Since that time the industry’s growth has been slowed by several factors, such as technical hurdles and laws limiting players to the three states — New Jersey, Nevada and Delaware — where Internet gambling is legal.

Still, experts believe that there is plenty of room for growth for online gambling in the U.S.

PokerStars and Full Tilt are owned by Isle of Man-based Rational Group Ltd., whose parent company is privately held Oldford Group Ltd.

Canada’s Amaya said the deal with Oldford will make it the biggest publicly traded online operator of casino games.

Justin Kew of Cantor Fitzgerald Canada said in a client note that the transaction is a “watershed acquisition” for Amaya that will increase its revenue and adjusted earnings by more than eight times. The analyst tripled Amaya’s price target to $25.50 Canadian dollars ($23.49) from $8.50 Canadian dollars ($7.83). He reaffirmed a “Buy” rating.

PokerStars — the world’s biggest online poker website — and Full Tilt Poker have more than 85 million registered players on desktop and mobile devices. Online poker services provided by PokerStars and Full Tilt Poker will not be affected by the transaction.

The boards of Amaya and Oldford unanimously approved the deal. Amaya doesn’t anticipate making any changes to its board related to the transaction.

The deal is expected to close by Sept. 30. It needs the approval of Amaya shareholders, who will vote at its rescheduled annual meeting, now set for July 30.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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