Updating Trade -- Ladbrokes has released a trading update for the four months to the end of April, which, despite a 10 percent lag in profit, suggests results will be "broadly in line with expectations." The company attributed the decline in part to a 47 percent plunge in telephone betting, the gross win of which was compromised by a significant reduction in high-roller activity. I-gaming gross win, however, increased by 11 percent due to solid sports-book and casino growth, though was partially offset by a decline in I-poker--a service still feeling for a solid foothold in a difficult, competitive environment, it said. The company said it continues to focus on international development opportunities in Asia and Europe.
Shang High -- eWorld Interactive, the Asia-facing media and entertainment portal, has signed an agreement with China Telecom subsidiary Shanghai Information Industry Group to operate China's online sports lottery. "The addition of the sports lottery to our content platform is well suited for our user base as it crates another avenue for entertainment, participation and the potential of winning and real returns," said eWorld chief executive Guy Peckham. The company is also working to expand into additional lottery offerings, including the state-run welfare lottery, the yield of which is expected to launch in Q3 2007. The eWorld announcement follows a May 11 report in the Financial Times, which stated that, according to the China Association of Social Workers, the PRC has yet to grant formal approval to any Web site to operate as an online agent for the welfare lottery. On May 3, VODOne, the Hong-Kong-listed video company, said it had won official approval from the social workers' association to sell welfare lottery tickets through a China-based company that the association has partial stake in. However, Xu Ruixin, the association chairman, said it had not issued such approval and could not do so because China lacked the requisite regulatory framework. While a number of Web sites already offer online welfare lottery ticket sales, "none of them has clear permission," Xu told the FT.
Inked Long-Term -- Two Way TV, the U.K.-based production company, has singed a long-term content deal with Virgin Media for its skill-based games service and its I-gaming channels, The Winner Channel and The Roulette Channel. The deal enables Virgin to place Two Way TV's games, gaming channels and competitions "behind the red button" of several third-party broadcasters, including ITV, Five, Challenge and Cartoon Network.
Adults Only -- Adultmoda, the mobile advertising network, has agreed to shepherd its 18-and-up userbase to on-the-go gambling destinations on behalf mobile casino operator Probability. The deal sees Probability's mobile casino and Russell Grant Mobile Bingo leverage the Adultmoda relationship to cast a net of ads for Java-based handheld users across the United Kingdom and other territories.
Smokers Unite -- A survey published by St. Minver, the white-label gaming solutions provider, shows that U.K.-based bingo players are unhappy with the imminent enactment of the country's smoking ban. Specifically, one in three bingo club players will play less often; 63 percent of smokers will increase their spend online; and one in ten bingo club players will stop playing in the clubs. Notably, 62 percent of survey respondents were active smokers. Elsewhere, bingo operators have already begun trimming the fat in advance of the July 2007 clampdown. On May 4, the Times reported that Rank, the U.K.-based casino group, put nearly 10 percent of its Mecca bingo clubs estate up for sale.
Another US DoJ Seizure -- In a May 14 note to the Toronto Stock Exchange, Citadel, the e-commerce payment solutions provider, said that the U.S. Justice Department (DoJ) had seized $9.25 million in merchant reserve funds from its U.S.-based processor. With the exception of $941,000, the remainder of the $9.25 million sum comprises funds "related to Internet gaming," it said. The company added that it continues to work with the DoJ via its legal counsel to resolve the situation.
Next Stop -- DG Holdings (DGH), the privately held, international investment group, has announced that Robert Daily, former World Series of Poker (WSOP) tournament and events director, has joined its board to lead DGH's online gaming platform division. "I have every confidence this year's WSOP will run smoothly and efficiently and if I did not feel strongly that the tournament was ready, I would not have left at this time." Daily leaves Harrah's after 11 years in various capacities.
The California Privatization -- The office of California Governor Arnold Schwarzenegger has said it possesses a list of "marquee" investment firms interested in assisting the state privatize its lottery. Reuters reported Thursday that, according to H.D. Palmer, spokesman for the Governor's finance department, California will have "no shortage of suitors" should lawmakers back Schwarzenegger's proposal. Regarding which firms, Palmer made no specifications other than to say that Goldman Sachs and Lehman Brothers have already presented separate plans detailing how the state's lottery could successfully negotiate its transition to the private sector.
BCA Indicts Jowell -- The Financial Times reports that the British Casino Association (BCA), which represents the majority of the country's 138 existing casinos, are pursuing a legal challenge to the government's proposed gaming expansion plans. The BCA will reportedly ask the High Court to order that Tessa Jowell, the culture secretary, reconsider the "so-called grandfathering arrangements so that all comparable casinos can compete fairly." The paper says Britain's casinos stand to lose as much as £120 million ($237 million) if the government's proposals for expanding the industry--including the introduction of a Las Vegas-style super casino--go ahead. Lawyers for the BCA told the court that, in drawing up the expansion policy, Jowell had "failed to comply with her duties of fair consultation." The judicial review, which is expected to last three days, continues, the paper says.
More from Bill Hill -- The Racing Post carries a report on Thursday's William Hill trading update. Chief executive David Harding told the Post that it was too early to assess the impact of the TurfTV dispute. "We can't see any discernable impact at this early stage, but that's not expected with just six courses and a lot of their races on terrestrial television," he said. "We'll have a better indication by January 1. There's a lot of water to go under the bridge before then."
Stock Watch -- In late afternoon trading on the LSE, 888 and CryptoLogic remain even with Thursday's close at 122.25p and 1,233, respectively. However, PartyGaming is down 1.25p to 40.00 and Ladbrokes is down 5p to 420.50.