Warning -- PartyGaming has warned that its underlying profits for 2007 will be well below current market forecasts due to higher-than-expected distribution costs. The news came on the release of its first quarter key performance indicators, which show a 26 percent jump in group revenue to $94.8 million during the three months ending March 31. The company said the rise in distribution costs was related to a 117 percent surge in player sign-ups for real-money gaming to 233,900, which was substantially ahead of expectations. "While the associated up-front cost of growing the player base using this route during the first half will impact the results for the full year, this investment in developing the group’s active player base is expected to result in higher growth in future years," it said.
Betex Speaks -- Betex, the Asia-facing lottery and gaming company, has released additional details regarding the arrests of two of its senior executives in China on April 18. The company said the initial legal report indicates that the detained individuals are being investigated over "alleged crimes of 'gambling' and 'illegal operations.'" As IGN reported yesterday, one of the senior staff members is believed to have been detained in his capacity as the legal representative of Beijing Lottery Technology Company (BLTD). One junior employee of BLTD has also been detained, it said, together with one of the agents contracted by BLTD to distribute the software product. Betex said police authorities have restricted access to two BLTD bank accounts connected with the operation of the software product. The company added: "The lawyers' opinion issued to the company is that neither the staff member acting in the capacity of the legal representative of BLTD, nor BLTD itself, will be convicted of the crime of gambling. The lawyers have confirmed that under the Chinese Criminal Litigation Law there is no claim against the company arising from the investigation into BLTD." The names of the detainees have still not been released.
Updates -- Chartwell Technology has appointed Alan Richter as its CFO. Richter will replace former CFO Dale Kearns, who the company said left to pursue other opportunities. Among other announcements that came as part of its corporate update, the Toronto-listed software provider said that it had completed the acquisition of the poker community, PokerNexus.
Appointed -- Playtech has appointed Mor Weizer as its new CEO following the creation of a new board position of executive deputy chairman. Former CEO Avigur Zmora will transfer to the new position and will assume specific responsibility for strategic biz development.
Revamped -- Betfair has announced that its poker site, Betfair Poker Plus, has undergone a major software upgrade.
Added -- WagerWorks, the online arm of International Game Technology, has added single-player Texas Hold'em bonus poker to its Players Suite of games.
Tough Break -- The Daily Mail on Friday said that the U.K. Gambling Commission has indicated that it regards TV quiz shows as lotteries. Being considered as such, the paper said, would force them to fork over 20 percent of their proceeds to charity, thereby undermining "the financial viability of quizzes in their present form." The commission has given quiz show operators until May 9 to respond, it said.
AGM Scheduled -- bwin has scheduled its annual general meeting for May 22, 2007.
Quoteworthy -- "From a horseracing perspective, we have concerns about some of the mechanisms in the bill, including a new licensing procedure. In particular, we are still ascertaining the impact of the bill on the Interstate Horseracing Act (IHA). The horseracing industry has worked with Congress for several decades to create, refine and implement the IHA and we would not want any legislation, no matter how well intentioned, to create any confusion with respect to our abilities as allowed under the IHA."
- Alex Waldrop, from a prepared statement issued to IGN regarding the Internet Gambling Regulation and Enforcement Act.
Stock Watch -- On the LSE today, CryptoLogic is up 15p to 1,518, PartyGaming is down 3.25p to 43 and 888 is up 1.75p to 124.75.