Quoteworthy -- "It's not all about the U.S. Ladbrokes has probably the best site in Europe with e-gaming earnings set to top £50 million in the not-too-distant future."
- Chris Bell, CEO of British betting company Ladbrokes, which is currently a subsidiary of Hilton Group Plc but will soon become a stand-alone business (renamed "Ladbrokes Plc") after the completion of Hilton Group's sale of its hotels business to American sister company Hilton Hotels Corporation for £3.3 billion in cash. There is much speculation that an independent Ladbrokes would gain the freedom to accept Internet wagers from the United States. Bell has also indicated that despite intense interest from private equity groups to acquire Ladbrokes, he is not eager to sell. He stated, "This will be a company worth over £4 billion, and my job is to make it even stronger, so if somebody wants to own us, they would have to put up a very big pot of gold."
Consolidation -- Online gaming company BetonSports Plc has acquired three U.S.-focused online gaming firms--MVPSportsbook, Player Super Book and V-Wager--for an initial consideration of US$20.2 million, with an additional deferred consideration of up to $16.8 million becoming payable depending on the profitability of the businesses during the next four years. BetonSports CEO David Carruthers said the acquisitions represent "an exceptional opportunity to bring well respected brand names into our family and to integrate with our existing businesses seamlessly and using our existing infrastructure." He added, "At the same time, the acquisition extends our cross selling opportunities and further strengthens our management team with U.S.-facing sports betting expertise. This transaction demonstrates the company's commitment to consolidation within the Industry and shows our continued confidence in the growth opportunities of the U.S. market."
Legacy -- Kerry Packer, the media and gambling magnate who was Australia's richest man, passed away last week at the age of 68. Packer leaves behind a fortune worth close to AU$7 billion and continues to earn more than $1 million per day from private investments. The Packer legacy is now headed by son James Packer, who is executive chairman Publishing and Broadcasting Limited. Since becoming executive chairman in 1998, James Packer has been a key driving force in PBL's venturing further into gaming rather than into its traditional business of television and publishing. The company now owns Perth's Burswood casino and Melbourne's Crown casino. It is also involved in a joint venture partnership with British firm Betfair to operate Australia's first ever betting exchange in the state of Tasmania.
Betfair Status -- The Australian reports that Betfair is expected to sign a lease on buildings in Hobart next week, after which a team of 15 to 20 staff will travel from Britain to set up the company's Australian operation. The Tasmanian Gaming Commission is scheduled to meet in mid January to consider Betfair's application for a betting exchange license, and the application is likely to obtain approval. If all goes well, the company will be operating and advertising Down Under within a few weeks. Its British team will remain in Hobart for about three months and will be replaced gradually by a local workforce of about 75 after the first year and 150 after the second.
Chinese Crackdown -- People's Daily Online, an English language site for Chinese news, cites the state-run Xinhua News Agency as reporting that a draft law aiming to crack down even further on gambling in China has been submitted to the country's top legislature, the National People's Congress Standing Committee for its first hearing. The proposal would amend criminal law by increasing the maximum prison term for casino operators from three years to 10 years. . . . China's Ministry of Public Security announced last week that a crackdown on pornography that began in September 2005 has resulted in the closure of 598 pornographic Web sites and 35 domain names. The ministry also revealed that on March 1 China will implement new Internet regulations in an attempt to limit pornography, spam, viruses, gambling, fraud and other undesirable activities. Under the new regulations, Internet service providers will become liable for Internet security and police will have the power to supervise all providers.
UK Prevalence Study -- The U.K. Gambling Commission has appointed the National Centre for Social Research (NatCen), in collaboration with Professor Jim Orford and other academic advisors, to work on its first gambling prevalence study. The team will design the study's methodology and questionnaire in an effort to measure the prevalence of gambling and problem gambling in Great Britain and to investigate the socio-demographic factors involved. Fieldwork will begin in mid 2006, and the full report is expected to be published in mid 2007.
Retiring -- Barry Mindes, the 74-year-old founder, chairman and CEO of Interactive Systems Worldwide Inc (ISWI), has opted not to renew his employment agreement, which expired at the end of 2005. He will continue to serve as a director and chairman of the board in a non-executive capacity. Bernard Albanese, the company's president, will take over as CEO. ISWI owns and operates the SportXction play-by-play sports betting platform.
Big Deal -- A new sponsorship agreement between PartyGaming and U.K. television channel Five marks the largest commercial deal for Five since its debut in 1997. Through the deal PartyPoker.com will be the sole sponsor of Five's broadcast of three large poker tournaments over the next year. The tournaments will entail 72 hours of programming, and PartyPoker.com will work with Five to develop an online site featuring free weekly downloads, poker tutorials, competitions and tournament information.