Party Investors Wary of $78 Million Pay Scheme -- A £40 million ($78.04 million) cash payout to senior management of London-listed operator PartyGaming has engendered scrutiny among the company's primary investors for breaches of the City's corporate governance codes, reported The Guardian today. The deals put in place by the company are designed to retain key staff members after shares plummeted following the enactment of the U.S. I-gaming legislation on Oct. 13. Company founders Ruth Parasol, Russell DeLeon and Anurag Dikshit reportedly dipped into a £1 billion ($1.9 billion) sum acquired at the time of Party's 2005 flotation on the LSE to inject $78 million in share value into the existing employee benefit trust. Under the new pay scheme, leaked on the last trading day of 2006, CEO Mitch Garber will receive £19 million ($37 million) if he stays until 2009, while finance director Martin Wiegold will receive £5.6 million ($10.9 million) if he stays until the end of 2008. Another £15 million ($29.2 million) will be disbursed among other employees.
Recourse -- The U.K. government has reportedly extended an invitation to investment banks to bid for the Tote, a just-in-case move should the racing consortium fail to meet the £400 million ($780.2 million) asking price. National paper Telegraph reported that the Department of Culture, Media and Sport had sent letters before the New Year asking to meet with representatives from several banks--including Citigroup, Deutsche Bank and Lazards--to discuss the sale. According to sources cited in The Guardian, however, the consortium is close to completing a deal for the government-owned bookmaker. The consortium has until Jan. 26 to meet the government's asking price.
UK Gambling Commission Opens Application Process -- The U.K. Gambling Commission announced that it will begin accepting applications for operating and personal licenses effective Jan. 2, 2007. "Anyone who wishes to provide facilities for gambling, or to manufacture, supply, install, repair or adapt a gaming machine or gambling software from 1 September 2007 is required to hold a license authorizing the specific activity to be undertaken," the commission said in a prepared statement. For the three categories of licensure--operating, personal and premises--the commission will issue operating and personal licenses, while local authorities will issue premises licenses.
Tabcorp Awaits $10 Billion Decision -- Australia-based operator Tabcorp will soon learn from state government officials whether it can merge its New South Wales and Victorian totes, a move that would create a $10 billion betting pool. Tabcorp's managing director, Robert Nason, said the company has submitted a proposal and is awaiting decision, which should be reached inside of two weeks. Opponents of the merger argue that a combined pool would effectively wipe out competition between the Totes and, at the same time, limit options for bettors. Tabcorp is rumored to have a "Plan B" in place should the state government declare reservations about the merger, though, as of today, the company has not commented on any specifics to that end.
Whoops! -- U.K.-based William Hill will pay out thousands of pounds to bettors after a mix-up over a TV soap storyline, the Daily Mail reported Tuesday. The bookmaker took bets on who was going to kill Coronation Street character Charlie Stubbs, even though the show's producers had trailed the plotline--with it, the identity of the assassin, Tracy Barlow--for weeks before the episode aired. "What we didn't know was that at the time we started the book everyone already knew it was [Barlow]," said William Hill spokesman Graham Sharpe. Sharpe said that wagers made on Barlow would be honored, while bettors laying money on other characters would be reimbursed. "Even bookmakers have a sense of fair play at Christmas," he added.
Launched -- Online operator Ocean Breeze Poker.com today announced the launch of its new online casino and sports book, powered by multiplayer software from I-gaming provider Futurebet.
Appointed -- Internet mahjong technology developer Dynasty Gaming today announced the appointment of Robert Nihon II as a company director, effective Jan. 1, 2007.