Tit-For-Tat --The assorted delays of partisan politics have again slowed Barney Frank’s efforts to pass legislation that would regulate online gambling in the United States. Frank recently proposed new legislation that would provide more than US$1 billion in federal aid to tenants of low-income housing in an effort to lower national home foreclosure numbers. However, the nature of the housing bill has angered a number of Democrats, making it less likely that they will lend their support to Frank’s non-housing legislation, including his gambling bill.
Sponsor Chosen -- Betfair.com has been selected as the presenting sponsor of the World Series of Poker (WSOP) Europe, set to take place in London September 6-16. The sponsorship agreement requires Betfair to begin a year-round promotion of the WSOP, but also allows them to connect with an immensely powerful offline poker brand. WSOP Europe will mark the first WSOP event to take place outside the United States.
Parachuting -- After only four months of employment, Michael Neuman is stepping down as CEO of Magna Entertainment Corp, taking with him a $1 million bonus. Neuman had been a source of optimism for Magna shareholders, who were counting on him to revive the company through an expansion of its electronic betting and online gambling businesses. Company president Frank Stronach will serve as Interim CEO.
In the Running -- Bookmaker Paddy Power is among the companies in the running to become major sponsor of the Irish Derby at the Curragh. Paddy’s attempts at sponsorship come due to the notion that the Irish Derby is one of the most high-profile events on the racing calendar, and the fact that rival bookmakers William Hill and Ladbrokes are becoming increasingly involved in the racing world.
Repurchased -- Big Stick Media Corporation has made plans to repurchase more than 3 million of its common shares over the next twelve months. The purchases, made with the consent of the Toronto Stock Exchange, are intended to benefit remaining shareholders by increasing their interest in the company’s assets. This purchase will be the first time the company has purchased its own stock in more than twelve months.
Smoked Out -- In response to the passage of the recent smoking ban in England, the Rank Group has announced that it will install outdoor shelters with gambling machines at it’s bingo clubs. Despite this development, though, history does not bode well for the smoke-free halls. Rank officials have reported that this year’s revenue fell by five percent in bingo clubs in Wales and ten percent in Scotland since a smoking ban came into effect in those provinces. Although outdoor expansion and the deployment of portable electronic gaming machines has the company optimistic about the future, officials have warned that the upcoming ban could “hold back profit performance.”
Investigation Begun -- Investment accounts linked to former Tattersall’s executive Duncan Fisher have become the focus of a British investigation on the firm’s lottery license. The investigation focuses on funds, taken from a Tattersall's bonus scheme, that were hidden from a compensation suit in the mid 1990s. The investigation could result in adverse effects for Tattersall’s licensing, as was recently experienced by Greek consortium Intralot.
Stockwatch -- On the LSE, PartyGaming was up .25p to 32.75, Ladbrokes was up 2p to 439.75, Playtech was down 6p to 382.25.