Tidbits from the US -- A state Assembly committee Monday approved AB 1229, a bill that would ban Internet gambling in California. Approved by an 11-0 vote in the Governmental Organization Committee, the bill would make it a crime for Californians to go online to gamble and for Internet casinos to let them. A gambler could receive a $100 fine, although a first offense would draw only a warning. Internet casinos would be required to screen their customers and block any gamblers from California. Casino operators would be subject to a misdemeanor punishable by up to a $1,000 fine and 90 days in jail. The bill, backed by a coalition of card clubs and antigambling groups, now moves to the Public Safety Committee. The Assembly passed a similar bill last year, which died in the Senate.
The use of IT solutions in developing strong CRM programs has caught on in the Nevada gaming industry. Harrah's Entertainment broke through last year with its award-winning data warehousing system developed by Congnos Inc. Mandalay Resort Group Inc. appears to be next in line. The company, which operates a number of casinos on the Las Vegas Strip, announced this week the signing of a deal with E.piphany, Inc. in which Mandalay will utilize the E.piphany E.5TM system as its enterprise-wide CRM solution. E.piphany's customer interaction software and near real-time data warehousing technology from Las Vegas-based Systems Research and Development will make it possible for Mandalay to centralize information from 16 different property locations to better understand and personalize interactions with customers. "E.piphany will become the F14 engine behind our marketing programs," said John Marz, senior vice president for Mandalay marketing and events. "Not only will we be able to create and adjust marketing campaigns based on real-time performance metrics, but we'll also empower our front line employees to provide increased levels of customer service. The E.piphany solution will provide our customer service employees with a holistic understanding of a customer's history, and then will craft tailored incentives for customers at the exact point of interaction. Being able to make the right offer to the right customer at the right time will greatly improve our service delivery and customer loyalty."
A Tidbit from the Far East -- The owner of a chain of Internet cafes in China has doubled the number of computers available since the beginning of the year, despite new government regulations strictly controlling the online sites and content citizens are allowed to view. Turnover at Wang Yuesheng's Feiyu cafes has increased 30 percent since the rules were released last week, probably because the cafés can now offer computer games. "Previously, all games were completely out of the question," Wang explained in a Reuters interview. "Now, all of a sudden, people can play games." China's Culture Ministry has been handed the job of determining whether computer games contain pornography, gambling, violence, or superstitious material.
Legal Stuff -- While the Feiyu cafes are prospering, four similar cafes in Tianjin were shut down by government authorities for operating without necessary licenses, reports the People's Daily. Thirty computers were confiscated as part of the city's crackdown on Internet service operations after inspectors found on them pornographic content and information regarding the banned Falun Gong cult. The Tianjin Municipal government intends to close down any illegal Internet cafes, while closely monitoring the operations at the 950 legally licensed sites.
Danish Minister of Taxation Frode Sorensen has written to Denmark's parliamentary tax committee seeking to prevent banks in that country from authorizing payment of transactions payable to foreign e-gaming sites, according to Nordic Business Report. Sorensen's office is also putting the final touches on a report on the future of gambling laws, which should be released next week. The minister also believes that the current Danish gambling monopoly should be maintained.
Tidbits from the UK -- The U.K. National Lottery Commission has ordered Camelot to pay £115,000 in compensation for losses to prize winners caused by a glitch in its software. The Commission says that 55, 858 players received between £1 and £3 less prize money than was due to them. Most prize winners cannot be identified because records are not required for wins below £500. The underpaid amount will be paid into the 'match 4' prize fund for the draw on 28 April.
The legal in-fighting among Britain's various racing and betting groups has expanded to include the commencement of an investigation by the Office of Fair Trading into whether the National Joint Pitch Council has turned into a monopoly. The Telegraph reports that NJPC, which was formed three years ago to manage reform of betting rings at the nation's racecourses. "I say it is a monopoly profit that funds a burgeoning bureaucracy, an increasing number of staff who have recently enjoyed a pay rise, and handsome new offices," complained David Boden, a former president of the Racecourse and SP Bookmakers Association.
British racing is also undergoing a bidding war for the media rights to its races. While at first it appeared that the Go Racing consortium (comprised of Arena Leisure plc, BSkyB, Channel Four and NTL) was the likely winner, a late entrant in the bidding process has attracted support from a number of smaller racetracks. After working more than five months to win the media rights, Go Racing has issued a May 11 deadline for Britain's racecourses to accept its £400 million bid. Rival bidder GG-Media, meanwhile, has extended its closing date to April 20.
Tidbits from Down Under -- Australian bookmaking firm Canbet is considering relocation to London or Vanuatu thanks to the federal government's proposed Internet gambling ban that would prevent punters Down Under from betting with their local online bookies. News sources quoted Canbet Chairman Richard Farmer, who described the ban's promulgator Communications Minister Richard Alston as a "modern-day Luddite" for wanting to let Australians place a bet over the telephone but not the Internet. Alston's pet project is having a difficult time gaining support, meanwhile, as numerous politicians cast aspersions on the ban. He claimed that the Labor Party, one of the ban's most vociferous opponents, was in bed with online gambling.
ABC Online reports that state and federal officials in Australia have come to terms on at least one issue regarding the federal government's proposed ban on Internet gambling. According to state officials, the federal ban fails to adequately protect people from problem gambling. "There has been a concession, I think, from the advisers to the federal government that there might be some unintended consequences of the federal legislation which they are having a look at, and there's certainly some contemplation of some drafting in some areas as might relate to lotteries," South Australian Treasurer Rob Lucas said. Nevertheless Federal Community Services Minister Amanda Vanstone says the federal government is still committed to prohibition. "The Commonwealth is determined to see that we don't allow another area of problem gambling to develop," she said. "Now, some of the states don't agree with that. . . . Some of the states, it appears, would be happy to let problem gambling develop, to let another area expand, but the Commonwealth is not happy to see another area of gambling expand."
Makin' Deals -- There may be a buyer in the offing for Ladbrokes' Gibraltar call center operations, reports Iberia News. The U.K. betting operation announced it would be relocating back to Britain following the government's decision to drop betting duty. More than 80 employees would probably retain their positions if the sale goes through, although Ladbrokes was expected to terminate 138 positions in all.
The Good News Section -- The "madness" continues to reign over at the Jackpot Madness portal. The portal's CashSplash progressive jackpot has reached a new level in payouts, having paid out more than $21 million, the company announced earlier this week. Jackpot Madness is powered by Microgaming's software.
The Bad News Section -- According to Silicon.com, Betswap.com has positioned itself to become the next online person-to-person wagering service to fold. The site, Silicon.com reports, "is closed for 'maintenance' and the executive management have left, leaving the business in the hands of director Richard Wollenberg.'" No decision has been made yet, although Wollenberg admitted that closing down for good is under consideration.
New Stuff -- A new handicapping contest has been announced by Youbet.com. The contest, "$25,000 -- The Revenge of Steven Crist," will be held May 18 and 19 running concurrently with the Preakness Stakes. Last November, 70 contestants beat Steven Crist, editor and publisher of the Daily Racing Form, in Youbet's "Beat the Pro" contest, splitting a cash prize of $25,000. Crist will place 10 $20 win wagers on various races during the Preakness weekend. Contestants follow suit, using the Youbet platform to place their bets. To win the contest, players must show an overall profit greater than Crist's net profit. If no contestants beat Crist, then the prize money will be donated to the Disabled Jockeys Guild.
A New Face -- Penn National Gaming, Inc. this week announced that effective May 7, 2001, Richard E. Orbann has been named to the newly created position of president and chief operating officer of the company's racing division. The appointment is being made in conjunction with a new management structure which includes operating heads for both the company's gaming and pari-mutuel racing operations.