Nambling Notes - Jan. 5, 2006

5 January 2006

Watchdoghouse -- U.K. Gambling Commission Chairman Peter Dean has gotten himself into hot water over comments he made in a recent interview with the Times about the effectiveness of the commission. Dean told the publication that regulating England's new super (resort-style) casinos will not reduce problem gambling as suggested by Culture Secretary Tessa Jowell. He said Jowell exaggerated her case for super casinos to get the bill through Parliament quickly. He also suggested the commission would be a laissez-faire regulator that believes such casinos are not a big deal. Culture Minister Richard Caborn was reportedly so put off by the comments that he interrupted a ski trip taken by Dean to have a few words with him over the phone. The government has decided to add at least one person to the commission who will address social responsibility.

The Latest Bust -- Police in Hong Kong today arrested 23 people in connection with a gambling ring following a one-year undercover investigation. The alleged syndicate, made up of 16 men and seven women, is accused of enticing housewives and domestic helpers to play card games at a number of locations and cheating them out of their money. Cash and gambling equipment were also seized during the operation.

1 Million Definition -- Gambling Research Australia, a governmental body responsible for investigating gambling in Australia, has finally settled on a definition for problem gambling, and it only took five years and $1 million of tax payers' money. A report published by the council in December 2005 defines problem gambling as being "characterized by difficulties in limiting money and/or time spent on gambling, which leads to adverse consequences for the gambler, others or for the community." Family First Sen. Steve Fielding called the definition a joke and said it should not have been so difficult and expensive. "The fact is, despite all the fancy definitions, governments don't want to do anything about this," Fielding said. "Public support for reining in gambling is overwhelming and everyone knows it."

Licenses for Sale -- Online gaming software provider and operator CYOP Systems International Inc. has set in motion a plan to develop and license 40 of its casino games for distribution to third-party Internet and land-based gaming operators around the world. Setup fees and an ongoing percentage of each company's net revenues will be paid to CYOP for use of the software, which features blackjack, roulette, video poker, slots, craps and 35 other games--all available in nine languages. CYOP also plans to license its Internet sports wagering software.

Prima's 18th -- Online sports betting site PinnacleSports.com will be broadening its horizons by launching its own poker room on the Prima Poker Network early this year. The announcement marks the 18th poker room to join the network.

MahJong Party -- Taiwan entertainment and broadband Internet access provider GigaMedia Limited has completed a $45 million acquisition of leading Asian gaming site, FunTown, a provider of online MahJong. GigaMedia plans to offer Fun Town's MahJong software to online gaming operators around the world. "MahJong is the traditional game of choice for over a billion people," explained CEO Arthur Wang. "If MahJong is the poker of Asia, then Giga will be the PartyGaming of MahJong."

360 Degrees of Fun -- Gaming provider Fun Technologies plc announced today that its wholly owned subsidiary, SkillJam Technologies Corporation, has signed a comprehensive agreement to develop, operate and support a private-label pay-for-play casual gaming platform for Lycos' gamesville.com. Scheduled to go live in early 2006, the site will feature a full suite of games available to players through pay-to-play, monthly subscription or download options. Gamesville will also offer traditional tournament-style games for cash and prizes. "This is the first 360 degree solution for skill-based casual gaming," said Fun Technologies CEO Lorne Abony. "Our complete end-to-end solution will not only allow players to play their favorite skill games to win cash, but will also let them play for free or download the game of their choice. We are the only casual gaming company capable of offering cash, subscription and downloadable gaming in our offering."