Nambling Notes - June 25, 2004

25 June 2004

Moving -- Technical Systems Testing Pty. Ltd. (TST), an accredited testing facility for both terrestrial and interactive gaming, is expanding its Australian operations by relocating its head office on the continent from Melbourne to a new, larger laboratory in Rosebery, New South Wales. The company's management thinks the close proximity of TST's Rosebery lab to NSW-based gaming manufacturers and suppliers should enhance its speed and responsiveness. TST, which will continue to maintain a staffed office in Melbourne to meet the needs of its clients in Victoria, also has offices in Vancouver and plans to open more in London this year.

Manchester Lottery -- U.K.-licensed lottery manager Million-2-1 today launched a mobile Manchester Lottery, the first of 10 regional mobile lotteries the company plans to operate within the next year. Million-2-1 would like to raise £100 million and donate 35 percent of its revenue to smaller, local charities that it says the National Lottery has traditionally ignored. Depending upon the uptake in each region, the company could raise the donation level up to 50 percent. Chris Sheffield, founder and chief executive of Million-2-1, plans to bid for a share of the National Lottery license when it comes up for review in 2009.

June Trends -- British bookmaker Ladbrokes said the first weeks of June 2004 have been the biggest in bookmaking history, thanks to the Euro 2004, the US Open and the Royal Ascot. Before the start of this week, the company had taken £300 million in wagers on football in June and £150 million in wagers on the Royal Ascot. Balthazar Fabricius, a spokesperson for Ladbrokes, said the company is noticing that horse racing--the traditional betting favorite--is drawing fewer bets, while soccer is now responsible for half of Ladbrokes' Internet turnover.

Busted -- New York police arrested six men this week for allegedly operating a $10 million illegal sports betting ring in the Long Island area. Investigators say bettors placed telephone bets with an offshore wire room in Costa Rica, which recorded their bets and then transmitted them to runners on Long Island. They also say the bust should make a significant dent in the illegal sports gambling business in Long Island. One suspect is allegedly a "soldier" in an organized crime family, although he denies it. All men will be charges with promoting gambling, a felony punishable by four years in prison. Police say more arrests will follow.

Memorandum of Understanding -- Betting exchange Betdaq last week signed a memorandum of understanding with the British Jockey Club, permitting the club to view certain punter records in cases where illegal betting is suspected. Betdaq refused to sign the agreement last year because of concerns for the privacy of its customers, but managing director Rob Hartnett now believes his company and the Jockey Club have reached a good balance between protecting the rights of customers and protecting the integrity of sports. The memorandum will not take effect until late summer after Betdaq's customers have been made aware of the agreement.

Welcome Aboard -- The Association of Remote Gambling Operators (ARGO), the new London-based organization whose membership is open to gambling operators, has appointed Clive Hawkswook as its general secretary. For the last three years, Hawkswood has worked for the Deparment of Culture, Media and Sport, where he has been a chief advisor to the government's remote gambling policy. He served as a betting office manager in the early '80s and joined the Civil Service in 1988 after receiving a degree in politics at Lancaster University. Hawkswood will begin his role with ARGO in mid August.

eScratch in Kansas -- The state of Kansas launched a GTECH-developed Internet game in May aimed at the 25-35 year-old demographic. Tickets for the game, called "eScratch," are sold at standard lottery retailers. After purchasing a ticket, the player enters the unique ticket number on the lottery's Web site and plays interactive games to find out whether he's won. State legislators have expressed concerns over the new game, but Kansas Lottery Director Ed Van Patten maintains that it is legal because no wagering occurs online; the Internet element, he said, is just for entertainment.