Deferred -- British Chancellor Gordon Brown revealed today in his 2006 Budget Report speech that the government has decided to defer announcements on the taxation of remote gaming until full implementation of the tax regime in the 2007 budget. The Remote Gambling Association welcomed the announcement, saying that taxation of the remote gambling industry raises a number of difficult issues for the government. "It is encouraging that this has not discouraged the Treasury from having a thorough review of the options and we look forward to working with them over the coming months," said RGA Chairman Nick Rust. "It may be that we will not find a solution that works for all sides, but it will not be for the want of trying on our part."
Restricted -- Russia's State Duma has passed a new law that places tighter restrictions on advertising. There is now a ban on the advertising of alcohol and tobacco products, and gambling ads also face closer scrutiny. The law, which restricts locations for gambling ads as well as the language used and the manner in which gambling is portrayed, overlooked the Internet as a permitted advertising venue resulting in the Russian search engine Yandex removing direct gaming add from its pay-per-click (PPC) and banner advertising channels. On the other hand, because of the ambiguity of the law, Yandex's rival, Rambler, has continued accepting direct gaming PPC ads and says it has no plans to pull the ads.
Acquired -- Scientific Games has announced that it has completed the purchase of the online lottery assets of Swedish firm EssNet AB for 460 MSEK ($60 million), adding seven states in Germany, the national lotteries of Hungary and Norway, Golden Casket and Tattersall's Lottery in Australia and other national lotteries to its portfolio of customers. EssNet operations will be integrated into Scientific Games over the next few months and should be completed in the second half of 2006.
One Brand -- Online gaming software provider and gaming portal operator CYOP Systems International Inc. says it is employing the one-brand marketing approach via its wholly owned subsidiary, Red Felt Software Ltd. The approach includes a number of Web sites to which Red Felt has secured the rights, including RedFelt.com, RedFeltCasino.com and RedFeltSportsbook.com. "Creating one brand name is key to a good marketing strategy," said Mitch White, CEO of CYOP. "Search has become a cornerstone, perhaps the cornerstone, of Web use. More than half of all users access a search site during most or every online session. Just 4 percent say they don't use search engines. By placing our products under one umbrella, we will be able to leverage our brand across multiple platforms and users."
Quoteworthy -- "This profiteering by credit card providers is discriminating against honest gamers choosing to deposit funds for goods and services. The question is where will this end as many online sites across sectors now provide 'wallet-type' facilities for consumers to deposit funds before purchasing goods or services. Consumers should be careful in the card provider they choose."
- Geoff Read, finance director for online gaming company Getminted.com, reacting to recent news that London-based banks Royal Bank of Scotland and Egg plan to begin treating consumer transactions on gaming sites as cash advances, rather than as purchases of traditional goods and services. The change will result in customers paying immediate interest on the deposits plus a cash advance fee in addition to the fees levied on the site operators themselves.
Magic Keynote -- NBA Hall of Famer and self-made businessman Earvin "Magic" Johnson will be the keynote speaker at the third annual Bodog.com Marketing Conference, July 23-25, 2006 at the Wynn Las Vegas. Johnson will deliver a speech on the subject of branding. The basketball star's businesses include Magic Johnson Enterprises (which includes Magic Johnson Entertainment, Magic Johnson Productions, Magic's 32 Records and Magic Johnson Management Group) and Johnson Development Corporation (which is known for developing Magic Johnson Theatres and Starbucks in long-neglected communities).