Nambling Notes - Nov. 3, 2004

3 November 2004

Swedish Ruling -- Svenska Spel, the Swedish National Lottery, plans to reduce its TV and billboard advertising costs by 20 percent following a ruling by Sweden's Supreme Administrative Court forbidding foreign Internet operators from running ads in Sweden. The group's CEO, Jesper Kärrbrink, says that over the past few years, Svenska Spel needed to increase its marketing to match the aggressive campaigns of the foreign operators, but with their competition now gone, Karrbrink says it is fair to invest less in promoting its games. He says the cut-back is also a response to the European Court of Justice's demands that regulated operators demonstrate responsibility in protecting the market. To that end, Svenska Spel will also remove 250 video lottery terminals from profitable restaurants, where the machines account for more revenue than food and drinks do.

The Supreme Administrative Court also decided that the Swedish gaming monopoly does not violate European regulations. As a result, the National Gaming Board is now threatening to close foreign gambling companies' Swedish offices.

In-Air Gambling -- Dublin-based low-cost airline Ryanair plans to increase revenues by offering in-air gambling services to passengers when traveling over international waters. Speculating on jurisdictional regulations, the company's CEO Michael O'Leary stated, "I don't know who would stop you. It is like duty free; you are in international waters." BBC reports that several gambling firms have expressed interest though no talks are yet underway.

Ontario Stats -- A new study by the Ontario Problem Gambling Research Center suggests that people with gambling problems account for more that one third of the total $4 billion spent on gambling each year in Ontario. According to the study, the 4.8 percent of Ontario residents with gambling problems gamble $1.41 billion annually. Other findings indicate that problem gamblers account for 36 percent of overall gambling revenue and up to 60 percent of revenue from gaming machines, 53 percent of revenue from horse racing and 19 percent of revenue from lotteries. The province spends $36 million per year to research, prevent and treat problem gambling.

Dealing -- I-gaming software developer Chimera Technology Corp. has signed a letter of intent with Arizona-based Grade Point Average Inc., giving Grade Point Average exclusive rights to market Chimera's gaming platforms in Europe and Africa.

New Games -- Svenska Spel is adding what it calls probability games to its Web site. Dubbed pick 'nclick, the three new games all have the potential to be won if the player correctly chooses the winning options. For example, one game, called "Three Card Poker," presents nine cards to choose from, and the player wins if he correctly guesses the three winning cards. The two other probability games are called "Dice" and "Penalty Shooting."

British gaming and fruit machine site Cyberslotz.co.uk, which is part of the RAL group of companies, has launched a new "Multi Wheel Roulette" game that gives players up to six chances to win on six simultaneously spinning wheels. Players can play on just one roulette wheel or add up to five additional wheels by increasing the initial stake. The game offers the same odds as traditional roulette.