Nambling Notes - Oct. 10, 2005

10 October 2005

Empire Suit -- TheMarker.com, an Israeli publication for business and technology news, reports that online backgammon operator InterLogic (also known as LogicEmpire) has filed a law suit against Empire Online in a Tel Aviv court, alleging that Empire Online intends to copyright its brand. InterLogic, which operates real-money backgammon competitions on Web sites GammonEmpire.com and Play65.com, has reportedly asked for a temporary injunction to prevent Empire Online from launching a backgammon site of its own at 65.com. InterLogic claims that Empire Online has actually registered multiple URLs that contain the number 65, and says the registration of such URLs is Empire Online's response to its efforts to acquire some of InterLogic's operations being rejected. InterLogic also seeks US$21,000 in compensation.

Quoteworthy -- "The commission is currently working on the license conditions and codes of practice which will be relevant to the remote gambling sector. We will be consulting on drafts of these conditions and codes early next year. This is an exciting time for the industry, and I would encourage all those who have its welfare at heart to share your views and get involved."

--Peter Dean, Chairman of the England's new Gambling Commission, which became operational last week.

Farewell -- Oscar Nieboer is stepping down from his position as managing director of Virgin Games to pursue other interests. Virgin Games' chairman, Simon Burridge, will take over Nieboer's responsibilities.

I-Gaming Debt -- An article in The Observer on Sunday--part three of a series dealing with debt--explores the effect the rapid growth of online gambling has on consumer debt. The article references statistics obtained by charity organization GamCare, which estimated that the average online gambling debt in 2004 was £25,676 (5,000 higher than that of the previous year). GamCare said it expects the figure to grow even more this year. It also estimated that there are currently about 1,700 online gambling Web sites, a figure that does not take into account mobile phone or interactive television betting sites.

Pegasus Gaming -- U.S.-based I-gaming software provider Pegasus Gaming Corp announced that it has signed two new licensees to its gaming and betting suite, although it did not name the new licensees in the press release announcing the deals, which represent the company's second and third licensing agreements. Last week the group announced the signing of its first licensee: U.K.-based GoldenGooseBet.com.

Party Platform -- PartyGaming has announced plans to launch a new fully integrated platform in the first half of 2006. In addition to powering the world's most popular gaming network--PartyPoker--the platform will offer a variety of non-poker games, such as blackjack, that will share common system architecture and enable customers to use single accounts to play across all of the company's offerings. Besides the integrated non-poker games, new features will enable poker players to make side bets with one another and to make deals to split the remaining prize pool in tournament games. Although PartyPoker players have so far shared the same poker-only system with players from PartyGaming's white-label poker clients (Empire Poker, Coral Eurobet, Multipoker and Intertops), the platform changes give PartyPoker players exclusive access to the platform enhancements; they will now play at their own private tables, separated from the four clients' customers, who will not have access to the new non-poker games and certain other features.

Warning -- After being advised by the U.K. Gambling Commission that many magazine ads for remote gambling sites are not legal, the Committee of Advertising Practice has warned publishers to make sure that the ads they run are indeed legal. The commission has reiterated that although it is suitable for overseas companies to make consumers aware of their existence, they may not offer incentives or encourage gambling, particularly through bonus or match schemes.

New Sites -- ThinkBingo.com has launched a new regional online bingo site for Scottish players at BingoScotland.com. The company has invested a six-figure sum into a marketing campaign. . . . Wild Jack Mobile Casino has launched a new U.K.-based mobile casino that uses the GameWire 2.0 wireless casino system from Spin3, the company that partnered with Microgaming to create its complete mobile gaming solution. The casino premieres with six classic games. . . . Jackpot Gaming Limited has designed a new online bingo site at BingoBoogie.co.uk that is designed to appeal to a young female audience. . . . Gamebookers, the licensed sports betting property of Trident Gaming, has launched a Greek-language version of its Web site. The site is also available in English, German, Spanish, French, Turkish and Romanian.

Floaters -- Skill games provider Gameaccount has announced intentions to seek a valuation of over a £100 million through a float on the London Stock Exchange's Alternative Investment Market. The company says it is in the final stages of due diligence to acquire an international rival and hopes to float the newly combined group before the end of the year. A spokesperson said the company has no specific requirement for capital and it therefore plans to raise less than a £10 million. Advisors are expected to be appointed later this week. The company's backers include founders David McDowell and Kevin O'Neal, Betfair founder Andrew Black and Ireland's Smurfit family. . . . Isle of Man-based Trident Gaming, operator of betting exchange Betbug and recently acquired sports betting site Gamebookers, has announced plans to seek a £75 million to £100 million valuation through an initial public offering on the Alternative Investment Market of the London Stock Exhange next Spring. CEO John O'Malia said the company will need to have a public equity structure to keep up with the consolidation in the I-gaming industry. Trident boasts that Betbug's peer-to-peer setup makes it the only company that can legally provides sports betting in the United States. Gamebookers is expected to report a £122 million in turnover this year.