Nambling Notes - Oct. 14, 2005

14 October 2005

Another EC Complaint -- The European Betting Association has confirmed that it will file a complaint with the European Commission against Spain's lottery operator, Loterias y Apuestas del Estado. Similar to the association's pending cases against eight other European member states that uphold state-run betting monopolies, the latest complaint charges that the denial of private operators' ability to access the Spanish market violates EU free trade laws. The prospect of filing infringement proceedings against the member states has been on the EC agenda for a few months, and there is no verification as to whether commissioners discussed how to proceed with the matter at their latest meeting on Oct. 12. The eight countries targeted by the EBA, in addition to Spain, are France, Germany, the Netherlands, Sweden, Hungary, Italy, Greece and Finland.

Another 1st Tech License -- Internet and multimedia company 1st Technology LLC and NDS subsidiary Orbis Technology have settled a patent infringement lawsuit filed by the former against the latter. The suit is one of several brought recently by 1st Technology against online gambling providers. NDS has agreed to license the patents in question, and 1st Technology has agreed to dismiss with prejudice all claims against NDS and Orbis.

Sudden Departure -- Betfair CEO Stephen Hill announced his resignation today. Following a recent board meeting confirming that the company has no plans to float in the immediate future, Hill decided to pursue a new venture with plans for investing in small-to-medium-sized companies and providing management, specializing in growth and turnaround situations. Sir Robert Horton will take the role of executive chairman, and operational matters will be handled by Chief Operating Officer David Yu. The circumstances surrounding Hill's departure were not clear. His resignation is effective immediately.

Addiction -- The Belfast Telegraph reports that the number of people in Northern Ireland who gamble is on the rise, as is the number of those with gambling problems, according to Gamblers Anonymous. A spokesperson for the group said the Internet has opened up gambling opportunities for younger people and enables serious gamblers to bet 24 hours a day. Dr. Chris Strugnell from the University of Ulster's school of hotel, leisure and tourism, explained, "As Internet sites and access increases, it will be more available to all sections of the population, but it is very hard to regulate."

Software Upgrades -- EnglishHarbour.com announced today the launch of new proprietary casino software based on the company's Vegas Technology platform. New features include a smaller, quicker download, simplified navigation, a 3-D lobby and improved sound quality. . . . VIPCasino added 14 new games today, including slots and a new line of scratch cards to its selection of casino games powered by software developer CryptoLogic.

Wifi at the Palms -- The Palms Resort and Casino in Las Vegas has agreed to continue developing a working relationship with wireless gaming products developer Diamond I--supplier of the WifiCasino GS (TM) wireless gaming system--based on Diamond I's assurance that it will provide product servicing in line with other gaming machine vendors once appropriate licensing has been obtained. Diamond I's next step is to secure deals with cruise ships and possibly racetracks outside the United States. The company says it has had preliminary discussions with prospective clients in both industries.

Correction! -- Thursday's Nambling Notes included a regrettably inaccurate brief on eBay's acquisition of VeriSign. IGN reported that eBay is acquiring VeriSign when indeed it is only buying VerSign's payment processing gateway.