Nambling Notes - Sept. 19, 2006

19 September 2006

Multi-State Collaboration -- The multi-state Internet gambling task force formed in August 2005 by the Washington State Gaming Commission is meeting today in Seattle. The task force was assembled in an effort to broaden and coordinate enforcement efforts against illegal Internet gambling in the United States. Members include the Federal Bureau of Investigation, the Department of Justice and numerous state gaming agencies. Topics to be covered in today's meeting include Washington state's recently adopted anti-Internet gambling law, current legal cases and additional topics surrounding the industry. The meeting is closed to the public.

Postponement -- A federal judge in St. Louis today extended another 30 days the temporary restraining order against online gaming company BetonSports plc. Judge Carol Jackson granted the extension after federal prosecutors and BoS representation declared they were trying to work out some of the financial issues raised in the indictment. No further details have been released.

Violated in France -- Upon releasing detained bwin co-CEOs Manfred Bodner and Norbert Teufelberger on Monday, the examining magistrate decreed that the company must post an announcement on bwin.com stating that its product offerings may violate French regulations on games of chance. Bodner and Teufelberger, released on 300,000 euros bail, have scheduled a press conference for Thursday at which they will give details of their experience in France and their expectations from Brussels. The conference is slated for 12.30 p.m. in the trading hall of the old Vienna Stock Exchange.

Tote Talk -- A British horseracing industry consortium comprised of Arena Leisure, Racecourse Holdings Trust and the Racehorse Owners Association has made a formal bid to buy British state-owned betting shop operator the Tote, various local media are reporting. Analysts have assessed the bid to fall in the £350 million to £450 million range. British gaming group Gala Coral reportedly began making preparations last week to buy the Tote, and the bid was rumored to be as high as £540 million.

Quoteworthy -- "The arrests of Manfred Bodner and Norbert Teufelberger is an attempt to intimidate an entire industry. To the national courts, the European courts and the European Commission it will send the signal that it is not the general public that requires protection from abstract and unfounded threats of privately operated gaming, but it is the operators that require protection from the real violation of their basic human rights from overpowering executive bodies across Europe. There is much more at stake than the survival of an industry, this is a test to see if checks and balances in European democracies and within the EU are still functional. We offer Manfred Bodner, Norbert Teufelberger and their families our sympathy and support."

    - Betbull plc CEO Gunter Schmid, elaborating on his company's position that the actions of the French authorities relating to the arrest of bwin co-CEOs Manfred Bodner and Norbert Teufelberger violate EU law.

On the Rise in Ontario -- A new report shows that Internet gambling is on the rise in Ontario. The Responsible Gambling Council's 2005 gambling prevalence study, led by Dr. Jamie Wiebe, indicates that among 18- to 24-year-olds, the number of people gambling online has increased from 1.4 percent in 2001 to 5.5 percent in 2005. Although the overall numbers for Internet gambling remain low relative to other forms of gambling, the percentage of people gambling online has more than doubled from 0.7 percent in 2001 to 1.7 percent in 2005. The report also shows that problem gambling among adults 50 to 59 years old has decreased from 4.5 percent to 2 percent; while 6.9 percent of young adults 18 to 24 years old are experiencing moderate to severe problems. A total of 3,604 Ontario adults, 18 years old and up, participated in the telephone survey.

Membership Drive -- Online poker gaming site PokerStars.com and the Poker Players Alliance (PPA) on Monday co-launched a five-day online poker membership drive by holding five $1 entry online poker tournaments. The tournaments, beginning each night at 9:30 p.m. (EDT), are open to all PokerStars players. By entering a tournament, each player gets a free introductory PPA membership, and PokerStars passes along player information (name, address, e-mail and date of birth) to the PPA.

BodogFight -- Online gambling and entertainment group Bodog.com is premiering another original series tonight online and in millions of homes across America. "BodogFight" is a martial arts reality TV show created and produced by Bodog CEO Calvin Ayre. Seven modern-day American warriors fight for the right to represent the United States as part of "Team USA" and square off against members of the Russian Red Devils team. The final face-off will be broadcast live on pay-per-view.

Stock Watch -- Shares in Austrian I-gaming group bwin Interactive Entertainment AG plunged 16 percent to 21.57 euros today as trading resumed following a suspension on Sept. 15. In London, Sportingbet gained 5p to 177, while William Hill dropped 6p to 623.50.