Sporting Odds & Ends - March

28 February 2006

Italian Finance Law Destined for the Courts

Lawyers for UK betting companies Ladbrokes, Betfair, William Hill, Coral Eurobet and SkyBet are threatening to take legal action against Italian regulators unless they reverse recent changes which outlaw access to gaming sites outside Italy. Italy's Ministry of Economy and Finance passed a law threatening to fine any Italian ISP that allows access to a list of gambling sites. The Remote Gambling Association (RGA), on behalf of the British companies, put out a statement in November objecting to the changes, which they claim violate five categories of European Commission rules, which allow governments to restrict cross-border services on moral grounds but not on competitive grounds. As of Feb. 24, 684 gambling Web sites were blocked from Italian ISPs.

Clive Hawkswood, chief executive of the RGA, said European Commission (EC) officials summoned Italian representatives to a meeting today to explain their actions. He said it is clear that they failed to notify the EC of the decrees that were necessary to implement these changes prior to bringing them into force.

"Unless something happened behind the scenes that none of us were aware of this is a blatant breach of the obligation placed on every Member State by Directive 98/34/EC," Hawkswood said.

Sports Betting Bill Entered to New Jersey Assembly Once Again

A New Jersey lawmaker renewed his call Friday for a voter referendum that would legalize sportsbetting in his state.

Assemblyman Jeff Van Drew's bill, which would permit only in-person wagering at Atlantic City's 12 casinos, stalled last year in Senate after receiving approval in the Assembly. Van Drew is hoping the Rick Tocchet gambling scandal case will help its chances of passing this year.

"It is a living, breathing example of why we should legalize this activity," Van Drew said. "Let's keep it open, honest, clean, fair and ensure that if this activity is going to exist--and it does and it always will--that some of the revenue goes to medical care, prescription drugs and tax relief."

State Sen. Barbara Buono, who chairs the Senate Wagering, Tourism and Historic Preservation Committee, said Van Drew's bill is a waste of time for New Jersey given the federal law. But supporters say legalizing sports betting would take it out of organized crime's hands and allow government to regulate and tax it.

Sporting News for Sale One Month After DOJ Fine

St. Louis-based sports publication, The Sporting News, which settled for $7.2 million in January with the Department of Justice over charges that it promoted illegal Internet gambling through advertising on its Web site, in its magazine and on the radio, is up for sale after receiving unsolicited interest from a range of strategic and financial parties. The announcement came today, just a week after the 120-year-old publication reported record ad revenues in 2005. Experts estimate the paper's worth at $35 million to $40 million, but CEO Richard Allen said he expects a sale price "in the hundreds of millions" if it is sold.

English Rugby Football Union is Latest on Betfair's MOU List

Online betting exchange Betfair and the English Rugby Football Union (RFU) have signed a memorandum of understanding that will allow Betfair to monitor rugby betting. It is the 17th such agreement that Betfair has signed with sports regulatory bodies around the world.

"These agreements allow us to work closely with the sport's governing bodies. Allowing them access to the information we have is the best way to ensure that sport is kept free of illegal wagering," said Betfair's Mark Davies. "Betfair has no vested interest in the outcome of any event and our interests are absolutely in line with those who run the events. This is good news for the integrity of sport."

"The Memorandum of Understanding will give us unprecedented access to detailed information concerning betting on our sport, should an issue arise," added Paul Vaughan, RFU Commercial Director. "This will be a valuable tool in helping us maintain the integrity of Rugby Union in this country."

Gamebookers Offers Enough Cash to Keep Ballack in Munich

European bookmaker Gamebookers.com announced today that they have made an offer to Bayern Munich Football Club to cover the difference between the salary allegedly offered by Chelsea to midfielder Michael Ballack and Bayern Munich’s bid to keep Ballack. The deal would also make Gamebookers a main sponsor of the team.

This deal mirrors the deal Gamebookers signed in November with Greek Basketball club Aris, in which they bought Vladimir Petrovic for Aris and agreed to pay the player's wages for the club.

John O’Malia, chairman of Gamebookers commented, "We figured, why buy the front of a shirt when you can buy a player? Ballack is the finest player of his generation in Germany, and if Bayern lost his services it would be a great loss to both Bayern and to the Bundesliga. If Bayern accepts our offer, it will be the beginning of a fantastic new partnership with Munich, and to keep Ballack in Germany, especially with the 2006 World Cup finals coming up, this would represent a superb achievement for sport in Germany and for Gamebookers."

Chelsea reportedly offered Ballack a contract worth £121,000 a week during talks in London in January.

But Ballack, 29, said in a statement that he was not in London in January and signed nothing.

Ladbrokes.com Deploys SportXction

Interactive Systems Worldwide Inc (ISWI) has signed an agreement through its subsidiary Global Interactive Gaming Limited (GIG) that will allow British bookmaker Ladbrokes to offer the SportXction play-by-play sports wagering platform to its customers. Ladbrokes will initially provide SportXction's betting markets on the Internet only, but the company is also evaluating whether it should deploy SportsXction across its mobile phone and interactive television platforms as well. GIG will receive a share of wagering revenue, and SportXction will be available in multiple languages and currencies. The agreement is for an initial 18-month period.

Players and Trainer Questioned in Brussels Match-Fixing

Last Wednesday police in Brussels raided the homes of two players and a trainer in the SK Lierse soccer club in connection with the latest match-fixing scandal. Trainer Patrick Deman, goalkeeper Cliff Mardulier and defender Laurent Fassotte were reportedly detained for questioning. Deman's computer was reportedly seized, but the prosecution office has refused to provide details. The following day Deman, Mardulier and Fassotte copped to involvement in the scandal.

And continuing the match-fixing saga, Gilbert Bodart has resigned as coach of Belgium's La Louviere. This comes right after two players and a coach from first division club, Lierse were suspended for allegations of being linked to a Shanghai gambling ring. Both players issued statements Tuesday saying they would be appealing against Anderlecht's decision.