Weekly Nambling Notes

1 February 2003
Friday, Jan. 31

European Bit -- Is New Zealand considering live Internet gambling? ISA-Casinos reports that George Hawkins, the country's minister of the interior, is in Hamburg, Germany having a first-hand look at Hamburg Spielbank's live online roulette system. Hawkins is said to be interested in purchasing the system, which was developed by e-dict. Hamburg Spielbank launched its live roulette game in October 2002, becoming Germany's first licensed online casino. New Zealand, meanwhile, has been exploring Internet gambling for nearly three years.

US Bit -- Tired of watching millions of dollars flowing from his state into the pockets of neighboring states' lotteries, Oklahoma Gov. Brad Henry is planning to present a lottery initiative to voters and he's promising it will raise $300 million annually. That's not unusual, but what's unique about Henry's plan is that it calls for sales of lottery tickets over the Internet. The plan would be stomped, however, by the passage of the Leach bill, a federal law that would prohibit the transfer of funds for online gambling.

News from the Far East -- Before Hong Kong's Legislative Council votes this summer on a bill that would legalize of soccer betting, it will likely consider an initiative that would allot $24 million for two treatment centers for gambling addicts. The centers would be funded by the Hong Kong Jockey Club. A few organizations that work with gambling addicts say they will boycott the funding, however, because they perceive the plan as a sop to opponents of soccer gambling. Secretary for Home Affairs Patrick Ho Chi-ping told the South China Morning Post that the centers would be built regardless of whether soccer betting is made legal. "We are not doing this to ease opposition," Ho told the SCMP. "We would not encourage people to bet, nor would we tell people not to bet. Our approach is to explain the nature and the risks involved so that people can make an informed decision themselves."

Makin' Deals -- Worldwide Management, a subsidiary of AngelCiti Entertainment, announced today that it has entered into an agreement to provide online bingo software to BingoLandCasino.com. Worldwide Management provides gaming software to over a dozen Web sites and reports to have netted $26 million in eight months of operation in 2002. Other sites licensed by Worldwide Management include VacationCasino.com, StarbrightCasino.com, WelcomeToOurCasino.com and LuckyDogCasino.com.

Thursday, Jan. 30

UK Bit -- William Hill has suspended betting on which Premiership manager will quit next, Bloomberg reported today. The reason? Runaway gossip that Terry Venables will take leave of his position in Leeds. "Rumors spread fast in the worlds of football and betting, but it can be financially costly to ignore them as we have found to our expense in the past," said Graham Sharpe, a William Hill spokesman.

Legal Stuff -- In response to a Dutch court ruling barring Ladbrokes from supplying online gambling services to Dutch residents, the U.K.-based bookmaker will lobby the European Court of Justice to change the EU the law regarding the provision of betting. John O'Reilly, managing director of Ladbrokes.com told the Financial Times, "It's reasonable for individual governments to protect their consumers if they are worried about excessive gambling, but if they are concerned about single operators affecting state monopolies, then we want that changed. Ladbrokes, which argues that the Dutch ruling breaches European Union law by restricting free trade, has engaged in a similar legal battle in Sweden.

Player News -- Ladbrokescasino.com announced today that Jason Carter, 29, of Manchester, U.K., has become the winner of the largest jackpot the casino has ever awarded. Carter, who bet only £2.50, won £67,430.

US Bit -- California-based i2corp.com's subsidiary, Home Gambling Network, released the seal today that it says will be displayed on Drho888.com. i2corp.com also said today that Phillip J. Anderson is resigning from its board of directors for personal reasons.

Making Deals -- Stockholm-based Net Entertainment today launched its Net Entertainment Casino Game Module, which it is marketing as a casino gaming product for online sports books. The company, which is a subsidiary of the Cherry Casino Group, said its first licensee is Expekt.com, a Malta-based sports book.

Wednesday, Jan. 29

News from Asia -- The Hong Kong Standard is reporting today that the SAR's Secretary for Home Affairs, Patrick Ho, would like to include counseling for problem gamblers in the government's plan to make soccer betting legal. "We are hopeful that if the proposed legislation (for soccer betting) is approved by Legco by the end of this legislative year, we will have in place proper measures to help pathological gamblers," Ho said.

Bit from the UK -- GamCare, a gambling addiction support organization in the United Kingdom, said today that the National Lottery's new Internet lottery game will help raise awareness about online gambling. Paul Bellringer, the director of GamCare, said that while the Camelot-run lottery does not lead to much gambling addiction, having the lottery online will influence people's attitudes about Internet gambling. "There is a healthy skepticism about putting credit card details online, however," Bellringer said.

New Stuff -- Gaming software developer IQ-Ludorum plc said today that SportingOdds.com, a subsidiary of Sportingbet plc, has launched. The site is powered by IQ-Ludorum's IQ-Casino turnkey software package. It will be offered in English, Turkish and German. Gary Hall, the leader of Sportingbet's casino and gaming division, said the company hopes to deliver to its sports betting customers a top-notch casino gaming experience. "In our estimation, IQ-Casino delivers the personalized gaming experience we've envisioned, in tandem with CRM features offering significant competitive advantages to maximize the potential revenue and subsequent return for our public stakeholders."

Tuesday, Jan. 28

Tidbits from the US -- An article on Forbes.com by writer Ari Weinberg states that if sports wagering were legalized in the rest of the United States, as opposed to just Nevada, the industry could be worth up to $12 billion after players are paid. Weinberg writes: "How much in tax hikes and budget cuts might an additional industry forestall? How many scholarships could new revenue create around the country? Unfortunately, it doesn't appear that anyone in Washington, D.C. really wants to find out." ... The National Journal's Technology Daily reports that the U.S. Navy's travel card program is being wrongly for Internet gambling charges by Navy personel. A report issued Monday by the General Accounting Office states that as of March 31, 2002, Navy credit cards were used in 35 online gambling transactions worth $23,000.

UK Bit -- Sportingbet said recently that for the first time, in October, the group's European operations turned a profit. The profit comes more than five months earlier than the company expected. Nigel Payne, Sportingbet's chief executive, said the company is growing faster in Europe than they had expected. "We are growing bigger and faster and we also managed to get good trading margins," he said.

Quote Worthy -- "It just so happens I am providing a service that the American public wants. In fact, the American public is hungry to take advantage of my service." Betonsports.com Chief Executive David Carruthers, as quoted by the Indianapolis Star.

Monday, Jan. 27

Making Deals -- Israeli gaming software developer Zone4Play announced today plans to build an interactive gaming service for UPC Digital television users in the Netherlands and Austria. Erez Lahav, Zone4Play's business development manager, said the service will enable UPC Digital subscribers to play games like blackjack, slots and baccarat on their television sets. Zone4Play in December completed the implementation of gaming platforms for Orange and 02, which are both cell phone carriers, in Israel and Europe.

Breaking Deals -- Boss Media said today that its license agreement with Dr. Ho has been dissolved. Boss had supplied Dr. Ho with casino software since September of 2001.

Data Hub -- UK newspaper The Guardian reports today on the findings of a market research study from a company named Mintel. The study found that between 2002 and 2005, the profits of bookmakers will increase to £2.5 billion from £1.5 billion. The study also predicts that the National Lottery will experience a decline in profits to £2.29 billion from £2.37 billion. ... The number of suicides linked to gambling in 2002 was lower than in past years, the Quebec coroner's office is reporting. Twelve gambling-related suicides were reported as of Dec. 18, 2002. In 2001 the number was 30, and in 2000 it was 20.

Bit from Down Under -- Canbet, an Australian gambling company, has bought a property in Hampshire, United Kingdom, from which to run its U.K. sports betting business. Canbet will begin operating from the new property, which it purchased for £1.43 million, in April. The company is waiting to receive its bookmaker's permit in the United Kingdom; it filed the necessary papers for the permit on Dec. 17, 2002.

No News Is Good News -- The U.S. Federal Trade Commission last week announced the top 10 categories of consumer complaints for the 2000-2001 year. Notably, Internet gambling isn't on the list. The categories include, in descending order: Internet auctions; Internet service and computer complaints; advance fee loans and credit protection; shop-at-home and catalog sales; foreign money offers; prizes, sweepstakes and lotteries; business opportunities and work-at-home plans; telephone services; health care; and magazines and buyers clubs.