Weekly Nambling Notes

3 May 2004
Friday, April 30

Cricket Australia MOU -- Betting exchange Betfair has signed another memorandum of understanding with a sports association, this time with Cricket Australia. Like all the other memorandums, this one states that Betfair will provide betting-related information to Cricket Australia in instances where corrupt betting is reasonably suspected. Similar agreements exist between Betfair and the International Cricket Council, the Football Association (UK), the Association of Tennis Professionals, the Darts Regulation Authority, and the U.K. Jockey Club.

Las Palomas de BoDog -- BoDog.com is an official sponsor of Las Palomas, the Costa Rican national paint ball team. The BoDog.com logo appears on the team's jerseys along with the logos of four other non-gaming companies.

Jockeys Can Wear Ads -- A court in Louisville, Kentucky has ruled in favor of seven jockeys who sued the Kentucky Horse Racing Authority after it told them they could not wear commercial advertising during tomorrow's Kentucky derby. The seven jockeys were successful in arguing that rules prohibiting advertising is a violation of free speech. Now that the door is open for them to begin taking endorsements, optimistic jockeys see this as a way to earn more income and to attract more attention to the sport. "Look what happened to NASCAR," said jockey Shane Sellers. "All of a sudden, NASCAR is one of the biggest sports. It's because of the endorsements. We need change, but in the end I think everybody is going to be happy." Jockey Alex Solis said, "All other athletes get to advertise, and they get paid 10 times better than we do." There are, however, limitations on what the jockeys may advertise. Offensive and inappropriate material is banned, so are advertisements for casinos, phone wagering, and Internet gambling. Ads for companies that compete with current track sponsors are prohibited.

Canned Spam -- U.S. authorities have filed charges against four individuals in Detroit, marking the first ever prosecutions under the CAN-SPAM Act that was passed in January. The four allegedly provided false identities in thousands of bulk unsolicited marketing e-mails. The four individuals, Daniel J. Lin, James J. Lin, Mark M. Sadek and Christopher Chung, are said to have been promoting their weight loss product under several different corporate names, including AIT Herbal, Avatar Nutrition, Phoenix Avatar, and more. Medical professor Michael D. Jensen of the Mayo Medical School told investigators that the ingredients in such a product would not help users lose weight.

Computer Misuse Act Inquiry -- In the United Kingdom, the All Party Internet Group (APIG), which provides a discussion forum between new media industries and members of Parliament, has organized an inquiry to determine whether the Computer Misuse Act (CMA) of 1990 (implemented before the birth of the modern Internet) needs a revision. Edward Andrewes of the Association of Remote Gaming Operators (ARGO; a newly formed organization that is affiliated with the Association of British Bookmakers and composed of Ladbrokes, William Hill, Coral Bet365 and Blue Square) was on hand yesterday to express the gaming industry's desires to propose new methods to combat distributed denial of service attacks and tougher punishments to deter them. According to PC Pro, "Most present agreed that while much of the original CMA has stood the test of time well in terms of application, the lack of cases brought under it means it has rarely been tested as to its real effectiveness as legislation against such crimes."

Thursday, April 29

Phone Betting Decline in UK -- The Independent reports that British bookmaker William Hill has experienced a 20 percent decrease in telephone betting since the demise of the attheraces racing network. Telephone betting constitutes 15 percent of the company's total business, and about 75 percent of phone bets are horse racing wagers. Nevertheless, William Hill CEO David Harding isn't discouraged. ". . . It is a storm we can weather, as it means that more people are coming in to our shops," Harding said. Some analysts speculate that other bookies are taking more damage than William Hill. Paul Leyland, an analyst at Seymour Pierce told the paper, "We think there has been an industry-wide decline of at least 20 percent. For some companies, the numbers could be even higher and 40 per cent is possible. "William Hill, along with Ladbrokes and Coral Eurobet, would like to see the horse race tracks launch a free-to-air channel, but the tracks are currently negotiating subscription ventures that would generate a limited audience, probably of around 30,000 people.

New Microgames -- Turnkey software provider Microgaming has added five new games to its casino suite. Two of them are updated five-reel versions of existing progressive jackpot games, Cash Splash and Major Millions. "Skull Duggery" is a new five-reel video slot with a humorous Caribbean flavor, and Vinyl Countdown is another new five-reel video slot with a retro rock n' roll theme. The new Jacks or Better video poker game has been added to Microgaming's Power Poker suite and lets players play 10 hands at once with a 52-card pack for each hand. King Neptune's Casino and Trident Lounge Casino have already implemented the new Viper-powered additions.

bet365 Poker -- Sports book bet365 is launching a PrimaPoker.com card room, becoming the 24th site on the integrated PrimaPoker network. Powered by Microgaming software, the Prima Poker network combines all of the individually branded card rooms into one massive, seamless network.

Good Neighbors -- Ten more horse racing clubs in the Asian Racing Federation yesterday signed on to the Good Neighbor Policy, pledging to uphold racing integrity and combat illegal offshore betting by refusing bets to residents of other signatory jurisdictions and refraining from marketing wagering services in other signatory jurisdictions without permission. Macau Jockey Club, Mauritius Turf Club, National Horseracing Authority of Southern Africa, Royal Bangkok Sports Club in Thailand, Equestrian and Horse Racing Club (Kingdom of Bahrain), Qatar Racing & Equestrian Club, Manila Jockey Club, Jockey Club of Pakistan, Royal Horse Racing Club (Sultanate of Oman), and the Malayan Racing Association are the 10 additions to the pact. They join the racing clubs of Australia, Hong Kong, India, Japan, Korea, New Zealand, Singapore and Turkey.

Charitable -- Million-2-1, a UK-licensed games and lottery operator, has stated that it will donate 35 percent of the proceeds from all of its charitable lotteries (15 percent more than is required) to good causes. The company's CEO explains, "The forthcoming Gambling Bill will present consumers with many more choices of who to play with. If we really want to be seen as the people’s choice in the soft gaming market, then just providing the most fun games will not be sufficient. We must also be the most responsible."

Sporting Options -- Betting exchange operator Sporting Options is this week launching its new mobile site that permits customers to place bets through cHTML-enabled browsers, most smart phones, smart communicators and mobile PDAs. The company received its largest monthly commission ever in March and recently announced that it matched 1 million bets for the first time on April 10.

Quoteworthy -- "One of the important things to do is to work closely together and form a betting exchanges' trade body. We're actively discussing that."
-- Andrew Silverman, Betfair's director of public affairs. New Media Age reported that England's three largest betting exchanges, Betfair, Betdaq, and Sporting Options, could soon form an a trade association in order to counter the joint scrutiny's committee's suggestions that certain betting exchange customers be subject to stricter regulations and higher taxes.

Wednesday, April 28

Quoteworthy -- "Gamblers are voters, wealthy, and have rights too, and we expect that many American gamblers will voice their opinions on the electoral process, especially how the current state of affairs affects their rights. This poll is an excellent means for us to further establish the will of millions of patriotic American gamblers. Online gambling is legal according to the recent WTO ruling and will continue to grow. The winner of our Internet poll will get a $100,000 donation from CasinoFortune.com. We are confident the winner will respect the rights Americans who wish to gamble and realize the importance of regulating and taxing our huge industry."
-- Dennis Rose, senior vice president of CasinoFortune.com, which on April 1 launched a poll for the upcoming U.S. presidential election. As of this morning, 6,969 people had voted, giving John F. Kerry the lead with 56 percent of the votes while incumbent George W. Bush had 44 percent of the votes.

Horse Racing Channel -- The Racing Post reports that seven more British tracks have either signed or are about to sign a contract with the Horse Racing Channel, the proposed new daily subscription-based TV service that several tracks are attempting to organize. With the new tracks--Beverley, Catterick, Pontefract, Redcar, Thirsk, Wetherby and Musselburgh--the channel has now gained approval from 27 of the country's 59 tracks, constituting 564 (42 percent) of the 1,341 meetings on this year's racing calendar. The channel's promoters say they already have the support of enough tracks to be able to assemble a program of fixtures that could offer a minimum of two meetings on most days.

Redesign -- VIPcasino.com has redesigned the lobby of its Web site in what it calls a push to give VIP players the customized service they deserve. The new lobby features active hotlinks that take players directly to the most popular casino games in each category. The company's Casino Relations Manager, Kate Berkeley, says she is focused on greater player involvement in the development of VIPcasino.com.

Track Sponsor -- Gamebookers, an international betting group that last week announced it had received a bookmaker's license in Ireland to add to its licenses in the United Kingdom, Austria and Antigua, signed sponsorship deals with Windsor and Salisbury racecourses order to promote its horse race betting services. Gamebookers will place advertisements on the rails and distribute promotional material at both courses.

Sports Marketing -- Research and Markets, a provider of international market research and market data, has published a report titled "The Business of Sports Marketing," which reviews the current state of the sports marketing industry and explains how it will likely develop in the next decade and what issues will be critical. Among some of the topics included in the report are sports marketing and its relationship to the Internet, described in subsections dealing with gambling, video streaming, e-commerce, SMS and 3G.

Security Lacking -- The U.K. Department of Trade and Industry published its "Information Security Breaches Survey 2004" this week, warning that viruses, hackers and spam are a growing problem because British firms are not paying enough attention to IT security. According to the report, most companys spend less than 1 percent of their IT budget on security systems, and many have failed to improve their performance on IT security issues that were brought to their attention after the 2002 survey. The department expects that the security market should grow to 7 percent of most companies' overall IT budget by 2007. Mobile security is expected to grow even faster, increasing by 71 percent to $1.27 billion in 2007.

Pagcor to Face Corruption Charges -- Philippines Amusement and Gaming Corporation (Pagcor) is likely to face charges from several complainants in a corruption case alleging that the company engaged in deals that cost the government at least $8 million in revenue. One group, PlunderWatch, plans to file the complaint to the Office of the Ombudsman after the country's elections on May 10. PlunderWatch Convenor Carol Araullo said that the $8 million had been diverted to Pagcor's seven private partners in slot machine arcade operations. Araullo said the government also lost $3.7 million in income because the percentage share of Pagcor's partners was not remitted to the national treasury. The Philippine Sports Commission is also thought to have lost out on $186,000. Aruallo stated that President Macapagal-Arroyo should be held accountable for allowing Pagcor's abuses to occur. PlunderWatch and the groups have asked the president to prove that she did not approve Pagcor's dealings by demanding the resignation of Pagcor's board members.

Tuesday, April 27

Flight of the Albatross -- The Ladbrokes Big Bird Race begins today as 18 tagged Tasmanian shy albatrosses depart from the coast of Australia en route to South Africa as part of their annual migration. The idea for the albatross race was hatched by the Conservation Foundation in an attempt to attract attention to the long-line fishing techniques that kill an estimated 300,000 sea birds each year and the pressing extinction that many species of albatross now face as a result of the fishing methods. Ladbrokes, which is funding the event, is encouraging punters to wager on the birds and has launched an interactive map on its Web site that allows viewers to chart the progress of each bird. Conservative Foundation spokesperson Professor David Bellamy said, "We all hope the runners complete the course safely but the truth is they face a gruesome death from badly executed long-line fishing practices."

Will Beadman Jump on Tab? -- Lonhro jockey Darren Beadman, who last week discovered his name had been used without his permission in one of Tab Ltd.'s anti-betting exchange advertisements, has begun legal proceedings against the company. Appearing in The Australian Financial Review and The Australian last Monday, just two days after Lonhro and Beadman were upset at the Queen Elizabeth Stakes at Randwick, Tab's advertisement included the message, "Will Darren Beadman Jump Off Lonhro?" followed by, "Ask for a price with Internet Betting Exchanges." The statements were an obvious allusion to a controversial race in Britain that gained much attention last month because jockey Sean Fox jumped off Ice Horse, prompting spectators to wonder whether the race had been fixed. Beadman feels he has been defamed by the advertisement.

Nevada Kiosks -- Online sports betting kiosks are becoming popular in Nevada, but the state's gaming officials have no intentions of allowing casino games on the machines. American Wagering Inc. operates kiosks in hotels and casinos in parts of rural Nevada where no books exist. Another company, VirtGame Corp., recently received permanent manufacturing and distributing licenses from the Nevada Gaming Commission. VirtGame is testing kiosks in bars and taverns in Clark County that allow users to wager on sporting events. Users must already have an account, however, with the casino with which the bet is placed.

Ritz Poker -- Ritz Club London Online has launched an online poker room powered by software from CryptoLogic's subsidiary WagerLogic. Crypto has supplied Ritz with poker software customized to the Club's own unique branding and featuring Texas Hold'em, Omaha High/Low, and 7-Card Stud. The Ritz Club London Online has already been using WagerLogic's casino software since 2002.

Charity Golf -- Following the iGaming Jurisdiction Showcase on June 1 in London, Lyceum Media, iGaming Business, and PKF Malta will present the first annual iGaming Charity Golf Day the next day. A portion of the proceeds of the event will be donated to the England's registered problem gambling charity, Gamcare.

Monday, April 26

Nat'l Lottery on iTV -- The U.K. National Lottery has launched on Sky Active, giving British players the luxury of buying their lotto tickets from the comfort of their own living room. Up to eight weeks in advance players can pick their own numbers or select the Lucky Dip option for the Lotto drawing every Wednesday and Saturday. Players will be automatically notified if they have won, and the service will credit winnings to the player’s account (unless the win is sufficiently large enough to require being picked up at a regional prize payout center). Following last year’s launch of Lotto, Daily Play, and interactive scratch-cards on the Internet, the iTV project is the latest phase of Camelot's strategy to offer more ways to access the National Lottery’s products. The National Lottery has seen quarter-on-quarter sales growth for the first three quarters of this fiscal year, marking its best performance in four years. Camelot also plans to launch the National Lottery on mobile telephones this year.

Page 3's Girls -- Victor Chandler has partnered with Sun Online to create the Page 3 Casino and Page 3 Poker Room, two new sites targeting a predominantly male audience by featuring the sexy girls and style of the Sun's Page 3. The casino games run on non-download flash technology and feature traditional favorites like blackjack and roulette as well as newer games like Red Dog and Pai Gow Poker.

Social Responsibility -- The Observer reports that U.K. Culture Secretary Tessa Jowell's stance on the social responsibility of gambling licensees to fight gambling addiction could entail casinos training their croupiers to identify and remove problem gamblers from the casino floor. "We haven't taken a settled view on this," she said, "but it could include training for staff, evidence that staff are required to exercise this degree of vigilance." Gaming machines may also end up taking a role in the social responsibility policy by cutting out after a certain amount of money has been spent. Along similar lines, online gaming sites could reject credit cards after a certain amount of money has been spent.

Church-TAB Alliance -- Though they often argue different sides of gambling issues, the Uniting Church in Australia and TAB Ltd. have teamed up to announce a joint statement asking Communications Minister Daryl Williams to block a loophole in Australian law that allows betting exchanges to operate. Wesley Mission's Gambling and Financial Counseling Services manager, Reverend Chester Carter, spoke out against the hazards of electronic gambling and called online betting exchanges more akin to poker machines than to traditional bookmakers. He said the 90 percent of the gamblers treated by his organization use poker machines instead of racing-based gambling, which he says has a lower risk since bets take longer to place and require more skill. "The thing that fuels electronic gambling is instant gratification," said Carter. "Betting on anything electronic is where the problem is." Carter is also worried that if the exchanges are banned in Australia then the local TABs will be forced to launch their own exchanges, making access to exchanges even more readily available.

Quoteworthy -- "I personally don't think Carruthers stands a chance against me. My recent trip to Cambodia has certainly aided in my development and will to survive under pressure packed situations."
-BoDog.com's CEO Cole Turner, who will take on BetonSports.com's CEO David Carruthers in a Sumo Match in Toronto at the Global Interactive Gaming Summit & Expo in three weeks. A Bodog.com press release listed Carruthers as the favorite at -140, while Turner was listed as even. According to Bodog President Rob Gillespie, "We let BetonSports handicap the showdown between our two offices. However, we feel they they were a little aggressive in how heavy a favorite they made Carruthers. Our Handicappers are very worried about the extra pressure they have put on their guy and that is reflected in the odds for the "chicken prop." The chicken prop Gillespie refers to is a special prepositional bet on whether either of the competitors will back out of the fight. Bodog.com lists long odds for Turner to back out (20/1), while the odds on Carruthers backing out are 5/1.were a little aggressive in how heavy a favorite they made Carruthers. Our Handicappers are very worried about the extra pressure they have put on their guy and that is reflected in the odds for the "chicken prop." The chicken prop Gillespie refers to is a special prepositional bet on whether either of the competitors will back out of the fight. Bodog.com lists long odds for Turner to back out (20/1), while the odds on Carruthers backing out are 5/1.