Weekly Nambling Notes

17 July 2004
Friday, July 16

Jackpotjoy.com on TV -- "Tonight with Trevor MacDonald," a current affairs television program on ITV1 in England, will tonight air a segment on the increasing number of women gambling online. The show will provide information about recent research indicating a rise in women players and will examine Jackpotjoy.com, a site that reportedly has more female than male players. Andrew Dixon, a spokesperson for the site, told the show, "Jackpotjoy.com did not set out to attract female players, and our marketing was never targeted as such, but within our first year of operations, we saw a large number of women joining the site. Now we make sure we design a number of games with our female players in mind, such as our recent 'Footballer's Widows' game, which received even more hits and winners than its male equivalent, 'Euro 2004 Penalty Shoot-Out.' Our success in attracting and retaining female players, is also reflected in our commercial partnerships, including major brands such as femail.co.uk and gm.tv."

Centrebet DDoS -- ABC Online reports that Northern Territory, Australia-based bookmaker Centrebet has admitted to paying online extortionists to cease bombarding the company's Web site with DDoS attacks. The company admitted in April to having gone offline for an undisclosed amount of time due to DDoS attacks, estimating that the downtime cost it $2 million in turnover. Centrebet, which does 95 percent of its business online, is in the process of implementing hardware to combat future attacks.

Payment Options -- A man from New Jersey has been arrested for allegedly running an online betting site that allowed players to receive winnings in cash or sex. Police say the site's operator, Salvatore Teodoro, employed prostitutes, two of whom were under 18, to deliver cash or sexual services to winners. Police had been observing the operation for the last five months, but had to apprehend Teodoro sooner than planned because he physically beat an informant after discovering he was working with the police. The site apparently gained new players through word of mouth.

Chandler's SportXction -- Interactive Systems Worldwide Inc (ISWI), has signed another deal with Victor Chandler to make its SportXction play-by-play wagering system available at Victor Chandler's international Web site, www.victorchandler.com. In June ISWI signed a deal with Victor Chandler UK Limited, the British operating arm of the Victor Chandler Group, to make the SportXction system available at www.victorchandler.uk.co. This latest agreement makes the SportXction system available to all of Victor Chandler's international customers. Last week ISWI announced that it had developed a version of SportXction that could accept wagers in any language and any currency.

Quoteworthy -- "It's a rare event for all the states and territories and all the racing industry to agree, but this was the case with betting exchanges. The federal government obviously is driven by an election imperative. They are in policy-free mode. Here was an easy opportunity to render betting exchanges ineffective. All the federal government had to do was extend a ban on Internet casinos to include betting exchanges. The states don't have the power to stop the intrusion into the Australian market by overseas betting exchanges. It needed to come from the communications minister. The states and territories have said they won't license betting exchanges. But if there is one crack, my company will be straight in. We will either start a betting exchange in our own right or in an alliance with an interested party. And there will be plenty of interested parties wanting to set up business with us. I am not going to sit back and see our business undermined by Internet operators from outside Australia."

- UNiTAB's CEO Dick McIlwain, commenting to the Courier-Mail about the Australian government's decision to not amend the Interactive Gambling Act.

Also in Australia -- Juggernaut British betting exchange operator Betfair says it would create 150 jobs in Tasmania if the state government were to grant the company a license to operate in the state. . . . Syd Sterling, the Northern Territory's racing minister, said his state would not be the first to license a betting exchange.

Year-Round Operations -- Hong Kong Jockey Club chairman Ronald Arculli has proposed a plan that would allow the club to telecast and offer bets on overseas horse races to residents of Hong Kong. The suggestion is part of a plan to extend the club's operations to a year-round schedule and increase revenue. If allowed to wager on overseas matches, punters would be able to bet year-round (currently no races are held in the summer months) and workers would remain employed during the summer months. Other measures include shifting some of the race meetings on the dirt track at Sha Tin in June to the months of July and August. The plan awaits government approval.

Jockey Charged -- The UK Jockey Club has charged jockey Gary Carter with "conspiring to ensure that certain horses he rode would not win or be placed in the interests of bets laid on [the Internet betting exchange] Betfair." Another jockey, Pat McCabe, and trainer Shaun Keightley will face similar charges in relation to the running of Red Lancer at Wolverhampton in October 2003.

Be the Croupier -- Nova Internet, a British Virgin Islands-based company, has created a person-to-person casino site called Croupier Club that lets members participate in games as either a regular player or the croupier. The site is operated by C.V. Holdings LTD, a registered company located in the Isle of Man with a gaming license in Curacao.

Thursday, July 15

IGW in Nepal -- IGW Software has licensed its back office software and sports book and casino products to Global Millennium Holdings, a Netherlands Antilles-based operator that has launched Casino Nepal Online to provide the Nepalese and Indian markets with a customized gaming experience. The site offers betting in U.S. dollars and Indian rupees.

Stanley v. Italy -- British gaming company Stanley Leisure, which last year obtained what it considered a victory in the Gambelli case before the European Court of Justice, may be preparing to file a formal complaint with the European Commission. The European Court ruled in the Gambelli case that Italy (and all other member states) could only maintain a monopoly gambling company within its borders if it did so to protect the public and not to raise government revenues. Stanley, however, disagrees with the Italian Supreme Court's ruling in April that the country's restrictive policies prevent problem gambling and gambling-related crimes.

Harrah's Courts Caesar's -- Harrah's Entertainment has signed an agreement to acquire Caesar's Entertainment, effectively creating the largest gambling company in the world. Both companies' boards of directors have unanimously approved a deal in which Harrah's will pay $1.8 billion in cash and $3.4 billion in Harrah's stock for all the shares of Caesar's in addition to taking $4.2 billion of Caesar's debt. Caesar's operates 28 casinos, providing 186,000 square meters of gaming space and 26,000 hotel rooms, while Harrah's operates 28 casinos with about 160,000 square meters of gaming space and 15,650 hotel rooms.

Wednesday, July 14

Big Bird Winner -- Ladbrokes.com has declared Aphrodite, the only albatross to successfully complete the voyage from Australia to South Africa, the winner of the Ladbrokes.com Big Bird Race 2004. The company donated funds to have the birds fitted with satellite tracking devices and then permitted wagering on the race to draw international attention to the endangered species, which is falling prey to long-line fishing methods. The flights of Aphrodite and the 17 other albatrosses have apparently yielded a treasure trove of information for scientists studying the species and its migratory flight patterns.

New Ministers -- Australian Prime Minister John Howard has reshuffled his cabinet to "further strengthen and invigorate and refresh the federal ministry as we move through this year." Daryl Williams, the Minister for Communications, Information, Technology, and the Arts, who took over the position from Senator Richard Alston last fall, is one of two retiring ministers to be replaced. The position will now be filled by Helen Coonan, a Liberal Senator from NSW. The Communications Ministry is responsible for overseeing the Interactive Gambling Act and other matters concerning online gambling. Analysts believe the government shakeup is a sure indication that an Australian election will be called in either October of November.

Quoteworthy -- "I was in it but I was wrong and lost money. I lost 1,000 yen."-- Japanese Posts and Telecommunications Minister Taro Aso stated yesterday that he lost 1,000 yen ($9.23) betting on the results of an election which his party lost. Gambling, however, is not legal in Japan and Aso has taken much criticism for the comment. One of his cabinet secretaries told the press that Aso was probably joking and didn't really place the bet. Aso last put his foot in his mouth in 2001 when he publicly stated that he wanted to make Japan the kind of country where "rich Jews" would want to live.

Streaming Celebrity Poker -- CelebPoker.com, a Kahnawake-licensed online poker site that gives members a chance to play poker against celebrities, recently acquired Lou Diamond Phillips as it latest celebrity. Others include Gareth Hunt, Harry Redknapp, Kenny Lynch, Lawrence Dallaglio, Scott Robinson, and Nick Leeson (a.k.a the Rogue Trader). The site's founder, David Donavon, says he hopes to soon integrate live video streaming capabilities into the CelebPoker network so that members can actually see the celebrities they are playing against. Other plans include launching a betting exchange, multi-player bingo and a celebrity auction.

Stop Texting -- Malaysia's Information Ministry has asked radio and TV stations to stop holding contests which award prizes to the person who send the most text messages. The minister's two main concerns are that such contests contain an element of gambling and that the identity of the people operating the contests are usually not known.

Ref Investigation -- Two Serie A soccer referees in Italy have been placed under investigation by Napoli's police for suspected match-fixing and have consequently been suspended by the league. Police in May raided several soccer clubs and announced that several players and club officials were under investigation for alleged mafia-related illegal betting and match-fixing.

Tuesday, July 13

Innovators -- Time Magazine has named Betfair's founder, Andrew Black, to its list of innovation specialists--"10 leaders who are helping to shape the future of communications, entertainment, medicine. . . and laundromats." The list will appear in the July 19 edition of Time along with a synopsis of Betfair's operations and how they are changing the world.

Roulette Returns -- Sky Subscriber Services Ltd., the interactive services division of BSkyB, has informed gaming operators that it will allow roulette games back onto its network. Sky, which stopped carrying roulette over a year ago, has changed its policy after consulting the Gaming Board, which last year ruled in a test case against the Association of British Bookmakers that betting shops could offer fixed-odds betting terminals, but they could not offer any casino games other than roulette. The rules apparently apply to iTV gaming as well. Other casino games are still banned.

Svenska's Spending -- According to the Nordic Business Report, Svenska Spel, Sweden's state gambling monopoly, spends about $96.4 million on marketing, making it the nation's second largest consumer advertiser. Meanwhile, the company spends $1.9 million on problem gambling treatment. The business journal also reported that some Swedish media companies have begun accepting advertisements from foreign betting companies--Unibet, Ladbrokes and Expect--even though Sweden's law prohibits them from advertising in Swedish media.

HRTV Joins Dish Network -- Magna Entertainment Corp's HorseRacing TV (HRTV) network has signed a carriage agreement with EchoStar Communications Coporation that will make HRTV available on Echostar's Dish Network beginning July 15. HRTV features television coverage of Magna's 13 racetracks and also has access to live coverage from over 60 other tracks in North America. The deal should make HRTV available to over 10 million homes in the United States.

eGAP Revisions -- eCOGRA, a privately funded, non-profit organization of I-gaming software providers and operators that seeks to ensure player protection in an unregulated industry, has made several provisions to its generally accepted practices (eGAP). According to the revised eGAP, terms and conditions applicable to promotional activities must now be clearly displayed and shall not be unreasonably altered subsequent to the wagering activity. Policies relating to anti-laundering have also been adjusted to accommodate the Financial Action Task Force's guidelines. Additionally, games and slots must have a combined estimated statistical return to players of at least 92 percent. These and several other revisions can be viewed at www.ecogra.org.

Baccarat Bust -- Police in Zhejiang, China arrested 47 people Friday in an online gambling ring in which players used the Internet to bet on Baccarat games based in Myanmar. Actual players moved cards and chips in Myanmar, but the Chinese viewers could participate via the video feeds. Police are still searching for 20 additional suspects in the case.

Monday, July 12

Best Use of Technology -- Betfair has taken the award for Best Use of Technology at its regional National Business Awards. The company will advance as a candidate for the national final in November. Betfair's chief technology officer, David Yu, explained, "Our technology is constantly being challenged by the phenomenal growth of the company and the event-driven demands of our customers. We have retained 90 percent of the betting exchange market, and it is paramount that we remain as the leader in the technology battle." Betfair won the Queen's Award for Enterprise in 2003.

2.5G Mobile Service -- The Sunday Business Post in Ireland reported that betting volume and the number of customers using the new Paddy Power Mobile service are ahead of expectations. The service, which launched just three weeks ago, was developed by mFuse and speeds up the betting process by using 2.5G java-based technology. The service also features real-time pricing information and handset recognition, which simplifies the login process by requiring users to enter only a four-digit PIN code.

Technology Investment -- Irish bookmaker Boylesports plans to invest €3 million on a new betting platform that will enable punters to use a single account for betting through its retail, fon-a-bet and Internet services. The new system will speed up services and should be integrated by the end of December.

Handheld Terminals -- AB Trav och Galopp (ATG), Sweden's national horse betting company, has chosen EssNet to provide handheld terminals and software services at racetracks across the country. EssNet's handheld terminals will feature a touch-screen interface with a wireless LAN connection and Web browser. They will be installed at a few tracks for a trial period before being rolled out at several more tracks and even at some off-track agents. Ronnie Ronnersjö, ATG's Manager of IT systems, said, "Today, at the horse racing tracks in Sweden, players can only place bets at manually operated terminals accepting both verbal bets and coupons. ATG is now planning to install self-service terminals and the first step is to develop a terminal for use by the players directly at the restaurant tables."

Futures Trading -- Tradesports.com, an Ireland-based futures trading betting site, says that it will soon open contracts on technology events, such as when a new major virus will appear, or when eBay will be brought down by a DDoS attack. The site already offers contracts on political events, such as presidential elections and assassinations, and also on certain stock market performances, such as how well Google's shares will fare on their first day of trading.

Phantom and DGS -- The wireless technology experts at Phantom Fiber have signed a four-year license agreement with Digital Gaming Solutions (DGS) whereby Phantom Fiber will develop a mobile wagering platform based on DGS software. DGS, a company that provides software to the retail wagering electronic point of sale, Internet sport betting, online casino gaming and call center industries, will then market the mobile wagering platform to casino and sports book properties. Gaming operators can use DGS software to provide a one-stop wagering solution.