Weekly Nambling Notes

9 November 2004
Friday, Nov. 5

Break? -- An advocacy group called The Watch, which is composed of educators, religious leaders and social workers, has asked the Hong Kong Jockey Club to implement a one-month break in football betting each year in order to give addicted punters a cooling off period. The group also asked the government to limit the number of matches that can be wagered on.

Mobile WinOne -- Finnish I-gaming software provider European Game & Entertainment Technology (EGET) has launched a mobile version of its WinOne gaming platform for online gaming. Based on the original WinOne gaming platform, Mobile WinOne offers MMS and Java games, and the platform's interface can be plugged into operators' existing infrastructure.

New Policy -- Gibraltar-licensed online casino 32Red.com has decided to accept bets from players in the U.S. The site's previous policy was to reject all U.S. players.

Spam Conviction -- Two siblings from North Carolina, Jeremy Jaynes and Jessica DeGroot, have been convicted of the first spam-related prosecution in the U.S. The two were found guilty of three counts of sending millions of spam messages with fraudulent and untraceable routing information to America Online users. Jaynes received nine years in prison while DeGroot received only a fine of $7,500.

Thursday, Nov. 4

Happy Birthday -- To celebrate its 10th birthday, the U.K. National Lottery is giving customers who purchase tickets to this Saturday's draw a chance to win a special £10 million jackpot-only birthday draw. Camelot, the lottery's operator, commissioned London-based interactive design agency NowWashYourHands to develop a special page on the lottery Web site to promote the jackpot.

The Real Reason -- Professor Ian Walker, an economist at the University of Warwick, recently published an article in The Scotsman refuting what he considers a misguided belief that players care about what happens to the profit from lottery sales. Walker argues that players are driven almost purely by dreams of cashing in on massive jackpots and he cites the fact that neither positive nor negative publicity over lottery-funded projects ever has much of an effect on ticket sales.

Quoteworthy -- "It's wrong that the Americans should have the right to refuse a business operation based in London, Gibraltar or elsewhere, and we should push them hard on that. If they're to have access to our gambling industry, we should insist that they bring their laws in line with ours."

--Tony Banks, a prominent Labour Member of Parliament, speaking on Monday during a debate on the Gambling Bill in the House of Commons. Banks, who served on the draft Gambling Bill's scrutiny committee this month, is a proponent of regulating remote gambling in the United Kingdom.

Access Forbidden -- Pol. Col. Yannaphol Yangyuen, a senior police officer with Thailand's Office of Technology and Information Technology, stated that Thai authorities will soon block access to 10 foreign online gambling Web sites. The block will require the cooperation of Thailand's 18 Internet service providers. Yangyuen did concede, however, that savvy Internet users would be able to circumvent the block.

New Site -- A new online gaming site, Golden Cairo Casino, has officially opened, offering 30 non-download games using a software platform by iGamingNetworks. Owned by Infolot Holdings S.A., Golden Cairo is licensed and regulated by the government of St. Kitts and Nevis.

Space Cadets -- One-of-a-kind George Bush and John Kerry look-alike Cabbage Patch Kids are the latest objects named to the passenger list of the GoldenPalace.com-sponsored Wild Fire spacecraft. Golden Palace purchased the two dolls for $1,030 (Bush) and $1,225 (Kerry), with all proceeds benefiting the Red Cross.

Election Betting -- British bookmakers reportedly took around £8 million in betting turnover for the U.S. presidential election, making it the largest political betting market ever. Incumbent George Bush was a comfortable favorite for several months leading up to the election, but John Kerry's odds slowly improved as the election grew closer. Many books actually shifted odds to make Kerry the favorite in the final hours of the campaign as Americans papers reported record numbers of voters at the polls. William Hill reported close to £2 million in turnover on the election and is already taking bets on the 2008 campaign. Hilary Clinton, the wife of former president Bill Clinton is the current favorite with odds at 5-1, followed by former New York City mayor Rudolph Giuliani and 2004 vice presidential candidate John Edwards at 7-1 and California Governor and action movie star Arnold Schwarzenegger at 66-1.

Chicken Fight -- Intertops is taking bets on Burger King's first ever Chicken Sandwich World Championship, which pits two actors in chicken costumes face-to-face in a boxing ring. The fight will be broadcast live on DirecTV Friday night.

Wednesday, Nov. 3

Swedish Ruling -- Svenska Spel, the Swedish National Lottery, plans to reduce its TV and billboard advertising costs by 20 percent following a ruling by Sweden's Supreme Administrative Court forbidding foreign Internet operators from running ads in Sweden. The group's CEO, Jesper Kärrbrink, says that over the past few years, Svenska Spel needed to increase its marketing to match the aggressive campaigns of the foreign operators, but with their competition now gone, Karrbrink says it is fair to invest less in promoting its games. He says the cut-back is also a response to the European Court of Justice's demands that regulated operators demonstrate responsibility in protecting the market. To that end, Svenska Spel will also remove 250 video lottery terminals from profitable restaurants, where the machines account for more revenue than food and drinks do.

The Supreme Administrative Court also decided that the Swedish gaming monopoly does not violate European regulations. As a result, the National Gaming Board is now threatening to close foreign gambling companies' Swedish offices.

In-Air Gambling -- Dublin-based low-cost airline Ryanair plans to increase revenues by offering in-air gambling services to passengers when traveling over international waters. Speculating on jurisdictional regulations, the company's CEO Michael O'Leary stated, "I don't know who would stop you. It is like duty free; you are in international waters." BBC reports that several gambling firms have expressed interest though no talks are yet underway.

Ontario Stats -- A new study by the Ontario Problem Gambling Research Center suggests that people with gambling problems account for more that one third of the total $4 billion spent on gambling each year in Ontario. According to the study, the 4.8 percent of Ontario residents with gambling problems gamble $1.41 billion annually. Other findings indicate that problem gamblers account for 36 percent of overall gambling revenue and up to 60 percent of revenue from gaming machines, 53 percent of revenue from horse racing and 19 percent of revenue from lotteries. The province spends $36 million per year to research, prevent and treat problem gambling.

Dealing -- I-gaming software developer Chimera Technology Corp. has signed a letter of intent with Arizona-based Grade Point Average Inc., giving Grade Point Average exclusive rights to market Chimera's gaming platforms in Europe and Africa.

New Games -- Svenska Spel is adding what it calls probability games to its Web site. Dubbed pick 'nclick, the three new games all have the potential to be won if the player correctly chooses the winning options. For example, one game, called "Three Card Poker," presents nine cards to choose from, and the player wins if he correctly guesses the three winning cards. The two other probability games are called "Dice" and "Penalty Shooting."

British gaming and fruit machine site Cyberslotz.co.uk, which is part of the RAL group of companies, has launched a new "Multi Wheel Roulette" game that gives players up to six chances to win on six simultaneously spinning wheels. Players can play on just one roulette wheel or add up to five additional wheels by increasing the initial stake. The game offers the same odds as traditional roulette.

Tuesday, Nov. 2

Melbourne Cup -- The Melbourne Cup, Australia's biggest annual racing event, took place today, with Makybe Diva winning the Cup to become only the fourth horse and the first mare to take the honor two years in a row. New South Wales' Tab Ltd. raked in a record $51.3 million in wagering on the Cup, an 8 percent increase compared to last year's event, while Victoria's Tabcorp received $31.1 million in bets for a 4.2 percent increase and Queensland's UNiTAB received $30.3 million in bets for an 8.5 percent increase. During the night before the race, vandals pumped quick-drying glue into the door locks of 25 of Tab Ltd.'s betting shops so that the doors could not be opened. Locksmiths repaired the damage without too much inconvenience to punters. No one has claimed responsibility for the vandalism.

iGGBA's 50th -- Gambling Federation, an I-gaming operator and affiliate marketing firm, has joined iGGBA (interactive Gaming, Gambling and Betting Association) as its 50th member. The company provides casino software, operator management and marketing tools, customer and licensee support, financial, billing and payment services and hosting and technical support in 15 languages and multiple currencies. iGGBA is an E.U. I-gaming industry body that works with governments and regulators to formulate fair and proper regulation, uphold probity and trustworthiness in the industry and support standards of appropriate social responsibility.

NJ Lottery -- The New Jersey Lottery plans to add an online game of Tetris to its product offerings. Players can purchase scratch-off tickets from retailers and then enter an access code on the lottery's Web site to play the game. The cost to play the game of chance is $3, and prize payouts are as high as $10,000. The New Jersey lottery launched its first online game, "Cyber Slingo" (tickets for which must also be purchased at retailers), in February to much success. Cyber Slingo has brought in $12 million since its launch.

Betinternet Casino -- Isle of Man-based sports book Betinternet has signed a deal with Casino Webcam, a software provider of live online gambling services, to launch a live casino before the end of the year. Betinternet receives a majority of its revenue from Asian jurisdictions, and Casino Webcam hopes that the companies' agreement will help it obtain a wider consumer base in Asia. eGaming Review reports that a major U.K.-based sports book is expected to make a similar announcement in the next few weeks that it will be launching a live Web casino targeting Asian markets.

New Shoes for Golden Palace -- Representatives from GoldenPalace.com attended the Stuart Weitzman Celebrity Shoe Auction for Breast Cancer Research over the weekend and purchased shoes decorated by: Celine Dion, Hilary Duff, Destiny's Child, Jessica Simpson, Cher, 50 Cent, Queen Latifah, Pink, Peter Frampton, Alicia Keys and Macy Gray. The company spent over $18,000 in total, and all proceeds will fund breast cancer research. The shoes will join Beckham's ball and an Ellen DeGeneres look-alike Cabbage Patch Kid on a trip to space in the Golden Palace-sponsored spacecraft.

Welcome Aboard -- The Responsibility in Gambling Trust, which was established after the British government-commissioned independent Gambling Review Body (the Budd Report) recommended that an independent trust be set up to research and limit problem gambling, has announced that Robin Burgess will take over for retiring CEO David Beeton. Burgess joins the Responsibility in Gambling Trust from the Home Office (Drug Strategy Directorate) where he advised Home Office Ministers and helped formulate policy on the impact of drugs in such settings as clubs, the street, public housing and the workplace. . . . Online bingo portal Bingo.com has promoted Jason Williams to the position of vice president of business development. The company credits Williams, who joined Bingo.com in September 2001, with spearheading its sales and marketing activities and helping to create and execute its business strategy. Williams was formerly employed as a business development representative with Vancouver-based software company Blue Zone, Inc. and as a business analyst with RBC Dominion Securities. . . . VirtGame Corp., a company that provides server-based software solutions to the regulated gaming industry, has appointed Arnaldo F. Galassi to replace resigning Chief Financial Officer Bruce Merati. Galassie will oversee VirtGame's financial operations and reporting, budget and strategic planning, treasury operations and asset management.

Monday, Nov. 1

Crypto Version 6 -- InterCasino UK has launched a new version of its online casino using CryptoLogic's new Version 6 software platform. The new software features two new games, "Super Slideshow" and "Fruit Fight," which are similar to the fruit machines found in British soft gaming venues like pubs and restaurants. Other new games include "Casino Solitaire," "Casino War," "Super Fun 21" and "Bonus Video Poker." An improved games menu enables players to view an in-game preview of games before loading them.

Quoteworthy -- "If, in the course of Parliamentary scrutiny, it is absolutely clear that what people want to see is a more gradual approach, then of course we will consider that. I will take very seriously constructive proposals for improving this bill that arise during the course of its Parliamentary scrutiny."

--Tessa Jowell, England's secretary of Culture, Media and Sport. One week ago, Jowell dismissed the bill's dissenters as a minority of "snobs," but it appears that she is now willing to make some concessions to pass the bill. Part of the "gradual approach" might include putting a five to 10-year cap on the maximum number of casinos, which could be lifted after urban regeneration benefits and the effects of gambling addiction are evaluated.

VAT for Exchanges? -- The Sunday Business Post reports that Ireland's revenue commissioners have begun investigating whether betting exchange Betdaq, which should process over 1 billion euros in betting through its Dublin-based server this year, should remain tax-free. Some tax inspectors are arguing that Betdaq should be liable for a 21 percent VAT service tax. Some of the Business Post's sources speculate that the inquiry could be extended to all betting exchanges and might eventually end up in the High Court.

A Payment Revolution? -- U.K.-based Orbis, a News Corporation majority-owned online gambling software provider, is developing a technology plan that would create a plastic card that could be used to replace cash for all betting transactions with bookmakers, on the Internet and in casinos and could also be used for security verification. Such dedicated charge cards would benefit gambling operators by fighting fraud and eliminating some of the heavy fees credit card companies deduct from betting transactions. The cards are at least five years away from implementation, however. Orbis is also developing plans to convert all slot machines to Internet-style platforms.

Smart Card -- TVG Technologies Ltd., a provider of secure smart card crypto interfacing systems (not to be confused with TVG Networks), announced that it has received a letter of intent from a private customer regarding a long-term $50 million contract to supply its SmartNet product with added features over a five-year period. TVG Technologies plans to supply SmartNet with software applications for online casinos.

Nintendo Hold'em -- Mejecso, a company that provides diversified applications and content for digital entertainment platforms, has developed a Texas Hold'Em game for Nintendo's portable Game Boy Advance platform. Players can play in single-player mode against up to 10 other players or in career mode, in which they compete against computer-controlled players in the Texas Hold'Em championship tournament in Las Vegas.