Friday, Dec. 10
IGC Board -- The Interactive Gaming Council, an international trade association now in its eighth year of existence, has elected a new team of officers and directors. Longtime board member Mark Stone, a lawyer and chief financial officer of Creative Edge Enterprises, will take over the chair position previously held by co-founder and original chair Sue Schneider. Two new directors--Flaviano Fogli, general manager of Azur Media and CEO of Gambling Federation, and Alfred (Freddie) Ballester, managing director of iGlobalMedia subsidiary Bay Management Ltd.--will fill the vacancies left by Bryan Abboud, founder and managing director of Interactive Gaming & Wagering, and Alistair Assheton, managing director of VIP Management Services. Directors of the board who were re-elected to serve another two-year term include Robert Vermuelen, John Chalmers, Murray Marshall, Martin Thorvaldsson and Roger Raatgever. Continuing in their terms as board members are Micki Oster, Nancy Chan-Palmateer, Howard Yegendorf, John Anderson and Michael Lipton. The board elected Chalmers as vice-chair and Paul Sudolski as secretary, while Joanne Assheton was re-elected treasurer.
In-Sourced Call Center -- Bet Direct, the telephone and online betting arm of Littlewoods Gaming, has ended its outsourcing contract to bring its entire U.K. call center operations in house. The company has selected CCT (Call Centre Technology) to design and implement an Avaya-based call center solution to accommodate over 100 service agents. The solution integrates Q-Max's workforce management software, which should enable Bet Direct to optimize the use of call center agent resources and ensure a consistent high level of customer service.
Affiliate Service -- New affiliate service Casinofeed.info enables affiliate sites to display the most recent bonus offers and promotions the moment they are published. Casino groups that enroll in the service gain access to an administration area that enables them to publish and manage their latest deals. Affiliates can sign up to receive the information for free. The service is already being used by 32Red Casino, ReferBack and Vegas Partner Lounge. A full launch is planned for January.
Interactive TV? -- On Sunday, American cable game show network GSN will introduce an interactive programming segment called "You Win Live," which will let viewers log on to GSN.com to compete from home while watching episodes of "Who Wants To Be A Millionaire?," "Win Ben Stein's Money" and "Weakest Link." In addition to the questions featured in the programs, viewers will also answer questions presented in live studio segments. Both cash and non-cash prizes worth over $30,000 will be awarded.
Thursday, Dec. 9
p align="justify">Unclaimed Options -- Betfair reports that fewer than one third of the former customers of now-defunct betting exchange Sporting Options has taken Betfair up on its compensation offer. Although 5,342 punters still had funds in their Sporting Options accounts when the company collapsed, by Tuesday only 1,772 had signed up with Betfair to receive compensation. Betfair had set aside £3.5 million for its rescue package, but has distributed only £727,870.
Dead Bills -- The U.S. Senate last night approved a resolution that officially concluded the 108th Congress, meaning that the three active bills that would prohibit online gambling--H.R. 21, H.R. 2143 and S. 627 (all titled Unlawful Internet Gambling Funding Prohibition Act)--are now officially dead. Any future bill that would prohibit I-gaming would have to begin the process all over again, starting with an introduction and committee referral in the 109th Congress. Also this week, U.S. legislators came to an agreement on an intelligence reform bill (often referred to as the 9-11 Bill). An early version of the bill included language that would ban online gambling, but that section was removed. The passing of the 9-11 bill means the bill will not have to go through the committee process again, where it would risk being supplemented with more anti-online gambling sections.
Israel's Concern -- Israel's Council for the Regularization of Gambling in Sport recently sent a letter to State Prosecutor Eran Shendar, Israel Police chief of investigations Commander Moshe Mizrahi, and Israel Tax Authority Director Eitan Rub demanding the enforcement of the country's prohibited games, lottery and betting laws against online gambling. The letter, which asks for a "change in priorities to investigate and indict criminals in this area," estimates the volume of illegal betting in Israel at US$230 million per year. The council states that illegal online gambling typically involves organized crime, violence and money laundering and also that the problem is worsening because online gambling is easily accessible and is not a high priority for law enforcement officials. To combat illegal online gambling, the council suggests examining Internet servers to identify illegal operators and enacting a new bill to treat online gambling.
Cantor's Casino -- Online gaming software provider GMEI (Gaming & Entertainment Group, Inc.) has entered into a definitive agreement with Cantor G&W, an affiliate of licensed U.K. bookmaker Cantor Index, whereby GMEI will exclusively license its online gaming software to Cantor in exchange for up to $8.8 million worth of debt and equity financing. Cantor, which needed to find a software provider that did not accept wagers from the United States, will use GMEI's online casino software to launch an online casino based in Alderney. GMEI plans to use its revenue from the deal to fund its plan to place fixed-odds betting terminals and gaming machines in the United Kingdom and in other markets. It will also develop more online gaming sites for white-label clients of the GMEI/Cantor business.
Think Tank -- The National Center for Responsible Gambling is considering forming a new group that would establish a global team of gambling addiction experts that would meet at least once a year to share research, establish agendas and form effective treatment approaches. An NCRG advisory board plans to discuss the formation of such a think tank at its next meeting in three months. The NCRG is casino-funded non-profit group composed of officials from gaming companies, health providers and researchers. The group promotes problem gambling awareness and raises money for research.
Wednesday, Dec. 8
PokerNetwork -- Poker software licensing firm PokerNetwork has signed three new licensees: Net Entertainment, Hollywood Poker and Futurebet. Net Entertainment is a subsidiary of Swedish Stock Exchange-listed Cherry and a provider of non-download Internet casino software. Hollywood Poker is an American celebrity poker site headed by actor James Woods and Futurebet is a Canadian software company that will begin licensing PokerNetwork's software to other licensees through third-party agreements. PokerNetwork, which has a worldwide player base over 3 million, gives players the option of playing with Java-based, no download platform or with a downloadable client for Windows.
Antitrust Fines -- Italian gaming company Lottomatica SpA has been fined 8 million euros by Italy's antitrust authority for agreeing to share the games and betting market with rival company Sisal, which was also fined 2.8 million euros. An investigation launched in July 2003 determined that the companies were successful in keeping two competing operators, Formula Giochi and G-Tech, from entering the contest to manage games that were previously managed by state-owned provider Coni. The authority claims that that Lottomatica and Sisal entered a market sharing deal in October 2001, and that it lasted until after the launch of the investigation. The companies plan to appeal the decision. Lottomatica argues that there is a historical rivalry between itself and Sisal, and that its independent behavior is evidenced by its strong diversification from the Lotto game and by large investments that would not make sense if it had agreements with other companies.
Oddities -- GoldenPalace.com's latest buys include a supposedly haunted walking cane that was auctioned on eBay for $65,000. The cane's seller claims that the ghost of her father, who used to tap her five-year old son with the cane whenever he misbehaved, returns repeatedly to torment her son. The online casino also recently purchased staplers autographed by Paris Hilton, Bill Gates, Jennifer Love Hewitt, Donald Trump and Tom Brady, as part of the "Staplers of the Stars" online charity auction created by Staples. The $12,000 raised by Staples will benefit several charities designated by contributing celebrities.
Making Deals -- I-gaming software provider Chimera Technology Corp has signed a $2 million deal to sell a master license agreement for Europe and Africa to Pegasus Gaming Corp. The deal calls for Pegasus to pay $1 million to be paid in quarterly payments of $25,000 while the remaining $1 million will be paid in common stock of Pegasus. Chimera will also receive a royalty fee from Pegasus' online gaming operations.
Tuesday, Dec. 7
Rumor Mill -- Today's big rumor is that Hilton Group, owner of British betting shop giant Ladbrokes, is seeking to acquire Internet-based betting giant Sportingbet. Though some analysts dismiss the rumors as speculation, others believe that Ladbrokes' increase of at least 50 new staff members in its e-gaming department-including some at senior management levels--is an indication of its intentions. The Daily Mail estimates that such a deal would net Sportingbet £807 million, or 250p per share. Sportingbet, which only a few weeks ago purchased Paradise Poker for about £170 million, saw its share price increase 8p on today's rumors to close at 180.5p. One important thing to note, however, is that Ladbrokes could face a potential problem in acquiring Sportingbet because in doing so, it would obtain a firm grasp on the U.S. market.
AFL Agreement -- The Australian Football League has verified that it is considering entering formal arrangements with Australia's bookmakers to obtain revenue from wagering. By doing so the league would likely obtain millions of dollars in commissions from bookmakers each year. "I don't think it's any secret that a number of industry participants have said they're going to approach various sporting bodies about a formal relationship," AFL General Manager Gillon McLachlan commented. "We're one of those, and yes, I can confirm we have been approached by various parties. That's about as much as I'd like to say at this stage. . . . Sports betting is a growth market worldwide, and we think it's reasonable for our industry to receive its fair share of the revenue created by the game." Sports betting in Australia will yield between $1.5 billion and $2 billion this year, but the AFL is receiving no money from bookies. In addition to earning the league money, a formal arrangement would give the league access to bookmakers' betting sheets.
Moving to Malta? -- Officials in Malta say that British operators who are growing increasingly concerned that new U.K. gambling policies will require licensed operators to keep all aspects of remote gaming businesses in the country are considering Malta as their new destination. Mario Galea, CEO of Malta's Lotteries and Gaming Authority, told eGaming Review, "We have U.K. operators interested in Malta as a lot of people are angry and frustrated with the Gambling Bill. . . . My feeling is there is not enough of an attraction for people to establish an industry unless the U.K. government makes some changes in the way it is interpreting the bill."
Welcome Aboard -- The Tote (UK) has appointed Tim Betteridge, currently chief executive of Wetherby racecourse, to the new position of racecourse commercial director for Totepool, the company's pool-betting division. Betteridge's main task will be to maximize the Tote's commercial performance at the racecourses. . . . I-gaming software provider CryptoLogic Inc. has appointed Andrew Goetsch as its new vice president of poker software development. Goetsch, who has 18 years experience as a senior executive, is also an avid poker player who has appeared at final tables several times and also finished in the money over 200 times on both online and traditional tournaments, including at this year's World Series of Poker main event. His main priorities will include expanding new games, table and betting variations, optimizing satellite tournament functionality and enhancing customer support and back-office management capabilities. . . . World Gaming, a provider of I-gaming software and e-business services, has appointed Jon Moss as director of sales and marketing. Moss was previously employed as business development director at WagerLogic, the licensing and services subsidiary of CryptoLogic. Before joining WagerLogic, he was a director of a leading industry consulting group that helped launch Internet casino Lasseters.com in 1999.
Monday, Dec. 6
Investigation -- Following European sports books' accusations of blatant match-fixing and suspicious betting surrounding Wednesday's soccer match in Athens between Panionios of Greece and Dinamo Tblisi of Georgia, Greece's director of public prosecutions, Dimitris Papangelopoulos, has ordered prosecutor Spyros Mouzakitis to investigate the situation. A lot of money was wagered across many books on Dinamo Tblisi to be ahead at halftime and eventually lose the match, and the team did go on to win the match 5-2 after trailing 1-0 at the half. Several bookmakers suspended betting on the seemingly insignificant UEFA Cup Group D match. UEFA is also investigating the match.
Making Deals -- TVG Technologies (not be confused with the North American horse race wagering and content provider TVG Network), a developer of secure smart-card crypto interfacing systems, has signed a $50 million agreement to provide its SmartNet system to SuperCasino. Developed in cooperation with Intel over a five-year period, SmartNet features high-security protocols that enable mobile device users to transfer money over the Internet through the use of smart cards. SuperCasino and TVG have agreed to jointly build a new $3 million plant in Switzerland to produce the SmartNet product. TVG is also in negotiations with an $800 million investment fund to raise $6 million through a standby equity financing mechanism.
Office Pools -- Online pool betting provider AnyBets.com wants to assist those who organize and collect bets for office pools by taking over the responsibilities themselves. AnyBets.com will set up the pool for any event and then password protect the data so that only members of the organizers' office can participate.
Uruguay -- The government of Uruguay has approved plans allowing its citizens to wager via the Internet and terminals on soccer results from Germany, Argentina, Brazil, Chile, Spain, France, England, Italy and Mexico. The Uruguayan government, which receives 67 percent of gambling revenue, is expected to gain an additional $15 million from the new game. Soccer betting will be available very soon, with car racing, boxing and tennis to follow.
In Court -- In late November, Hungary's Gambling Supervision filed suit against online betting giant Sportingbet, arguing that the company is operating in Hungary without the appropriate license. Sportingbet, which launched a Hungarian-language version of its Web site in June, counters that its activities are completely in line with E.U. law. The Gambling Supervision has already issued a €2,000 fine to Provimar Kft, the media buyer for Sportingbet in Hungary. The country's Gambling Act (1991) dictates that all gambling organizers must be majority owned by the Hungarian state.
Poker Summit -- The Canadian Annual Poker Summit will visit Toronto, Edmonton, Calgary and Vancouver in March and April of 2005. The one-day events feature some of poker's top players and experts engaging in personal workshops, interactive panel discussions, question-and-answer sessions and a range of poker topics in break-out groups. There will also be an opportunity to mingle with some of the World Poker Tour's stars at the cocktail reception.
Problem Gambling Research -- The National Center for Responsible Gaming in Washington, D.C. has given its third annual Senior Investigator Award to Alex Blaszczynski, director of the Gambling Research Unit at the University of Sydney and head of medical psychology at Westmead Hospital in Sydney. The Young Investigator Award was given to Jon Grant, an assistant professor of psychiatry and human behavior at Brown University's Medical School and chief of impulse control disorders at Butler Hospital in Providence, R.I. Blaszczynski has conducted gambling research in a variety of topics, including what motivates compulsive gamblers and gambling-related suicides and superstitions. Grant has participated in several studies that evaluate the effectiveness of medication in treating gambling addictions. He concludes that the drug naltrexone is the most effective treatment for most gambling addicts.
Full House -- Full House Entertainment N.V., an Internet gaming development and management firm, has signed a definitive agreement to acquire all of the assets of Montreal-based software developer Clockmedia Inc. for an undisclosed amount. Full House, which originally planned to develop its own software, says it has saved itself years of research and development by acquiring Clockmedia.
Japan -- Japan's state-run soccer lottery is almost certain to report a deficit for the second consecutive year. The lottery received 60.4 billion yen in its first year (2001), then dropped to 40.8 million yen in 2002, and 20.2 million yen in 2003. The lottery has raised only 15.5 million yen this year, with only a few more weeks remaining in the period. Although the main goal of the lottery's establishment was to provide extra revenue to sports, it does not appear that any grants will be delivered by the lottery. Japan's Ministry of Education, Culture, Sports, Science and Technology hopes to raise sales of soccer lottery tickets by increasing the chance of winning a prize and by making tickets available for purchase over the Internet beginning in April 2006. One of the main reasons sales are lacking is that the game is considered to be nearly impossible to win.