Weekly Nambling Notes

5 March 2005
Friday, March 4

Betsson of Cherry -- Swedish gaming company Cherry (Cherryforetagen AB) two weeks ago purchased 100 percent of the outstanding shares in Internet betting company Betsson.com Limited. Betsson's core offering is a betting exchange, but the company also operates a casino and poker room in the English, Swedish, German, Italian, Norwegian, Finnish, Dutch and Czech languages. The company has over 80,000 registered customers, with 29,200 of them joining during the fourth quarter of 2004 and 12,000 joining in January 2005. Cherry has been investing in Betsson since 2003, but until recently held only a 30 percent stake in the company. Cherry is also the owner of gaming software provider Net Entertainment, which provides Betsson's casino platform.

ukbetting Developments -- Online betting company ukbetting has supplemented its operations with a new poker site. The company has also completed a deal that will allow its sports content Web site, TEAMtalk, to use content and data-- including links to video clips and interviews--from BBC Sport. ukbetting's odds comparison Web site, Oddschecker, this week announced the launching of two sites that will monitor online casino and poker sites to provide real-time information on jackpots, tournaments and bonuses.

Access China -- NETeller has acquired Macau-based debit card payment processing firm Quick Access for US$12.5 million. Quick Access is the operator of 1Pay, an online payment transaction system that serves a large number of online gambling operators targeting the Chinese market. For the last two months, however, the Chinese government has taken a vigorous approach toward eradicating online gambling, and as a result, 1Pay has reportedly stopped accepting new customers (although it is still facilitating transactions). NETeller recently appointed Benjamin Lee, a former deputy trade minister in the Hong Kong government, as vice president and general manager of Asian operations. The company's shares soared ahead 33p on the day, reaching an all-time high of 655.5p.

Responsible Gambling Tool -- The North American Training Institute, which provides gambling addiction clinical coursework, youth gambling prevention programs and responsible gaming services, has released a guide advising parents and teens about the right questions to ask about poker to avoid problems with gambling. The guide is available online in PDF format. The organization's Web site, www.NATI.org, also includes similar tools to help prevent problem gambling among older adults and youths.

Quickies -- The Alderney Gambling Control Commission has issued another e-gambling license to WagerWorks for the operation of the upcoming World Poker Tour online poker room. . . . British bookmaker Ladbrokes will soon introduce a multi-million-pound re-branding campaign to promote the company as a multi-platform betting and gaming operator. The re-branding will include a redesign of Ladbrokes' signature red and white lozenge logo throughout its shops, advertising, online properties and TV presences.

Thursday, March 3

Quoteworthy -- "Betfair has a positive working environment with an emphasis on encouraging team work. Betfair's 120 IT professionals work with leading edge technology, and the importance of their function is recognized by the company, such that IT staff feel that they are a critical part of the company's success. There are good opportunities for career progression both within technology or outwards to business departments."

- The judges panel for Computer Weekly's 2005 "Best Place to Work in IT" awards. Betfair was recently named as the winner of the award in the entertainment and leisure category.

BAW Sponsorship -- European online betting company BetandWin.com has signed on as a sponsor to Red Bull's Formula 1 racing team. The sponsorship deal will put the BetandWin logo on the uniforms of the Red Bull team, which is entering Formula 1 competition for the first time this year. The team's drivers--David Coulthard, Christian Klien and Vitantonio Liuzzi--will wear the BetandWin logo on their overalls, and Klien will also wear it on his headgear.

Ad Campaign -- Phoenix Interests Inc. has launched a radio and print advertising campaign to promote Barn66.com and BetBarn66.com. The two wagering portals, operated by Phoenix Interests' Online Enterprises subsidiary, began offering account wagering through Oregon-licensed wagering hub AmericaTab in January. The company first tested the advertising concept in Lexington, Kentucky and Cincinnati, Ohio by running a small marketing campaign to promote a handicapping contest. Jim D. Tilton, Jr., the company's chairman, CEO and president, said the results were so encouraging that they've developed long-range plans in multiple markets and might eventually incorporate Internet marketing strategies and non-traditional efforts. Last week Phoenix Interests enlisted the aid of Pylon Management, which will help develop a marketing strategy and form a long-term acquisition strategy. The company says it seeks to develop a portfolio of investments within the online gaming and entertainment industry.

Poker Craze -- Micropower, the company that provided the software for the Internet-based ESPN Poker Club, has revealed that in under 24 hours of online time, the new poker room has attracted more than 10,000 sign-ups and 1,000 concurrent users. . . . With six tournaments remaining in Season 3 of the World Poker Tour, WPT Enterprises has announced the schedule for Season 4, which will begin in May 2005 and feature an estimated total prize pool of between $70 million and $90 million. Included in the 16-event season are UltimateBet's Aruba Poker Classic, the PokerStars.com Caribbean Adventure and the PartyPoker Million.

WiFiCasino -- Diamond I, a company that specializes in Wi-Fi communications solutions, has postponed a Web-based public preview of its WifiCasino GS hand-held Wi-Fi gaming system because it has decided to accelerate enhancements that will enable the implementation of its wireless gaming systems at horse and dog tracks and on large cruise ships. Diamond I has applied for a gaming license in Nevada and is seeking a Las Vegas hotel/casino to serve as the demonstration site for WifiCasino GS. The company is also seeking a license to operate in the Philippines.

Wednesday, March 2

iTV in USA -- TVG Network today launched an iTV horseracing channel in the United States. The network features horseracing news and information and also enables viewers to participate in pari-mutuel wagering. The service will be made available to iTV-enabled subscribers of EchoStar's DISH Network satellite TV system in California, Idaho, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, North Dakota, Ohio, Oregon, Washington and Wyoming. Customers in Colorado will be able to view news, results and statistics but will not be permitted to wager.

Jersey Gaming -- Lawmakers on the island of Jersey, a U.K. dependency, on Tuesday debated plans to relax the jurisdiction's gambling laws. Plans to introduce online gambling were approved, while plans to establish a casino and commercial bingo were rejected.

Phantom Launch -- Mobile solutions provider Phantom Fiber has announced that seven new sports book operators will launch mobile applications powered by the company's wireless framework this week. The licensees are: TradeWinds Sportsbook and Casino, Badlands Casino and Sportsbook, Guardian Guaranty Corporation Sportsbook and Casino, Extreme Lines Sportsbook and Casino, Regency Sportsbook and Casino, Diamonds Sportsbook International and Carib Sportsbook. Phantom Fiber says that more additional deployments are expected in the near future. Jeff Halloran, Phantom Fiber's president and CEO, said the company is "preparing for the next logical evolution to our wireless framework, which takes advantage of higher bandwidth networks such as EDGE with a streamlined over-the-air delivery system designed for faster adoption, enhanced user convenience and improved functionality during product upgrades." He added, "In addition, our wireless framework will soon capitalize on emerging opportunities in poker, lottery, bingo, race book and sports content databases enabling operators to deliver functionally rich wireless gaming product suites to their customers through a single account."

Veikkaus Expands Betting Menu -- Finnish lottery operator Veikkaus Oy has added close to 50 new events to its list of fixed-odds betting offerings, including ski jumping, skiing, biathlon and Alpine skiing. The new additions, which brings Veikkaus' total number of betting events up to 150, are part of a reform that also introduces double and quintet systems. The company says the new products are a response to player feedback.

Quoteworthy -- "The government's claim that the Gambling Bill represents a business opportunity for British casinos must be a front-runner for the George Orwell prize for double-speak."

- Penny Cobham, chairman of the British Casino Association.

Tuesday, March 1

Betting on Broadcast -- Interactive TV solutions provider Two Way TV and I-gaming software provider Zone4Play have teamed up to offer a fixed-odds gaming service that will be available across three platforms--iTV, mobile phones and the Internet. The service is unique in that it uses a live broadcast television channel called the "Winner Channel," giving players the ability to bet on the live action. The Winner Channel launched on the Telewest cable network last week and will launch on NTL next week. The service will soon be deployed as well on the Internet and mobile networks so that players can use any of the three platforms to bet on the live action with a single account. Two Way TV runs and operates the Winner Channel, while Zone4Play provides the underlying technology. . . . Zone4Play CEO Shimon Citron recently told Business Week that the company plans to open a U.S. office within the next three months. He also said the company is working with EchoStar to launch a bingo game that will enable TV viewers in Nevada and a few other states to compete against one another.

Welcome Aboard -- The Association of Remote Gambling Operators (ARGO), a trade body of European online gambling operators that was founded in August 2004, has welcomed Gibraltar-based 32Red as its newest member. 32Red operates a casino and poker room.

Swedish Poker -- Swedish newspapers Dagens Nyheter and Svenska Dagbladet have reported that Sweden's Lottery Inspection Authority (LIA) might begin investigating whether any online poker companies that are registered abroad are operating from within the country. According to LIA spokesperson Jessica Jeppsson, "We are debating whether we should report tip-offs and our own discoveries to the police." Svenska Spel, the state-run gaming operator, is the only company authorized to operate gambling games in Sweden. Last week Svenska Spel applied to the government for a license to offer poker games online.

Jersey Debate -- Lawmakers in Jersey--a British dependency located in the British Channel near France--today debated whether they should relax the island's gambling laws. If plans to liberalize Jersey's gambling laws are approved, the island might soon welcome online gambling as well as a land-based casino, bingo and a lottery. A casino proposal was last debated and rejected in 2003.

Quoteworthy -- "The state monopoly, which is established by the State Lottery Treaty as well as by the individual state laws (in conjunction with Art. 284 of the German Criminal Code (StGB)) must be penetrated. The indication that the above-mentioned laws are incompatible should not only be overcome in individual court decisions. I would consider effective media publicity--at a national as well as an international level--to be another critical issue."

- Dr. Wulf Hambach, a media and gambling law attorney who recently founded the firm Hambach and Hambach with his brother, Claus Hambach. The above statement is Dr. Hambach's response to the question "What are the critical legal issues at present in Germany for your clients and for other foreign providers?" on Web site ISA-Casinos.de.

CYOP's Skills -- Online skill games provider CYOP Systems International Inc. has signed an agreement to begin licensing its CrediPlay pay to play skill-gaming software platform to Wasinger Tech, which runs the eWoss.com search portal. CYOP recently added 90 new games to its software suite and announced that it will add several Atari games to its offering. . . . Last week CYOP announced the appointment of Randy Peterson to its board of directors. Peterson, a retired police detective who also invented a number of skill games, will assist the company in research, product development and forming strategic partnerships.

Monday, Feb. 28

Bots and Collusion -- CasinoRobots.com, a company that provides software applications to help consumers improve their online poker and blackjack strategies, is now selling a product called "Poker Robot Collusion Edition." The company says its software can use just one computer to play up to nine seats at an online poker game by spoofing IP addresses. The player can either play each hand himself or let the bot make the decisions automatically. According to CasinoRobots.com, "Collusion is the only way you can cheat at online Poker."

e-Cockfighting -- The Philippine Amusement and Gaming Corp (Pagcor) has appointed Internet technology provider Philweb Corp as its technical and marketing consultant for an Internet-based cockfighting betting project. Pagcor first contracted Philweb as a consultant in November 2002 for an Internet sports betting project, and in March 2004 the first Pagcor-operated betting sites, BasketballJackpot.net and VIP Sports Betting (www.asbcsports.com). Philweb supplied the software and hardware for the betting sites, promoted the sites and distributed prepaid betting cards. Philweb announced in June 2004 that it would like to launch an online betting site for cockfighting, but Pagcor stated at the time that it was not yet committed to launching such a site.

Ref Suspension -- British Premiere League soccer referee Mike Dean was been suspended indefinitely after it was discovered that he managed Arbitros Racing Partnership, a horseracing syndicate whose Web site enables surfers to purchase ownership in the syndicate. There is no indication that Dean ever had anything do with betting or match fixing in soccer, but the terms of his contract with the league required him to get permission for such an activity, which he did not do. He likely would not have obtained permission if he had gone ideas through the proper channels.

Pyramid -- Tax officials in Norway have begun investigating local officials in World Games Inc. The company, whose primary business is offering Internet gaming, is often called a pyramid scheme because members enter the WGI network by joining at one of three levels, each of which has a different fee and benefits. A member earns a commission every time he recruits a new person to join the network and every time one of his recruits brings in a new member. Norwegian investigator Jostein Lien said that some members of the company face criminal charges because they failed to claim money transfers from Australian and Hong Kong banks as income. Meanwhile, a group of 18 disgruntled members of the WGI network are filing a civil suit against the company's five "world leaders" and have also reported the company to Økokrim, Norway's white-collar crime unit. Representatives of World Games Inc. are also under legal pressure in Canada and Australia.

Quoteworthy -- "It's so much an American thing. The idea that it's illegal is offensive to me."

- Weld Professor of Law Charles R. Nesson of Harvard University. Last Thursday Nesson moderated an event at Harvard Law School called "Going All In: Poker and the Law," which featured a discussion on Internet poker and the law. Speakers at the event included Dan Walsh, an I-gaming lobbyist in Washington, Shaun Clark, an attorney for the World Poker Tour, and professional poker player Andy Bloch.

China -- The latest Chinese government attack against gambling comes from the General Administration of Industry and Commerce (GAIC), which has ordered its local branches to forbid overseas gambling from opening offices in China. The GAIC's local branches have been urged to especially monitor online activities to eradicate online gambling.

Keno.com -- Gaming Transactions Inc., a company that manages gaming portals and has also developed online games and services, has launched numbers gaming site Keno.com. Soon the site will also offer casino games and sports betting.

Checkers -- Oddschecker.com, a British odds comparison Web site owned by ukbetting.com, has launched two new comparison sites for the online casino and poker markets. The sites will monitor the latest jackpots, tournaments and bonuses to provide players with real time information. Ukbetting says the two sites have already run successfully on a soft scale and will be deployed in March with affiliate deals in place with some of Europe's top online casinos and poker rooms. The sites are online at Online-casino-checker.com and Online-poker-checker.com.