Friday, March 11
I-Lotto -- Ireland's National Lottery stated in its financial results for 2004 that it is preparing to launch lottery games via Internet, mobile phone and interactive TV. Chairman Donal Curtin says the company will make a decision on tenders for making the lottery compatible with new distribution channels at the end of the year. The lottery's sales rose 3.4 percent in 2004 to a record €578.3 million.
Quoteworthy -- "Our No. 1 priority is to get into the U.S. market right now. Betfair wants to compensate U.S. tracks based on money bet by U.S. customers. The question isn't about technology. The technology is there. The question is how much longer can the U.S. wait to capture dollars lost to off-shore companies?"
- Christian Hellmers, director of U.S. business development for The Sporting Exchange, the parent company of Betfair.
Hellmer and Lee Amaitis of Cantor Fitzgerald appeared at a joint meeting of the Thoroughbred Racing Associations of North America Inc. and Harness Tracks of America on Thursday to speak at a 50-minute presentation called "Horse Race Betting in the 21st Century: Some Out-of-the-box Thinking."
SMS-TV -- Zone4Play, Inc., a company that provides multi-platform gaming solutions, has acquired the minority interest in SMS-TV gaming company MiXTV. The deal gives Z4P sole ownership of MiXTV's patented broadcast TV technology, including all of its intellectual property rights. In mid April MiXTV will launch a broadcast SMS-TV interactive fixed-odds betting platform in conjunction with The Poker Channel, a new television channel dedicated to poker that will air on the Sky network in the United Kingdom. Z4P acquired the remaining shares of MiXTV from NetFun Ltd, an Israeli company with which Z4P founded MiXTV in June 2004.
SMS Lotto -- Hungarian gambling company Szerencsejatik Rt. has teamed up with T-Mobile Hungary to create a mobile SMS lottery that will be available to more than 4 million T-Mobile subscribers, who will be able to pay for lottery games with their monthly bill.
Thursday, March 10
Bodog TM -- Costa Rica-based Bodog.com announced that it has obtained an officially licensed trademark on the name "Bodog.com Sports Casino Poker" in the United States. The company says it is the first online gaming operation to be trademarked in America. The date for Bodog.com's second annual conference event, the Bodog.com Poker and Sports Marketing Conference, has been set for July 6-7 at the Mandalay Bay Convention Center in Las Vegas.
ATR International -- At the Races has signed a deal with the British Tote that will allow wagers placed by punters using the new betting-shop focused At The Races International channel to be funneled into the U.K. pools. At The Races International, which covers racing for At The Races' 28 partnership courses, has already been running in Holland and Germany for the last three months, and agreements in Russia, Eastern Europe and North America have also been signed. The Tote's chief executive, Trevor Beaumont, noted that the deal is not exclusive, and said he hopes to strike a similar deal with Racing UK and its 31 courses.
Quoteworthy -- "In the U.K., there are 25 major brands. In America there are literally 1,000. Why are there 1,000 in America? It's quite simply because America is not regulated. If America were regulated, those who are not running their business to the standard would be squeezed out. There would be fewer operators, more taxes generated, and you'd have a regulated industry. The basic premise is one of scale. If I'm running my business for one dollar, or 1 million, the cost of operating my business is the same. Scale is important. Organic growth of 30 percent compounded per annum. Most of the gross profit of the business you acquire falls straight to the bottom line. It's extremely earnings enhancing."
-Nigel Payne, CEO of online betting company Sportingbet, providing an answer to the question asked by MarketWatch, "If online poker became legal in the U.S., how would this change your business?" Payne has been widely quoted in American newspapers since providing testimony on Tuesday to North Dakota's Senate Judicial committee during its hearing on the state's Internet poker bill.
Money Laundering -- The U.S. State Department's Bureau for International Narcotics and Law Enforcement Affairs concluded in its 2005 International Narcotics Control Strategy Report that Antigua and Barbuda is very susceptible to money laundering activity. The report states: "Antigua and Barbuda has comprehensive legislation in place to regulate its financial sector, but it remains susceptible to money laundering because of its loosely regulated offshore financial sectors and its Internet gaming industry. Money laundering in the region is related to both narcotics and fraud schemes, as well as to other crimes, but money laundering appears to occur more often in the offshore sector than in the domestic financial sector." Antigua and Barbuda is currently engaged in an I-gaming dispute with the United States in the World Trade Organization.
Skill Gaming -- Gaming Corporation, the owner of online gaming portal Casino.co.uk, has launched skillgaming.co.uk, a new Web site that targets the online skill games market. The site offers several games of skill for fun and cash prizes, including gin rummy, pool, pyramid solitaire, word noodle, num runner and more. Two weeks ago Gaming Corp launched Internet site Findpoker.com, a portal that replicates the business model of the casino.co.uk site by providing news, editorial content and links to poker sites.
IGC Resignation -- Following the revelation that I-gaming software provider and affiliate network Gambling Federation had inserted software that would prevent consumer computers that had been uploaded with Gambling Federation software from accessing three specific online casinos, the Interactive Gaming Council has terminated the membership of Gambling Federation and accepted the resignation of the company's CEO Flaviano Fogli from its board of directors. Fogli has acknowledged that his company inserted codes into its software to block the three casinos because they were related to a former Gambling Federation employee who had allegedly stolen lists containing the e-mail addresses of Gambling Federation players, but according to an IGC statement, "It was the determination of the IGC that the actions of Gambling Federation were contrary to the letter and spirit of the IGC's code of conduct and contrary to the best interests of the interactive gaming public and industry." IGC chairman Mark Stone added, "The act hasn't just prevented a competitor from getting a few visitors; rather it has shown the general public one more example of how vulnerable each individual's computer and personal data are to attack and interception."
Quickies -- Swedish radio station Ekot reported that the editors-in-chief of three different newspapers have been charged by Sweden's National Gaming Board with breaking gaming legislation because it published advertisements for Expekt, Unibet and Ladbrokes in 2003 and 2004. . . Paul Struthers has been appointed director of public relations for the U.K. Jockey Club, replacing John Maxse, who has served as public relations director since 2002 but is now leaving the position to become director of communications and special projects on behalf of the Jockey Club’s non-regulatory activities. . . Gibraltar-based bookmaker Stan James has signed on as sponsor for new reality series "The Contender" on ITV2 in the United Kingdom. The American show is produced by actor Sylvester Stallone and follows several competitors who aspire to be professional boxers. . . . BetEuro has become the official betting partner of the London Wasps rugby club. . . . Sportsbook.com, a Sportingbet brand that focuses on the American market, suspended wagering on reality TV series "The Amazing Race" after experiencing a suspicious number of bets placed on two contestants for the maximum amount allowed. The wagers may indicate a leak of the show's outcome.
Poker Beat -- Chris Moneymaker, who helped catapult Internet poker into mainstream American culture by winning the 2003 World Series of Poker no-limit Texas Hold'em event after qualifying through a satellite tournament at PokerStars.com, has founded Moneymaker Gaming, a company that manufactures poker supplies, accessories and apparel. . . . Steve Lipscomb, founder and president of the World Poker Tour, distributed a letter today asking reporters to honor the same rules that players must adhere to when wearing sponsorship logos. Many media members may be visible on camera because they are present at preliminary rounds of tournaments that air filmed for broadcast. Players have complained that members of the media seem to be exempt from the rules.
Wednesday, March 9
Anti-Gambling Bill -- A deputy in China's National People's Congress, the country's top legislature, has presented a stand-alone bill that would explicitly prohibit government officials and executives of state-owned enterprises from gambling and would impose heavier penalties for violators. The Ministry of Public Security, however, has opposed the bill, preferring instead to revise the existing criminal code to make it more effective. An amendment to the code could provide more serious punishments for offenders and also expand it reach to include gambling done via Internet or outside the mainland. . . . The Sunshine Companion Center in Beijing is about to become the country's first center to treat children and teens who suffer from Internet Addiction Disorder, a problem that is believed to affect an estimated five million of the country's youth. The establishment of the center is part of the government's plan to eliminate what it believes to be social evils, like gambling and pornography.
Marketing Campaign -- Gambling.com, a search engine and portal for online gambling sites, has enlisted the services of Casino Agency, a marketing and consulting firm for online and traditional gambling companies. Gambling.com hopes to raise its profile by allowing Casino Agency to handle its £350,000 through-the-line marketing campaign. Earlier this year Casino Agency was involved in a deal that made InterCasino.com a sponsor to Sky One's broadcast of American TV series Las Vegas.
Sportingbet Bingo -- The U.S. division of Sportingbet has launched a new website at BingoBilly.com using software from Internet bingo solutions provider Parlay Entertainment. Andy May, Sportingbet's director of strategic marketing, explained that deal gives his company a "chance to participate in this rapidly expanding sector of the gaming industry, and gives us the ability to further broaden our player base demographic to women and gamers that enjoy Bingo and additional soft games."
Quoteworthy -- "When we receive money from a client, we're unable to assess the client's state of mind, we're unable to assess the client's culpability, we're unable to assess much about the client other than an Internet message."
--Robert Edge, CEO of Australian bookmaker International All Sports (IAS).
IAS is being sued by Australia's Commonwealth Bank after one of its managers, Kim Faithfull, stole A$17 million from the bank in order to gamble with IAS. The bank claims that IAS should have known that Faithfull was only a modest bank manager who should not have had access to such large sums of money. IAS is not only defending itself but has also launched a counterclaim in federal court, arguing that that it can list "19 specific instances where the CBA has failed to protect its assets and those of its shareholders."
Responsibility -- New Jersey Assemblywoman Joan Voss is not alone in thinking that cable networks like the Travel Channel and ESPN that broadcast poker tournaments should make some sort of effort to combat problem gambling. Voss argues that the networks should be held responsible for side effects like juvenile gambling addictions, and she points out that New Jersey's casinos contribute $600,00 annually to anti-compulsive gambling programs. Yesterday Voss proposed that New Jersey could begin billing a surcharge to the state's cable providers if the networks refuse to cooperate. Keith Whyte, executive director of the National Council on Problem Gambling, agrees with Voss that the broadcast media has been irresponsible in its airing of gambling-related shows, noting that "they have almost completely failed to provide any sort of health warnings, public service announcements or responsible gambling tips." Whyte says that for two years he has been trying to get cable networks to air information about his agency's help line.
Customer Relations -- British betting company Ladbrokes has hired two Omnicom-owned companies to provide a customer relationship management system for Ladbrokes' online and telephone customers. Agency.com will deal with the interactive side of Ladbrokes' business while WWAV Rapp Collins will work on Ladbrokes' offline communications and data strategy.
Tuesday, March 8
In Turkey -- Turkey's Anatolia news agency reports that committees composed of various Turkish ministries, the Banking Regulation and Supervision Agency, universities, Internet service providers and other nongovernmental organizations are considering plans to combat online gambling. Lawmakers have supplemented a bill designed to reorganize the structure of the Turkish National Lottery Administration (MPI) with clauses that would ban advertising for online gambling sites and give the MPI power to block access to Internet-based gaming and betting sites. The committees are also considering legislation that would allow authorities to track down online gamblers through credit card transactions, although banks argue that such a policy would not be legal. Meanwhile, the General Directorate of Revenues is preparing a bill that seems to conflict with the measures mentioned above in that it would add a lottery tax to any transactions associated with online gambling.
Pagcor's Deals -- In the Philippines, Senator Jinggoy Estrada, son of former President Joseph Estrada, has alleged that the Philippine Amusement and Gaming Corp (Pagcor) has been involved in illegal 60-40 joint venture operations of slot machine arcades. According to Estrada, Pagcor has been vested with the sole and exclusive power to undertake gambling activities in the Philippines, meaning that it alone may own, manage and operate casinos and slot machines. He claims, however, that Pagcor's joint venture profit sharing agreements have funneled close to $37 million to private companies at a time when the government is "crying for financial deficit and imposing new and back-breaking taxes on the people." Estrada also stated that the slot machines deals are only the tip of the iceberg, adding, "There are many more anomalies to be discovered and uncovered in Pagcor."
Mobile Skills -- CYOP Systems International Inc, a developer and licensor of online skill games, has begun negotiations with mobile developers so that it may launch a mobile version of its CrediPlay application.
FuturesBetting -- FuturesBetting.com, a new Gibraltar-based spread betting service for experienced futures traders has launched its Web site using GL Trade's Ubix bureau service. The service will enable FuturesBetting's customers to access the four key futures markets-LIFFE, Eurex, CME and CBOT.
North Dakota -- Several representatives from the online gambling industry testified today before the North Dakota Senate Judiciary Committee in support of House Bill 1509, a bill that would establish a licensing and regulation regime for Internet poker in the state. Testifying witnesses included River City Group CEO Sue Schneider, attorney Patrick O'Brien of law firm Greenberg Traurig, Sportingbet CEO Nigel Payne, attorney Frank Catania of Catania Consulting, Casino City President Michael Corfman, and CPA Peter Friedman. Opponents, meanwhile, argued that gambling is an immoral activity that causes social harm and pointed out that the U.S. Justice Department believes Internet gambling is illegal.
Jockey Arrested -- City of London police today arrested jockey Gyles Parkin as part of an ongoing investigation into alleged race fixing. Parkin is the sixth jockey and 27th person overall to be arrested since the initial wave of arrests that detained 16 individuals in September.
Quoteworthy -- "As a player, you could portray the facade of being a young, attractive novice female player when in fact you are a very experienced recognized pro. On a psychological level, the key to a 'hustle' or manipulating other players in an online poker is by projecting a character and hiding your identity. For instance, if you are playing with novices, it may be profitable to portray an experienced professional in order to intimidate players into submission."
- Kevin Harmon, a reader of the Irish Independent who wrote a letter to the editor in response to an article he read about online poker. Harmon was interested in the psychological differences between online and offline poker.
Report -- British investment bank Dresdner Kleinwort Wasserstein has completed a report estimating that online gambling has grown into a $9.2 billion global industry and is expected to generate a 22 percent annual growth rate between 2003 and 2008. The bank says that that 45 percent of total online gambling spending is attributed to sports betting, while another 32 percent is attributed to other gaming. The bank notes that poker, which comprises the remaining 23 percent, could surpass both by 2008.
Monday, March 7
Mobile in China -- Solvix Technology, a South Korean mobile Internet service provider, and mobile operator China Unicom have formed a joint venture that plans to launch a mobile lottery service in China early next year. Solvix said it also hopes to embark on a mobile wagering service as soon as Chinese legal and social conditions permit it. At the moment, however, the Chinese government is pursuing a strict policy of eradicating both land-based and interactive gambling. Solvix already provides services that enable subscribers of SK Telecom's mobile network in South Korea to participate in lottery games, Toto and race betting via mobile phones.
Online in Japan -- Japan Net Bank, an online banking affiliate of Sumitomo Mitsui Banking Corp, in May will begin offering a new service that will enable its customers to wager online on horse racing. The company has obtained permission to run the service from four associations, each of which operates a racetrack. It is already possible to place horse racing wagers via telephone in Japan, but obtaining eligibility to bet by phone is a process that takes months to complete. Japan Net Bank's online customers, however, will be able to begin betting the day they apply.
Poker Network -- Caribsports.com has launched a poker site using software from Poker Network, making it the 10th Poker Network licensee to go live with Poker Network's Java-based no-download poker software. All of Poker Network licensees, including PokerRoom.com (which, like Poker Network, is a subsidiary of Swedish company Ongame E-Solutions) funnel their players into the same massive network.
Quoteworthy -- "A lot of these things are veiled threats . . . to try to stop something that they know if it goes through will ultimately not be what they want. It probably is bluffing, and I believe the stakes are high enough that the state of North Dakota, and the people of our state, need to call their bluff."
- Rep. Jim Kasper (R) of North Dakota, who has sponsored a bill that could make North Dakota a licensing jurisdiction for Internet-based poker. The Department of Justice has sent letters to Nevada, the U.S. Virgin Islands and the National Association of Broadcasters stating its belief that online gambling violates federal law (the Wire Act), but Kasper has obtained a legal opinion that only online sports betting is illegal.
Survey Says -- According to a survey conducted by Canadian research firm Decima, 56 percent of Canadians are opposed to playing poker online for real money. Decima arrived at the statistic by polling 3,538 Canadian adults and says it is accurate within 1.7 percent. Twenty-five percent of the survey's respondents said they have no problem with online poker, while the remaining 19 percent fall somewhere in the middle.