Weekly Nambling Notes

27 May 2005
Friday, May 27

No Deal -- Representatives of Britain's horse racing and betting industries met yesterday to discuss Channel 4's request that it be paid £8 million to continue broadcasting live racing through 2006. Those in attendance unanimously voted that the channel's request should not be met. Channel 4 set a May 31 deadline for an agreement to be reached. . . . Paddy Power has become the official betting partner of reality TV show "Big Brother" on Channel 4. Fans can wager on a wide variety of propositions on the show by visiting Channel 4's Big Brother Web site at www.channel4.com/bigbrother.

The China Scene -- This week China's Ministry of Public Security paid bonuses ranging from US$360 to $1,200 to 18 individuals who had given police tips to help their investigations into illegal gambling. Police have reportedly received more than 1,300 tips about illegal gambling activities. . . . Peter Vellapan, general secretary of the Asian Football Conference, is concerned that allegations of corruption and match fixing in Chinese football could lead to a collapse of the league. Last month Chi Shangbin was fired as coach of last year's champions Shenzen Jianlibao after the team got off to a winless start of the season. Chi stated that his team was deliberately playing poorly because of salary cuts while his assistant resigned in protest and accused players of fixing matches. This is not the first time allegations of corruption have surfaced in the one-year-old super league. Most games are reportedly attended by a very small number of fans, presumably because the corruption allegations have driven the audiences away.

Responsibility -- A major item on the agenda for Norwegian gaming operator Norsk Tipping was to establish a responsible gaming platform under the supervision of problem gambling expert Thomas Nilsson of the Gaming Institute (Spelinstitutet) in Sweden. The plan was initiated in various phases throughout the year, beginning with the introduction of an 18-year age limit on the game Oddsen, which involves the greatest risk of abnormal behavior. The company also began new training courses for its store owners and employees so that they could be more aware of and better understand problem gambling. The back of all coupons have been changed to clearly show the chances of winning and to display the logo and phone number of the country's helpline. The company also sought to build solid relations with research communities and volunteer organizations, and toward that end it is in frequent contact with PTS, Blue Cross Norway, Østnorsk kompetansesenter, the SNSUS, the Helpline and the Norwegian Gaming Board.

Partners -- Swedish gaming software provider Boss Media has signed a strategic partnership agreement with Svenska Spel, the operator of Sweden's national lottery. The two companies have worked together for several years on digital gaming projects, and they now plan to leverage their experience to promote their offerings to members of the World Lottery Association. Boss Media will be responsible for technical and platform development, while Svenska Spel will handle daily operations and develop game concepts. According to Jan Stocklassa, "If more companies within the WLA sphere increase their level of technical competence and improve their product offering, they will have significantly better ability to withstand competition from Internet companies and other competitors."

Record Wagering -- British bookmaker William Hill reports that the £2.5 million it received in wagers for the Champions League final broke all of the company's previous records for any football final.

Chartwell Poker -- Canadian I-gaming software developer Chartwell Technology has acquired Gibraltar-based online poker software developer MicroPower for US$4 million. Chartwelll says it canvassed a number of acquisition candidates before deciding on the MicroPower platform. The new product will integrate seamlessly into the Chartwell gaming system and with existing client platforms for stand-alone or community deployment. Micropower's poker software has been deployed on the Web sites of ESPN, NTN, FHM, Easybets, Bodog and more.

Welcome Aboard -- U.K. Gambling Minister Lord McIntosh has been appointed president of problem gambling charity Gamcare. Upon welcoming McIntosh to the organization, Chairman Anthony Jennens stated, "We have a new president who is politically plugged in, who has spent the last two years steering the Gambling Bill through Parliament and has always been interested in and supportive of GamCare and it's aims."

Thursday, May 26

Sportsbook.com En Espanol -- Sportsbook.com, a Sportingbet property that focuses on the North American market, has created a Spanish-language version of its Web site to target America's Hispanic population of 40 million. In addition to offering the full range of odds, propositions and promotions that are available on the English-language site, Sportsbook.com En Espanol will also provide more emphasis on sports that are of more interest to Hispanic communities (such as boxing and soccer). The launch of the new site will coincide with its title sponsorship of the Julio Cesar Chavez pay-per-view boxing event in Los Angeles on May 28, and the company says that Sportsbook.com En Espanol will eventually provide more exclusive promotions relevant to the Hispanic audience. Sportsbook.com will also be the title sponsor of a June 11 boxing event that will be broadcast live from New York on HBO and will feature undefeated WBO Junior Welterweight champion Miguel Cotto defending his title against Olympic gold medallist Muhammad Abdullaev. Both sponsorships were reached through a deal with promoter Top Rank.

GoldenPalaceDotCom -- GoldenPalace.com has announced the birth of GoldenPalaceDotCom Silverman, a baby boy born on May 19. The online casino purchased the right to name the baby for $15,000 through an online auction.

Preakness Betting -- Youbet.com of California received $3.5 million in handle during last Saturday's Preakness Stakes race day at Pimlico Race Course. The handle, which represents the third highest daily total in Youbet's history, was 75 percent greater than the $2 million the company reported for the same racing day in 2003, the year Youbet last carried the Preakness. New customer sign-ups rose 162 percent on the day of the Preakness compared to 2003.

New Poker Software -- Online gaming software provider CYOP Systems International has launched a demo version of its Red Felt Poker online platform. The version currently on display is the English-language play-for-fun product that's being rolled out on Sina.com. The company also announced that on June 20 it will launch a play-for-real poker site at TenSeatPoker.com through a subsidiary. CYOP, which primarily develops skill-based gaming systems and solutions, says TenSeatPoker will be its flagship play-for-cash poker site and will be marketed with the goal of establish brand recognition. For now, TenSeatPoker is under development as CYOP remains in final negotiations with payment processors.

Quiz Show -- In Germany, the district court of Freiburg has declared that private broadcaster Neun Live's quiz shows do not constitute the operation of an illegal online lottery. The court ruled that the costs per telephone call to the Neun Live shows are insignificant and therefore not subject to the ban on unauthorized lotteries.

Gambling Commission -- The Gaming Board for Great Britain has launched the new Gambling Commission Web site at www.gamblingcommission.org.uk. The site is intended to provide information about the transition from the Gaming Board into the Gambling Commission, which will regulate both remote and land-based gambling in the country in addition to playing a role in controlling problem gambling. Information on the site is sparse at the moment, but more updates are expected as the transition progresses. The commission will be formally established in autumn 2005

Regulator of the Year -- World Online Gambling Law Report has named Alderney Gambling Control Commission CEO André Wilsenach "Regulator of the Year." Wilsenach is a member of the International Masters of Gaming Law, the Steering Committee of the International Association of Gaming Regulators, the Gaming Regulators European Forum and is the former chairman of the Southern African Gambling Regulators Association.

Wednesday, May 25

EasyBetonSports -- Costa Rica-based BetonSports.com has acquired Easybets.com for an initial US$15 million in cash and shares. Easybets reportedly has about 100,000 customers, most of whom reside in Asia. Seventy percent of the Easybets' customers are from China, and 95 percent utilize the company's services over the Internet. BetonSports revealed that its pretax profit for the year ended Feb. 6 had fallen to $13.3 million from $27 million on turnover that had fallen to $1.1 billion from $1.3 billion, but company officials say the Easybets purchase should increase earnings immediately. BetonSports also appointed Chirs Galloway, a specialist small cap adviser, to its board.

Watchdog -- The Australian Competition and Consumer Commission has begun investigating whether any of the major racing clubs or TABs in Australia have engaged in anti-competitive tactics in their efforts to assure that British betting exchange Betfair does not receive a license to operate in the country. Last month it was revealed that Betfair had hired Sydney-based law firm Gilbert and Tobin to pursue charges of restraint of trade against Australia's racing and betting industry. Tasmanian Premier Paul Lennon will allow the Legislative Council to decide within the next two or three weeks whether his state will grant the company a license to operate. The five Labour Party members on the Council are thought to favor licensing the company, but there is no certainty about how the council's 10 independents will vote.

Winnerland -- Malta-based I-gaming software and solutions company WorldMatch has supplied an online casino to Winnerland, the Italian-language online entertainment Web site of Digibrands. WinnerlandCasino.com offers the Winnerland community of 400,000 members a suite of casino games for fun or real-money wagering. WorldMatch prides itself on being the only company in the online gambling industry with a license issued by an E.U. member state.

Quoteworthy -- "Despite [the United States Trade Representative's] efforts, this [World Trade Organization] case highlights the continuing problem of inadequate consultation with state governments during the trade negotiation process. The legislative and regulatory authority over gambling varies extensively at the sub-federal level, but is solidly rooted in the constitutional jurisdiction of state governments. Accordingly, to comply with the WTO panel decision, if the anticipated appellate decision does not favor the United States, the U.S. federal government would not only have to change its own laws but would have to override state authority to regulate gambling. The threat of preemption is very real in this case and state governments should have been consulted before specific commitments to 'gambling and betting services' were originally made."

- an excerpt from a letter written to U.S. Trade Representative Peter Allgeier by Sheryl Allen, chair of the National Conference of State Legislatures' Standing Committee on Economic Development, Trade & Cultural Affairs. Allen also expressed in the letter her "concern about the effects of this case on states' abilities to regulate this industry" and asked Allgeier to commit to "meaningful consultation with the state legislators both in the resolution of the gambling dispute and in the future negotiations pertaining to international trade agreement."

Bingo.com -- Portal site Bingo.com has launched real-money gaming using software from Chartwell Technology. The Flash-based system provides 75- and 90-ball bingo games with chat features and a full suite of soft games available as side games or intermission entertainment. Bingo.com says the passage of the U.K. Gambling Act led to its decision to diversify its business model by entering the cash bingo market. The company claims to have a player base of over 1 million registered players, with 30,000 visitors and 800 new signups every day.

Gambling Ties -- With the commencement of spring meetings for officials of America's National Football League comes the request that Tampa Bay Buccaneers owner Malcolm Glazer answer a series of questions relating to his recent acquisition of British soccer club Manchester United. Glazer's purchase of the Manchester club does not violate the NFL's cross-ownership rules, but the club has recently revealed plans to build a resort and casino near its stadium in a joint venture effort with Las Vegas Sands Corp. NFL spokesperson Greg Aiello confirmed the league's natural hesitance about any connection to gambling when he said, "The only potential issue concerns that reported Man U venture with the Las Vegas casino, what that means, and does it have any implications regarding our policies."

Reality Poker -- Extreme Poker Ltd. has launched the marketing campaign for The Great Canadian Poker Tournament, a reality television series that will film episodes one through eleven at sponsored venues throughout North America. The series pilot has already been completed.

Tuesday, May 24

Victoria Outlaws Betfair -- The Herald Sun reports that the Victorian government's Gaming and Racing solicitor has advised that it is illegal for Victorian punters to wager with Betfair and other "unauthorized" wagering or betting exchange providers. The Department of Gaming and Racing has reportedly informed Betfair in writing that the company's operations violate Victorian law and also asked the company to display a notice on its Web site informing Victorian punters that they break the law by placing wagers with Betfair. Meanwhile, the government of another Australian state, Tasmania, is considering whether to grant Betfair a license.

Virgin Ads -- Virgin Games has hired advertising firm Rainey Kelly Campbell Roalfe/Y&R to carry out a £10 million campaign that will involve outdoor signage and print publication ads. Oscar Neiboer told Brand Republic, "The market is very competitive, so we plan to increase our spend and our profile significantly from July. A lot of people in the market are buying up the media well in advance and availability is limited, so we want to get in there early." The company is also planning a re-launch of the Virgin Games Web site to coincide with the ad campaign.

Quoteworthy -- "I was interested to read your report about the rise of TV poker and the plan to introduce interactive gambling services alongside TV programmes (Chips with everything, May 16). Although this kind of revenue-raising activity is somewhat inevitable (and some might argue is the hidden agenda in getting us to use the red button on our remote controls), social responsibility on the part of the programme makers appears to be lacking or absent. In offline forms of gambling there are many protections for vulnerable groups (such as adolescents, the intoxicated, problem gamblers, the learning disabled etc.). Where are the safeguards to protect such groups in this type of revenue raising programming?"

- A letter to the editor of The Guardian, written by Mark Griffiths, professor of gambling studies, Nottingham Trent University. Griffiths is one of the most predominant voices opposing gambling expansion in the United Kingdom.

Alderney Surplus -- Alderney's Gambling Control Commission (AGCC), which licenses and regulates remote gambling operations, recorded a surplus of £767,794 for the year 2004, a 43 percent increase over the previous year's £535,502. During the year, the island awarded new licenses to WagerWorks 4, Blue Square Gaming, WagerWorks 5, Cantor Casino, Paddy Power and Samvo International. Certificates of Prior Approval were awarded to Tribeca Tables Software, Gaming & Entertainment Group, Secure & Holdings, Chartwell Technology and Orbis Techology. The total number of AGCC license holders now stands at 14.

Welcome Aboard -- Unibet Group Plc, a Swedish-owned gambling company headquartered in London, has appointed Petter Nylander to succeed Pontus Lesse on Aug. 1 as CEO. Nylander is currently CEO of OMD Sweden and has held various positions in TV3, MTG and Viasat as well as having been a board member for Swedish companies Cherryföretagen and Ongame.

Novelties -- As the final episode of TV's "American Idol" draws closer, newspapers all over the United States are covering the offshore betting angle. Pinnacle Sports, the site whose wagering odds are provided in a majority of the articles, reports that American Idol is easily the biggest entertainment wager it has ever offered. . . . British publication The Sun reports that Blue Square has received a huge number of bets on which Harry Potter character will be killed when the next book in the popular series is published next month. All of the wagers placed on a certain character--Dumbledore--have originated from the town of Bungay, which is home to printing company Clays, producer of the previous five books in the series.

Z4P Deal -- Two Way TV Australia, a provider of live, competitive, TV entertainment and interactive TV applications, has signed a $1.75 million deal to become the exclusive distributor of Zone4Play's play-for-fun and play-for-real gambling solutions in the Asian and Pacific markets.

Bodog Parties -- Costa Rica-based online betting site Bodog.com will have a presence at the Indy 500 in Indianapolis on May 28 by sponsoring a series of VIP social events. The group's primary sponsorship is the Miss 500 Hawaiian Tropic Pageant & Pre-Race VIP Party, with guests including celebrities, drivers and models. The company will also host a Budweiser co-sponsored tent party that will take place at the track's infield for 300 VIPs and a beach party that will take place at the Geist Marina. . . . Bodog.com has also reportedly booked legendary poker player and author Doyle Brunson to speak at the upcoming Bodog.com Poker & Sports Marketing Conference.

Targeting the French -- Online casino software developer AngelCiti Entertainment Inc. says that it plans to include French as a supported language for its casino products so that it may more effectively target European gamblers. The company is in the process of acquiring Carib Gaming.

Final Stages -- Internet and mobile gaming solutions provider Chimera Technology says its mobile gaming platform is in its final stages of testing and should be ready for a launch on 724Sportsbook.com in July 2005.

Monday, May 23

Quoteworthy -- "So many of the people who do this are offshore, or make it appear they are offshore. We weren't going after people in their homes; we were going after people who furnish (online gambling)."

- Indiana State Sen. David Ford (R), who earlier this year authored a new Indiana law that prohibits Internet gambling in his state, as quoted by the Fort Wayne Journal Gazette.

In Running -- William Hill has launched a new live betting console application on its Internet sports book that enables online punters to view and participate in all of the live betting in running markets. Gamblers can also see all current and future interactive betting events, view streaming live prices and place bets on multiple markets on any event.

Match Fixing -- The German Football Association (DFB) and the German Football League (DFL) on May 17 hosted a conference for representatives from football leagues and associations as well both domestic and international bookmakers to discuss ways for all the groups to collaborate on an effort to fight match fixing. Most parties in attendance reportedly favored the suggestion that an early warning and reaction system be introduced in the future. Such a solution would involve the European Sports Security Agency (formed by the European Betting Association) imposing obligations on its members to communicate early warnings detected by sports betting analysis firm Betradar. The conference concluded with a vote in favor of composing a code of conduct. . . . The suspected leader of a recently revealed match-fixing ring--a Croatian man identified only as Ante S.--has reportedly told prosecutors that 10 more players helped to fix at least two more undetected fixed matches, both of which took place in 1994. Investigators suspect that four referees and 14 players have been involved in fixing at least 10 games, mostly in lower divisions.

Welcome Aboard -- Lord Leonard Steinberg, the founder and chairman of England's largest casino operator, Stanley Leisure, has been named non-executive chairman of Tradal, the operator of online poker site EmpirePoker.com. In April Tradal appointed stockbroker Numis to advise on a public flotation, which the company could execute for £550 million as early as June. Last week Stanley Leisure sold its Stanleybet sports betting shops and Internet bookmaking sites to rival bookmaker William Hill for £504 million.

Skill Games -- FUN Technologies' SkillJam Technologies subsidiary has signed a definitive agreement with multi-channel interactive solutions provider Zone4Play through which Zone4Play will supply LodgeNet Entertainment Corporation with games for its TV GameRoom offering to hotels. Lodgenet provides broadband interactive services to about 180,000 hotel rooms across North America. Zone4Play already supplies LodgeNet with its play-for-fun casino pack, which features two SkillJam games. The new deal will put 13 more games on the network.

Mobile Poker -- Gaming software company MobileGamingNow Inc. has announced the launch of its turnkey multi-player mobile phone-based poker platform, which handles up to six players per table. The play-for-fun version is available for download via the company's Web site, and a real-money wagering product is available for licensing.