Friday, June 3
Mobile Threats -- Mobile security firm SecureTest claims that companies that interact with consumers through mobile phone applications could easily become victims of hackers breaking into applications, modifying code, and then manipulating Web sites. Such manipulation, for example, could include lowering the price of an item or increasing a proposition's betting odds. SecureTest says it demonstrated this point by staging the hack of typical, but fictitious horse race betting application. Using a standard mobile phone and freeware software tools, the company modified the application's J2ME source code and then used the application to modify the content of the database that contained live betting odds. According to SecureTest, a hacker who is able to breach a server to this extent could also gain access to database information and client data. To protect against the hacking of a mobile application, SecureTest suggests that operators test the penetration of the mobile application source code and consider all routes into the network.
Appointment -- Online bookmaker betinternet has introduced Garry Knowles as its executive director. Knowles, 38, joined the company in November 2003 as head of trading operations. Since then he has added live casino games and a new skill-based Internet football game to the company's offerings and has played a key role in boosting margins and profitability. Knowles previously worked for MGM Mirage as a director of customer relations. Prior to that, he spent 15 years working for William Hill.
New Games -- InterCasino has added 12 slots and two scratch cards, bringing its total number of games to over 100. The site's manager, Ryan Hartley, said the big attractions among the new games are the nine-line slots and the scratch cards. The biggest hit so far is a nine-line version of Millionaires Club. "The response to this game has been phenomenal," Hartley said, "and the fact that the progressive jackpot is now over $700,000 just goes to show how popular it really is."
China -- The Chinese province of Guangdong's public security department has declared that any travel agency that takes tourists to visit overseas casinos will have its operating license revoked. The announcement is consistent with the Chinese government's fierce anti-gambling campaign in 2005. In January it was widely reported that China gambled away roughly $70 billion in both public and private money to overseas casinos.
Manches -- iGGBA (Gaming, Gambling and Betting Association) announced today that Manches LLP, a full-service city law firm, has become the association's newest member. With a strong gaming team headed by David Schollenberger, the group has broad experience in acting for companies involved in interactive gaming, gambling, betting and lotteries.
Poker Beat -- Bodog.com says it will send 24 players to the World Series of Poker in 24 hours starting June 11 at 11 a.m. (EST). The coveted WSOP seats will be won in a variety of qualifying tournaments with varying buy-ins, and Bodog.com is guaranteeing all 24 WSOP prize packages, regardless of the number of registered entries. Winners will receive the Bodog.com World Series of Poker prize package worth over $12,500 and, of course, the chance to win $10 million at the main event. The prize package includes the $10,000 buy-in, airfare, accommodation, Team Bodog gear, and a ticket to the Bodog.com party held at the Rain Nightclub at the Palms Hotel & Casíno on July 6. Bodog.com will be host its Poker & Sports Marketing Conference the same week at Mandalay Bay.
Thursday, June 2
Floating Party -- PartyGaming, operator of PartyPoker.com, has announced after many months of speculation that it will indeed float on the London Stock Exchange later this month. With a probable offering of US$1.8 billion (23 percent of its shares), which would value the company somewhere between $8 and $ 10 billion, the float is destined to be London's largest in four years and will no doubt put the company in the FTSE 100 share index. The company is widely believed to possess more than 55 percent of the online poker market, and it recently reported revenues of $222 million for the first quarter of 2005--an increase of 93 percent over the previous year. Operating profit increased 81 percent to $128 million for the quarter. PartyGaming says the money raised through its initial public offering will primarily be used to pursue acquisitions of other companies that are either involved in online gambling or could drive traffic to its sites. The 40 percent holding of the company's largest shareholder, Anurag Dikshit, should be worth about $3 billion after the float. Investment bank Dresdner Kleinwort Wasserstein is coordinating and bookrunning the IPO, the roadshow for which will not visit the United States.
PartyGaming was to hold a conference call for trade journalists today, but has postponed the call because its spokespeople have "received a lot of interest today and are running very behind."
Happy Birthday -- Betfair celebrates its fifth birthday this weekend. The Oaks was the first race the company ever covered, so to celebrate the company will offer free commission to punters participating in Oaks markets. Betfair will also make a donation equal to the amount of commission it would have received on Oaks markets to Racing Welfare, the company's charity of the year.
Tote Sale Delay -- The European Commission has opened a formal investigation into the British government's sale of the Tote to determine whether the sale constitutes illegal "state aid." At issue is the question of whether the government is placing a value that is too low on the pools betting monopoly. While previous statement by Tote officials have indicated that a price somewhere between £150 million and £200 million is probable, that figure is believed by many experts to be quite low. Neelie Kroes, the EC's competition commissioner, stated, "I fully support the British government's objective of opening up the UK gambling market, but I am not convinced that the way in which this is carried out, by selling the Tote to the racing consortium well below market value, is necessary or proportionate to achieving this objective. Such a measure could distort competition in the betting market." The investigation will delay the sale of the Tote--a process that began in 1999 and has already faced several other delays--by at least several month, and possibly as long as another two years.
Poker Beat -- Full Tilt Poker has redesigned its Web site to include streamlined navigation and new content, including updated biographies for the members of Team Full Tilt, which includes Chris "Jesus" Ferguson, Phil Ivey, Howard Lederer, Erick Lindgren, Erik Seidel, Andy Bloch, Phil Gordon, Clonie Gowen, John Juanda, Jennifer Harman and others. The site is running ads featuring Chris Ferguson on television networks in the United States and is offering a 100 percent match bonus up to $600 to new customers. . . . A company called Poker Robot LLC will hold a 72-hour tournament to find the best of six poker-playing robots. Dubbed the "World Series of Poker Robots," the event will take place July 12-15 (while the human version of the WSOP is also taking place). Online gaming company GoldenPalace.net will provide the $100,000 grand prize and is sponsoring the tournament alongside poker software developer Fireswirl Technologies. Poker Robot LLC says the winner of the World Series of Poker Robots will challenge the winner of the human WSOP to a head-to-head showdown. . . . Party Poker, Ultimate Bet, PokerRoom, Absolute Poker and Golden Palace Poker have announced that their sites will participate in the Online Series of Poker, a tournament that will be held across all five poker sites. Each site will host two tournaments, and the winner of each will not only receive the prize money from that tournament but also qualify for the final table event on Oct. 8 at the Trump Taj Mahal Casino and Resort in Atlantic City. . . . World Poker Tour Enterprises has signed six new licensing agreements that will result in a plethora of new WPT-branded merchandise. Shell Auto Expressions will produce WPT-branded care accessories, including air fresheners, floor mats, seat covers, seat cushions, sun shades and steering wheel covers MZ Berger will produce WPT digital poker-game-play wrist watches, wall clocks, decorative table-top clocks and alarm clocks. Frankford Candy will produce WPT-themed candies and gift sets, Zippo will produce four WPT-themed lighter designs. Hot Properties! Merchandising, Inc will produce magnets, memo pad magnets, magnetic bottle openers, buttons, stickers, lapel pins, antenna toppers, key chains, coasters and tee shakers. Pacific Direct will produce a talking bottle opener that plays WPT sound bites whenever the opener touches a bottle cap.
Wednesday, June 1
Reverse Takeover -- Shares in Curacao-based online gaming firm VIP Management Services N.V. will become available to the public through a US$44.5 million reverse takeover deal with Leisure & Gaming Plc (LNG.L), a shell company that listed on the Alternative Investment Market of the London Stock Exchange in September 2004 with an aim to acquire an online gambling company. Leisure & Gaming will pay an initial $35.5 million for VIP's assets and will later pay the remaining $9 million if the company meets its profit targets for the next two years. VIP's shareholders will retain a majority stake in Leisure & Gaming, and the board will be changed to reflect the VIP majority. Alistair Assheton, CEO of VIP, and Peter Blacker, finance director of VIP, will both join the board of Leisure & Gaming, and Assheton will also assume the role of CEO of the company. Leisure & Gaming's current CEO Benjamin Shaw-who was also instrumental in deals that involved Betcorp's acquisition of BETWWTS in the late 90's and Talarius' takeover of RAL last month-will become an executive director. VIP reported operating profit of $6 million for the year 2004 off of turnover of $330 million and gross win of 19 million. In the first quarter of 2005 new customer sign ups rose 51 percent to 5,565 compared to the same period in 2004. Leisure and gaming also plans to raise $10 million through a placement of new shares.
Deadline Extension -- Channel 4 has extended the now expired deadline to reach an agreement with Britain’s racing and betting industries to the end of this week because discussions between the parties has shown “the prospect of a positive outcome.” After broadcasting horse racing for 21 years, the company has stated it is losing money through its coverage of the sport and is therefore requesting £8 million in order to continue coverage. Representatives from racing and betting met last week and unanimously voted to reject the channel’s request, but apparently at least some meaningful negotiations were still taking place as the May 31st deadline passed. According to David Stevens, a spokesperson for bookmaker Coral, “Channel 4 are demanding money that we will not pay because of the precedent it will set. We do not pay any other broadcaster of televised sport. How can racing expect to be treated differently? And how can we fund a station over which we do not have any editorial control, especially as they actively promote our rivals, the betting exchange? The situation looks unworkable.” At least two stations, BBC and ITV would reportedly be eager to inherit Channel 4’s burden.
Tattersalls Sued -- Australian gaming company Tattersalls is being brought to court over allegations that its four trustees are not fulfilling their obligation to distribute ten percent of the company’s net annual profits to employees. Company founder George Adams dictated in his will that employees should receive an annual bonus worth ten percent of the company’s net profits, and only two years ago trustee David Jones stated on an ABC television program that Adams’ will was still honored. The legal claim filed by a former general manager alleges that the trustees have been secretly moving money around the company and paying salaries out of net profits, thereby leaving less money for the employee bonuses. The former general manager alleges that about $50 million is owed to employees. Tattersalls is not commenting on the case except to say that it vigorously denies the claims. The case should be heard in court in June 2006. Meanwhile the company is planning a public float on the Australian Stock Exchange that is already many months behind schedule. With a potential pricing of AU$2 billion, the float could be Australia's biggest of the year.
iGGBA Member -- iGGBA (interactive Gaming, Gambling and Betting Association) has welcomed Kroopier Technologies, a company that provides security solutions to the remote gambling industry, as its latest member.
Tuesday, May 31
Multi-Platform Poker -- Multi-platform remote gaming solutions provider Zone4Play will soon launch a multi-player Texas Hold'em poker game to be available on Sky Digital's interactive television network and accessible from several channels, including Avago, The Poker Channel (sponsored by Party Poker) and Channel Five. It will be launched as a play-for-free game and upgraded to feature real-money wagering when new gambling legislation takes effect in the United Kingdom. The company is also developing a mobile version of Texas Hold'em for a large British bookmaker. Called "Mobile MP Texas Hold'em Poker," the mobile solution will be introduced later this year with play-money and real-money wagering support. Zone4Play's hosting environment platform will enable players who access the poker network via mobile, interactive TV and the Internet to play against one another across platforms.
OPAP -- Greek Finance Minister Giorgos Alogoskoufis has announced that the country's lottery provider, OPAP, will begin allowing punters to wager on local football matches in an effort to raise revenues. . . . A new government report shows that the Greek gaming market increased by 28 percent in 2004, to €5,835 million compared to €4,550 million in 2003. OPAP's market share rose from 49 percent to 52.6 percent over the year.
Bingo.com Acquisitions -- Online bingo portal Bingo.com Ltd. has purchased real-money bingo sites Winabingo.com and GroovyBingo.com. The company has completed an asset purchase of the sites for a sum to be determined by the number of active players in the database and the amount of revenue generated over the next year. Active players from Winabingo and GroovyBingo will immediately receive credited accounts to begin playing in games on Bingo.com, which only recently launched real-money games on its portal 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.
No Betfair Study -- Tasmanian Premier Paul Lennon stated at a budget estimates hearing Monday that the state's government will not conduct a social-impact study into the effects of awarding a betting license to Betfair. "I don't believe if we have to go down that path we'd do it for one license holder," Lennon said.
Certified -- Swedish online poker software and solutions provider Ongame has completed inspections to become a certified member of eCOGRA (eCommerce and Online Gaming Regulation Assurance). Ongame provides the gaming software and technology that powers the PokerNetwork aggregated system, which hosts a number of poker operators, including Ongame's own poker operation, PokerRoom.com.
Name Change -- Online gaming software and solutions provider 24hBet has changed its name to 24hPoker to emphasize that poker is the company's main focus. The company recently launched 11 new online gaming sites powered by 24hPoker's software for poker and sports betting. All of the sites funnel their action into the 24hNetwork and will be marketed by local partners who target players in Russia, Asia, South Europe, Great Britain and the Nordic countries. The new sites can be found at asianapoker.com, dreamlandpoker.ru, goplay.ru, pokerium.com, heypoker.com, 727poker.com, rivalpoker.com, capbet.com, 66poker.com, tipexpoker.com and pokerclubeurope.com. 24hPoker reported a gaming surplus of €2.8 billion during the nine-month period from May 2004 to January 2005. It plans to float on the Stockholm Stock Exchange in 2006.
Prohibition Bill -- Frank Fahrenkopf, president of the American Gaming Association, told the Washington Internet Daily that his organization would not support any federal legislation that does not do three things: "(1) protect states' rights to regulate gambling, (2) avoid creating competitive advantages or disadvantages between and among commercial casinos, Native American casinos, state lotteries and pari-mutuel wagering operations, and (3) assure the legality of any form of gaming now deemed legal." The AGA's chief lobbyist, Brett Hale, has reportedly viewed the latest draft of the Kyl bill and says that the association will not oppose the bill if it remains unchanged.