Thursday, July 14
China Busts -- The Chinese Ministry of Public Security has released another report on its accomplishments since the launch of a nationwide crackdown on gambling in January. So far, Chinese police have reportedly cracked 163,000 gambling cases and apprehended 702,000 suspects while seizing US$281 million and 77,000 computers and video game systems. A total of 1,479 suspects have been sentenced to prison terms, 3,847 have been prosecuted, 5,115 are being re-educated through labor and 105,000 are still under detention. One thousand six hundred seventeen suspects are public officials, 47 of whom are heads of their departments.
Quoteworthy -- "Yes, we are very interested in the Latin American markets from two perspectives. We aim to offer our betting platform to more Latin Americans by giving them access to the site in local languages, with local events and payment options. We are actively looking for partners in Latin America. Using the exchange as a back end, we offer companies the ability to operate a branded sports book (built-in margin . . . lower odds than on the exchange) without assuming any risk. While there are legislative issues across the continent, we can potentially help portals, publishing houses, land-based or online casinos and sports betting companies to offer a wide range of bets and generate revenue without taking risk or making a book. Partners can choose to hold player accounts."
- Jordan Ferguson, director of international sales and business development for British betting exchange Betfair, in response to a question about his company's intentions for the Latin American market (as reported by Yogonet.com).
Lottery License -- One week removed from a successful float on the Australian Stock Exchange, gambling company Tattersall's has filed a registration of interest to renew its lottery license through the Victorian government. The group is the sole operator of lotteries in Victoria, but the state's government is reviewing the structure of the lottery license, which expires in June 2007. The government stated in March 2005 that it could opt to either maintain the single, exclusive license structure or convert to a system that provides three non-exclusive licenses. The new license(s) will likely be awarded in 2006. Tattersall's also operates lotteries in Tasmania, the Northern Territory and the Australian Capital Territory, in addition to holding a 10 percent stake in South Africa's national lottery.
TV Sponsorship -- BOSPoker.net, the play-for-fun poker room of Costa Rica-based online betting company BETonSPORTS.com, has signed an agreement to become a sponsor of the upcoming television show "Wayne Allyn Root's WinningEDGE" on Saturday mornings beginning in September on Superstation WGN in the United States. The 30-minute show will feature insights, analysis and entertainment surrounding each weekend's college and professional football games. GWIN, the show's producer, is a publicly traded sports handicapping company.
Welcome Aboard -- German sports betting company Digibet has added Michael Hopfinger to its management board. Hopfinger previously held positions at German lottery company Westdeutsche Lotterie and retail company KarstadtQuelle.
Wednesday, July 13
Image -- A court in Paris ruled on July 8 against Real Madrid and its players who had sued European bookmakers Ladbrokes, BetandWin, Villa La Palma, Victor Chandler, Betfair, Sportingbet, William Hill and Mr Bookmaker for the alleged misuse of logos and player pictures on their Internet betting sites. The court decided that the betting companies do not use the names and photos of the club and its players for commercial purposes but for informational purposes with regards to the bets offered on sporting events. Real Madrid and its players also have similar cases pending in Belgium and Germany, but its hopes must surely be dashed, especially considering that the French legal system is generally regarded as one of the most protective environments for names and portrait rights.
No Deal -- Poker professional Doyle Brunson confirmed today that his team of investors' $700 million bid to purchase WPT Enterprises has expired. WPT Enterprises says it let the offer expire on its own terms without asking for an extension because the credibility of the offer could not be verified. A statement this week from WPT Enterprises indicated that the term sheet proposing the deal offered scarce information. Further, WPT Enterprises was unable to obtain more information, and when it contacted Goodman and Chesnoff, the law firm that delivered the term sheet, it was told the firm was no longer involved in the matter. The scenario seems similar to marketing ploys utilized by many Internet gambling companies to gain exposure in the U.S. media, such as last week's "attempt" by Casino Fortune to purchase the St. Louis Blues hockey franchise. If this is the case, however, it remains unclear how Brunson and his team of investors might have benefited from the media coverage of the offer. Shareholders of WPT Enterprises, on the other hand, certainly reaped rewards when shares rose by 59 percent to an all-time high of $28.20 on Friday after major media channels covered the offer. The company's share price was down to $20.23 at press time.
Maltese Company Banned -- A Paris district court ruled on Friday in favor of France's monopoly bookmaker Paris Mutuel Urbain (PMU) by banning Malta-based online betting company ZEturf from taking bets on French horse races. PMU says the court's decision is based on an 1891 law that forbids taking bets on French horse races without authorization from the French agriculture ministry. ZEturf plans to appeal the ruling. . . . PMU announced turnover of 4 billion euro in the first half of 2005, a 7.5 percent improvement over the same period last year.
Quoteworthy -- "The premier's not a fool, and I can't imagine him getting involved and going down the track to this stage without being fairly confident that we would come out in a better situation."
- Harness Racing Tasmania Chairman John Hammond, who will attend a meeting Thursday with Tasmanian Premier Paul Lennon to discuss the potential licensing of British betting exchange Betfair by the Tasmanian government. Lennon has asked the chairman and vice-chairman of Tasmania's three racing codes to attend Thursday's meeting now that negotiations with Betfair have advanced to a point where it has become necessary to consult with the racing industry.
iTV in the USA -- FUN Technologies, parent company of skill games and solutions provider SkillJam, has entered into an agreement with a major U.S. cable provider to develop new interactive television applications. The company declined to name the cable provider.
CYOP Game Studio -- CYOP Systems International, an I-gaming software that until only a few months focused primarily on skill games and systems, announced that in the fall it will open a game studio in Slovakia to capitalize on the growth of online casino gaming technologies. The wholly owned subsidiary of CYOP Technologies will develop "Next Generation" 3D casino games for cross platform integration over mobile, console and Internet applications.
Pegasus -- Pegasus Gaming Corp., an Arizona-based provider of I-gaming solutions and e-commerce services, has integrated a multiplayer poker room into suite of products. The company has also purchased exclusive license distribution rights for a suite of online casino games from Chimera Technology. Pegasus said today that it had entered into a letter of intent with a European operator looking to acquire a turnkey I-gaming operating license.
PokerRoom Affiliates -- Sweden-based PokerRoom.com has launched a new affiliate program at PokerAffiliate.com that gives partners access to banners, text links and special incentives to help promote Pokerroom.com on their websites. Each banner generates a tracker code, which tracks all players that click on the partner’s banner and consequently register on PokerRoom.com. When participants start playing with real money, the partner starts generating revenue.
Pros vs. Joes -- Canadian I-gaming software supplier Las Vegas From Home.com Entertainment will provide CBS SportsLine.com and ProJoPoker.com with free-play poker rooms to supplement a deal whereby CBS will televise eight out of 26 land-based ProJoPoker Enterprises tournaments. The early stages of ProJoPoker tournaments are open only to unranked, non-professional poker players, or "average Joes." Each tournament will, however, feature a "pro only" semi-final table. The top four finishing pros will compete against the top four finishing Joes (hence the name ProJoPoker) for cash prizes. The strategic partnership between CBSSportsLine.com and ProJo Poker Enterprises will feature a new Poker Arena section on CBSSportsLine.com in addition to the ProJoPoker.com website. Viewers can participate in free tournaments using Las Vegas From Home.com software on both sites for opportunities to win prizes, including spots at upcoming ProJoPoker tournaments.
Tuesday, July 12
South Korean Stats -- Donga.com, a South Korea-based Internet newspaper, reports that four South Korean Internet gambling Web sites-- HanGame, Netmarble, Pmang and Mgame--recorded US$226 million in revenue last year. Most of the income received from the gaming sites comes from the sale of avatars. For example, a player could receive $1 million in cyber money by buying a digital avatar for the actual price of $70. By running operations in this way, Internet gambling providers are circumventing South Korea's anti-gambling regulations.
Kahnawake Query -- The Law Commission of Canada, an independent federal agency that advises the Canadian Parliament on emerging legal issues, has received a report by a team of researchers who are calling for a public inquiry into the country's estimated $13 billion gambling industry. Among one of the report's main concerns is why the Mohawk Indian Tribe in Quebec is permitted to host online gambling operations when Internet gambling remains illegal for the most part in the rest of the country. The report also speculates that Ontario's policy of hiring private American companies to run casinos might violate Canada's Criminal Code. The Law Commission has only now received the report and will not be able to advise Parliament on the issues it presents until at least next year.
Insider Trading -- The U.K. Jockey Club has established a panel of inquiry that will try to determine what constitutes "inside information" and what constitutes a fair or unfair use of that information. The panel will seek perspectives from as many people as possible within the British racing industry, and once it has reached a conclusion on the matter it will consider whether the Rules of Racing must be changed or even if the Home Office would have to be lobbied for changes in the law. The panel is chaired by John Bridgeman, who is also chairman of the Jockey Club's Regulatory Panel. Other panel members include Paul Scotney, the Jockey Club's director of security, Jim McGrath, a Channel 4 racing pundit and director of both the British Horseracing Board and Timeform, Toby Balding, a former trainer, and John Reid and Richard Dunwoody, both of whom are retired jockeys.
Talks Advancing -- Tasmanian Premier Paul Lennon has confirmed that his government is still in negotiations to issue a betting license to British betting exchange Betfair. He stated that negotiations have now advanced to the point that it is necessary to bring the Tasmanian horse racing industry in on the discussions. However, the governments of other Australian states have threatened retaliatory action against Tasmania if it were to license a betting exchange. Such actions could include the loss of Sky Channel coverage of local racing, expulsion from the SuperTAB and the exclusion of Tasmanian horses from competing in other states. Opposition parties are also resisting the licensing of a betting exchange by arguing that there should be no expansion of gambling without an adequate social impact study. Betfair has a joint venture agreement in place with Australian media corporation PBL for any operations that would be based in Australia.
Monday, July 11
What's the Deal? -- WPT Enterprises today issued a press release commenting on the $700 million purchase offer it received July 7 from professional poker legend Doyle Brunson and a group of unnamed investors. The company stated, "The offer failed to provide sufficient information for WPTE to determine its credibility," and "Consequently. . . WPTE still does not have enough information to evaluate the credibility of the offer." The company says it received a term sheet proposing the $700 million purchase price from Las Vegas-based law firm Goodman and Chesnoff, but that the term sheet offered little other information and did not provide the names of the individuals in Brunson's team of investors. The offer was apparently publicized through a press release that was released without consultation with the WPT Enterprises before it was reported by hundreds of international media channels. WPT Enterprises says the term sheet indicated that the offer would expire on July 12 at 5:30, although the company could ask for a one-week extension. After seeking more information from Goodman and Chesnoff on July 8, WPT Enterprises was informed that the firm was no longer involved in the matter. The company has been unable to obtain any more information to substantiate the credibility of the offer and will therefore let it expire unless more information is provided.
Quoteworthy -- "I can't name a poker player that doesn't bet sports."
- Professional poker player Daniel Negreanu (speaking at the Bodog.com Poker & Sports Marketing Conference last week in Las Vegas).
Unenforceable Debt -- A high court in Malaysia has refused to permit the Ritz Hotel Casino in London to recover a 1.47 million euro debt accrued by a Osu Sukam, a senior official in Malaysia's ruling political party. The Casino allowed Sukam to gamble on credit and then later received permission from a British court to recover the debt. However, when the casino asked the Malaysian court to enforce the debt, the court found that the British court order could not be enforced because "Malaysians must be protected from being enticed to gamble on credit." Ritz Hotel Casino has 30 days to appeal the decision.
Age Limits -- Veikkaus, the National Lottery of Finland, will introduce age limits on its gaming products in September. The age limit for participating in gaming products through retail outlets will be set at 15 years of age, but players will have to be at least 18 years of age to participate in games via electronic channels. The age discrepancy is made because control at the retail outlets is stricter. (Players must submit game entries directly to a sales clerk.) When playing through interactive channels, however, there is no control over the amount being played, and no social controls exist. Soon Veikkaus will also equip its gaming systems with tools that enable players to impose individual restrictions on their playing.
New Sites -- Antigua-based I-gaming operator Christchurch Casinos E-gaming Investments Ltd. (CCEgaming) has launched a new skill gaming Web site at www.KiwiSkill.com. . . . SkillJam Technologies, the skill gaming subsidiary of FUN Technologies, has entered into an agreement to provide a skill gaming platform to online auction company eBAY.com. SkillJam will create eBay co-branded games, and then beginning in October will offer content-driven, tournament-style trivia games with eBay that will give users the opportunity to win prizes.
Sold Again -- British bookmaker William Hill has reached an agreement to sell 28 of its betting shops to the Tote for £15 million. All of the shops being sold were gained through William Hill's acquisition of Stanley Leisure's Stanleybet sports betting division. The Office of Fair Trading is investigating whether the purchase of Stanleybet's 624 shops by William Hill--which made William Hill the largest betting shop operator in the United Kingdom with 2,237 shops--has created any unfair competitive advantages. William Hill believes the sale of 28 shops to the Tote will help the company remain in compliance with local competition regulations.
Media 25 Hundred -- Pokerzone, Channel 226 on the Sky Digital television network in England, broadcast the Media 25 Hundred poker tournament for some of the top British print journalists. Ben Beasley-Murray, a freelance journalist for The Times, was the winner of the £2,500 first prize. Pokerzone says the tournament was such a success that it is planning a similar event for broadcast journalists.