Weekly Nambling Notes

23 July 2005
Friday, July 22

ATM Slots -- Ogaki Kyoritsu Bank in Japan is trying to encourage more customers to use its automatic teller machines by equipping them with a fruit machine-like game that customers can play while waiting for their money to be dispensed. Players have a one-in-10 chance of getting three sevens in a row, which is rewarded by a waiving of the withdrawal fee (about US$1). There is about a one-in-500 chance of scoring the jackpot--three golds in a row--which pays out about $9.

New Feature -- British bookmaker Stan James has added to its Web site a new feature that delivers 90-second daily presentations informing customers of some of the company's betting offers, markets and other deals across the company's line of Internet products. Developed by SonicArt, a Dublin-based media production company, the daily streams are easily accessible via both broadband and dial-up connections.

Police Inquiry -- Finnish football authorities have asked police to help them investigate what is believed by many to be a fixed match between top division teams Haka Valkeaksoki and Allianssi Vantaa on July 7. Allianssi, which was under the management of a new coach for the first time that day, benched nine of its regular starters that day and lost by a score of 8-0 after having given up only 7 goals in its previous 11 matches. The league's licensing committee has found evidence of much heavier betting than usual on the game--at least 1 million euro more than the average amount--and is now asking for police to make enquiries that it cannot make itself. Police will likely have to move the investigation to the international level because most of the suspicious betting took place outside of Finland.

World Gaming -- I-gaming software provider World Gaming has signed two white-label licensing agreements to provide its integrated sports book, racing, casino and poker products to both GoSportsBet.com and Fieldgoal.com. World Gaming has also licensed its rights to several of its proprietary domain names, including Gambling.net, which it believes will perform well in attracting new players via search engine hits. The launch of Gambling.net will be accompanied by a targeted marketing campaign in time for the North American fall and winter sports seasons.

Bonus Pack 7 -- WagerLogic, the licensing subsidiary of I-gaming software provider CryptoLogic, has introduced 14 new casino games to its licensees with the release of Bonus Pack 7. The new pack features 12 variations of multi-line video slots and two scratch-card games.

Thursday, July 21 p align="justify">Quoteworthy -- "We launched that about two years ago and it accounts for the lion's share of our interactive sales. We went on to interactive TV with SkyActive (www.sky.active.tv) and launched on mobiles at the end of last year. People have accused us of being slow but the lottery's integrity is critical; the day anyone could claim they could hack into our systems and change the outcome is the day the lottery would be finished. We launched initially with 'instant win' games, as they are small and self-contained. We had to check that all our firewalls and security worked properly."

- Dianne Thompson, CEO of U.K. National Lottery operator Camelot. Her statement is a response to the question, "How important has online gaming been to the revival of the lottery?"

Open Shop -- Bookmaker Victor Chandler has opened its first betting shop in Ireland, representing an initial investment of €1 million in the Irish market. The new shop targets high rollers rather than the normal small-stake punters that frequent most betting shops; it does not impose limits on the size of stakes or payouts. Victor Chandler says it will eventually open at least six more similar shops.

Finnish Fix -- Ari Tiittanen, the former coach of Finnish top-division club Allianssi, says that two years ago he was offered a significant amount of money to fix the final result of one of his team's games. Tiittanen, who was fired from the club this June, refused the offer, and Allianssi is now being investigated for alleged match fixing after losing 8-0 in a match that involved far heavier betting than usual.

Welcome Aboard -- I-gaming software provider RealTime Gaming has appointed Michael McMain to take over the role of CEO from co-founder Michael Staw, who will become chairman.

It's Legal? -- Privately owned betting group Trident Gaming has acquired European online bookmaker Gamebookers in a deal financed by £20 million of convertible debt and over 9.3 million shares in Trident. Because Trident Gaming also acquired Canada-based peer-to-peer sports betting exchange BetBug last month, it now claims to be the only online gambling company that can legally operate in both the United States and Europe. BetBug says its operations are legal because it markets software that enables bettors to deal directly with one another rather than with an unlicensed gambling provider. John O'Malia, CEO of Trident Gaming, stated, "Trident will license its sport betting platforms so that other top-tier global online casino and poker groups can legally offer sports betting across the U.S. and in Europe. Because we have designed a product that clears all legal hurdles, we expect to build on our current licensee base and rapidly expand our white-label partnerships with major online gaming providers."

Flash and Mobile -- Interactive casino software developer Virtue Fusion has signed a deal to provide Gaming Corporation with a casino.co.uk-branded casino solution that's accessible via mobile devices as a Java-based product or via the Internet as a flash-based product. Available at www.games.casino.co.uk, the casino offers Internet users 15 flash games and mobile users nine Java games.

Dutch Delay -- A Dutch court was scheduled to deliver a verdict Wednesday on Ladbrokes' challenge on the merits against Dutch Lottery operator De Lotto, but the court has issued a six-week delay.

Wednesday, July 20 p align="justify">Aussie Fix? -- The Greyhound and Harness Racing Regulatory Authority (GHRRA) in New South Wales will begin an inquiry into the defeat of two horses that were odds-on favorites to win at a Newcastle harness race meeting on Saturday. GHRRA officials say they discovered after the race that an unusually high amount of money had been wagered on those horses to lose on British betting exchange Betfair. One of the horses easily won its previous race and was a $1.80 favorite to win on Saturday, but following the race it was discovered that the horse was suffering from colic and had been taking antibiotics all week. Although GHRAA officials claim to monitor Betfair trends at all races at Harold Park, they only periodically monitor Betfair betting patterns on races at other tracks. Saturday's events, however, have prompted them to expand their monitoring of the exchange. Betfair is probably unable to help GHRAA officials in an investigation because privacy laws prevent the company from disclosing the names of its account holders. If the company becomes licensed in Australia, it will be able to share such information with racing bodies that sign memorandums of understanding (similar to the ones the company has negotiated in the United Kingdom) enabling the sharing of wagering records.

The Buddy System -- BelleRockGaming.com, a Carmen Media Group online casino, reports that over 25 percent of its customers have downloaded the new Belle Rock Buddy instant messaging application since its launch three weeks ago. The application sits on a player's desktop and can be personalized to deliver 24-hour customer support, keep track of gaming transactions and provide information about Belle Rock promotions.

Joining the Network -- Gaming Corporation, owner and operator of gaming portals Gambling.com and Casino.co.uk, has signed an agreement with Ongame's PokerNetwork through which PokerNetwork will supply Gaming Corporation with an online poker room. The fully customized poker platform is accessible via the Internet and mobile devices. Gaming Corp's players will be funneled into PokerNetwork's massive player pool.

Quoteworthy -- "Our turnover has declined because many punters have stopped going racing and instead are watching on TV and using Betfair. The fact that there has also been a fall in attendances shows it has to be linked to the pictures. [Horse Racing Ireland] and the racecourses sold out lock, stock and barrel by signing a contract with At The Races in the face of huge opposition from the bookmakers because owners and trainers wanted to be able to show people their horses running without having to go to the races. I'm not saying that it is all negative. There are benefits, although there are none from the bookmakers’ point of view."

--Francis Hyland, spokesperson for the Irish National Bookmakers' Association. On-course betting in Ireland fell by 8 percent in the first six months of the year, following a decline of about 5 percent in 2004. Attendance fell by almost 1 percent last year and is down 3 percent for the current year.

The Old College Try -- The National College Association of America (NCAA) plans to begin monitoring the sports books at Las Vegas casinos as part of an effort to discourage wagering among student athletes. Rachel Newman-Baker, the NCAA's director of gambling activities, told the Associated Press that the NCAA would try to establish contact with odds makers and try to detect instances in which heavy wagering has caused significant changes in point spreads or even led to casinos dropping matches. The plan is part of a response to a survey released last year showing that about 35 percent of male athletes and 10 percent of female athletes had gambled on college sports during the previous year. The NCAA will also launch a Web site and design new programs to educate athletes about the association's rules which prohibit all forms of gambling.

Poker Beat -- Due to the game's overwhelming popularity, South Australian casino SkyCity Adelaide has brought poker tables back to its floors after a four-year absence. . . . British bookmaker William Hill has announced that it will sponsor its first major table poker tournament, the William Hill Grand Prix, in October. The event will pit 48 top international players and eight online qualifiers against one another as they compete for a piece of the £450,000 prize pool. TV poker production team Presentable Ltd., which is responsible for the Late Night Poker series, will produce a televised program of the event for broadcast in early December on Sky Digital's Poker 425. All entrants are allowed to wear logos and branded merchandise.

Finn Fix -- A July 7 football match in Finland's championship division has led to serious allegations of match fixing. The league's reigning champs, Haka Valkeakoski, beat last season's runners-up Allianssi Vantaa by a score of 8-0 in a match that reportedly received far heavier betting than usual. Allianssi, which had recently been purchased by a Chinese businessman, was led for the first time that day by its new Belgian coach, Thierry Pister, who started the match with nine of the club's regular players on the bench. Pister later explained that he wanted to try out other players because he wasn't very impressed with the existing squad. Although Allianssi had given up only seven goals throughout its previous 11 games, the squad gave up eight on the day. Finnish bookmaker Veikkaus paid out its highest ever return on a single match, but refused to give odds on the Allianssi's next match. Online gaming firm NordicBet said it received 50 percent more bets on the game than usual, with most bettors wagering that Haka would win by more than two goals.

Tuesday, July 19

Survey Says -- World Poker Exchange (worldpx.com) recently commissioned opinion and marketing research firm KRC Research to conduct a survey of 301 American male and female poker players aged 18 and up. Of those surveyed, 39 percent play poker at least five times a month. Forty-five percent prefer to play poker online, while 45 percent prefer to play face-to-face with friends. Forty-eight percent of women prefer playing online to playing in a casino, while only 8 percent of men prefer playing online over a casino. Nearly 60 percent of respondents reported preferring online play because it is less intimidating than playing at a casino, while 75 percent reported that they enjoy the comfort and convenience that online poker offers and 43 percent reported liking the quicker pace of online games. Only 6 percent of the respondents wager enough money to supplement their incomes, and just 2 percent said they play full-time as an occupation.

Passed the Test -- Technical Systems Testing, an accredited facility that offers a full range of testing and consulting services to ensure that gaming operations are fair, secure and auditable, has certified the software of Gambling Federation's G-Fed Games.

Mobile Casinos -- TV Commerce Holdings--a company that owns and operates specialized television channels that seek to take advantage of the convergence of TV, telephony and the Internet--has launched a mobile casino in conjunction with its psychic-oriented television channel Your Destiny, which can be seen on the Sky Digital network in the United Kingdom. The mobile casino will offer Your Destiny-branded games, such as a mobile phone fruit machine called "Fortune Teller," which also provides players with a daily horoscope. The free-to-download mobile casino software facilitates play for free or for real money and also provides station-related content, such as program schedules and promotions. The white-label mobile casino software was developed by Probability Games Corporation. TV Commerce has an initial budget of around £100,000 to market the site, which it will begin doing in September. . . . British high street amusement arcade operator Quicksilver, which is owned by Talarius Plc, has also teamed up with Probability Games to launch its own mobile casino that will target low-stake players who bet as little as 10p but do it often.

OPAP -- The Greek government sold 16.4 percent of its holding in monopoly betting company OPAP on Friday to foreign and local investors. The government earned 1.26 billion euro through the offering, the highest amount ever from a Greek privatization equity deal. Demand for OPAP shares exceeded supply by four times and then rose nearly 5 percent on the Athens market Monday.

CYOP Growth -- I-gaming software provider CYOP Systems International says its users base has grown to 250,000 play-for-fun members on its CrediPlay skill gaming network through its affiliates and the proprietary game site Skillarcade.com.

Nevada Proposition -- Nevada's Gaming Control Board has begun reviewing a new set of regulations that would permit the state's casinos to accept wagers from out-of-state gamblers on horse and dog races. The new regulations would allow bettors who reside in states where wagering on races is legal to establish credit accounts with licensed casinos. Seventeen other states already permit out-of-state gamblers to wager with licensed operators, but at the moment Nevada's laws permit only in-state gamblers to wager on races in other states. Public comment on the new rules could be permitted at the Nevada Control Board's meeting in August. If the Control Board favors them, the regulations would appear before the state's Gaming Commission before becoming law. Out-of-state gamblers would only be able to participate in account wagering with Nevada casinos via telephone; Internet communications will not be permitted.

Quoteworthy -- "I don't think Paul Lennon will drag Australia down (to that level). . . . Paul Lennon is a keen racing man but he has only had one side of the story. The integrity issues are far too big. When he hears what they are from us, we hope he sees things differently."

--Andrew Ramsden, chairman of the Australian Racing Board (ARB). Ramsden told The Australian that he does not believe Tasmania's government will license British betting exchange Betfair if he listens to the ARB's concerns that the ability to lay horses to lose could introduce corruption to the sport. Ramsden was supposed to meet with Lennon in Melbourne today, but the meeting was canceled.

Seminar -- Last week eCOGRA held an educational seminar on problem gambling to coincide with the new responsible gaming requirements recently approved by its board. The program was designed to brief the casino managers of eCOGRA-certified casinos on the new regulations and to provide them with information to set up policies and training programs in preparation for the introduction of the safety precautions contained within the eGAP requirements. Forty delegates representing 55 seal-bearing casinos attended the event, which included expert guidance on the prevention of underage gambling, the psychology of problem gamblers, how to identify compulsive gamblers and the best way to handle cases of this nature.

Boss Deal -- Boss Media has signed an agreement to provide an online gaming system for Sports Café, which operates a chain of sports entertainment venues in the United Kingdom. The new site, Sports Café Casino, will initially offer online casino games and poker and will eventually include sports betting as well.

Monday, July 18

Betfair Advisors -- British betting exchange Betfair has appointed Morgan Stanley and Goldman Sachs as financial advisers to a potential float on the London Stock Exchange. The company, which has had no comment for the media since the banks' appointment was revealed Saturday, had previously stated that no float would take place before the first quarter of 2006. A float could give the company a value of an estimated £800 million to £1 billion.

Victory 247 Deal -- Online betting company Betsson and I-gaming software provider Net Entertainment, both of which are owned by Swedish gaming company Cherry, have signed a three-year deal to provide online gaming solutions to Victory 247. The companies will supply Victory 247 with a unique front-end white-label solution that offers exchange betting and multiples, poker and casino games, in addition to payment and support services. According to Cherry, Victory 247 is a new European interactive gaming company owed primarily by a large European TV company, by Telitas and by a well known British venture capital company.

Another Float -- Jackpotjoy.com, an online gaming company that provides bingo and instant-win-type games, is reportedly in the final stages of reviewing potential advisors to a £100 million float on the Alternative Investment Market of the London Stock Exchange. Netherlands Antilles-based Jackpotjoy has over 500,000 players and pays out over £20 million per month in winnings. A company spokesman stated that although a float is the preferred option, a sale to a larger gaming company has not been ruled out.

Binary Betting -- Spread betting firm IG Group plans to simplify and re-brand its sports binary offering in order to widen its appeal to mass audiences both in the United Kingdom and internationally. The company is coming up with a new name for binary betting. According to CEO Nat le Roux, "People tend to associate binary betting with the financial market and a 0-100 index, but in the sports area we offer back-and-lay facilities on a wide variety of markets, particularly in running, so we need a new name to distinguish it." Le Roux believes that spread betting may have reached a peak so he would therefore like to promote the fact that IG offers a competitive alternative to sports betting exchanges.

Community Features -- RiverBelleCasino.com has introduced new multiplayer versions of blackjack and slots in an effort to create a social, interactive experience similar to that of online poker rooms. The Microgaming-powered games enable customers to play alongside one another, observe each other's play and chat if they feel so inclined. The site features many three- and five-seat tables with different betting limits and many of the popular American and European rule variations. Also available are multiplayer standard slots, multiplayer community slots and multiplayer pot slots.

Two Years -- Susan Bala, the founder of North Dakota-based Racing Services, was this week sentenced to two years in prison, to be followed by two years of probation. Bala and her company were convicted of 12 counts in February, including conducting an illegal gambling business, conspiracy to conduct an illegal gambling business, illegal wire transfer, and nine counts of money laundering. Prosecutors alleged that Racing Services' operation between October 2002 and April 2003 of a simulcasting and betting network was illegal because it was not licensed through a charity and because taxes were not paid on the betting.