Weekly Nambling Notes

21 August 2005
Friday, Aug. 19

More Sports/I-Gaming Convergence --Yogonet.com reports that British football club West Ham United plans to launch an online casino at Hammerscasino.com. The site will be the world's first online casino carrying the brand of a football club and will feature a graphic interface that places gamblers in a stadium, where they can walk into areas with slots and table games.

Deal Making -- Israel-based Namtiori Ltd. has been granted exclusive rights for business and technical development of the BetOnBourse Stock Exchange, a game that gives players the opportunity to profit from simulated stock and commodities trading. Namtiori said it plans to revolutionize the online gaming industry with the introduction of a unique stock exchange platform that delivers fast action, moment-by-moment excitement, and up-front profits for operators. The company's CEO, Ilya Roitman, said operators will be able to advertise in conventional online and offline "no gambling" zones. A full launch is planned for later this year.

Russian Patent -- Kenilworth reports that its patent application in Russia for a system that facilitates the broadcasting of live, in-progress casino table games from casinos to terminals in remote locations such as hotels, resorts, homes and public gathering places was approved. The application corresponds to Kenilworth's U.S. patent, which was granted in 2003 by the U.S. Patent & Trademark Office. The company has also filed corresponding applications in countries throughout Europe, Asia and Latin America.

William Hill Adds New Game -- William Hill this week introduced a new game called "Quick bet Hi/Lo" to the William Hill Arcade. The game is a unique take on the Hi-Lo concept; the layout of the cards enables the player to place bets at fixed prices on whether the next card will be higher or lower. In addition, gamblers can make bets at a level of odds, which they can dictate. It also offers the option of shuffling for a different set of cards at least three times each game.

CYOP Cash Game -- One month removed from rolling out its TenSeatPoker.com platform, CYOP Systems International will open the game for cash play today at www.SkillArcade.com. The company reports that it has built a user base of 250,000 play-for-fun members on the CrediPlay Network, through its affiliates and at SkillArcade.com, where an average of 300 players are signing up each day.

Poker Charity -- Full Tilt Poker and Bluff Magazine raised more than $100,000 for the Boys & Girls Clubs of Las Vegas at the Wynn Las Vegas Charity Gala and Celebrity Poker Tournament on July 5. In addition to featuring celebrities playing against some of the world's top poker pros, the tournament included an auction in which players bid on rare poker memorabilia. Team Full Tilt, the world-renown poker pros behind fulltiltpoker.com, led the way at the charity poker tournament and were joined by poker luminaries Daniel Negreanu, Marcel Luske, Annie Duke and others. Rounding out the table were notable Hollywood celebrities, including Ron Livingston (Sex and the City,) Nicholas Gonzales (The OC,) Jennifer Tilly (Liar Liar,) Joe Reitman (The Perfect Storm,) Erik Palladino (ER,) Omaroso Manigault Stallworth (The Apprentice), comedian David Brenner and others.

Sponsorship Deal -- Austria-based online betting firm betandwin announced this week that it will be the title sponsor of the Portuguese Soccer League, which will be known as "Liga betandwin.com." The four-year deal (with an option for a one-year extension) covers both the first (Superliga) and second (Liga de Honra) divisions of the league; each division is comprised of 18 clubs. Portuguese teams play a central role in European soccer championships. FC Porto won the UEFA Champions League in 2004 for the second time in the history of the club, and this year Sporting Lissabon was defeated by CSKA Moscow in the final of the UEFA Cup.

The World's Top Bingo Portal -- Which Bingo announced today that it has been found to be the world's No. 1 online bingo portal in terms of traffic. (The site had the highest traffic rating out of a field 40 bingo portals). The research was carried out in July 2005 by i-ludus Consulting. Based on traffic rankings generated by Alexa.com, the site was found to be one of the world's top 70,000 Web sites.

Thursday, Aug. 18

Seized Lottery Winnings -- A Texas appeals court ruled on Wednesday that convicted drug dealer Jose Luis Betancourt cannot claim lottery winnings due to him because the ticket was bought with drug money. Betancourt was convicted in May 2003 of conspiracy and two counts of possession with intent to distribute cocaine. The jury ruled that he should forfeit half his interest (about $5.5 million) in the lottery jackpot, but a three-judge panel for the 5th U.S. Circuit Court of Appeals--based on a federal law allowing the government to seize all property and proceeds obtained from drug trafficking--on Wednesday separated him from the other half. The appeals court also upheld Betancourt's drug trafficking conviction and his sentence of more than 24 years in prison.

New Player -- British sports bar operator Sports Café announced plans this week to launch an Internet casino in September. "Sports Café Casino" will initially offer online casino games and poker, but the group plans to branch out into other areas. The site will be powered by software from Boss Media. The six-strong sports bar's newest property opened its doors in Liverpool in April, and new venues are in development in Cardiff and Newcastle.

Poker Tourney -- The fourth annual PokerStars.com 's World Championship of Online Poker looks to be the biggest one yet, with more than 10,000 players expected to take part in the online-only event taking place Sept. 4-18. The tournament is expected to yield a total prize pool exceeding $8 million. It will feature 15 individual poker events, including a final tournament of No-Limit Hold 'Em. The final event is expected to draw the second largest field of players ever for a poker tournament, behind only the main event for the 2005 World Series of Poker. Prize money for the online tournament ranks ninth worldwide for a single event

Spam Sentence -- A former America Online engineer who sold 92 million stolen e-mail addresses to an alleged online gambling spammer was sentenced Wednesday to 15 months in prison. Jason Smathers, 25, pleaded guilty in February to hacking AOL's customer database and selling the e-mail addresses of customers for $28,000. It was among the first prosecutions under the federal anti-spam laws that took effect in 2004.

Boxing Sponsorship -- Sportsbook.com announced today that it will be the title sponsor for a boxing match to air Saturday on HBO. The bout, between "Ferocious" Fernando Vargas and Javier Castillejo, will take place at the AllState Center in Chicago and is the third boxing sponsorship for the Sportsbook.com, which sponsored Julio Cesar Chavez's last fight on May 28 and Miguel Cotto's last fight on June 11.

Wednesday, Aug. 17

Denmark Mulls Minimum Gambling Age -- The Danish Gaming Service is considering introducing a ban on betting shop access for children under 16. Many MPs say they support the idea, but the Center for Gambling Mania thinks the age limit should be 18 instead of 16.

A New Player -- Video game specialist Codemasters said it will move into the online gaming space with the launch of a mass-market games portal next month. The site, Funsta.com, will offer more than 1,000 free and pay-to-play games, including quizzes, classic games and skill-based games. Funsta is the first development from Codemasters' online games division, which was formed this year. Codemasters, whose titles include "Brian Lara's International Cricket 2005" and "Colin McRae Rally," will also use the portal as a route into online gambling, offering bingo and casino-based games in coming months.

New Sites -- Launching a poker site is nothing new to the online gaming industry, but launching a poker site offering frequent customers a share of ownership in the venture is a unique proposition. PokerShare.com, which opened for business this week, promises to give its gamblers ownership positions that pay quarterly dividends and conventional shares if a public offering takes place. The company will also offer an array of perks (points toward cash rebates, trips, merchandise, etc.) comparable to the loyalty incentives popular with online and off-line competitors. Forty percent of the company is owned by a Gibraltar-based trust, with the other 60 percent held by its partners and principals. Gamblers earn "share points" linked to the length of time they play and the number of pots they contribute to as well as from tournament entry fees. The points are held by the trust, which then distributes dividends each quarter based on the company's overall profit. . . . Operators of a new site launched this week are hoping to make inroads in the online blackjack community. The site, Casino24Hrs.com, offers multiplayer blackjack as well as slots and traditional casino-style gaming. It features both low-stakes and high-stakes games.

Back on the eBay Saddle -- One day after news that GoldenPalace.com was the victim of a "sniper trap" on eBay in its successful effort to purchase an M&M wrapper (not to be confused with the rapper Eminem), the online casino was the winning bidder for a pierogi with the face of Jesus. The seller, Donna Lee, said Jesus' face appeared when she was cooking the Polish dumplings for Easter dinner in her home in Point Place. She's kept it in her freezer ever since. The pierogi cost Golden Palace $1,775.

Tuesday, Aug. 16

Empire Strikes Back -- Israel's Central District Police lifted a gag order today related to a blackmail case involving Empire Online Ltd. CEO Noam Lanir. Police arrested three men suspected of attempting to blackmail Lanir last month; the men are due in court today, and police are expected to recommend they stay in jail. Lanir, 38, floated Empire Online in July at a value of almost $1 billion. He filed a complaint with the Kfar Saba Police two months ago, claiming that the accused individuals demanded a partnership with his company (or even control of it) and threatened to harm him if he refused. The police suspect that the persons are affiliated with local criminal gangs with gambling interests. They have conducted an undercover investigation and have put Lanir under close protection due to concern that he might be attacked. Authorities say that surveillance provided sufficient evidence to charge the suspects with extortion, leading to today's arrests.

Advertising Crackdown in Australia -- ZDNet Australia is reporting that representatives with the Department of Communications, Information Technology and the Arts are investigating possible breaches of the country's Interactive Gambling Act by Google and other popular search engines. The IGA prohibits advertising gambling services on Web sites where "it is likely that the majority of that site's users are physically present in Australia." Breaching the act carries a maximum penalty of AU$220,000 per day for individuals and AU$1.1 million per day for corporations. Google Australia displays advertising links to online gambling sites when certain keywords are misspelled. But the Internet giant isn't alone: Little-known Melbourne-based search engine Web Wombat has reportedly admitted to conducting such activities.

No Change Expekted -- Expekt, an online sports book, casino and poker operator targeting Scandinavian markets, is denying rumors that it plans to switch software providers. The company said today that it will stick with the Prima Network and its Microgaming software. The Malta-based operator is one of the largest members of the Prima Poker network, which experienced growth of over 300 percent in 2004.

eBay Bidding Gone Bad -- GoldenPalace.com has perfected the practice of publicity stunts, but it could probably do without the publicity it has received through its latest exploits on eBay. The company fell victim to a "sniper trap" on the popular online auction site while bidding on a candy wrapper reportedly from Mesopotamia. The scam entailed a competing bidder's retraction and two phony bids made to increase the selling price of the item, for which Golden Palace was ultimately the winning bidder. The auction's bidding history revealed one of the longest lists of bid retractions or cancellations in eBay's history. Either the bidder or the seller canceled a total of 10 bids ranging from $710 to $8,000. The Iraq Museum International, which monitors the site for the sale of illegal artifacts, isn't questioning the authenticity of the item, but did acknowledge that the casino operator was the victim of a sniper trap.

New Poker Software -- Chartwell Technologies today unveiled PokerNexus, its new community poker software. The technology behind the system was acquired through Chartwell's purchase of Micropower Corporation in May 2005. The PokerNexus network was launched through two European clients, and Chartwell says additional European clients will join the community in fiscal 2005.

AngelCity Covets Carib -- AngelCiti, a provider of online gaming software and networks, announced this week it is progressing aggressively in its acquisition of the Turks & Caicos' largest gaming company, Carib Gaming. AngelCiti acquired a 10 percent stake on June 13 and intends to pique investor interest with meetings in London, New York, Los Angeles and San Diego.

Monday, Aug. 15

Brits Gambling Online -- A study released today show that 60 percent of the U.K. population participates in one form of gambling or another, with online gambling increasing 46 percent over last year. The research, which was conducted by ORC, also shows that 95 percent of Brits who gamble take part in the National Lottery, which is played by more than half of all U.K. adults.

Dealing in Skills -- GameAccount announced today that it will create s skill-based gaming site for Fortune Lounge Group. The site, Royal Vegas Games, will be part of RoyalVegas.com and will feature GameAccount's full range of games, including backgammon, gin rummy, pool and others. . . . SkillJam Technologies Corporation, a subsidiary of FUN Technologies, announced today that it will provide its pay-to-play skill games suite to Sportingbet plc. SkillJam will develop, host and manage a private-label, pay-for-play, customized skill-gaming platform for Sportingbet.

Poker Guide -- The ever-increasing number of televised poker tournaments and other poker related programming has made it difficult for viewers to keep track of their favorite players or events, but that might be a thing of the past with the launch of Poker TV Guide. The new site, www.pokertvguide.com, provides listings of poker programming on television in the United States, the United Kingdom and Sweden. It will also provide RSS feeds free of charge to Web site operators wishing to offer poker-related TV listings.

Problem Gambling Awareness -- eCOGRA has unveiled a "scientifically developed questionnaire" for poker and casino sites with hopes of cutting down on problem gambling. The survey, which is designed to show whether users have a gambling problem, is part of an attempt to self-regulate the growing number of Web sites offering poker and casino games. Andrew Beveridge, chief executive of eCOGRA, said that filling in the questions would be voluntary and that no one would be banned from the sites. "You can't just go out and tell someone they have a gambling problem," Beveridge said. "The person has to recognize that themselves."