Friday, Sep. 2
Empire Sale? -- Empire Online Limited says it has received an offer from an interested party that wants to acquire all of its issued share capital through a mixture of cash and shares totaling £790 million. Shares opened today at 245p and rose to 270p (the price offered by the potential buyer) after investors scooped up many shares. Most people who care to speculate assume that the unnamed company offering the deal must be PartyGaming. At the end of July financial group Smith Barney, a division of Citigroup, published a report analyzing the relationship between the two recently floated Internet poker companies. According to the report, "We see Empire as a troublesome child to PartyGaming, small but growing faster and taking more than its fair share of the budget. We think PartyGaming's best option is to tie Empire in by buying it." . . . Empire Online also announced today that it had appointed its non-executive director Andrew Burns to replace Yossi Pereg as the company's CFO. Pereg is stepping down because of personal reasons.
Israeli Lottery -- Mifal Hapayis, the operator of Israel's national lottery, has signed a contract with lotteries solutions provider Intralot that will result in the launch of Internet-based lottery services around the beginning of 2006. Built on Intralot's B-On gaming platform, Mifal Hapayis' new interactive system, "E-Pais," will offer five games--Chance, 777, Keno, 123 and Lotto--and will be available in Hebrew, English, Russian and Arabic. Mifal Hapayis' chairman of the board, Shimon Katznelson, who estimates that the online games should increase sales growth by 2 percent, has stated on several occasions that foreign online gambling sites have threatened the Israeli lottery's income. He estimates that Israelis spend about 1 billion shekels (US$223 million) on foreign online gambling and 13 billion shekels ($2.9 billion) on other forms of illegal gambling.
Orbis Grows -- U.K.-based online gaming software provider Orbis has acquired U.K.-based game design company NT Media and the entirety of its share capital for a consideration that may vary between £1.6 million and £4 million in cash, dependent upon future performance. NT Media has a stable of more than 50 games and has serviced clients such as Ladbrokes and SkyBet across multiple channels. All NT Media employees will join Orbis and will continue to service existing NT Media customers in addition to working with Orbis in developing new games concepts and a fully fledged casino software package that will be offered as a fully integrated module of the Orbis OpenBet product family. Orbis is a wholly owned subsidiary of open end-to-end digital pay TV solutions company NDS Group Plc, which is itself a subsidiary of News Corporation.
Leaving After All -- After denying rumors only two weeks ago that it planned to switch poker software providers, Malta-based Scandinavian online gaming operator Expekt has confirmed that it will indeed leave Microgaming's Prima Poker Network so that it can join the Tain network on Oct. 23. Tain has provided Expekt with bookmaking software since the operator launched in 1999 and with casino software since 2003. Expekt will become the largest member of the Tain network, which currently provides poker solutions to Scandinavian sports books Pointbet and Scandic Bookmakers.
Race-O -- The launch of Race-O, the new "superbet" on British horseracing spearheaded by former Betdaq managing director Rob Hartnett, will apparently miss its initial estimated launch date of sometime this summer. Involving eight races each Saturday afternoon, the Race-O product offers the punters the chance to win a fortune for only a very small stake. Hartnett says the structure of the bets as well as the technological aspects of the service are complete.
Hurricane Relief -- Similar to efforts undertaken after the tsunami disaster at the end of 2004, several online gambling companies are pitching in to offer relief to victims of the hurricane the swept much of the U.S. Gulf Coast. Absolute Poker, which raised $14,000 for victims of the tsunami, is matching donations through several online tournaments that will benefit the Red Cross. All proceeds, including the sums that would ordinarily be paid to tournament winners, will be donated to the relief effort. . . . CardPlayer.com will donate proceeds from its "King of the Gridiron" sweepstakes to the American Red Cross. The efforts have so far raised more than $1,500. . . . Bodog.com will hold five benefit tournaments Sept. 8-12 and will match and donate all of the players' fees to the Red Cross.
P-Mac -- California-based skill gaming software company CyberArts has exclusively licensed a poker software platform written specifically for Macintosh computers to Malta-based Skill Games ltd., operator of the GamesGrid brand. The lead developer on the project is Chris Derossi, a poker player who was a chief architect of the Macintosh operating system for Apple Computers. The software is in beta testing, with a worldwide launch expected within a week or two.
Welcome Aboard -- I-gaming software provider CryptoLogic Inc has appointed veteran British business executive Nigel Simon as a non-executive director of the company's board of directors. Simon served for 20 years in senior management roles at U.K.-based international tobacco company Gallaher Group, where he grew the company's international profits by more than 600 percent over a 10-year period and led an acquisition and integration of an Austrian manufacturer.
Thursday, Sep. 1
Delayed Launch -- A broadband horseracing content service created through a partnership between The Racing Post and subscription-based TV channel Racing UK was tentatively due to launch today but has been set back a few weeks for testing. The service will provide live video from Racing UK's 31 tracks as well as racing forms and analysis from the Racing Post. It will also enable customers to compare odds from its five bookmaking sponsors and to place wagers with any of them. The sponsors, which have not yet been announced, will receive prominent branding and will be able to post video content on their Web sites. The service will target a new community of younger punters who typically wouldn't subscribe to the Racing UK service but still enjoy watching races online and having a punt. A pilot of the site logged over 157,000 unique user in the nine days leading up to the Grand National in April.
South Africa Online -- Betting World in July became the first licensed South African bookmaker to take wagers over the Internet. The company's Web site, www.bettingworld.co.za, is the product of a collaboration with TurfSport, a South African company that develops betting software for bookmakers. Prior to launching the Net betting service, Betting World only took bets over the counter and via telephone.
Quoteworthy -- "I feel strongly that people should be able to choose how they spend their entertainment dollars. It's none of the government's business."
- The first official statement from Jesse Ventura in his new capacity as spokesperson for online gaming company BetUS.com. Ventura has been a U.S. navy seal, a big-screen actor, a professional wrestler and ring announcer and governor of the state of Minnesota. This week he and BetUS.com will unveil an advertising campaign on Sirius Satellite Radio.
No Rebates -- The New York State Racing and Wagering Board has implemented a rule that prevents the state's racecourses from doing business with offshore betting operators that offer rebates to clients. New York Newsday reports that only the three tracks operated by the New York Racing Association have done a significant amount of business with any of the offshore firms. The New York Newsday article, which is extremely critical of the board's decision to enact the new rule, claims that the rule is a response to the federal indictment of several organized crime figures this year, which involved four offshore firms (although none of them have been charged with a crime). Soon after the indictment, NYRA refused to accept wagers from 10 of the firms--a move that New York Newsday estimates has accounted for much of the $20 million decline in NYRA's handle through the first 30 days of the current season. The firms, which offer rebates and other advantages to their highest paying customers, are thought represent more than $50 million in annual wagers.
Use Cash -- A deal between Gibraltar-licensed Trafalgar Betting & Gaming Ltd. and Ukash will enable Trafalgar's 32Red Online Casino to accept play from customers who do not have payment cards or are reluctant to use them online. Consumers can purchase Ukash vouchers at about 12,500 paypoint terminals in the United Kingdom and redeem the vouchers for services through online merchants.
Floatation Device -- Betcorp, operator of BetWWTS, has affirmed its desire to seek a listing on the London Stock Exchange by appointing KBC Peel Hunt as advisor to a possible float. The company is already listed on the Australian Stock Exchange.
Wednesday, Aug. 31
Betfair's Crusade -- Betfair's lobbying efforts in Australia continued this week with a meeting between company execs--cofounder Ed Wray and Director of Corporate and Business Affairs Andrew Twaits--and racing industry leaders in Launceston and Hobart. The company, which will launch an exchange through its joint venture with Publishing and Broadcasting Ltd. if a license is obtained, has offered to pay the Tasmanian government 20 percent of its gross revenue on all Australian racing. It would also pay the state government 15 percent of gross revenue on all Australian sports betting. Twaits hasn't ruled out seeking a license in other states, even if one is granted in Tasmania.
A New Poker Show -- FullTiltPoker.net announced a new poker-centered TV show that aims to teach viewers the subtleties of the game in addition to airing poker events from around the world. The 30-minute show, "FullTiltPoker.net Presents: Learn from the Pros," will premier Tuesday, Sept. 27 on Fox Sports, and new episodes will air every Sunday. It will be hosted by Best Damn Sports Show Period's Chris Rose and poker pro Howard Lederer. The 26-week series will explain the nuances of poker, and as it progresses, pros will offer more sophisticated lessons as well as tricks for winning big pots.
Wheel Fits into Blue Square -- British online bookmaker Blue Square has announced the appointment of digital agency Wheel to run its online marketing campaign. Through a deal reportedly valued at over £1 million, Wheel will take responsibility for the promotion of Blue Square's online assets, including Mecca Bingo and Hard Rock Casino. The digital agency will manage affiliate programs, develop extensive online media campaigns and broker a range of online strategic partnerships in parallel with the development of an overall online marketing strategy.
Problem Gambling Crisis -- A class action lawsuit making its way through the Nova Scotia courts argues that video lottery terminal operators in the region aren't doing enough to keep problem gamblers from accessing their games. The suit is centered on a former Cape Breton coal miner who lost $500,000 to slot machines over three years. Attorney Dick Murtha explained that although Nova Scotia legislation says casino operators must make attempts to identify gambling addicts and bar them from the premises, Paul Burrell's case makes it clear the law is not working. Burrell's banking records show that he gambled away a $200,000 worker's compensation settlement, family savings of $80,000 and roughly $200,000 from his re-mortgaged house and personal loans.
Quoteworthy -- "We believe the process required to implement a total ban on Internet gaming in the U.S. will prove too difficult and that on a two- to three-year view there will be a move to legalize online gambling.
"In our view, this would be a negative development for the existing online gaming companies as it would open the way for U.S. casino and gaming companies, as well as online service providers to enter a market with low barriers to entry."
- Excerpts from the conclusion of a two-page Merrill Lynch report published today that discusses what the WTO ruling could mean for the legal status quo surrounding online gambling in the United States.
Tuesday, Aug. 30
Poker Beat -- The World Poker Tour appears to have outdone itself again. The tour announced that this week's Legends of Poker tournament at Bicycle Casino (currently underway) will have a record turnout of 839 players and a prize pool of over $4 million--making it the largest ever event on the WPT circuit. The winner will take home $1.1 million. Last year's event, won by Doyle Brunson, featured 667 players and a $3.3 million prize pool. The WPT awarded nearly $70 million to players during season three last year, and the group expects that amount to be exceeded in 2005. Next up on the WPT calendar is the Borgata Poker Open at the Borgata Hotel and Casino in Atlantic City, Sept. 19-22. . . . GreenTiePoker.com is taking a new approach toward tackling the online poker market. The one-month-old virtual poker room is going for the unique look and feel of a men's magazine and in doing so is offering what it calls "Fantasy Tournaments" with prizes like beer for a year and sporting event tickets as well as VIP concierge services a "Virtual Girl" game and a different "Green Tie Girl" every month.
Golden Sponsorship --
es.sportsbook.com en Espanol --Sportbook.com 's online sports book geared for the Hispanic population--announced Monday that it has signed a sponsorship agreement with Golden Boy Promotions and its top attraction, six-time world boxing champion Oscar de la Hoya. Sportsbook.com will be the official online gaming sponsor at six upcoming Golden Boy Promotions events, all of which will be televised on the popular 'Boxeo de Oro' on HBO Latino. The partnership will take effect Thursday with the NABO Bantamweight bout between Johnny Gonzalez and William Gonzalez at the Desert Diamond Casino in Tucson, Arizona.
BeTheNumberOneCracker -- BeTheDealer Casino has put $7,000 in prizes up for grabs in a contest that seeks to find the world's best search engine crackers. The online casino's second Search Engine Optimization contest challenges Webmasters and programmers to optimize their sites' rankings for the phrase "Online Casino BTDino" (a phrase that currently yields no results) on keyword search engines. Webmasters who successfully crack the top 50 listings for this phrase on Feb. 26, 2006 will share the $7,000 prize. Hundreds of webmasters took part earlier this year in the Google Fortuno Winnero Optimization Contest, BeTheDealer's first contest of this nature, which generated over 132,000 (and counting) results for the phrase "Fortuno Winnero."
Quoteworthy -- "The issue of how to achieve compliance with the [Dispute Settlement Body's] recommendations and rulings is thus further complicated by its potential to affect, and be affected by, elements of an already complex legislative debate that has gone unresolved over the past four Congresses."
- Pulled for the United States' submission to the WTO-appointed arbitrator in the country's remote gambling dispute with Antigua & Barbuda. When the WTO's Appellate Body revealed its ruling on the dispute in April 2005, U.S. trade officials called the decision a "victory" that could simply be complied with by "clarify[ing] on narrow issue."
Monday, Aug. 29
Another Float -- Following the posting of earnings figures that are "comfortably ahead of internal forecasts," Betcorp (owner of BetWWTS and Sinsational Intertainment) indicated that it is considering a float on the London Stock Exchange. The company, which is already listed on the Australian Stock Exchange, stated: "In planning the future expansion of Betcorp, the board is considering whether it is in the shareholders' interests for the company to access that market by a dual listing or other means."
Whoops -- Satellite Information Services (SIS), the company that supplies pictures to Ladbrokes' bookmaking shops, reportedly accidentally showed the results of a virtual race before it actually took place. Punters apparently threw lots of money at the winning horse, giving Ladbrokes a nasty loss.
Nevada Law -- The Nevada Gaming Commission last week conducted a public hearing on two sets of regulations that would allow Nevada's licensed race books to take wagers via the telephone from bettors located in other states. Race books would not immediately be allowed to accept bets over the Internet, although that could change. The intention of the new regulations is to restore some ground that Nevada's pari-mutuel industry has lost to the 17 other states that already allow race betting operations to accept telephone bets. Should the regulations be passed, Nevada's 86 race books would have access to customers in the 33 U.S. states in which interstate betting is not prohibited. The commission will vote on the regulations on Sept. 27.
Self Help in New Zealand -- Gambling Helpline has launched New Zealand's first online self-assessment tool to help gamblers diagnose their susceptibility to problem gambling. The tool enables users assess their levels of risk and save their results so that they can check back at a later date to determine whether they've made progress or slipped. The Web site also features links to additional self-help tools
Magazine Demand -- Media Bulletin reports that Dennis Publishing's Inside Edge magazine, which was launched in England in March 2004, has not lived up to its expectations. While the target circulation was 30,000, figures reveal that only about 15,000 copies are actually moving. Dennis Publishing announced plans in July to put out another magazine called Total Gambler to meet advertisers' demand for Inside Edge.