Bwin to partner with Real Madrid

[jetset]

BWIN CLINCHES SPONSORSHIP DEAL WITH TOP SPANISH FOOTBALL CLUB

Three seasons of association with Real Madrid

Vienna listed online betting group Bwin Interactive started the week with the positive news that starting on 1 July 2007 it will become the official main sponsor of Real Madrid, the top Spanish football club. The agreement has initially been concluded for a period of three seasons.

In addition to displaying the Bwin logo on the shirts of the Real Madrid team at national and international matches, the cooperation agreement extends to prominent branding of the stadiums and Real Madrid's training ground.

A spokesperson for Bwin said that the partnership should be seen against a background where several EU member states have yet to accept the freedom of establishment and services in the area of online gaming. This is despite the fact that both the European Commission and the European Court of Justice are of the opinion that the offering of online gaming is subject to the free movement of services and the freedom of establishment laid down in the Treaty on European Union.

"In the future, Bwin will therefore be investing its available sponsoring resources in markets that have adopted an enlightened attitude to the subject of gaming regulation," the spokesperson said.

The Bwin group has over 11 million registered customers (including 7 million "play money" customers) in over 20 core target markets. Operating under international and regional licences in countries like Gibraltar, Kahnawake (Canada), Belize and Germany, Italy, Mexico, Argentina, Austria and the United Kingdom, the group is an important destination for sports betting, games and entertainment via digital distribution channels. The Group offers sports betting, poker, casino games, soft and skill games, as well as audio and video streams on top sporting events such as the German Bundesliga.

Leadership, dynamism and technological innovation are values that Real Madrid and Bwin share, a joint press release on the sponsorship deal said. "The agreement presented today at the Santiago Bernabeu Stadium by Manfred Bodner, Co-CEO of bwin, and Ramon Calderon, President of Real Madrid CF, represents a milestone in the international ties between the two institutions," the announcement continues.

"The two brands share a commitment to maintain and foster sports as well as values such as leadership, dynamism and technological innovation. These shared values and business strategies will allow Real Madrid and bwin to connect emotionally with millions of fans throughout the world."

Real Madrid President, Ramon Calderon said: "With this alliance we are taking one more step towards our goal of partnering leading international companies. bwin is a worldwide reference thanks to its experience and involvement in sports sponsorship. Among other characteristics, it is a creative, dynamic, young company seeking greater proximity to all the fans in the world of sport".

[jetset]

COMPLICATIONS FOR BWIN'S REAL MADRID DEAL

Spanish consumer protection association demands investigation

With the ink hardly dry on a major sponsorship deal between the famous Real Madrid football club in Spain and top Austrian online betting group Bwin Interactive (see previous InfoPowa report) it appears that a consumer protection association is trying to throw a spanner in the works.

The Asociación de Usuarios de la Comunicación (AUC), a watchdog association for the Spanish communications industry has lodged a complaint with the administrative branch of Spain’s Ministry of Economy and Taxes, claiming that online gambling activities in Spain are illegal if carried out by unlicensed companies, therefore rendering illegal the promotion of online gambling. AUC executives have demanded the commissioning of an immediate investigation into the sponsorship.

This is not the first time that AUC has pressed the illegality point. It has also lodged complaints against several newspapers, radio and television media that have accepted online gambling advertising, together with three football teams that have accepted sponsorship from Miapuesta and 888.com in addition to Bwin's sponsorship of Real Madrid.

Online gambling could become the subject of political debate in Spain following criticism from the sports spokesman for Partido Popular, the principal political Opposition last week. The spokesman called on the government to address the issue of foreign Internet gambling companies illegally accessing the Spanish market, and said that such activity was in direct contravention of "at least eight" Spanish laws. He accused Spanish football clubs like Real Madrid of being accomplices in illegal gambling through involvement in sponsorship programs with online gambling companies, and noted that managements of such clubs should anticipate the possible consequences.

Thus far the Spanish government has shown little appetite for legal action against online gambling companies sponsoring Spanish sports, but high profile promotional activities by major companies such as Bwin seem to be generating more heat among opposition politicians and organisations like the AUC.

As a member of the European Union common market, Spain is faced with the now widespread EU demand for free movement of goods and services, which several governments have resisted due to the impact on individual state lottery and other monopolies. The European Commission is currently active in pursuing the free movements of services in several countries following major European Court of Justice rulings.

Earlier this year the Madrid government gave regional governments more licensing freedom regarding gambling, triggering major interest in the Spanish market.