US$ 90 million deal clinched on San Francisco company
The big story this week started with whispers that the major land casino slots manufacturer IGT was in discussions with gambling software developer WagerWorks on a US $90 million cash purchase merger.
Within days the speculation was confirmed, with the deal scheduled for completion before the end of August 2005.
WagerWorks recently opened a London office, staffing it with some senior people in what was believed to be part of a strategy to float on the London Stock Exchange, and it is unknown how this will be affected. The company has pursued a policy of not accepting bets from US players, which leaves it with clean hands from a US legal standpoint.
The company has a good working relationship with IGT, having provided software for some of the latter's slot machines despite its more usual business line of software and support for online casino and poker operators outside the USA.
Analysts said WagerWorks' policy of working exclusively in jurisdictions that permit Internet gambling and avoiding companies that offer play in the United States should enable IGT to dodge any regulatory problems.
"This acquisition gives IGT a foothold in Internet gaming without worry about jeopardizing its gaming licenses, since WagerWorks does work for only licensed and regulated sites," said Eric Hausler, a gaming analyst for Susquehanna Financial Group, in a note to investors.
"Internet gambling continues to explode in popularity driven by the proliferation of poker," Hausler said. "We see it more as a vertical play with longer-term accretive implications, although we see IGT more as a back-end supplier and content provider than interested in going into competition against brick-and-mortar customers. We see the acquisition as strategic, not transformational, given a myriad of regulatory issues surrounding mobile or Internet gaming, which may or may not get solved over time."
WagerWorks products power major online casino and poker operations in the UK like Virgin Games and Get Minted, together with Blue Square, Skybet and Paddy Power. It was also recently selected to power up the WPT poker site.
IGT has deep pockets, being a leading company in the US gaming industry - it recently reported results for the quarter ended June 2005 that showed a net income of US$ 114.7 million.
BILLIONAIRES, MUNCHKINS AND A GOOSE WITH GOLDEN BONUSES IN LATEST MICROGAMING RELEASES
29 July 2005
Players can choose bonus benefactors with the innovative Cashville
Online gambling software provider Microgaming’s July 2005 new game releases include a 50 Power Play Poker VP, and three feature-rich video slots with widely diverse themes.
This month’s flagship is a unique and highly entertaining 5 reel, 20 payline video slot that oozes wealth and the high life. Cashville has it all and then some. Wild and Scatter symbols, Free Spins, a double your money Gamble feature and for the first time a choice of 4 entertaining and rewarding bonus benefactors. The result is an impressive range of thrills and excitement packed into a major game with serious and varied reward potential.
Using a rich colour palette and the latest graphic design techniques and gaming technology, the theme introduces a variety of amusing bonus symbols and personalities, including oil baron Bill Bullion and a choice of oil rigs, the blue rinsed Dame Von Deeds with her tempting property portfolio, a suave Sir Sterling with his many bulging bank vaults and the extraordinary art collection of blonde widow Betty Boodle. Enhancing the monetary theme further are gilt-edged share certificates, Havana cigars, priceless jewelry and lots of lovely greenbacks.
In keeping with the overall ambience of wealth and success, the maximum jackpot on this game is a tempting 500 000 coins or 100 000 in currency, and lucky players could add another 9 000 in currency to that through the bonus feature.
In last month’s releases Microgaming introduced the Golden Goose bonusing program with 2 of an intended 4 new slots using the innovative concept. In a remarkably short time the Golden Goose Bonus seems to have enjoyed a positive reception from the player community, encouraging the company to launch the third game in the series called Genie’s Gems. With magic lamps and a generous genie this entertaining 5 reel, 20 payline, 10 coin game, with Wild and Scatter symbols, a Free Spin Bonus Feature, and a Gamble feature will have wide appeal delivering plenty of entertainment.
For an additional wager of five coins per spin, players have the option to activate the Golden Goose bonuses...creating more chances to win significant rewards.
Mythical household critters have nibbled their way through the graphics in the fun third slot in the July releases, branded Munchkins, a 5 reel, 15 payline video slot that boasts win-boosting Wild and Scatter symbols, a very generous x20 Free Spin Bonus Feature....and a chance for player to double their money on the popular Gamble screen.
The new game takes a light-hearted look at the folklore surrounding the tiny gluttons, which are mythical creatures of the night who eat everything from missing car keys and lost socks to mysteriously disappearing homework books.
Final game in the latest tranche is 50 Play Power Poker Deuces and Jokers, the latest in a series of 6 gamestyles that Microgaming is offering in this popular VP genre that offers fast action and big jackpots paying up to 120 000.
In Deuces and Joker every hand is dealt from a separate and independent deck of 53 cards instead of the normal 52 cards. The extra card is a Joker and is a wild card and substitutes for all cards to complete a winning hand. The Deuces in the deck are wild and substitute for any card to complete a winning hand. The Deuces are cards with a face value of 2.
When a Deuces or Joker card is dealt, a suit and denotation are automatically assigned to the card giving the player the highest possible payout for the hand.
Deuces and Joker 50 Play Power VP operates on the peerless Viper software platform, where in addition to autohold, the analyser tables give guidance on current odds and cover permutations to help gamblers make the right decision - a valuable player tool that enables faster and more accurate play
With razor sharp, clean and lean graphics allied to generous pay tables, it is likely that this new 50 Play game will feature high on the play lists of most VP fans.
NEW ENTRY TO ONLINE POKER AND CASINO SECTOR
29 July 2005
ubet2win has British and Irish backing
British and Irish bookie group ubet2win could be moving into the online casino and poker sector once it has completed next week's debut on the London AIM stock market.
The company has raised around GBP 239 000 via a public offer at 3.5p a share, more than double the original GBP 100 000 expected, valuing the business at nearly GBP 5.5 million, thanks to the positive sentiment on gambling stocks following PartyGaming’s high profile big listing last month, with its shares up almost 40 percent in four weeks.
Discussions have reportedly taken place with online poker providers with a view to setting up a poker gaming site, with an online casino also anticipated in the future. ubet2win says that something like 6 percent of UK horse racing bets are now placed online.
REGULATORS ACT ON FOXWOOD'S "PLAYAWAY"
29 July 2005
But the Indians say no way....
InfoPowa's recent report on the ingenious ploy by Foxwoods land casino to introduce interaction over the Internet with its customers had a sequel early this week when State regulators ordered it to shut down the "PlayAway" promotion saying it violated Internet gambling laws and illegally expanded gambling off the Indian reservation.
The casino, among the world's largest, markets its "PlayAway" promotion as a way to play slots and card games from home, although all financial and win-lose decisions take place within the reservation and on the Foxwood premises.
The Mashantucket Pequot Tribal Gaming Commission said that it was reviewing a letter from the state Division of Special Revenue.
Following a meeting with Attorney General Richard Blumenthal the tribe stood its ground, saying its activites were legal.
"Nothing the player does from his computer can in any way impact on the outcome of the game, the results of which have already been determined by a computerised drawing at Foxwoods," the tribe said in a statement released Wednesday.
PlayAway allows gamblers to put their money down at Foxwoods, then check results online. The casino argues that it isn't Internet gambling because all the betting is done at Foxwoods.
"We certainly understand the argument," Blumenthal said, "but it is clearly contradicted by their own marketing for the game."
Blumenthal said the game was a magnet for minors.
"This game has to stop," he said.
By midweek further grounds for banning the game had emerged, principally that it had not been submitted for approval by the regulators.
More state officials were commenting, as Foxwoods stood by its intention to launch the game and a confrontation seemed inevitable with both sides making strong statements.
Towards the end of the week a more conciliatory tone had set in, and Foxwoods had held discussions with the regulators, although as we went to press no firm outcome was apparent.
Poker site
We've reported on the Full House Entertainment company out of Curacao previously as the company developed its exclusive poker software. This recently led to the launch of Poker Round.com, a fresh contender in the competitive online poker field and capable of hosting an unlimited number of tables and customers.
Pokeround delivers 24-hour non-stop and fully supported poker action against real players from all over the globe, with a selection of 5 games including Five Card Stud, Texas Hold’em, Omaha High/Low, Seven Card Stud High/Low and Five Card Draw.
The site was designed with the player experience front-of-mind and features easy to navigate lobby systems, crisp graphics and intuitive betting commands, all safely behind a 128 bit encryption regime and effective proprietary collusion detection software.
Management plans include hosting tournaments that have unique and significant prize winnings.
Sportsbook launch
Also from Curacao, Mercury Sports N.V., has launched Upunt.com, a new sportsbook operating on the Spherical Gaming platform.
With online sport-betting at an all time high, Upunt players have the opportunity to use the site to
bet on a wide variety of sports including Soccer, Horse Racing, Tennis, Golf, Cycling, Motor Racing, Rugby, Cricket, and Props.
The site promises fast and secure betting transactions along with a variety of deposit options, and manager Bill Thomas says that full player privacy confidentiality is guaranteed.
LAW ENFORCEMENT SUED BY POKER TOURNEY COMPANY
29 July 2005
No cash money involved in North Carolina poker tournaments
Media advertising for online gambling companies in the USA is not the only sector that has come under attack from the authorities, it appears...and there's a company out there that, like online gambling portal Casino City is prepared to challenge the activities of law enforcement agencies.
Charlotte-based 5th Street Entertainment LLC has launched litigation against five North Carolina law enforcement agencies for declaring that land poker tournaments run with prizes but no cash money is illegal.
The company, which organises poker tournaments, said that law enforcement agencies have prejudiced its business by declaring the games illegal and warning that restaurants or bars that host them could lose their state liquor licenses. The tournaments have been forced to stop awarding prizes as a consequence.
Company attorney William Bunting claims that: " North Carolina's gambling statute requires that something of value be bet in order to be considered gambling. This is merely a game people get together and play."
TURKISH AUTHORITIES INVESTIGATE ONLINE GAMBLING
29 July 2005
Opposition party politicians quiz government
The Turkish politicians were at loggerheads again this week over the question of enforcement of the law concerning online gambling.
Turkish media reports claim that the authorities are experiencing enforcement problems due to the offshore nature of some thirty Turkish language gambling websites...and the Justice and Development political opposition party is riding the government hard on the issue.
Last week opposition spokesman Ertugrul Yalcinbayir claimed that an increasing rate of virtual gambling existed in the country and submitted a list of questions to Interior Minister Abdulkadir Aksu.
The questions included "What means can prevent our people from gambling? What is the economic size of online and other kinds of gambling in Turkey? Does Turkey have the power to prevent online gambling? What kinds of precautions can be taken?"
Aksu said in his reply that online gambling and lotteries are illegal and therefore legal action will be taken where possible against these sites upon detection. The Ministry has issued directives to prevent online gambling and new investigations on the issue are on the way, he reported.
Aksu said that The Ministry cannot prevent online gambling sites as their roots are outside Turkey and in countries where online gambling is not illegal. However, Turkish officials would be contacting the hosting companies of these sites to demand that they are not be made available online in Turkey.
CASINO CITY VS DEPARTMENT OF JUSTICE : ROUND 2
29 July 2005
The feds respond
Casino City's challenge to the U.S. Department of Justice entered the next phase this week as the latter responded to Casino Citys appeal against a district court decision preventing it from being heard.
Casino City had earlier challenged the activities of the DoJ, which had been advising US media that accepting advertising from online gambling companies was illegal. There have been no prosecutions, but this resulted in significant losses as media and search engines backed away from such a risk and denied advertising space.
Legal representatives for Casino City used the freedom of speech provisions of the US Constitution in arguments before a district court, asking for a declaratory judgement. The company lost this first round when the court found in favour of the federal authorities, who claimed that because it had not been one of those companies directly addressed with a warning, CC had no standing to contest the issue.
Casino City then appealed to a higher court, and this week the DoJ filed its response, using the same grounds and seeking to have the appeal dismissed by the US Court of Appeals for the Fifth Circuit.
As we went to press, Casino City remained determined to press its case, and was preparing a riposte to the DoJ brief.
MAJOR SKILL GAMING TOURNAMENT PLANNED
29 July 2005
16 000 players to vie for GBP 10 000 grand prize
Starting last Friday, one of the top providers of skill gaming, GameAccount.com is offering a tournament of note to players across 130 countries.
Claimed as the world’s largest Solitaire tournament, with a grand prize of GBP10,000 attracting an estimated 16,000 players, the competition format is 14 rounds of the popular card game 'Pyramid Panic.'
With minimum outlay and a good chance of reward, the tournament has a GBP 1 for each entry. Players may enter as many times as they may wish to improve their chances. The tournament is structured to offer ever increasing prizes with each round, and players have to beat 14 opponents to win the grand prize.
Kevin O’Neal, Marketing Director at GameAccount, the tournament is just the beginning of a significant campaign to take the skill games market to new heights.
“We intend to make remote skill gaming the new poker,” said O’Neal. “By the end of the year we plan to launch the first GBP 100,000 skill gaming tournament, which will generate attention and boost the position of skill games in the online sector.”
Skill gaming has been rapidly maturing in player size, revenues and cash prizes over the last 3 years; GameAccount paid out over GBP 1 million in cash winnings in June this year alone. The pioneering skill gaming provider has reported that next generation games and knockout tournaments are increasing average stakes and lifetime customer value.
The movie industry has been doing it for years - publicising its new offerings by short "trailer" movies to boost interest and attendances...now the concept has been extended to online gambling.
The Stan James.com site has introduced a 90 second daily presentation advising users of the offers, markets and features available at the sportsbook and across the companys growing casino, poker and gamesroom channels.
Developed by Dublin-based media production company, SonicArt, the technique has been possibly by technology improvements in compression and streaming, says SonicArt director Neil Walsh.
“It’s a very digestible way for a company to get information across to their consumers,” he says. “The majority of websites have only textual content in place to inform their customers, but now a site user can sit back and get up to speed with audio visual presentations full of calls to action and corporate branding.”
Content can include visuals, voiceovers, background music and animated text, and the feature is accessible on dial up connections as well as broadband.
And that upcoming acquisition could be a sportsbook...
In a recent InfoPowa bulletin we reported on World Gaming's rising share price and the companys intention to take on additional licensees and make acquisitions. It now transpires that the acquisition target is a medium sized sportsbook, and discussions are in progress with at least two potential candidates according to reliable industry sources.
The firm has revealed the identities of two new licensees in the form of Field Goal.com and Go Sportsbet.com. The announcement additionally advises that as part of one of these agreements it will license its rights to several of its proprietary domain names, including Gambling.net.
World Gaming has come through some tough times and hefty restructuring in recent years, largely inherited through the old Starnet group that it replaced. The turnaround strategy of head honcho Daniel Moran seems to be working admirably, with increasingly positive corporate reports emanating from the London-listed company.
ASIAN SPORTSBOOK FOR ALDERNEY JURISDICTION
29 July 2005
Shell company now shows its hand
Sportswinbet listed earlier this year under a blanket objective of investing, acquiring, developing or agglomerating companies in the online gaming sector, and this week it showed its hand in revealing plans for an Asian-facing sportsbook based in the Channel Isles jurisdiction of Alderney.
After raising GBP 3 million on the exchange with a market capitalisation of GBP 28.5 million, the company established an egaming subsidiary and applied for an Alderney licence together with a hosting deal with Cable and Wireless. Hardware and software deals with undisclosed parties have also been clinched, laying the foundations for a sportsbook, probably Asian-facing as a result of meetings with several potential Asian partners.
If all comes to fruition, the resultant sportsbook would become the second Asian-focused operation of this nature to set up shop in Alderney. Asian-owned bookmaker SAMVO, which plans to operate an international football and basketball site, has an electronic betting licence from the island jurisdiction.
Despite a rather disquieting sell-off by one of its biggest shareholders, BetonSports remains bullish on its future, with a dynamic management partnership involving ex-Carmen Media men shaping up.
Based in Costa Rica, but with the US gambler clearly in its sights, BetonSports is predicting a rise in profits for the first half of this year, and there has been a noticeable change in corporate strategy evidenced by major investment in online marketing spend.
The advertising and marketing budget is set at a substantial $14.4 million, and over $10 million of this has already been committed. The company will publish its report in October 2005.
Making things happen with this marketing war chest is the recently recruited William Griffiths as marketing director. This experienced executive worked closely with the new BetonSports operations director Clive Archer during his time at the Carmen Media online casino group.
Another new arrival is Scott Waller as Chief Technical Officer. He will have his hands full with a reported complete software upgrade scheduled for early 2006. The company has also reiterated that it is in the market for acquisitions, although the going rate for worthwhile buys is inflated at present, fuelled by the successful flotation of Party Gaming in the sector.
The recent sell off of a major part of its shares by BetonSport's largest shareholder, Boulder Overseas Corporation had a disquieting effect. Boulder sold GBP 28.75 million worth of it's 43 percent holding, although it retains an interest of 15.46 percent of BetonSports.
Readers will be familiar with the mainstream media penchant for tragic gambling addiction stories, and it appears from an email sent out by a leading women's publication this week that this is a desirable element in a gambling story....for some.
A researcher or journalist called Laura at "Marie Claire Ideas @ IPC Media.com" sent the email, and this is what she had to say:
"My name is Lauren and I am writing on behalf of the women's magazine Marie Claire. Currently we are try to write a feature on women gambler winners.
"So far we have the potential for three pieces on poker, internet poker and the horses. We are now just trying to find an example of a winner from internet games such as Jackpot joy.
"Preferably, to make the story more interesting, we are also looking for this candidate to be a sufferer of gambling addiction.
"If you have any ideas or leads that might aid me in finding the right person could you please get in touch asap for the matter is quite urgent. I would really appreciate it!"
Well, here's one idea - an even handed approach that looks at the many positive things happening in online gambling.
Belle Rock Gaming redirecting poker traffic to premier site
It looked like the end of the road this week for the Prima network site Lucky Nugget poker room.
Belle Rock Gaming was advising affiliates that traffic would be re-directed to their flagship poker room at The Gaming Club.com, another member of the network.
The advisory said that "Belle Rock Gaming is consolidating all its poker brands into one strong, phenomenal brand. One brand means more control, better customer service and improved player retention."
It went on to advise that the change will ensure that all players are carefully looked after, leading to increased play and extended player lifetimes.
All current Lucky Nugget poker room players will be able to continue their game play without disruption. If players click onto either text links or banners, they will be automatically redirected through to a new home page that will then prompt them to click through to The Gaming Club Online Poker Room.
The change will not effect affiliate commissions in any way and systems are in place to track players through to The Gaming Club.
In fact, says Belle Rock, this is good news for affiliates because they will only have one major poker brand on which to focus player retention efforts, giving them better control. And for the players, this is apparently an improvement too, as they will probably find the bigger online poker environment more attractive.
With an estimated 50 million or more online and land poker players in the United States alone, and the phenomenal popularity of the game on a global scale, it is not surprising that the need for a unifying body for poker players is being discussed.
This week Poker News interviewed the latest manifestation of that need - the recently launched National Poker Association (myNPA.org)
Located in Franklin, Tennessee but with big ambitions to embrace all poker players, the NPA has apparently already been able to procure some excellent benefits for members and has growing appeal for players at a very reasonable cost ( a one year membership costs $25).
President Wes Parker said that the organisation may be moving to the more appropriate location of Las Vegas within the next year. The NPA, he told Poker News is designed for the everyday poker player and would like to become the lobbying group for poker players everywhere, expanding the game. By being "...a forceful lobby for the game of poker, we hope to have an impact in that area, among others, including legislation," he said.
Another key objective is to secure favourable discounts and other benefits for NPA members, and good progress has been made in partnering with many companies resulting in travel, hotel and car rental deals. The committee is also investigating insurance possibilities for players.
Parker says one of the difficulties faced by the NPA has been informing the massive poker playing public about their aims and organisation, although the NPA has been listed on Google.
"We are looking for the grassroots player, much like the USGA does with golf," he says. "We want to represent everyone who plays the game, not just the big names in the sport or the professional players.
"Poker is mainstream America now, not just in the backrooms and the shadows anymore. As our membership and the sport grows, we will have a more powerful voice to be able to have an effect on the matters that are affecting players in the sport today."
Another, and perhaps more structured, if parochial organisation is the United States Poker Association (Foruspa.org) which has more of a trade association flavour and has various programs designed to meet specific industry requirements:
Establish, in close conjunction with the tournament directors, a uniform set of rules for the competitive play of the game.
Develop grass-roots support for legalisation of poker rooms in those areas that currently prohibit them.
Facilitate discussions among parties interested in expanding competitive event revenues for all participants.
Establish policies and procedures for the endorsement of poker rooms and casino card rooms.
Establish uniform standards for internet poker rooms to assure consistent and fair play.
Conduct educational seminars for the general public to promote the expansion of competitive play.
Speculation is rife that Ultimate Bet is warming up for a GBP 200 million flotation in the near future, hoping to emulate the positive effects of a London listing experienced by Party Gaming and Empire Online.
Operator Excapsa has engaged Canadian brokerage experts Canaccord Capital to consult on a possible listing, hoping to raise at least GBP 30 million that would give it a market cap between GBP 145 million and GBP 200 million.
Launched five years ago, Ultimate Bet claims to be the seventh largest site in the booming online poker sector and has a gaming licence from the Kahnawake enclave near Montreal in Canada. It has recently launched in the UK under the Ultimate Poker brand.
GAMBLING.COM CO-FOUNDER KILLED IN CRASH
29 July 2005
Tragic end for a talented young man
Craig Levin (31), who founded Gambling.com with his father, Graeme died tragically in a car accident last Friday July 22nd.
Widely known and popular within the online gambling industry, he was at one time Chief Technology Officer of what became the best known and most frequented Internet gambling portal in the business, which his father headed until it was sold in a management buy-out.
The company was recently purchased by UK-based Gaming Corporation in a $20 million deal.
Following the first sale of Gambling.com 18 months ago, Craig continued his successful involvement in the management of the portal backend and was active in developing Bingo interests.
His funeral took place earlier this week in Johannesburg, South Africa.
The InfoPowa partners extend their sympathy and condolences to Graeme and the family on this sad loss of a talented and likeable young man.
Real Time Gaming announces fix for flawed game, and is "researching" player compensation
The short paying of players on the RTG "Caribbean 21" game across a range of online casinos had a sequel this week when the turnkey provider issued an official statement on the issue.
Titled "RealTime release fix for blackjack 'bug', " the statement said that ythe provider had sorted out the problem and was now researching the extent of the prejudice to players and appropriate compensation.
Representatives from RealTime Gaming announced the delivery of a new patch for the blackjack game, designed to fix the short paying error discovered in the latest release of their online casino software.
Delivered to RTG-licensed operators on July 15, 2005, the patch rectifies a program "bug " that was discovered in the blackjack component of the online casino software.
The bug came into play when some blackjack players were in a bonus-balance play mode and then split aces. In these limited instances, wager values may not have been logged correctly, resulting in possible failure to reward some players correctly for winning plays.
RealTime Gaming personnel and RTG operators are currently researching and compiling each instance where the problem may have occurred, and promise full player restitution in cases of program error, with payouts coming as early as next week.
"We are committed to helping to set everything right with each and every RTG player, and are very thankful for their patience," said recently appointed RTG CEO Michael McMain. "Thus far, most of the players have been very understanding."
McMain went on to reassure players and operators that the bug was an isolated wager calculation fault and in no way had anything to do with the TST Certified Random Number Generator that powers the RTG platform. "Sooner or later, you are going to have a bug to deal with," says McMain, who was formerly the companys head technical executive. "Luckily, this is one we caught early, and we will be able to make things right for every player affected."
Players on leading fora viewed RTG's claim that the bug was confined to bonus play with sceptism, pointing out that there were instances where it had been encountered outside this area of play, too. The Caribbean 21 game was at the centre of a major furore last year when an RTG licensee refused to pay out a massive win on the game by a player. Eventually a settlement for an undisclosed amount was reached through mediation.
TOURNAMENT BUSINESS MODEL FOR ONLINE BACKGAMMON
29 July 2005
With half a million players, can this ancient game emulate the success of online poker?
Earlier this year there were reports of new online backgammon sites launching, using the tournament marketing model that has worked so well for Internet poker properties. This week Curacao-licensed True Money Games.com entered the fray with some impressive claims.
The company said that online backgammon could be the next big thing to follow internet poker, with growing numbers of online gamblers now playing the game.
Pierre Egger of True Money, which sponsored the Backgammon World Championships held earlier this month in Monte Carlo says, "Backgammon is now a popular alternative to online poker. Since 2004 we have seen the number of registrations on our backgammon server double to almost 40,000, and there are more than 500,000 people now playing online backgammon globally."
On Monday this week, Dennis Carlston (USA) won the 2005 Backgammon World Championships taking home over US$ 100 000. Total prize money for the tournament amounted to more than US$ 320 000, and the pot is expected to rise sharply in 2006 as interest in the game escalates.
In a landmark first, the final match between Carlston and John O'Hagan (USA), was watched live on True Money Games.com by backgammon fans around the world.
The match was automatically analysed in real-time by Snowie, the world's most respected Backgammon software-based Artificial Intelligence, developed by Snowie Group.
Originating in Mesopotamia in Persian times, backgammon is one of the world's oldest and best known games, and in many parts of the world it is significantly more popular than poker. Backgammon has been played on the internet since 1993.
Major table tournament will have a prize chest of GBP 450 000
The Interactive Gaming Council this week seemed to be taking a wide interest in e-commerce matters generally by appealing to all members of the public who may have carried out any kind of financial transaction over the internet to participate in an online survey.
Prepared by Rohan Miller, a professor at the University of Sydney (Australia) School of Business, the survey seeks to draw significant conclusions about the confidence that consumers have, or the lack thereof, in e-commerce sites.
Described as a 5 to 15 minute undertaking, would be participants are asked to click through to http://asr3.com/sm/login.asp?anom=112x1x1. No individual participants will be identifiable, and the results will be published in the academic literature. Approved by the ethics committee of the University of Sydney, the survey went live on 11 July 2005 and will continue for a month.
The IGC has underwritten the cost of the survey with money from one of its members.
One series of questions in the survey deals with disputes between e-commerce sites and consumers. Respondents are asked, for example, to rate the importance of third-party dispute resolution. This is a crucial issue, Dr. Miller said, because Internet consumers often do not have ready nor affordable access to the legal system that protects them from much of the risk involved in traditional, real-world transactions.
IGC executive director Rick Smith said the survey results could assist in establishing a best practice for the resolution of player disputes. He and Miller said the knowledge gleaned from the survey could help any e-commerce business reduce the perceptions of risk entailed in conducting transactions at its site.
The IGC has also been strengthening its Code of Conduct, which all members are obligated to follow. At its meeting last month, the IGC board approved the first revisions to the code in five years.
The new code states that, to ensure fairness, operators of online games should have each game's performance "...analysed by an independent, qualified person on a regular basis."
It requires members to implement anti-money laundering procedures, and directs them to use age and identity verification services as part of their efforts to prevent access to their sites by minors. The code also states that members agree to the IGC performing checks on their compliance with the code.
ONLINE GAMBLING HAS LOWEST CHARGEBACK RATE IN E-COMMERCE SURVEY
29 July 2005
Pago 2005 report has some startling revelations...
The Interactive Gaming Council might want to look at the latest Pago Report for 2005 in its efforts to research e-commerce payment issues (see earlier InfoPowa report)
Reuters reports that the eagerly awaited report highlights new and surprising insights into European e-commerce.
One of the key findings: consumer purchasing and payment behaviour patterns and non-payment risks vary widely in the e-commerce industry sectors analysed.
Pago Report 2005 is based on the analysis of around 20 million real-life purchase transactions processed through the Pago platform in 2004. Entitled "Success and risk factors in international E-payment" the Cologne based payment service provider has published its fourth comprehensive annual study of e-commerce, claiming it is the only investigation into online business practice that uses statistical analysis of real purchase transactions instead of relying on polls and surveys.
The range of payment methods includes Visa and MasterCard, American Express, Diners Club, JCB, Switch/Solo as well as locally used direct debit methods.
Five sectors now at the forefront of e-commerce dominate the Pago report:
* E-retailing (online sale of tangible goods)
* Online Gambling (casino and card games, sports and other betting, lotteries)
* Pharmacy / e-health (online sale of drugs, medicines and other healthcare products)
* Telecommunication services
* Travel
The analyses considered purchase transactions in European online shops by consumers from Germany, the UK, and the rest of Europe as well as from countries outside Europe. Although the credit card clearly remains the most important and most popular payment method in general, German consumers have increasingly turned to direct debit payment. 64 percent of German consumers selected this payment method, an increase of 5 percent points from 2003.
Trends in European online gambling were very surprising too. Until now most experts believed online gambling to be risky for consumers and that online gambling providers were often the victims of credit card fraud. The figures prove otherwise.
Online gambling had the lowest credit card chargebacks, which are often generated when fraudulent credit card data is used. Only 0.26 percent of online gambling transactions led to chargebacks whereas the overall average chargeback rate in e-commerce stood at 0.83 percent.
At first glance, this figure looks only slightly different from a year ago. But whereas the chargeback rate for German consumers has decreased by 50 percent, it has increased some 200 percent for customers from other European countries.
All in all, effective fraud prevention - especially in credit card payment - remains one of the key factors for successful e-commerce businesses.
"Despite the fact that there was only slight growth in European e-commerce last year," Pago boss Ruediger Trautmann explains, "the trend towards more reliability and trustworthiness in online trading will gather pace."
Pago was founded in 1999 and is a Deutsche Bank AG and Beisheim Holding Schweiz AG company, offering its services through a global partner network.
Last week's fora furore over the behaviour of "Rick Scott" from Crown Vegas online casino in insulting players and trying to buy a probably illegal database for marketing spam had leading fora white hot this week, too.
Posting as "Tony @ Crown Vegas" an individual claiming to be one of the real owners of the online casino tried to cool the situation down by claiming that "Rick" had no authority to post as he was a dismissed junior employee who had somehow retained his casino emailing priveleges.
There was considerable doubt regarding this due to the energetic efforts "Rick" had put in to promote the interests of a company that claimed he had been let go, but in the absence of proof to the contrary the uproar finally died down, leaving Crown Vegas with a less than shiny image.
The important thing, however was that players had been warned about the attempted database purchase...and so had any would-be sellers of illegal player databases.
Gord Herman, CEO of the Neteller plc online financial processing company named Ronald Martin the group's new Chief Operating Officer based on the Isle of Man this week.
Martin has worked in managerial positions for a number of software firms, including FirstService.com and JobAdvantage.com, and joins the Neteller executive team from GloboForce Ltd.
Herman said that Martin would be a welcome addition to the executive team, which is focused on global expansion and continued business growth.
He also announced that the internationally respected international auditors KPMG LLC had been contracted by Neteller for independent audit purposes.
Another Crypto connection as Harvey Solursh is appointed a director
The skills gaming company originally started by Cryptologic founder Andrew Rifkin, London listed FUN Technologies Inc., enjoyed a dynamic second quarter ended June 30 this year, judging by results published this week.
Highlights included:
* Consolidated revenue up 55 percent from Q1 2005 to GBP 2.3 million
* Subsidiary SkillJam revenues up 29 percent from Q1 2005
* Don Best revenues up by 77percent over Q1 2005, with strong cash generation
* Positive EBITDA for FUN of GBP 62 000, a milestone in the company's progress
* SkillJam signed new licensees including Inspired Broadcast Networks, AirMedia and LodgeNet Entertainment Corporation, and its registered users passed the 8 million mark.
* Acquisition of Fanball Interactive, LLC ("Fanball") completed for GBP 6.7 million.
* Agreements with eBay, Virgin Games and a leading U.S. cable operator
Lorne Abony, FUN's CEO, commented, "Revenue at all of FUN's operating businesses continues to grow strongly. This was also a very significant quarter for us as it was the first quarter in the Company's short history in which we generated positive EBITDA.
We believe that revenue growth and EBITDA are appropriate indicators of the company's operating performance at this time. Accordingly, we intend to focus significantly on our performance in these areas."
Regarding Betbull.com, in which FUN was involved with the Austrian public company Bet & Win, Abony said that his goal was to focus the company's resources on those businesses which management believes have the greatest potential for long-term growth.
Consequently, FUN has decided to exit the operating portion of the exchange betting business. Management believes that the effect of this decision to discontinue exchange betting operations will positively impact the group's operating performance. At this time, FUN will maintain its 24.6 percent ownership position in Betbull.
SkillJam delivered a particularly good performance with a record total of nine distribution agreements signed during the second quarter. Many of these agreements will introduce skill games to new distribution channels, including free-standing gaming kiosks, interactive television and wireless applications.
The report included the news that Harvey Solursh, a longtime director at Cryptologic, has been appointed to the FUN Technology board.
FUN is a public company, incorporated in England and Wales, and is listed on both the Toronto Stock Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange.
The U.K. company GB Group is experiencing a welcome boost to its verification business as online gambling companies look for reliable services, and identity theft causes growing concern.
The Chester - based firm's data-checking products provide postcode and house number information, and details gleaned from driving licences, the electoral roll, utility bills, BT registers and other sources to cross check and provide verification.
This helps companies verify customers' details over the phone or internet, without having to go through the time-consuming process of requesting documentary proof.
ID fraud is thought to affect one in 10 people and cost the economy more than GBP 1.3 billion a year, constituting a major growth area for GB Group.
Gaming website operators such as Betfair, 888.com and PartyGaming are also helping the group hit the jackpot. They use its software to guard against underage players and expose fraudsters.
Heading the group is Richard Law, an accountant who dipped his toe in the corporate finance world by advising PhoneLink, a business information company on a public listing that raised GBP 12 million. He subsequently joined the company in 1993 as financial controller, becoming finance director 2 years later.
The business, which was renamed Telme, had 275 staff and sales of GBP 5 million at its peak but by 1998 was losing money. It was, however, cash rich and made a GBP 9 million swoop in 1998 for GB Group, which in Richard's words was an "...uninteresting but good quality, profitable business" selling postcode and house number information to call centres.
When he became chief executive in December 2001, the group's share price had slid to a rock-bottom 4.5p in the wake of the dotcom debacle.
"We knew we had to find a new market to use our core technology to grow our business and give it an exciting future," Law says.
A big breakthrough came in Manchester. He said: "At the time, the trams in Manchester were suffering from fraud at the hands of passengers who did not buy tickets.
"When challenged, they were giving false details to inspectors and fines were not being paid.
"We provided postcode and other personal information which was loaded on to the inspectors' handheld computers and enabled them to verify details given to them. There was a big deterrent effect and fraud was dramatically reduced."
GB Group also started supplying the Criminal Record Bureau with data- verification facilities, as it grappled with a backlog of checks on school caretakers and teachers.
Last year GB Group teamed up with BT for a joint venture, URU, which is enjoying rapid expansion. It enables subscribers to verify identities and ages, performing layer upon layer of checks ranging from phone numbers to mortality registers - fraudsters commonly adopt the identity of dead people.
So far, 66 companies have signed up to the service, ranging from mobile phone providers to online gaming operators.
Last year, GB Group's investment in URU meant its annual losses widened to GBP 242 000 but brokers are forecasting profits of GBP 1 million by 2007.
Law is now looking to expand the business overseas."There's many a slip 'twixt cup and lip but we are working to take the business global," he says.
Poker group successfully sues in defending its brand
There was a clear message in a press release from WPT Enterprises, Inc. this week - the company will continue to successfully defend its intellectual property against all comers.
The creator of the World Poker Tour television show has scored a number of intellectual property litigation victories in recent months, reflecting an aggressive and determined strategy toward intellectual property protection against infringers in order to safeguard and enhance its valuable brands and image.
WPTE General Counsel Adam Pliska revealed several recent outcomes, saying: "World Poker Tour is a globally recognisable brand, and we will aggressively police the misuse of our intellectual property. WPTE will protect its brands and goodwill to sustain the loyalty of our poker fans, television viewers and consumers."
Working closely with its outside counsel, Sheppard, Mullin, Richter & Hampton LLP, and the firm's Intellectual Property practice group in Southern California, WPTE has prevailed in IP matters against a number of defendants, and the list makes for interesting reading:
• Ultimate Poker Challenge TV Show – Copyright and trademark infringement for use of WPTE footage and for superimposing the Ultimate Poker Challenge mark over the World Poker Tour mark.
• 5thstreet.proboards39.com – Copyright infringement of four WPT episodes, posted for "Bit Torrent" downloads.
• Playworldpokertour.net – Trademark domain name infringement matter.
• WagerLogic Ltd. – Trademark infringement relating to four trademark applications filed in Canada (Interpoker World Poker Tour, Wagerlogic World Poker Tour, Interpoker World Poker Tournament, and Wagerlogic World Poker Tournament).
• Mid-Ohio Super Satellite No Limit Championship – Trademark infringement relating to the tournament being falsely billed as an official WORLD POKER TOUR satellite tournament.
• World Poker Productions, Inc. - Trademark infringement for use of a name and a poker-related website, and in connection with the sale of instructional poker videos.
• Wpt.cl and Worldpokertour.cl – Trademark domain name infringement in Chile.
"WPTE has taken action in these cases and secured agreeable settlements and/or court-ordered injunctive relief in order to avoid confusion among poker players, to prevent the proliferation of unauthorized 'knock-off' merchandise, and to protect against the dilution of and harm to its valuable copyrighted material, trademarks and strong brand," noted Robert S. Gerber, a partner in Sheppard Mullin's Intellectual Property practice group.
"The company stands ready to pursue anyone, anywhere that attempts to misrepresent itself as affiliated with WPTE, trade on its valuable name and goodwill, violate its copyrighted material or other intellectual property, or otherwise harm its business interests."
One-time online poker industry leader Paradise Poker seemed intent on a higher profile this week as it publicised a free-entry online poker tournament with a first prize of a million dollars.
Places two through ten won't do too badly either - each will receive $10 000 and a free trip for two to an as yet secret but exotic location to play at the final table. 500 other winners will also receive prizes at varying levels.
Running through to August 26, Paradise will be offering three "FreeMillion" heats every day, with a 4,000-player limit per heat. Player must win entry through one of these three daily events.
The three tournaments begin at 4:00 p.m., 9:00 p.m., and 1:00 a.m. EST, and will advance 10, 20, and 30 players, respectively. Players who make the cut will be entered into the final event on August 27.
Players can enter as many times they want, but with stipulations. The first entry is free, meaning that players do not even have to have a real-money account. All following entries must be paid for with "MillionPoints," which can be earned by playing raked-cash games, multi-table tournaments, and mini tournaments, with 100 "MillionPoints" necessary to enter the heats. Players will be notified by an on-screen pop-up when they have reached the 100 million and are eligible for a heat.
Betfair negotiations for Tasmanian approval reach the hard cash stage
The Australian newspaper The Age reported this week that UK betting exchange company Betfair is prepared to give up 35 percent of its gross racing profits if Tasmanian authorities will give it a license to operate.
Premier Paul Lennon said that the local racing industry would get 25 percent, the State Government would gain 6 percent, and the rest would go to a levy for community services such as gambling addiction.
Betfair, in a partnership with Kerry Packer's Publishing and Broadcasting Ltd, is fighting strong opposition from the Australian Racing Board and existing national betting agencies. The company already accepts internet bets from Australian punters, but without a local licence it cannot advertise or open an office here, as online betting exchanges are outlawed in some states.
Lennon said a deal with Betfair did not represent a financial windfall for the Government, but instead was intended as a way of getting consistent revenue streams to the Tasmanian racing industry.
He said the industry also wanted reassurance on the integrity of a form of computerised bookmaking where anonymously matched punters can bet for a win or a loss in exchange for Betfair's commission.
"I believe probity and integrity issues won't be of concern to this form of bookmaking," Mr Lennon said.
It's probably the world's biggest poker table, and it doesn't come from Texas.
Milwaukee's Best Light, a SABMiller brand of beer, has sponsored the "World's Largest Poker Table" nationwide poker tour, which launched this week.
The poker table featured in the tour measures 30 feet in length and 12 feet in width, with proportionately huge poker cards, measuring 3 feet 3 inches tall. Ten players can be seated.
The World's Largest Poker Table tour is also being used as a vehicle to promote the premiere of a new two-disc DVD poker tutorial called "WiseGuys on Texas Hold'em," now available in stores, and featuring actors Vincent Pastore of "The Sopranos," Frank Vincent from "A License to Steal" and Vinny Vella from the film "Casino."
It's being touted as the next big wave, and there certainly is a lot of action in the sector - we're talking Skill Gaming and that's the focus of a major conference scheduled for September 8 - 9 2005 at the Hyatt Lake Las Vegas.
Diarise "I-Gaming InDepth: Skill Games" which will combine an educational conference program with productive networking events and a display area for companies that produce or market products related to skill games.
Featured speakers represent companies that are leading the way in the skill games sector including GameAccount, SkillJam, Fun Technologies, Greentube I.E.S, GameColony.com, Fanball and Christchurch Casino.
Focused conference topics will address issues such as turning free-play gamers into paying customers, drawing business from other verticals, drawing the line between skill and chance, customer retention and more.
NY Times: "American position on Internet gambling is becoming an object of derision"
The New York Times carried a major article on Internet gambling titled "Casinos Without Walls, Or Rules" this weekend, covering the successful defiance of Party Gaming to threats from federal authorities, and the more regulatory frame of mind of foreign governments like the UK.
The well balanced piece commented that Party Gaming unusually included in its prospectus that its Gibraltar based directors faced the threat of legal action in the US due to that countrys federal interpretation of law that online gambling is illegal.
But it quoted the Party Gaming view that the activity was not illegal per se - federal prosecutors just say it is, and their opinion remains legally untested.
Although 90 percent of its customers are in the USA, Party Gaming operates from Gibraltar.
The article traces the remarkable success story of the company to the present, where annual revenues easily exceed half a billion US dollars and a successful public offering in London has just been completed, making billionaires for its founders.
It quotes US analysts, who predict that the total online poker market will mushroom to US $ 6 billion by 2009 from only $1 billion last year, despite the uncertain legal climate in the USA.
"The World Trade Organisation and foreign governments alike are siding with companies like Party Gaming and against the United States," the story continues. "Indeed, among international bodies and foreign governments, the American position on Internet gambling is becoming an object of derision."
The author of the article quotes from the 2003 report by the British government Department for Culture, Media and Sport saying, "There is a growing gambling market for online gambling where national boundaries no longer have any meaning.
"Nowhere is this better illustrated than in the USA, where despite the apparent illegality of cross-border gambling more of its citizens gamble online than anywhere else in the world.
"To deny this appears in many ways to fly in the face of the reality of international banking and the inherently international nature of 21st century telecommunications."
The edition also carries stories on poker legend Stu Unger, Gibraltar and on remote gambling from hand-held devices within casino resort premises in Vegas.
eCOGRA CASINOS FIRST TO RECEIVE RESPONSIBLE GAMING EDUCATION
22 July 2005
Casino managements shown how to deal with problem gambling issues
Management delegates from online casino operations around the world converged on Cape Town, South Africa last week for a unique educational seminar on problem gambling.
Organised by independent self-regulator eCommerce and Online Gaming Regulation and Assurance (eCOGRA), the course was held to coincide with new responsible gaming requirements recently approved by its Board.
The programme, believed to be an industry first for a collective group of online casinos, was designed to brief eCOGRA seal casino managers on the new regulations and provides them with sufficient information to set up policies and training programs in preparation for the introduction of the new safety precautions contained within the eGAP requirements.
40 delegates, representing general management, support, audit and marketing disciplines for 55 seal-bearing casinos, attended the event. The programme included expert tuition on the prevention of underage gambling, the psychology of problem gamblers, how to identify compulsive players and the best way to handle cases of this nature.
The custom built course was conducted by specialised Swedish psychologist and researcher Thomas Nilsson together with senior G4 executive Pieter Remmers and senior trainer Rob d'Hondt.
eCOGRA's regulations have been framed in consultation with the G4 (Global Gambling Guidance Group) organisation which recently introduced responsible gaming policies and operating parameters at eCOGRA approved PokerRoom.com. The regulations provide minimum standards and requirements in respect of warnings and options regarding problem gambling, self exclusion and control mechanisms for gamblers, and promotional and advertising best practices in this area.
Andrew Beveridge, CEO of eCOGRA told delegates that responsible gaming was a critically important element in online gaming operations from both a moral and practical industry viewpoint and eCOGRA was yet again leading the way in setting gold standards player protection practices for the industry to follow.
He said, "Apart from a firm moral obligation to prevent underage or addictive gambling, we must remember that the industry’s detractors are increasingly focused on the dangers of underage or addictive gambling, and this is a potential Achilles Heel for the industry."
He added, "Your commitment in joining eCOGRA has its roots in a real desire to be professional, responsible and above-average in your operational practice. The responsible gaming aspect has now been made an integral part of the eCOGRA standards required to achieve this level of business conduct."
9 line Millionaires Club, more Rapid Fire and scratch cards in new gambling suite
Cryptologic games development subsidiary Wagerlogic was keeping up with the opposition this week with the launch of 14 new games.
The companys Bonus Pack 7 includes 12 variations of multi-line video slots and two scratch card games – the first ever developed by WagerLogic’s parent company, CryptoLogic.
There are 9 new 20-line video slots, branded Treasure of Isis, Around the World, Masquerade Ball, Daily Horoscope, Reel Renovations, Emerald Isle, Congo Bongo, and Haunted House.
A.J. Slivinski, the md at Wagerlogic says the new 9-line video slots, Mr. Rich, Barnyard Boogie and Jade Idol, are sure to be a hit among players, especially Mr. Rich, which is the latest addition to the popular Rapid Fire Jackpot group of progressive slots.
The new suite also introduces the first scratch card games, where winning is through matching three identical symbols. In High Fashion, these symbols include clothing, make-up and jewellery, and in Money Farm, the symbols are farm animals.
A major game in the range is a multi-line version of Millionaires Club – a 9-line video slot designed to give players a chance at a dream jackpot. Millionaires Club has already paid a substantial US$774,024 jackpot.
The launch of the new games brings WagerLogic's full games inventory to over 150 games across progressive slot and casino table games, multi-player bingo and player-to-player poker.
William Hill Casino.com, Littlewoods Casino.com and InterCasino.com are already offering the new games.
FRESH ITERATION OF PLAYTECH SOFTWARE?
22 July 2005
"New Generation Platform" due soon
The week saw more than a little hype going down on something the Playtech sites are terming "The New Generation Platform," which seems to be an update on the companys download gambling software system.
Official press material had not been issued as we went to press, but it is believed that the launch is imminent.
Monaco Gold Casino claimed that the new software "...marks an unprecedented advancement in online gaming software for players the world over," and went on to boast a range of updated and innovative features that apparently include a wider range of games with greater quality and graphics.
Describing the feature as a "special benefit" the casino says that Playtech's latest enables the playing of several games simultaneously through a multi-window facility. And with new HTML-based support systems, players will now be able to see detailed playing histories on past bets and wager outcomes.
Depositing into a cashier window whilst playing is another improvement, together with new customer support layouts with help topics made easier and communication with casino operators better.
Joseph Hachem takes Steve Dannenmann in marathon session
"Aussie, Aussie, Aussie. Oy, Oy, Oy" was the roar from Australian spectators early (Vegas time) on Saturday morning as their countryman Joseph Hachem was declared World Champion of the 36th (2005) WSOP, winning $7.5 million and fame in the world of poker.
9 players took their seats at the final table at Binions at 4.00pm local time in Vegas last Friday with Aaron Kanter holding the most chips after a gruelling week of poker that resulted in 9 players surviving from a field of over 5600.
Every one of them would leave the table with at least a million dollars.
As previously reported, the following were the first to leave the final table in this order:
Mike Matusow - 9th
Brad Kondracki - 8th
Daniel Bergsdorf - 7th
Scott Lazar - 6th
By the early hours of Saturday morning Irishman Andrew Black had gone with $1 750 000 in prizemoney for his 5th placing. The highest blinds in WSOP history - $120 000 to 240 000 with an ante of $40 000 were declared.
Then it was the turn of 27 year old Aaron Kanter, who departed with $2 million, leaving the field to Barch, Dannenmann and Hachem.
By 6.18 am last Saturday Tex Barch was on his way out the door in 3rd place with $2.5 million, leaving Dannenmann and Hachem to fight it out in some very exciting poker that saw record pots of $16 million and all-ins of $15 million at hand number 212.
Hachem was in a strong position, with more than twice Dannenmann's chip count, and around half an hour later at 6.46pm it was all over - Dannenmann walked away 2nd with $4.5 million....and those Australian victory chants were rolling around the room.
Hachem (39) is a former chiropractor turned professional poker player who was born in Lebanon and lives in Australia. He has been playing poker for 10 years. Married with four children, this is his first World Series of Poker.
Renowned for their at times inane if eye-catching publicity, Golden Palace online casino came up with an interesting PR exercise recently when they held a contest to recognise the top poker robot, and then matched the winner with a really good human player.
Whilst it did not generate as much coverage as the historical confrontation some years ago between IBM's Deep Blue and the best chess player in the world, Gary Kasparov, it was an entertaining update on the concept.
The World Poker Robot Championship brought together six of the world's best programmers to compete for $100 000. Created by Hilton Givens of Indiana, Poker Probot took the top prize after routing its opposition and was then matched with professional poker ace Phil "Unabomber" Laak.
The result was a human victory to balance the record books (Kasparov lost his match with Deep Blue) Cheered on by an audience chanting, "Humans, Humans," Laak won the 300 hands, three-hour contest. The Unabomber finally killed off Poker Probot with a game-winning pair of aces, beating his competitive computer counterpart, who had a pair of kings.
There was an interesting footnote to the story - Laak won a $100 side bet that he made with the bot's programmer.
Las Vegas entrepreneur Wayne Alleyn Root signed another gambling deal this week, this one to provide sportsbook fans with email or cellphone access to the latest U.S. scores.
Branded Score Runner, the venture is in partnership with top film producer Warren Zide, who's movie successes have included American Pie and Final Destination. Zide is the founder of the Score Runner concept that empowers sports gamblers to receive scores in real time and as frequently as every two minutes using the convenience of text messaging on cellphones or email.
Users customise their personal scoreboard by choosing the games and teams they want to follow, the delivery method they prefer, and the time interval they wish to receive updates. ScoreRunner also allows subscribers to stop and start their scoring alerts instantly from their cell phone and PDF devices.
Root, who is chairman of the GWIN Corporation and a widely followed TV personality said that
ScoreRunner will give sports fans and gamblers everywhere the edge by giving them the freedom and flexibility to follow scores without being tied down to a television set or computer.
"It’s like having your own personalised scoreboard with you wherever you go," he said.
GWIN has agreed to advertise and promote ScoreRunner on its multiple media properties and to its databases of sports gamblers. The agreement also provides ScoreRunner with access to GWIN’s database of 250,000 serious sports gamblers.
GWIN will also utilise the ScoreRunner technology to deliver their new “WinnersonDemand” advice services to ScoreRunner subscribers, offering Root’s handicapping advice to a significant new audience. GWIN will receive a revenue share and minority ownership of ScoreRunner.
VIRGIN TO ACCESS U.S. MARKET VIA SKILL GAMES
22 July 2005
SkillJam contracted to supply games
The recent agreement between Virgin Games and FUN Technology's subsidiary SkillJam had industry observers speculating that Virgin was about to access the major U.S. market, taking advantage of the legal status of games of skill in that country.
That speculation was vindicated this week when Virgin director of marketing Russ Sleight was quoted in the media as saying Virgin Games plans to welcome the US playing community for the first time, using a skill gaming site.
In deference to UK sensitivities Virgin has previously barred US players from its casino and poker websites, and this policy is to remain in force when the skill games site starts operations.
“We will not be cross-selling our gambling products to our US players,” Sleight confirmed, although he made the point that Virgin’s US position was the subject of regular reviews.
Such reviews could be influenced by developments flowing from the reformed UK Gambling Act, which when promulgated around 2006 / 2007 is widely expected to permit UK licensed operators to accept US casino and poker business.
Sleight revealed that his company would invest marketing budget on skill games commensurate with that committed to bingo and online casino advertising.
“Skill gaming is a very Virgin proposition and we are going to enter the market running," he said.
“This is a mass-market product and it is ready to be taken forward by a major land-based brand."
THE FUTURE IS GLOBAL FOR EMPIRE ONLINE
22 July 2005
Marketing specialists latest trading update shows major gains
Recently listed Internet marketing group Empire Online released its latest trading update this week, showcasing another strong quarterly performance with a gain in profits to US $13 million.
By the end of year 2005, management has plans to generate at least 50 percent of revenues from sources outside the United States, where presently 60 percent of its revenues originate.
Net gaming revenues from the group's casino and poker sites were estimated at US$25.3 million, a rise of 83 percent on the same period last year. The majority of these came from subsidiary Empire Poker's website, which contributed US$20.3 million.
CEO Noam Lanir said Empire was showing strong growth internationally, and has begun above-the-line advertising campaigns in the UK with plans to launch offline campaigns in four new countries during the next six months.
Casino revenues, which are derived from affiliate deals with major gambling sites like 888.com (Casino On Net) and Starluck Casino fell 9 percent to US$5 million, a result attributed to an extraordinary series of big jackpot wins by players.
PLAYING BUT NOT GAMBLING ON THE INTERNET
22 July 2005
Foxwoods comes up with an ingenious gaming concept.
News Channel 8 in the USA reported a clever business move by the Indian tribe owned Foxwoods land casino this week - but the state Attorney General does not seem to like it.
Foxwood's latest initiative, due for launch next month is to increase business through a new product called Foxwoods Playaway....and it involves the Internet and empowering gamblers to play from home.
The management at Foxwoods claim that Playaway is a game and not gambling.
Foxwoods Playaway games will allow people to play in the privacy of their homes. Players buy tickets on the Foxwoods casino premises that come with an access code that they can use to log in and play from home via the Internet.
However the results of the game are already predetermined by a computerised drawing that takes place on the casino premises.
Foxwoods spokesman Arthur Henick, says, "Nothing the player does from his or her computer can impact the outcome of the game. Unlike illegal offshore internet casinos, no financial transactions of any kind ever take place on the Internet. There is no betting...and no pay out via the medium."
Players may only redeem winnings in the regulated setting of the casino.
But state Attorney General Richard Blumenthal's concern is that gaming is only allowed within the boundaries of the reservation, something Foxwoods argues is exactly what will happen when players over 21 begin buying tickets for the play-away games...at the casino.
Blumenthal does not seem to be convinced, saying "Under federal law in the compact with the tribe gambling can take place only within the reservation boundaries. Clearly this gambling is anywhere, any time. That is exactly their pitch and those circumstances make it severely problematic.
"One of the great problems that is raised by this practice is that it appears to condone or perhaps promote underage gambling because there is no face to face check as to who is actually playing the game."
Foxwoods responds to that by pointing out that underaged gambling is monitored by the same methods as any other game at the casino. The tribe says they plan to meet with the Attorney General to clear up any misunderstandings.
CYOP Systems International Inc. and RDC Services Ltd. have inked an agreement whereby the former will license its poker software, developed by subsidiary Red Felt Software, to the latter.
RDC is an experienced interactive marketing and management outfit, and will pay a set up fee and a percentage of the net rake to Red Felt Software Inc.
Completion of the new licensee site is expected by the end of August 2005 with marketing commencing toward the end of summer; historically a good time to begin interactive gaming site promotion.
The Red Felt package includes a full website, no-download poker software backed by real time reportage, hosting and server monitoring and credit card processing.
CYOPs claims that more than 200 online poker sites collectively are generating some $3 billion a year in revenues, with an estimated 1.7 million players active online as Internet poker players in the past six months. 150,000 people play on an average day, according to PokerPulse.com.
Online gaming will continue to be an explosive cash generator. Gaming consultants Christian Capital forecast that gaming revenue will rise to $22.7 billion (US) by 2009, from $8.2 billion in 2004, a growth of 22 percent. Online gaming is also expected grab an 8.1 percent share of the global gaming market.
The CYOP - Red Felt poker software can be previewed at Red Felt.com, and the proprietary play for cash site Ten Seat Poker.com.
GAMEBOOKERS BOUGHT FOR US $ 43 MILLION
22 July 2005
Isle of Man based group acquires top European sportsbook
It appears that the owners of Betbug.com, the Isle of Man based Trident Gaming group has racked up another profitable acquisition this week with the purchase of leading European sportsbook Gamebookers for a cool US$ 43 million.
The purchase price is to be paid in a cash and shares financed by US$ 34.7 million in cash funded by convertible debt and the issuing of over 9.3 million shares in Trident Gaming and is equivalent to roughly eight times historic earnings.
Gamebookers is one of the strongest performers in the European sector, with a turnover of around Euro180 million. It was recently named the 33rd most influential firm in online gambling by eGaming Review and posted an annualised pre-tax profit of GBP 3.2 million based on the past six months trading.
New owner Trident is run by industry veterans Antony Novac and John O'Malia who founded the US-focused betting exchange firm Betbug, which was acquired by Trident in June this year.
O'Malia, Trident's chief executive, said the combination of the two betting platforms gave the firm a strong position in the global gaming market.
“BetBug is the only legal way to offer online sports betting in the US,” he said. “By adding Gamebookers and its hugely successful sports book and three active European gaming licenses, the directors believe that Trident is uniquely well positioned for global success."
Trident is not affiliated with the two executives previous software business 1X Inc, although 1X Inc may provide some software support services to Trident for an interim period of 3-4 months.
Trident will now seek white label partners for both the Gamebookers and Betbug systems, according to O'Malia. "We expect to build on our current licensee base and rapidly expand our white label partnerships with major online gaming providers," he revealed.
These days it seems hardly a week goes by without Gaming Corporation appearing in the headlines with a new acquisition or expansion. This week it was the announcement that the company is moving into the lucrative online poker sector through a deal with Ongame, which recently joined the eCOGRA self-regulatory fold.
Dynamic, London-based Gaming Corporation took over the popular Got2Bet and Gambling.com portals and search engine earlier this year, and also owns Casino.co.uk.
CEO Justin Drummond said that agreement had been reached with Ongame's PokerNetwork that will enable his company to enter the fast growing online poker market.
Under the terms of the agreement PokerNetwork will provide fully customised poker software that will enable Gaming Corp to offer its rapidly growing database of customers a state of the art and highly liquid multiplayer poker application that can be accessed both online and via a mobile device.
Gaming Corp will undertake all responsibility for customer support and financial transactions but will pay PokerNetwork an ongoing license fee for the use of the poker software.
“This is a key deal for Gaming Corp; we will be able to offer our extensive customer database multi-player poker that can be accessed on the internet or via a normal mobile handset. Mobile poker players simply log on to a live poker table in the same way they do online joining thousands of simultaneous players competing from the internet or mobile device,” Drummond said.
The PokerNetwork includes the massive Poker Room.com, making available literally millions of players and hundreds of tables to poker players seeking the variety and excitement of international poker action.
AND A FLASH CASINO FOR GAMING CORP, TOO!
22 July 2005
Virtue Fusion powers new operation
Hard on the heels of their announced entry into the online poker sector through PokerNetwork, the London-based Gaming Corporation has launched a new Flash-based no-download online casino with both online and mobile capability.
Gaming Corporation plc owns the Got2Bet.com and Gambling.com portals and search engine, and the major British portal Casino.co.uk.
The casino site is located at Games.casino.co.uk, and uses software that has been jointly developed over the past 18 months with Virtue Fusion, including fifteen online casino games and nine state of the art mobile java games such as Blackjack, Roulette, Stud Poker, slots and scratch cards.
The java mobile games can be downloaded from the website or via the Casino.co.uk WAP site at Wap.casino.co.uk. Play is available in both practice and real cash mode.
Registration and deposits can be made either via the mobile handset or online by either credit of debit card. Over 40 leading handsets are currently supported by the casino software and this number will increase as new phones are launched. The games are accessible across any mobile network in the UK.
Gaming Corp plans to market the new casino across its network of sites.
Sara Vincent, Commercial Director of Casino.co.uk commented,
"We are extremely pleased to announce the launch of our new flash based multiplatform casino. It not only further enhances the Casino.co.uk product portfolio, but with such a high percentage of the population owning mobiles, it expands our reach and market penetration."
Several shows in production for Fall airing in the US.
Several big, poker-related shows are in the works from the popular American TV network GSN, formerly known as the Game Show Network.
The shows are an extension of the current fad for broadcasting live poker events, and will air in the U.S. Fall.
GSN will begin taping its first show, "The James Woods Gang Vs The Unabombers in Poker Royale," on Monday, July 25 at the Pechanga Resort & Casino in Temecula, California.
The show features an all-star line-up with James Woods and Kathy Leibert leading a team of players in a No Limit Hold'em match against Phil 'Unabomber" Laak, his partner and 2005 Women's WSOP champion, Jennifer Tilly and actor Brad Garrett of "Everybody Loves Raymond," fame. The series is scheduled for Friday nights as part of GSN's Casino Night.
On July 27, GSN production starts on "Poker Royale: Battle of the Ages," a unique event that pits the world's top players over age 60 versus the top six poker players under 30.
Among the veterans will be TJ Cloutier (six WSOP bracelets), Dan Harrington (earned $2.14 million in consecutive WSOP appearances), Gabe Kaplan (Welcome Back Kotter, commentator from NBC's Heads Up Championship), Barbra Enright (Best all around player 2002 Legends of Poker), Maureen Feduniak (2003 winner World Poker Tour Ladies Night), and Wendeen Eolis (4th place at 2004 Legends of Poker Ladies Night).
The under 30 line-up features some of today's hottest players with hotshots like Michael Gracz (2005 WSOP bracelet winner), Erin Ness (2nd place Poker Royale: Young Bloods), Evelyn Ng (2nd place WPT Ladies Night), Kasey Thompson (poker pro), and Dutch Boyd (11th place in 2003 WSOP).
GSN has also ordered a pilot shoot for "Annie Duke Takes on the World," a Duke-produced show in which four amateurs compete to play Duke heads up.
There's no shortage of talent in the GSN productions - the highly respected Phil Helmuth and producer R.J. Culter are teaming up to create a series that teaches amateurs the skills of poker. No futher details are available on this project yet.
A 'TROUBLESOME CHILD' FOR PARTY GAMING
22 July 2005
A different perspective on an old relationship
One of the more interesting views on online gambling relationships surfaced this week in an opinion expressed by a respected analyst in a review of online gaming.
Discussing the relationship between Noam Lanir's growing Empire Online marketing group and the (online poker) market leading Party Poker with which it does business, along with other major companies, Citigroup Smith Barney opined:
"We see Empire as like 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 (ep.com) finds online poker players who then play on PartyGaming’s systems in return for which Empire pays PartyGaming a royalty. Empire’s players account for around 4 percent of PartyGaming’s EBIT.
"This EBIT share appears unimportant. However, PartyGaming makes less profit on Empire players than players that come to PartyGaming direct. We estimate that PartyGaming’s 2005 EBIT would be some 11 percent higher if it achieved a “normal”profit on Empire’s players.
"One assumes PartyGaming would want to renegotiate the deal with Empire. PartyGaming has the biggest online poker business and Empire benefits from the liquidity it can offer its players. However, Empire has the option of taking its +/- 9 percent share of the online poker market elsewhere, beefing up a new partner’s poker room, reducing PartyGaming’s dominance a little and perhaps getting an even more favourable revenue share from the new partner.
"If PartyGaming bought Empire the inefficiency of competing with each other could be eliminated, Empire’s market share could be secured for PartyGaming and Empire’s successful non-US player recruitment could be expanded, reducing PartyGaming’s dependence on the US.
"We calculate that PartyGaming could pay a 30 percent premium for Empire without EPS dilution.
"Empire would get the best deal from a new poker partner if it agreed to bring all of its poker business with it. We estimate that the pro forma effect of Empire leaving the PartyGaming network would mathematically be only a 5 percent reduction in 2005 estimated earnings. However, the damage to PartyGaming from the implied re-jigging of market shares in the online poker market is uncertain.
"We would like to see PartyGaming acquire Empire; consolidation is one reason why it floated and a deal could make financial and strategic sense. However, our valuation is based on the status quo being maintained and Empire leaving would not be a major problem for PartyGaming.
"With the World Series of Poker due to be on TV in August and September driving even more online poker participation, we believe that the newsflow will be excellent in the short term.
"We reiterate our 1S (Buy/Speculative) rating and 185p target."
Michael McMain, who formally headed software development for turnkey provider Real Time Gaming has been appointed CEO of the company with immediate effect. He replaces one of the co-founders of the group, Michael Staw who will take up the position of chairman.
McMain has extensive management experience and his leadership and industry knowledge make him the ideal choice for the position, says a company press release.
Staw said, "We are accelerating, and there is no-one in the industry more qualified to lead our company forward in the years ahead. It's a small change that should do big things to spur our continued growth and leadership in the industry."
McMain's promotion should ensure commercial continuity and the management change will have little or no impact on productivity. The company has not announced who McMain's successor as head of software development will be.
Another mobile gambling milestone was reached this week when Sky TV subscribers in the United Kingdom were told that they will now be able to download and play free versions of a new range of games direct to their cellphones.
Customers can opt to play the games for real money once they have downloaded the free version to their handsets and passed an age verification test.
A company called TV Commerce is working on the project with Sky TV, using Games Probability Corporation to manage and develop a range of specially branded casino and slot games. The games all carry the station branding and related content, such as programme schedules and promotions.
The games have a particularly British feel, including a fruit machine titled ‘Fortune Teller’, which also provides players with a daily horoscope.
TV Commerce has provided an initial budget of up to GBP 100 000 to market the new games using television, database marketing, press and TV arrangements with other media owners.
The main marketing campaign will start in September, growing in intensity in the build up to the Christmas period. The backers anticipate that the venture will render a significant return as early as end 2005 and going forward.
AND PROBABILITY IS WORKING WITH QUICKSILVER, TOO
22 July 2005
Quicksilver Mobile Casino starts operations
Probability Games Corporation also featured in news of another mobile casino deal this week, this one with Quicksilver, a subsidiary of UK listed gaming group Talarius plc.
The partnership led to the launch of Quicksilver Mobile Casino which offers a suite of branded, mobile telephone casino-style games. The start of operations establishes Talarius as the first High Street operator to offer “gaming on the move” to its bricks-and-mortar customers in 142 high street outlets.
The Quicksilver Mobile Casino is open to anyone in the UK who is over 18 and has a Java compatible phone, on any UK mobile network. Registration, which adheres to a robust age verification process, is entirely through the cellphone medium and customers can choose from a range of games, including Slot machines with fixed and progressive payouts, Roulette, Blackjack, Stud Poker and Hi-Lo.
Low-stake, “little and often” game players are being targeted with bets from as little as 10p. In a pre-launch trial to a small section of its database, Quicksilver found that customers like to play in dwell-time and down-time for short periods. A national rollout of the service through Quicksilver shops and to the Quicksilver membership is now under way.
Commenting on the launch, Nick Harding, CEO of Talarius, said: “Slot machines and table games are the largest single slice of the UK gambling industry and attract the broadest spectrum of people. By offering a fun and value for money service on mobiles, we believe that Talarius can take the Quicksilver brand into places and to people that we could not otherwise reach.”
Probability Games Corporation, who are regulated in the UK, designs and operates casino games for mobile phones.
It was established by Charles Cohen, the founder of beenz.com and John Scaife with development capital from Vincent Tchenguiz. The company has agreements with T-Mobile, Monstermob and Last Minute.com to supply mobile games, compatible on at least 70 percent of British cellphones.
BETSSON SUPPLIES GAMBLING OPTIONS TO EUROPEAN PORTAL
22 July 2005
White label casino, betting exchange and poker solution for Victory 247 site
The Betsson betting exchange company has announced a three year deal with Victory247, a new gaming portal with powerful connections to a major European TV company that plans to specialise in interactive gaming in the region.
The terms of the agreement call for Betsson to provide a white label casino, betting exchange and poker games package, backed by full support and financial services from Betsson.
“Victory247 is, through its owners, uniquely positioned to succeed,” says Betsson President Anders Holmgren.
OCTOBER DATE FOR NEW WILL HILL POKER TOURNEY
22 July 2005
Major table tournament will have a prize chest of GBP 450 000
The major British gambling group William Hill announced plans this week to sponsor a major televised poker tournament between 17 and 25 October 2005 where the winner will receive GBP 150 000.
The William Hill Grand Prix Poker Tournament is the group's first move into the major table tournament sector, with a GBP 100 000 in sponsorship being added to the players' stakes to create a prize chest of GBP 450 000, with the winner taking home GBP 150 000.
One of the UK's top TV poker production teams, Presentable Limited has been signed up to showcase the programme, which will be aired in early December on the Poker 425 channel on Sky TV. Presentable has extenstive experience in the poker TV field, having produced the successful Late Night Poker series.
Will Hill's plan is to invite only world leading players to play in the event, the whole concept behind the tournament being to put the skill back into the technical game, and move away from what it calls "...a 'blind structure' that is made for speed."
With 7 heats of 8 people at each table, comprising 8 online qualifiers and 48 top international poker professionals the event promises to be a fascinating exposition of the art of skilled poker play.
Entrants will be allowed to wear logos and branded merchandise, and Internet qualification for the 8 online entries, began this week through the William Hill Poker.com website.
BELLE ROCK BUDDY A POPULAR CRM INNOVATION
22 July 2005
New instant messenger service enjoys fast take-up
The Gibraltar-based Belle Rock Gaming group of online casinos reports that its recently introduced "Belle Rock Buddy" facility is attracting widespread sign-ups.
The facility is based on Instant Messenging and adds a new dimension to the customer relations activities of the group. In just three weeks since launch, over 25 percent of Belle Rock Gaming players have downloaded the application.
The Belle Rock Buddy acts as a 'personal gaming assistant,' providing instant, fingertip access to all of Belle Rock's casino games and promotions, as well as other personalised and exclusive services. The application received overwhelming player support during the trial period, with players highlighting its ease of use and ability to simplify the gaming experience.
One of the goals is to enable players to keep track of promos, together with their gaming transactions, accessing what they have wagered, won and withdrawn. The latest games releases and other news is also available. The system will be updated daily to ensure the very latest account information is available.
Belle Rock Buddy was introduced following extensive player studies through an independent research company. Players were able to review the service during a pilot phase and were invited to provide personal feedback through a series of online chat forums.
Ladbrokes GBP 76 million takeover of 141 Welsh betting shops
The rivalry between William Hill and Ladbrokes intensified this week with the announcement by the latter that it had bought 141 family run betting shops to close the gap in outlet numbers.
The deal brought Ladbrokes into equal contention with William Hill as the UK’s biggest bookmaker following the deal.
By acquiring control of the Jack Brown network, Ladbrokes increased its presence in Wales five-fold to 156 outlets, bringing a windfall of GBP 76 million for the sellers, which include members of the Brown family who have run the business since 1927.
Unfortunately, it may have put a question mark over the jobs of 70 staff at the head office of Jack Brown in Pontypridd, South Wales, which Ladbrokes intends to close.
The Jack Brown brand will disappear as all the betting shops, comprising 127 shops in Wales and a further 14 shops located in the Birmingham area, will be rebranded as Ladbrokes over the next six months.
Talks over the deal lasted more than a year and took place at a time of considerable consolidation in the betting industry.
William Hill overtook Ladbrokes as Britain’s biggest bookmaker in May when it struck a deal for 624 betting shops from rival Stanley Leisure in a deal worth GBP 504 million (see InfoPowa report).
It then sold 28 of the sites to the Tote earlier this week as it sought to ease competition concerns from the deal.
William Hill has 2,174 shops in the UK and Northern Ireland, giving it a slight advantage over Ladbrokes which will now trade in 2,111 outlets.
Ladbrokes – owned by leisure giant Hilton – expects the Jack Brown group to contribute GBP 4 million to earnings before interest, tax, depreciation and amortisation between July and December.
The group will install its state-of-the-art technology in all the shops being acquired, enabling gamblers to watch and wager on international horseracing and sports as well as all UK track meetings.
Around GBP 12 million will be spent by Ladbrokes on refurbishing the stores in a process lasting 18 months. Jack Brown employs a total of 520 staff.
CARIBBEAN 21 BUG SHORTS PLAYERS ON SPLITS
22 July 2005
Casino spokesman confirms fault in RTG software has been fixed.
There were probably a few red faces at Atlanta-based gambling software provider Real Time Gaming this week as players started complaining on the fora that the companys Caribbean 21 game appeared to be short-paying on splits.
Although clearly not intentional, the issue was embarrassing, as a casino spokesman for Geisha Lounge and Grand Aces affirmed in a public statement on the fault.
Confirming that the fault had been across all RTG powered casinos and had already been addressed by RTG, the spokesman said, "The issue is an embarrassing thing for RTG and for us obviously and we will be taking this up with RTG.
"The issue was as follows: The 21 games split function was not paying out correctly for wins.
"I welcome any and all people who played the 21 games to contact us and we will take a look at your account and apply the necessary winnings if you have lost out plus a comp."
RTG were due to issue a press release early this week but at press time none had been received.
BONUSING GALORE IN NEW POKERPLEX TOURNEYS
22 July 2005
$400 000 in prizes and a 300 hand bonus
Poker Plex will be a tempting venue for bonus and prize hungry poker fans soon - the site is about to start running No Limit Hold'em daily guaranteed tournaments with a prize pool of $400,000.
The tournaments are scheduled to take place four times every weekday, together with guaranteed Sunday Tournaments offering an additional prize pool of $50,000 each week.
All players will also layers pickup a $50 monthly bonus for every 300 hands played, and planning is well advanced for satellite tournaments to major poker championships like the Caribbean Poker Classic