Online Casino News Monthly Recap – April 2003

By Brian Cullingworth, Last updated Mar 2, 2021

Atlantis Fortune Casino is no more!

22 April 2003

Microgaming Announcement

Microgaming announces that the licence for the operation of Atlantis Fortune Casino, owned by International Casinos CDLB NV, has been terminated with immediate effect. Microgaming are aware that there are still outstanding amounts owed to players and in the interest of fairness have made arrangements for players with legitimate claims to forward their claims to PricewaterhouseCoopers Inc.

PwC will receive player claims with a view to verifying the correctness thereof, and advising of any amounts that should be paid. This process is entirely under the control of PwC, and Microgaming will not be involved in any way. The funds to be used for such payouts are being placed by Microgaming in trust and will not be under the control or ownership of Microgaming. PwC will advise the trustees of any amounts that should be paid.

All players who believe that they have a valid claim against Atlantis Fortune Casino should approach PwC at the email address below. Players should note that a time limit has been placed on the lodgement of such claims, and all claims should be lodged by the 20th May 2003

Claims must be addressed to: trustadmin@pwcgaming.co.za. These claims should clearly state the claimant’s full name and login-id as registered at the casino.

Sportingbet wins control of world gaming

10 April 2003

New ownership looks promising, but where’s the detail?

World Gaming shareholders still patiently awaiting the publication of the company’s delayed annual results were given an unexpected fillip by an announcement of a new, well funded business partner this week.

The company revealed that it has entered into a strategic financial partnership with investment company Goodison Park Limited, a Sportingbet subsidiary that specializes in information technology investment and development.

Goodison/Sportingbet has apparently acquired a controlling interest in World Gaming plc by way of share acquisition and a convertible loan, although tantalisingly the release does not reveal the details of this, and World Gaming have not disclosed the information despite our queries. Industry observers feel that the “loan” element may have something to do with WG’s boast earlier this week that it had “repaid” the US$ 1.5 million Sportingbet loan ahead of schedule.

Sportingbet says “World Gaming will continue to operate independently with the purpose of becoming the premier developer of gaming software, however, Sportingbet will enjoy equal representation on the new board of directors, to be appointed this week. Also, included on the board will be a top U.S. lawyer whose specialty is gaming.

“Inherent in this new structure is the alignment of World Gaming’s goals with those of Sportingbet and it’s licensees, to include the release of new improved software and fully integrated marketing and reporting tools. The immediate changes will be transparent with regard to all current daily operations, yet we expect will eventually result in great improvements in all aspects of operation.”

In a rare public comment, Nicholas Jackson, World Gaming?s CEO stated, ?Goodison Park Limited?s investment may well prove to be a watershed in the Company?s history. World Gaming plc can look forward to the future with increased confidence knowing that it has an investor who, by providing significant funds, has demonstrated their commitment to the long-term success of the Company by providing significant funding. Goodison Park Limited?s investment is extremely good news for World Gaming and its shareholders.?

However, it appears Mr. Jackson is not to be a part of this rosy future as a subsequent announcement revealed that he is to vacate his post as CEO and leave the company immediately. A successor has not been named, and further Board changes are imminent.

World Gaming’s SEC filings have been showing a parlous financial situation for some time, and the company has been through traumatic downsizing and management changes. The financial results are bound to make interesting reading when available.

Casinos Resurrected

10 April 2003

Music Hall, Challenge back online with new ownership

Earlier this year, the Challenge and Music Hall casinos took everyone by surprise with a sudden cessation of operations, necessitating the creation by Microgaming of a player protection Trust administered by the respected international auditors Price, Waterhouse, Coopers. It is understood that the former owners, Fortune Wheel Services have left the industry, and the PWC Trust has had to carry out extensive investigations before starting to pay out the stranded players.

This week Music Hall and Challenge made a surprise reappearance under a new ownership flag, that of Casino Action Group.

According to the media release the resurrected casinos have been given a facelift and now offer completely upgraded functionality still using the respected Microgaming software.

To celebrate the launch of these sites, both casinos are offering previous and new customers a tempting US$22 “No Deposit Required” introductory sign up bonus to experience the new casinos. As an additional incentive to players, the casinos also include a wide variety of exciting new competitions, prizes and giveaways, which will be updated on a regular basis.

Each casino now offers 46 casino games and 11 Jackpot Progressives, with fast download speeds for ease of use, or immediate play with flash technology.

Casino Action Group are experienced operators with Aztec Riches and Golden Reef Casinos already in their stable. The group has a sound track record with casino operations, with 24/7 customer service and a full range of financial and other facilities.

harrods gets a makeover

10 April 2003

And a cool new software package, too.

One of the most prestigious stores in the world, Harrods of London, UK lent its desirable brand to an online casino managed by Gaming Insight some time back, and the sixty four thousand dollar question asked by industry observers and experienced players alike ever since has been “Why did they choose such mediocre software?”

That all started to change when Gaming Insight moved on and Harrods used their experience in the business to improve on their software, culminating this week in the announcement that the casino is back online with Kismet (ex-Goldplay) software.

The new package has capability to target customers with real time personalised messages, and individual players will be offered their own specific promotions and advice. The capability is based on behind the scenes techno-wizardry that mines the database for age, sex, other demographic and playing skills. Harrods boast that this feature is currently unique to the industry and will be widely used as a competitive business tool.

Revamped extensively prior to the relaunch, the casino has an attractive loyalty feature though which players will be able to spend their winnings and loyalty points online at the Harrods world famous luxury store through the convenience of the casino site itself. The casino has been fully integrated with Harrods own online store.

The new site is at Harrods-casino.com.

Casino Cautions

10 April 2003

Bad reaction

Take special care around Offshoreaction.com a Unified Gaming powered casino choosing to take the route of silence when asked embarrassing questions (like, “When are you going to pay me”.) Among several reports is that of a player who has been waiting since the beginning of February this year for a cash-in of a mere $475. He has been given a number of facile excuses, mediator emails are being ignored and it’s beginning to look like a bad deal. More here.

Rubber check
Futurebet-powered casinos have been developing a poor reputation for being slow payers this year, and one of them Planet Rock Casino has been a typical example until this week, when much to the relief of the player a check arrived. The pgambler’s jubiliation was shortlived, however when the $852.75 bounced. Given the already long delay in mailing the check, this is not a good sign.

Editor’s note: At press time I was told that the check was an International Money order and should not have bounced. An investigation is under way.

Too shy for comfort

The Megajackotmania.com site is a progressive slots only operation that seems confused about its gambling software, which it claims is proprietary through Progressive Luck NV out of Curacao. Yet the download comes from Megavaultslots, an RTG powered operation registered to a fellow in South Africa who is apparently connected to RTG’s Silver Sands and Powerbet site – not the best venue. Progressive Luck was until the last few days registered to the same South African. There’s one of those suspicious, non-linking, PWC lookalike logos onsite to reassure players but Price Waterhouse Coopers don’t have these folks on their books. All in all too many questions and not enough straight information for a secure and enjoyable gambling experience. Talking of faux, non-linking PWC links these are also being carried by two other RTG sites Sky Breezes Casino.com and Sky Catalonia Casino.com. Surprisingly, these are owned by a Dominican land-based casino resort – we guess Dominican operations do not have the same high standards and ethics as their US counterparts!

More Bad News from Betfair

10 April 2003

Tax loophole set to close

Following their Australian conviction, there was more bad news for Betfair this week…and for betting exchanges generally in the UK.

According to the Financial Times of London, bookmakers have secured a significant win in their battle against internet betting exchanges, which allow online punters to place bets with one another at the odds of their choosing.

The UK Treasury is set to close the loophole which means gamblers at UK exchanges such as Betfair, who set prices – or act like bookmakers – are exempt from paying tax. Announcements on the change, which could ultimately force the likes of Betfair to operate offshore, could come early following an intensive lobbying campaign by bookmakers.

Like Ladbrokes and William Hill, Betfair pays the 15 per cent tax on gross profits introduced by the government in 2001 to encourage growth in the gambling industry. But any on-course bookmaker who chooses to use the site is exempt from paying tax.

The Treasury is considering a range of options to close the tax loophole. They include the introduction of a gross profits tax on the winnings of those punters who use Betfair to lay bets.

 

Trouble brewing for egaming casinos?

10 April 2003

Or is that Oxford Software Developers?

Most intriguing post across the Internet this week was an open letter to “….unhappy Egaming Casino Owners” inviting them to join a class action against World Gaming reseller eGaming Casinos.

The posts asks, “Have you spent thousands of dollars on marketing? Hundreds of hours on trying to make your Egaming Casino proftable?

“I have and I did. With all my efforts and money spent. Egaming says I owe them money and they took my site away from me. I paid them $25,000 for this site and they changed all the backend codes. I know there are alot of other owners in a similiar situation.

“I have hired an attorney from Antigua because we feel Egaming has broken their contracts in a number of ways. If you would like to make this a class action case or just work with my attorney,send me an email.”

The letter goes on to reveal that eGaming have changed their name to Oxford Software Developers and went public on the OTCBB this week. The stock apparently closed at $3.40, making the president, one Michael Donaghy $25 million on paper that day on 8.3 million shares. That is a higher market cap than World Gaming whose software the company resells!

Oxford were approached for comment on this story but had not responded after 48 hours when we went to press.

Conference corner

10 April 2003

Asian market

Gaming and Casinos World will hold its 11th annual event at The Stamford in Singapore between June 30 to July 1 this year, to discuss the gaming industry both in Asia and worldwide.

Among topics to be discussed:

Analysis of the casino and gaming culture in Asia;

Changes in gambling legislation;

Exploring future developments in Macau;

Movement from land-based to online casino operations;

The impact of government intervention and regulation in the industry.

The Venetian Hotel and Casinos Group is one of three U.S. companies that have successfully won a casino concession in Macau. The group’s executive vice president, David A. Mitchell, will discuss how Venetian intends to maximize the opportunities Macau presents and uncover challenges in their billion-dollar Galaxy-Venetian joint venture.

Other speakers include Chris Downy, executive director of Australian Casino Association; Roy C. Wheatley, managing director of International Business Development at Foxwoods Resort Casino; and Rafael Butch A. Francisco, president and CEO of Philippines Amusement and Gaming Corp.

And Europe too…

The European Virtual Gaming Forum, 2-3 June 2003, in London will examine the future strategies for the gaming industry and through practical UK and international case studies offer insights into the new and innovative products that will be the most successful and profitable in the future.

Discover how to:
* optimise the market potential in online gaming
* benefit from the ultimate clickable web site
* gain and retain customers
* stay one step ahead of your competitors

For more info visit
www.virtualgamingforum.com/tracker/vgftracker.asp?magazineid=12

Talk to your congressman

10 April 2003

The easy way to voice your opinion on banning vs. regulation

With the specter of continued US legislative attempts to ban Got2bet upon us, players, operators and providers in the industry may find the following site an easy and convenient way to let their representatives know their feelings. This is a “grass roots” lobbying site for the American public.

New casino from angelciti

10 April 2003

How about spending the money on paying the players?

The unfair and unwise management decisions that have sent the RTG-powered Angelciti group from hero to zero in the last month are now widely known in the industry, so it was with some surprise that we read a media release from the now notorious CEO George Guiterrez announcing a new casino, Baby Grand Casino.com.

Completely unfazed by the apparent cash problems of his company or the furore that continues to grab attention on the message boards, George G is quoted as saying, “This is yet another feather in our cap. And it is additional evidence of our growth mode for 2003. We look forward to continue bringing on additional sites as the year progresses.”

It is not unknown for penny stock companies to try and attract investors with a stream of new casino launchings, but players could be forgiven for thinking that the money might have been better spent on paying Angelciti’s many aggrieved gamblers.

STOP PRESS: As we went to press the latest developments on the Angelciti disputes was unfolding. AC’s latest move (after eight months of sitting on the $28 000+ multi-Royals complaint) is apparently to imply that RTG’s software is flawed. They are allegedly demanding that an independent mathematician examine the software and that if he gives it a clean bill of health they will re-evaluate their position on denying the payout. This comes after months of first trying to get the complainant to settle for a lesser amount and then ignoring her.

One poster was quick to draw attention to the RTG claim of fairness carried prominently on the Angelciti casino sites:

“Angel Citi Casino.com uses Real Time Gaming software, which is in accordance with the standards set by SafeBet, the only true regulator of online casinos. In addition, Real Time Gaming?s Random Number Generator has been tested and approved by software engineers from Princeton University, guaranteeing you absolute fairness in every game.

For your added protection, we maintain a complete audit trail of each individual transaction for all the games that you play. At your request we would be pleased to make these files available to you for inspection.”

FORE!

10 April 2003

Now it’s virtual golf…

We’ve seen virtual horse-racing, now we have virtual golf, and here’s how it works:

Luckygolfer.com produces and manages a skill-based, online golf game for registered players 18 years of age and over. Players pay a nominal ?greens fee? for each competition to win prizes and cash. With multiple winners to date, Luckygolfer tournaments level the playing field for golfers of all abilities, regardless of gender or physical challenge; giving every virtual golfer “… a spirited equal chance to become a champion.”

The brainchild of Luckygolfer CEO Rick Perrone, the games are available around the clock and are, he claims completely legal in 46 States (the exclusions are Arizona, Iowa, Lousiana and Vermont)

With One in 10 payout odds and up to 250 players in each tournament or contest, virtual gamers can choose from five competitions including, 3 and 9 Hole tournaments, a Longest Drive, Closest to the Pin contests and a $1,000,000 Hole in One challenge.

?We are a U.S. based company, we allow people to pay and play in a legal skill-based game without the risk of using an offshore casino,? says Perrone. ?With current bills introduced in both houses of Congress to prohibit credit card payments to offshore, Internet gambling establishments, Luckygolfer.com, offers online players the experience of playing golf and winning cash, and provides a legal, risk-free, skill-based alternative.?

Luckygolfer games are fast! They can take as little as five minutes to play and are ideal for quick entertainment breaks. To ensure the highest quality graphics and game simulation, Luckygolfer teamed up with a top U.S. game company which has developed leading golf games since 1976, including the best selling 1998 and 1999 Microsoft? Golf? game series.

Like real world golf tournaments, Luckygolfer?s green fees are $5, $10, $25 or $50 for each competition. First place cash payouts are $500, $1,000, $2,500 and $5,000. Players can also compete in Luckygolfer?s bonus sweepstakes for exciting prizes such as a 2003 Ford Thunderbird convertible or a dream golf vacation at a championship golf course.

Connecting and Playing Luckygolfer.com is easy using a simple Internet connection thropugh a personal computer or laptop. Free downloads are available or users can order free CD?s which are available for a small shipping and handling fee. Registered players receive a complimentary practice round to develop and hone their skills and can sign up for a small monthly fee for unlimited practice before competing for cash.

POKER.COM INC. drops trimon

10 April 2003

Concentrating on the new SkillsPoker

Poker.com Inc dropped it’s master licensee agreement with Trimon this week, obviously putting its eggs in the SkillPoker basket it has been hyping so heavily. It was noticeable they are no longer pushing the “Poker.com” domain issue that has been a feature of all their press release material since that dispute surfaced last year.

The software master license provided the company with the ability to market casino style games to companies engaging in playing casino style games online. The termination does not relate in any way to the poker software licenses owned by Poker.com Inc.

Management and the board of directors of Poker.com Inc. apparently decided that Trimon Systems Inc. software was not providing the expected return on the investment and that the company should concentrate its resources on its patent pending Skill Poker system, a legal method of playing poker online for money.

In accordance with the terms and conditions of the license, there was no expense relating to the termination. Poker.com Inc. will no longer be required to pay monthly maintenance fees and will curtail the operations of the existing casinos in the near future.

Strike one for golden palace

10 April2003

Innovative marketers aim for baseball

Golden Palace.com has broken new Got2bet ground by becoming the first cyber casino to sponsor a major league baseball team — the Montreal Expos. “We are extremely grateful to GoldenPalace.com for their participation and financial support in making this transaction a reality. The presenting sponsorship of English radio will be held by GoldenPalace.com,” said Claude Delorme, the Expos Executive Vice President of Business Affairs.

As a major sponsor of the team, GoldenPalace.com hopes to expand their reach and further set themselves apart from their competitors.

“We are very excited to be associated with Major League Baseball and a quality club like the Montreal Expos,” said Richard Rowe, the CEO of GoldenPalace.com. “Our involvement with an American institution like Major League Baseball can only help solidify our place in the competitive world of online gaming.”

This isn’t the first time GoldenPalace.com has been involved in sports. Some of their marketing efforts include “backing” high-profile boxers since late 2001 with their well publicised henna ad tattoo, as well as having their own racing team in the well-known ARCA/REMAX division of NASCAR racing.

SKY iTV chooses GiG

10 April 2003

Sports software to be used in Brit TV operation

Britain’s Sky Bet BSkyB interactive TV station with an audience of millions has selected SportXaction wagering software for its betting channel.

SportXaction is supplied through Global Interactive Gaming subsidiary Interactive Systems Worldwide. The agreement is a 12-month trial on the basis of shared betting revenue. Global Interactive will be responsibile for the cost of operating the service, while Sky Bet will be responsible for the marketing program.

SportXction will be made available through Sky Bet’s “Sky Bet Live” to all digital subscribers of BSkyB’s Sky Sports 1 channel – a potential market of 6.6 million households.

The Sky Sports 1 channel televises live games from the world’s top soccer league, the Barclaycard Premiership games with information on in-run wagering, including a specific wagering-related commentary and the ability to place wagers interactively using the remote control.

The betting propositions that are available are shown on the bottom of the viewing screen. The SportXction application will be launched in August when the next season of Barclaycard Premier League begins.

An additional and simultaneous implementation of the SportXction application will be made available to Sky Bet customers for other sporting content on BSkyB digital channels.

Blatant dishonesty

4 April 2003

Angelciti hits a new low

Last week we reported on the strange management decisions on promos and payouts that has recently characterized the cash-strapped Angelciti group, which has managed to infuriate the player community and trigger indignation across the industry in less than a month.

The row escalated this week as President George Gutierrez made another ill-advised move, refusing to honour a $28 700 player claim that has been on the Real Time Gaming – Welcome to Our Casino ping pong table for over seven months.

His highly questionable grounds for arbitrarily refusing to pay the player are that “Ms. XXXX played Video Poker at our casino last Summer. She purportedly received 3 Royal Flushes over the course of 7,591 games of Double Jackpot Poker and Double Bonus Poker. It strains the odds and belief that a person could get that many Royal Flushes in such a short period of time. She was paid out $4,000 on a $50 deposit during the term of her play. Upon the occurence of the 3rd Royal Flush we closed her account due to suspicions of foul play.”

This unsupported hunch and implied criticism of the Real Time Gaming software (widely respected in the industry if the management of RTG is not) has already been refuted by the software supplier which seems to have done little else to resolve the 7 month long issue, during which Angelciti has repeatedly stalled, ignored emails and offered smaller amounts “in settlement”.

The Gutierrez decision based on “suspicion” with no evidence or argument is manifestly unfair, and mediator Bryan Bailey at Casinomeister has again emailed Real Time Gaming boss Michael Staw in an open letter accusing the company of not policing its licensees and informing him that the entire Angelciti group is now classified as “Rogue Casinos”

Staw responded with a rather bland assurance that his company was trying to clean up its act but had certain constraints on its power over licensees. This was greeted with some incredulity by players, mindful of the dismal record of unfairness displayed by many RTG powered casinos, and the apparent lack of interest by the company in taking up players’ causes.

Allied to Angelciti’s recent and strongly contested decision to disallow bonuses and winnings achieved fair and square on promo offers sent to players and in T&Cs on the site, the latest decision is likely to have a profound impact on the way players perceive this formerly efficient casino group.

SEC filings show that Angelciti has serious cash problems, but the player attitude is that if a casino cannot honour its obligations it should not be in this business.

The way Angelciti is going, it would seem unlikely that the following casinos will be in operation for much longer, and players across the Internet are being warned to avoid placing their money at risk:

Angelciti Casino
Vacation Casino
Welcome to Our Casino
Netgaming Casino
eMazing Casino
Star-bright-Casino
Road Runner Casino
Lucky Dog Casino
Que Pasa Casino
Casino Paycheck affiliate program.

STOP PRESS: As we went to press we received a business announcement that Angelciti is using Moneylinebrokers.com to facilitate trading on the Global Internet Stock Brokerage Exchange (GISBeX) GISBeX’s international trading and clearing platform allows worldwide investors access to shares. Apparently AC management feels it will increase shareholder value through expansion into the international investment arena. And perhaps boost their stock values.

AGLC shares will continue to be listed for trading on Over the Counter Bulletin Board, and the Company will continue to be subject to all of the rules and regulations of the U.S. Securities and Exchange Commission.

 

World gaming condones bad casino practice

4 April 2003

Cheating casinos still in business using WG software

Many players will remember with bitterness the World Gaming promo debacle in March of 2002, when large numbers of players were ripped off in regard to their winnings and bonuses by ten World Gaming licensees who refused to honour their own over-generous promos.

The licensees involved (four have folded) continue to simply ignore all emails on this issue, and WG would appear to be unconcerned whether players get justice or not.

In fact WG management seems to be condoning the reprehensible actions of their licensees because most of them are still in business, using WG software despite the software provider’s accusations that the licensees were at fault in not operating the bonusing software efficiently back in 2002.

And according to a decision from CEO and chairman Nicholas Jackson this week, World Gaming will not accept responsibility toward the players and have effectively washed their hands of this episode. Here’s what a World Gaming representative posted on the message boards after presenting the dispute to his superiors after successive WG managements ignored all attempts to mediate last year:

“I got a report from our operations headquater and a final decision from the management of World Gaming plc regarding some “non-payment of winnings” cases from spring 2002:

“After reviewing the facts again our management decided not to pay out the winnings owed by some smaller licensees. The problems/mistakes happen are on the sole liability of these licensees.

“World Gaming already bailed out with repaying the initial deposit amounts to the players. All other claims regarding bonuses and winnings need to be directed directly to the websites/licensees involved as it is their sole decision how to act in the particular cases.

“I am sorry but this was all I was able to achieve, please have in mind that this is not my decision.”

World Gaming has been told repeatedly that the licensees concerned refuse to answer claims on this matter.

The following are the casinos involved and their present status:
2000onlinecasino.com – in operation using WG software
Blackrhinocasino.com – Closed
Captainscasinos.com – Closed
Ubetnetcasino.com – in operation using WG software
Betpony.com – in operation using WG software
Clicknwincasino.com – in operation using WG software
MGMcasinoandsportsbook.com – Closed
Greatluckcasino.com – in operation using WG software
Casino.worldgaming.com – Closed – replaced by WG’s own casino worldgaming.com
Vegascitycasino.com – in operation using WG software

Taking a more positive view of WG, it has announced to shareholders this week that it has fully repaid the $1.5 million loan it took from Sportingbet last year, well ahead of the September deadline.

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WORLD GAMING / EFS EXPATS CHECKED
4 April 2003
Antiguan authorities clamp down on work permit infringements

The World Gaming/EFS offices in Antigua were the subject of a Labour Department raid this week according to the Antiguan Sun, and the unconfirmed scuttlebutt has it that one of the employees found without a work permit was no less a personage than the bossman himself!

According to the Sun, seven “non-nationals” at the Liat Road office were told to regularise their work permit status or face deportation in a meeting with Labour Commissioners staff

“We met with them around 10:30 this morning and held interviews with various staff members,” said senior labour statistical officer Samuel James.

The Sun reported that according to local employees of the company, it had been common practice to fill positions with non-nationals, denying employment to Antiguans.

?This seems to be a chronic problem with the gaming industry in Antigua, but it has to stop,? James said. ?We are not here to harass anyone. The process to obtain a work permit is simple enough to follow. It simply means that some of these people are doing this deliberately,? he added.

At least one of the seven non-nationals who was working illegally has lived in Antigua for four years and has violated the labour code in the past.

And in an interesting sidebar to the story, unconfirmed reports suggested that WG CEO Nicholas Jackson had been one of the WG people checked. It is alleged that he had fired a local employee recently, and this may have been the catalyst for the Labour Department visit.

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SPORTINGBET TO APPEAL
4 April 2003
Heavy Australian fine to be contested

A drop in share price was not Sportingbet’s only hassle this week, as NetImperative reported that the online bookmaker had lost an Australian court case that will force it to repay some GBP 1.3 million in stolen money, allegedly wagered by a client on its horse racing facility.

The troublesome customer, who was accused of stealing around GBP 7.5 million from his transport company employers was “inherited” by Sportingbet when it acquired Number One Betting Shop

The courts finding was that Sportingbet would have to repay the money that was gambled, and that could result in the company facing an exceptional charge of GBP 1.3 million in the current financial year. Sportingbet now has 42 days in which to lodge an appeal, which it has indicated it will do.

According to an announcement last week, the share price was adversely impacted by unfavourable betting trends during March which had a negative effect on profits…some 25 percent of the company’s value was wiped out as a result of the share price drop.

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PATENT LAWSUIT ON P2P
4 April 2003
Palm sued on wireless gaming patent

Brighthand News reports that Palm Inc. is facing a patent lawsuit from Peer-to-Peer Systems, LLC has filed a lawsuit against Palm Inc. that alleges that the handheld maker infringes on its patent for wireless gaming.

U.S. Patent No. 5,618,045 is for “An interactive multiple player game system including at least two playing devices communicating over an ad-hoc, wireless, all-to-all broadcast network.”

This appears to only cover a set-up in which the two devices are directly connected to each other with some wireless standard, like two handhelds playing a game via infrared. The patent does not seem to cover games that are played over the Internet.

Reportedly, Palm and Peer-to-Peer Systems have been in negotiations for a licensing fee but these have broken down. The company is also suing the makers of the Cybiko wireless handheld, which also allows ad-hoc gaming.

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AFFILIATE COMPANY FOLDS
4 April 2003
But due to the Gulf War II ???

Yep, that’s what the folks at affiliate company Chipsncoins.com claim is their reason for folding, along with “…the deteriorating world economy”. The company was contacting webmasters this week with the bad news that Cinema, 777 Dragon, and Arthurian casinos have terminated their contract.

The decision is final and permanent, and webmasters are requested to cease both ongoing and future promotions and advertising.

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IMPRESSIVE NEW CLIENT FOR CYPTO
4 April 2003
And good news for company employees

The week saw an interesting poker room deal between Cryptologic and Bingo Entertainment NV out of Curacao. Bingo Entertainment recently launched their Privilege Casino.com powered by Boss Media.

Bingo Entertainment is part of one of the Internet’s largest online bingo operators and bingo marketing groups in the world. Through an agreement with CryptoLogic’s wholly-owned subsidiary, WagerLogic Limited, Bingo Entertainment NV will license WagerLogic’s Internet poker software to extend the world’s most popular card game to an additional 120,000 players.

“Poker is one of the fastest-growing game segments on the Internet, and CryptoLogic has very quickly achieved market leadership,” said Lewis Rose, CryptoLogic’s President and CEO. “Since its release last fall, our unique centralized poker offering — which directs different operators into a single room for enhanced liquidity — already powers one of the top 10 poker rooms on the Web. Our software, together with Bingo Entertainment’s strong player base and extensive marketing network, is expected to produce winning results.”

Table poker accounts for approximately 5% of the $3.5 billion online gaming market today, and yet there are only a dozen established sites for online poker play. This represents a significant growth opportunity for both CryptoLogic and Bingo Entertainment.

Bingo Entertainment’s new online poker room, Pokerplex.com, offers a stylish playing environment and user-friendly game site that will appeal to casual poker players and high stakes gamers alike. The site has the most popular poker games – Texas Hold’em, 7-Card Stud, Omaha High and Omaha High/Low and enables players to play in their preferred currency – US dollars, British pounds sterling or Euros. WagerLogic’s high quality graphics, chat feature and exceptional support and service complete this leading multi-player poker offering.

Cryptologic took the opportunity presented by the launch to update the industry on other issues, claiming that it is making good progress on its 2003 growth strategy.

Apparently the company’s new poker software is performing well and has been rolled out to major licensees InterCasino, Peak Entertainment and William Hill, the latter becoming one of the first land-based groups to offer online poker. CryptoLogic also received a regulatory license from Alderney, having passed stringent government probity and continues in efforts to establish itself as a software provider complying with the strictest regulatory requirements for online gaming.

There was good news for employees, too. Crypto says that to further align company and employee interests with shareholders, it will be paying a bonus in shares to employees. The company will issue 100 shares as a bonus to each of its employees for a total of 14,000 shares. Additionally, 11,730 shares will be issued in aggregate to certain employees, of which 6,922 shares will be issued to senior management who are also company insiders, for payment representing 50% of the value of their annual bonus.

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SPORTSBOOKS PAY COSTA RICAN LICENSING FEE
4 April 2003
Regulatory framework begins

The Costa Rican licensing jurisdiction, which has been discussing effective Internet casino and sportsbook licensing for some time seems to have taken the first steps to implement a tighter system this week with the introduction of new licensing fees.

Despite initial controversy and threats to depart by some operations, over thirty sportsbooks are reported to have paid the new fees, with Bodog sports and casino being the first in line to do so.

The President of Bodog, Rob Gillespie has been pushing for stricter licensing and regulation of the industry since its inception in the nineties. “Having the government provide the proper infrastructure to maintain the integrity of our company, and more importantly, our industry is a big step.” said Gillespie. “We’ve always felt that this type of step would only end up helping the consumer make a better informed decision.”

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IQ LUDORUM CASH STRAPPED?
4 April 2003
Between a Stone and a hard place

Persistent rumours, consistently denied by the company, that IQ Ludorum is feeling the financial pinch were boosted this week by news that the Board “…notes the recent movement in its share price and wishes to announce that its executive management are in current discussions with a number of industry related organizations on the terms of providing long term structural and financial support to the Company.”

The company revealed that as an interim measure pending the outcome of the discussions it had taken a $100 000 loan from CEO Roger Stone.

Mr. Stone is well named and drives a hard deal it appears. The loan is for six months with interest set at 12%, secured on trade accounts receivable. And as an inducement to provide the loan, Stone has been granted 500,000 options to acquire ordinary shares of 5p each at 5p per share (0.6% of the current issued share capital). This option is exercisable between end March 2003 and 30 March 2008 and following this grant of options Stone will hold options over a total of 1,340,000 ordinary shares (1.7% of the current issued share capital).

However, the other directors seem happy enough with the deal, having discussed the matter with KBC Peel Hunt Ltd, the Company’s nominated adviser.

Shareholders are currently awaiting the release of ID-Q’s results for the year ended 31 December 2002 but these have been delayed pending the discussions seeking long term financial support for the company.

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PATRIOT PROSECUTION FOR PAYPAL
4 April 2003
E-Bay annual report says gambling monies may have to be forfeited

Associated Press reports that EBay has revealed that federal prosecutors in Missouri claim the company’s PayPal operation violated a part of the Patriot Act by facilitating illegal gambling.

Consequently, PayPal might have to forfeit money it received from gambling sites, and it might be subject to criminal liability, EBay said in its annual report filed with the Securities and Exchange Commission this week.

According to the report, the U.S. Attorney’s Office for the Eastern District of Missouri offered a complete settlement of all possible claims and charges covering a purported amount of earnings plus interest that PayPal derived from Got2bet merchants from October 26, 2001, to July 31, 2002. The filing didn’t provide information on the amount of earnings claimed in the proposed settlement.

EBay said PayPal acted in good faith and believes that it didn’t violate the USA Patriot Act. The company said PayPal calculated that the amount of its earnings from online gaming activities was less than what was asserted in the U.S. Attorney’s claim.

Last October, Internet auctioneer EBay completed a $1.4 billion acquisition of PayPal Inc., giving it control of a top player in the Internet-payments market. EBay said it would be harmed by negative publicity, costs of litigation and the diversion of management time if the investigation were to lead to a civil or criminal charge.

The company also said any finding of a civil or criminal violation, or potentially any settlement, could hurt PayPal’s ability to obtain, maintain or renew money transmitter licenses in jurisdictions where such licenses are required, which would materially harm eBay’s business.

Beginning in July 2002, PayPal provided documents and information related to its services to Got2bet merchants, in response to a federal grand jury subpoena issued at the request of the U.S. Attorney for the Eastern District of Missouri.

Shares of EBay were down 4.5 percent, on the Nasdaq Stock Market following the revelations.

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CASINO CAUTIONS
4 April 2003
These sisters don’t tell…
Numbers of players have started complaining about some pretty sharp practice at online casinos Hamptons and Portofino, both powered by Real Time Gaming. These casinos are related, but don’t notify the gambling public upfront that this is the case. When a gambler wins, but has an account at both casinos, the management disqualifies the win and bonus on grounds of multiple accounts. Until management does the right thing and clearly indicates that the casinos are related and that players may use only one account, these two should be treated with caution. As we went to press information was emerging that the management has taken note of the widespread criticism and intended to address the disqualifications and the notification issue. It is too early yet to report whether this has been done.

Prism tricky again
It looks as if Prism casino has picked up some bad habits from its relative Virtual Casino, surely one of the most notorious casinos around. This RTG-powered casino has featured in this unenviable spot before, but players need to be aware that at this venue you really need to read the fine print. For example, there’s a maximum $200 cash out rule when you use the bonuses. Players have reported making large wins only to discover that the most they could cashout was $200 no matter how much they may have wagered! And this little wrinkle is not well displayed.

More about the Virtual Casino Group here.

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RECORD PAYOUT FOR VIRTUAL SCOTSMAN
4 April2003
Ladbrokes horseracing pays off

Stuart Johnstone from Livingstone, Scotland, walked off with $131,702.38 (?84,198.50) after placing a bet on a virtual horse race at a Ladbrokes betting shop this week.

Johnstone bet just $11.73 (?7.50) on four computerized winning horses, which a Ladbrokes spokesman says “smashed all the previous records for a Virtual Horse Racing payout.”

Launched in May 2002, Virtual Horse Racing broadcasts 10 live races a day across 10,000 betting shops. Bettors watch computerized horses race around computerized courses – results are determined by a random number generator within a central computer.

Commenting on his payout, Johnstone said: “This is absolutely magic, I’m the virtual magician. I can’t believe that at last I’ve beaten the bookies and it isn’t even on a real horse.”

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$5 MILLION WRITE OFF FOR STATION
4 April 2003
Final chapter in the Kerzner Interactive deal

In late January this year, Vegas land gambling company Station Casinos, Inc. and Kerzner International Limited agreed to discontinue Kerzner Interactive, in which the Company had an option to purchase a 50% interest. The company, with its sadly missed quality Casino Atlantis online operation were wound down at the end of last month.

This week Station announced that as a result, it will write-off its $4.9 million investment in Kerzner Interactive in the fourth quarter ended December 31, 2002, thus modifying the fourth quarter results previously announced on January 28, 2003. Net income for the quarter ended December 31, 2002 was $4.5 million and earnings applicable to common stock was $0.07 versus previously reported net income of $7.7 million and earnings applicable to common stock of $0.13. Station has filed its annual report on Form 10-K for the year ended December 31, 2002, and this incorporates the write off.

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DCEG LAUNCHES SPORTINGBET OPERATIONS
4 April 2003
Four new Got2bet venues

Despite its close business relationships with World Gaming, the major gambling group Sportingbet.com chose dotcom Entertainment (DCEG) as the turnkey provider of choice for its latest Got2bet investments.

DCEG licensing, sales and support subsidiary Parlay Entertainment Limited launched Bingobilly.com and Casinobilly.com, operated by Sportingbet plc.

The turnkey provider also announced two other clients, Winwardcasino.com and Thevirtualbingo.com.

The advent of the new gaming sites brings the number of DCEG-powered operations to 27.

The launch of Bingobilly and Casinobilly represent the first sites developed under a comprehensive software licensing agreement between Parlay and Sportingbet, one of the world’s largest online and telephone sports betting businesses serving over 500,000 customers in 150 countries. In the coming months, Parlay will provide Sportingbet with two further casino sites and one additional bingo site. Winwardcasino.com is a well established online casino operated by Metagalaxia S.A. and the DCEG involvement represents a software change and site revamp.

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COUNTDOWN TO TORONTO
4 April 2003
Only six weeks left…

Got2bet’s major conference of the year, the Global Interactive Gaming Summit & Expo (GIGSE) takes place in Toronto between May 20 and 22, and for those readers who leave things to the last moment, that’s only six weeks away!.

Organizer River City says that a delegation of over 1,000 professionals in the US$6 billion interactive gambling industry is expected to exchange ideas on international trends and showcase new products at GIGSE. With this segment of the gambling industry reinventing itself almost daily, the event will play host to the most extensive rollout of new I-gaming products to date.

Key sponsors of the event include Microgaming Systems, RealTime Gaming, CryptoLogic and Playtech.

A wide array of wares and services, including geo-location, transaction processing, wireless technology, legal, marketing and security solutions will be on display. The conference and exhibition is recognised as the world’s largest event for wireless and Internet gambling and wagering, where the latest I-gaming technologies are unveiled and the newest trends are discussed. The industry has also come to know GIGSE as the single most important networking opportunity of the year.

In addition to the expo hall, which last year hosted 63 of the industry’s leading suppliers, GIGSE will feature six conference tracks as an international line-up of policy-makers, specialists and analysts discuss management strategies, trends in marketing, legal/political developments, regulatory challenges, investment opportunities, new technologies and the overall state of the business. The dynamic, expansive program will include plenary sessions, breakout tracks and roundtable discussions.

Last year, over 42 countries were represented, and over 600 people traveled from Europe, Asia, and South America to see the new products and discuss issues with their colleagues from around the world.”

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BRIT BETTING EXCHANGE IN AUSSIE HOT WATER
4 April 2003
Offers to share some of its action

The multibillion-dollar betting exchange Betfair faces fines of $1 million (US$604,452) a day after the Australian Broadcasting Authority found the UK-based company’s content was prohibited.

The Sydney Morning Herald reported this week that it has obtained a document which also states the ABA believes “there was sufficient evidence of possible breaches of the Interactive Gambling Act to warrant the referral of the matter to a law enforcement agency”.

Tim Ryan, a member of the Australian Bookmakers’ Association Internet betting committee, was `not surprised in the least? at the ABA’s findings.

?Any idiot who has read the legislation knows that betting exchanges can’t do what they are doing in Australia,? Ryan said.

?The legislation is clear – do not target Australians, do not provide prohibited gambling services, do not pass go. Betfair have a customised menu for Australian users – how stupid is that?”

Betfair’s director of communications, Mark Davies, said on Sunday that “if we hold up our hands and withdraw, the threat to the funding of racing is far greater than at present”.

Betfair is willing to pay the Australian racing industry part of its five per cent deductions from the win commission taken from punters who are successful at backing or laying a horse. The amount on offer is causing ructions within racing’s ruling bodies, the various state governments and TABs, which fear income streams will be eroded.

Under the NSW Unlawful Gambling Act of 1998, punters in this state can be prosecuted for betting with an overseas operator not licensed in this country.

It is illegal for Australian punters to bet with Betfair, which is a licensed betting firm in the United Kingdom.

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PARK PLACE WINDS DOWN
4 April 2003
Interactive boss moves on

It was not long ago that industry commentators noted with pleasure the appointment of a red hot marketing man Frank Han to manage the Got2bet ambitions of Vegas gambling group Park Place Entertainment, but this week there were clear signs that enthusiasm for the Got2bet scene had cooled.

The group’s Internet commerce division has been redeployed and Frank Han its head has left the company, a move that comes a few weeks after it announced that it would hold off on developing an Got2bet site for non-U.S. bettors.

Han, senior vice president of electronic commerce, and one other employee left the company last week, a spokesman said.

Appointed by Park Place’s former chief executive, Tom Gallagher, Han was hired in part to explore Internet gambling opportunities. But enthusiasm for Web casinos has diminished as the prospect of legalizing them in the United States grows slimmer — a development that may have repercussions in other countries, experts say.

Last month, Park Place spokesman Robert Stewart said the regulatory environment surrounding Got2bet was getting “more, not less complex” and that the company would not be pursuing a pending license application to introduce a Web casino in the Isle of Man, which currently hosts a site of Vegas competitor MGM Mirage.

Stewart said Han’s parting from the company was amicable, and that other employees within the division were reassigned to the advertising department or the marketing department of the company.

Several other major gaming companies have remained mum on the subject of operating Web casinos, and others, including Station Casinos Inc., have exited the business over regulatory concerns. MGM Mirage and a sister company of the Venetian casino resort, which was recently awarded a license to pursue a site on one of the British Channel Islands, remain the most aggressive Las Vegas companies to seek online opportunities.

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GOOD C.O.N. STORY
4 April 2003
Business2.com piece informative and good reading

Our choice for the most interesting Got2bet story this week was a fascinating article on Casino On Net and its owner, Scottish accountant John Anderson, which appeared at Business2.com and was written by journalist Ralph King.

The reclusive Anderson (52), who avoids the media and apparently doesn’t answer journalists’ emails is described as a vaguely John Lennon lookalike who is “…buttoned-down, and speaks with the flat, clinical precision of an accountant — which, as it happens, he is.”

Those rumors of mob or porn ties are, by all accounts, nonsense. Anderson explained to King how the lessons of 26 years as a respected gaming and hotel executive moulded the company he now runs, “…an amazing profit machine called Casino-on-Net.”

King reveals that last year C.O.N. rivalled the big Vegas casinos in making around $50 million. 2002 revenues promise to be as impressive, with analysts estimating $200 million and opining that the company is the biggest casino in the fast-growing billionaire Got2bet industry.

“Lots of cash flow, no distribution, and no real estate,” Anderson says. “It’s the perfect business.”

The article goes on to explore the challenges facing the industry, not least of which is its bad image which poses a threat to the Anderson interests, prompting him to make a concerted personal attempt to clean up the business. He strongly advocates and lobbies for regulation, but more fundamentally, he is trying to show, through the exacting and open way he’s building his own business, that Got2bet is not just the shadowy province of hustlers, ex-cons, and the occasional fugitive. “We have to be cleaner than clean, transparent,” he says.

Anderson clearly feels that if legality and regulation can be achieved, the sky’s the limit and CON could be a billion dollar business.

Describing the beginnings of the company in 1996, King relates that what distinguished CON from its contemporary competition was a highly sophisticated Web marketing system. “Its real-time tracking software, developed by graduates of Israel’s famed Technion institute, monitored the results of banner ads and pop-ups on thousands of websites simultaneously and could instantly boost the company’s presence on productive sites while dumping laggards. As rivals squandered millions on offline advertising and fancy websites, Casino-on-Net trained this powerful technological vacuum on a hunt for the sizable fraction of the population that likes to gamble frequently. The bets rolled in. More than 7 million people have downloaded Casino-on-Net game software. The company currently has about 300,000 active customer accounts.”

The story is full of such interesting information of both a personal and industry nature, references to well known personalities and business techniques, and we would recommend a visit to Business2.com for a really good read on an outfit that dominates the business.

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INTERESTING INFO
4 April 2003
A few updated stats

Among the many news and general industry stories offered this week were useful statistics, which we thought were worth passing on:

Internet gambling has surged well ahead of most e-commerce categories, reaching more than $6 billion in global sales this year, according to Christiansen Capital Advisors, a gambling industry research firm. Of the roughly 12 million online gamblers, 5.3 million are Americans. Asia remains a potentially huge market, with the number of online gamblers expected to grow from 4 million this year to 7.4 million in 2006.

Sue Schneider of the River City Group said the United States revenue of many online casinos had dropped 50 percent or more in the last year, because casino players tend more to be casual gamblers than, for example, people who bet on sports, and are less determined to transfer money to the gambling sites. As a result, she said, some of the larger Internet casinos like Golden Palace and Casino on Net, have shifted marketing dollars away from the United States to other countries, including those that allow Got2bet. Europe has become a major target, as has Asia.

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UK BETTING CHOOSES CRYPTO POKER
4 April 2003
Another success for Wagerlogic’s poker room

Cryptologic has had an exceptional business week, it appears from an announcement Wednesday, following earlier news of a major signing with Bingo Entertainment. The latest release details a major poker room and casino deal with UK Betting, a leading British betting group and provides further evidence of the success of Crypto’s European-focused business plan.

Through an exclusive license agreement with CryptoLogic’s wholly-owned subsidiary, WagerLogic Inc., ukbetting will expand its interactive wagering services with an Internet poker and casino offering, targeting ukbetting’s monthly user base of 3.5 million European sports fans.

A U.K. publicly listed company, ukbetting plc operates two major U.K. sports content brands on the Internet, namely Sportinglife.com and Teamtalk.com, that reaches 3.5 million unique users each month. Its two sports betting sites, namely ukbetting.com and totalbet.com, have 145,000 registered betting customers. By adding casino and poker gaming to its online sports book offering, ukbetting is expanding its interactive betting services to its fast-growing international customer base and attracting wagering customers through its comprehensive branded sports content web sites.

Brian Cullingworth

Infopowa news was a staple of Casinomeister’s news from 2000 until 2019. Brian Cullingworth was the main writer, contributor, and was one of the most knowledgeable persons I have ever known involved in the online casino industry.

We first met in January 2001 at the ICE in London where I observed him going booth to booth interviewing online casino, software, and licensing jurisdiction representatives. Brian was also heavily involved with our forum as “Jetset“, he was involved as an informal consultant to eCOGRA, the OPA, and was a player advocate who assisted countless aggrieved players with his connections to industry folks. He also published “Casino Cautions” via Infopowa news for quite a number of years. These can be found in our news archives.

His passing in February 2019 was a dark day for us. He will be forever missed.


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