New Jersey is currently contemplating privatizing the management of its state lottery, which posted a record $2.7b in sales in 2012 and is the state’s fourth largest revenue stream. Gov. Chris Christie has been accused of exercising unnecessary secrecy in his privatization plans, so on Monday a suspicious state Senate passed legislation requiring both houses of the state legislature to sign off on any contract Christie might strike with lottery operators.
It’s not clear whether Christie will be willing to sign the bill and thus surrender his autonomy, but perhaps it would be better than to have the contract ripped up after the fact, similar to what happened recently in neighboring Pennsylvania. State treasury officials insist Christie would have the power to cancel the 15-year, $120m contract at any time should the operator prove incapable of increasing lottery revenue for two years. (This is what we call foreshadowing.)
As in Pennsylvania, there has been just one bidder for the New Jersey lottery contract, a consortium of GTECH, Scientific Games (SGMS) and a Canadian pension fund called OMERS, all of which is grouped under the banner of Northstar New Jersey. Northstar is also the name of the joint venture GTECH and SGMS entered into to operate the Illinois Lottery. Illinois was the first state to privatize management of its lottery in 2011, but the venture has yet to live up to its advance billing.
True, the Illinois Lottery increased sales from $2.27b to $2.68b and earned record revenue of $757m in 2012, the first full year of the 10-year Northstar contract, but that was $94m short of its promised $851.2m revenue target. Northstar quibbled about the revenue target figure, eventually convincing the state to reduce it to $822.8m, but that still left Northstar down nearly $66m. Northstar is also arguing that its total revenue tally was closer to $781m, but even that would leave it nearly $42m shy of its goal. (Nice try, guys, but unless you’re willing to claw back the odd jackpot or two, the two ends of this rope ain’t ever gonna meet.) As such, the Illinois Lottery Department is preparing to withhold monthly payments to Northstar until it has recouped a $20m penalty as stipulated under the terms of the management contract. Northstar earned $85m in management fees last year.
March 22, 2013
March 18, 2013
Playtech to offer financial spread betting platform
Playtech have confirmed in their companies annual report that they are working on a new financial betting platform. As early as the beginning of 2012 rumours were abound that the software provider company was working on a new platform for financial spread betting however were not confirmed at that time by Playtech.
But late last week Chief executive officer Mor Weizer said that extensive research into the possibilities for a new financial betting platform had shown that such a binary option service would be popular in the market, constituting a viable & revenue generating standalone service for Playtech licensees.
The financial spread betting sector already has many offerings for operators and has seen one or two of those platforms collapse because of competition, however, Weizer pointed out that these were focused on different demographics, creating an opportunity for his company & its licensees.
“The conversion rates between such a sports betting audience & financial betting present a great opportunity for operators, not only to maximise the returns from players, but to approach a larger audience.” Weizer said.
But late last week Chief executive officer Mor Weizer said that extensive research into the possibilities for a new financial betting platform had shown that such a binary option service would be popular in the market, constituting a viable & revenue generating standalone service for Playtech licensees.
The financial spread betting sector already has many offerings for operators and has seen one or two of those platforms collapse because of competition, however, Weizer pointed out that these were focused on different demographics, creating an opportunity for his company & its licensees.
“The conversion rates between such a sports betting audience & financial betting present a great opportunity for operators, not only to maximise the returns from players, but to approach a larger audience.” Weizer said.
March 14, 2013
Cyprus could have casinos within two years
Land-based casinos could soon be on their way to the southern European island of Cyprus, declared the Commerce Minister in Parliament on Monday. The new Cypriot government, elected last month, has a new ideology on casino gaming that could quickly develop a new market.
Newly appointed Minister of Commerce, Industry and Tourism, Giorgos Lakkotrypis explained that he has appointed the Cyprus Tourism Organisation (CTO) to update a 2007 study looking at the introduction of casino gaming in the country. Asked if Cyprus could expect casinos within two years, the minister avowed, “Yes, this is what we hope.”
This was the first time Lakkotrypis has expressed his views on the matter with MPs since assuming his duties, and he stressed the urgency of casinos. Parliamentarians and the Minister agreed to continue their cooperation and a progress report will be submitted every two months. Establishing a plan to roll out casinos would only be done once the all the relevant information has been presented, the Minister affirmed.
Since the Republic of Cyprus was granted independence from Britain in 1960, all forms of gambling other than sports betting have remained strictly outlawed in the island nation. Gaming operators caught on to a flaw in the anachronous legislation, which did not provide any stature online gaming and between 2002-2010, Cyprus witnessed a gradual development of gambling shops advertised as casino kiosks.
New gambling legislation was unanimously passed by the government in 2012 to clarify the law. It gave OPAP a monopoly over sports betting and placed an official ban on online casinos, poker, slots, exchange betting and gambling advertising. The administration had stubbornly refused to even look at the possibility of opening a casino sector as part of the legislation, giving the EU incentive to explore the issue.
Demetris Christofias, President of Cyprus at the time, said that casinos are an “expression of corruption and can create a crisis to the system. My party has struggled for years against any establishment of casinos, and there will be none while Christofias is President.” However, it is widely reported that Cypriots are already spending millions gambling on illegal online games and casinos in the north.
The CTO study conducted 6 years ago, estimated that over €6m per year is also being spent on gambling by Greek Cypriots in the country’s Turkish-controlled north. It projected that the creation of casinos could generate millions in revenues and a significant boost in employment opportunities.
Newly appointed Minister of Commerce, Industry and Tourism, Giorgos Lakkotrypis explained that he has appointed the Cyprus Tourism Organisation (CTO) to update a 2007 study looking at the introduction of casino gaming in the country. Asked if Cyprus could expect casinos within two years, the minister avowed, “Yes, this is what we hope.”
This was the first time Lakkotrypis has expressed his views on the matter with MPs since assuming his duties, and he stressed the urgency of casinos. Parliamentarians and the Minister agreed to continue their cooperation and a progress report will be submitted every two months. Establishing a plan to roll out casinos would only be done once the all the relevant information has been presented, the Minister affirmed.
Since the Republic of Cyprus was granted independence from Britain in 1960, all forms of gambling other than sports betting have remained strictly outlawed in the island nation. Gaming operators caught on to a flaw in the anachronous legislation, which did not provide any stature online gaming and between 2002-2010, Cyprus witnessed a gradual development of gambling shops advertised as casino kiosks.
New gambling legislation was unanimously passed by the government in 2012 to clarify the law. It gave OPAP a monopoly over sports betting and placed an official ban on online casinos, poker, slots, exchange betting and gambling advertising. The administration had stubbornly refused to even look at the possibility of opening a casino sector as part of the legislation, giving the EU incentive to explore the issue.
Demetris Christofias, President of Cyprus at the time, said that casinos are an “expression of corruption and can create a crisis to the system. My party has struggled for years against any establishment of casinos, and there will be none while Christofias is President.” However, it is widely reported that Cypriots are already spending millions gambling on illegal online games and casinos in the north.
The CTO study conducted 6 years ago, estimated that over €6m per year is also being spent on gambling by Greek Cypriots in the country’s Turkish-controlled north. It projected that the creation of casinos could generate millions in revenues and a significant boost in employment opportunities.
March 13, 2013
Spread Betting Used to Act on Inside Information – Trader Prosecuted By FSA
The Financial Services Authority has brought charges in the UK against an individual for acting upon inside information and generating a net profit of £591,117 from trading between September 2007 and July 2008.
43 year old Richard Joseph has been found guilty of 6 counts of conspiracy to deal as an insider. He has been sentenced to four years on each count, which will be served concurrently.
Joseph, a former futures trader, was provided with confidential and price-sensitive information from two investment banks concerning proposed or forthcoming takeover bids. The confidential and price-sensitive information was provided to Richard Joseph by Ersin Mustafa, a print room manager at JP Morgan Cazenove. During the time that he was trading Richard Joseph transferred a substantial amount of money to Ersin Mustafa.
Attempts were made to disguise the receipt of this information including the use of numerous Pay As You Go mobile telephones – one of which was purchased using a false name and address – and webmail “drop boxes” where confidential documents containing price-sensitive information were placed for Joseph to access. Having received this information, Joseph then placed spread bets in the expectation that when the information became public knowledge the share price would rise and he would make a profit.
Ersin Mustafa, who is believed to be in north Cyprus, was also a source of inside information in the prosecution of Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel who were convicted and sentenced in July 2012. The link between these two cases could not be published before now.
The Financial Services Authority has brought charges in the UK against an individual for acting upon inside information and generating a net profit of £591,117 from trading between September 2007 and July 2008.
43 year old Richard Joseph has been found guilty of 6 counts of conspiracy to deal as an insider. He has been sentenced to four years on each count, which will be served concurrently.
Joseph, a former futures trader, was provided with confidential and price-sensitive information from two investment banks concerning proposed or forthcoming takeover bids. The confidential and price-sensitive information was provided to Richard Joseph by Ersin Mustafa, a print room manager at JP Morgan Cazenove. During the time that he was trading Richard Joseph transferred a substantial amount of money to Ersin Mustafa.
Attempts were made to disguise the receipt of this information including the use of numerous Pay As You Go mobile telephones – one of which was purchased using a false name and address – and webmail “drop boxes” where confidential documents containing price-sensitive information were placed for Joseph to access. Having received this information, Joseph then placed spread bets in the expectation that when the information became public knowledge the share price would rise and he would make a profit.
Ersin Mustafa, who is believed to be in north Cyprus, was also a source of inside information in the prosecution of Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel who were convicted and sentenced in July 2012. The link between these two cases could not be published before now.
43 year old Richard Joseph has been found guilty of 6 counts of conspiracy to deal as an insider. He has been sentenced to four years on each count, which will be served concurrently.
Joseph, a former futures trader, was provided with confidential and price-sensitive information from two investment banks concerning proposed or forthcoming takeover bids. The confidential and price-sensitive information was provided to Richard Joseph by Ersin Mustafa, a print room manager at JP Morgan Cazenove. During the time that he was trading Richard Joseph transferred a substantial amount of money to Ersin Mustafa.
Attempts were made to disguise the receipt of this information including the use of numerous Pay As You Go mobile telephones – one of which was purchased using a false name and address – and webmail “drop boxes” where confidential documents containing price-sensitive information were placed for Joseph to access. Having received this information, Joseph then placed spread bets in the expectation that when the information became public knowledge the share price would rise and he would make a profit.
Ersin Mustafa, who is believed to be in north Cyprus, was also a source of inside information in the prosecution of Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel who were convicted and sentenced in July 2012. The link between these two cases could not be published before now.
The Financial Services Authority has brought charges in the UK against an individual for acting upon inside information and generating a net profit of £591,117 from trading between September 2007 and July 2008.
43 year old Richard Joseph has been found guilty of 6 counts of conspiracy to deal as an insider. He has been sentenced to four years on each count, which will be served concurrently.
Joseph, a former futures trader, was provided with confidential and price-sensitive information from two investment banks concerning proposed or forthcoming takeover bids. The confidential and price-sensitive information was provided to Richard Joseph by Ersin Mustafa, a print room manager at JP Morgan Cazenove. During the time that he was trading Richard Joseph transferred a substantial amount of money to Ersin Mustafa.
Attempts were made to disguise the receipt of this information including the use of numerous Pay As You Go mobile telephones – one of which was purchased using a false name and address – and webmail “drop boxes” where confidential documents containing price-sensitive information were placed for Joseph to access. Having received this information, Joseph then placed spread bets in the expectation that when the information became public knowledge the share price would rise and he would make a profit.
Ersin Mustafa, who is believed to be in north Cyprus, was also a source of inside information in the prosecution of Ali Mustafa, Pardip Saini, Paresh Shah, Neten Shah, Bijal Shah and Truptesh Patel who were convicted and sentenced in July 2012. The link between these two cases could not be published before now.
Council with 130 betting shops within eight square miles probes link between gambling and crime
The largest licensing authority in the country is launching a special task force to investigate the effects of betting shops in a further sign of a backlash against bookmakers by local authorities.
Westminster City Council has 130 betting shops in its eight square miles of Central London as well as several casinos.
The council is trying to establish if there is a link between crime and gambling and whether the public is being sufficiently protected.
Its licensing sub-committee recently turned down applications by several bookmakers to extend opening hours.
Its chairman, councillor Audrey Lewis, said: ‘There is something about the Gambling Act that makes it very difficult to turn applications down and it needs redrafting.
'We are not looking to make a moral judgment, but there is obviously money being spent here that would otherwise be spend on other goods and services.
‘We are concerned whether all the crimes associated with betting shops are being fully reported.’
Last month, Newham Council in East London became the first authority to reject a new betting shop – saying it would make more money from machines than traditional betting – and is calling for the laws to be changed.
Westminster City Council has 130 betting shops in its eight square miles of Central London as well as several casinos.
The council is trying to establish if there is a link between crime and gambling and whether the public is being sufficiently protected.
Its licensing sub-committee recently turned down applications by several bookmakers to extend opening hours.
Its chairman, councillor Audrey Lewis, said: ‘There is something about the Gambling Act that makes it very difficult to turn applications down and it needs redrafting.
'We are not looking to make a moral judgment, but there is obviously money being spent here that would otherwise be spend on other goods and services.
‘We are concerned whether all the crimes associated with betting shops are being fully reported.’
Last month, Newham Council in East London became the first authority to reject a new betting shop – saying it would make more money from machines than traditional betting – and is calling for the laws to be changed.
March 11, 2013
888 in U.S. joint venture with Avenue Capital
888 Holdings, the online gaming operator, has signed a joint venture in the US in preparation for the country’s expanding legalisation of internet gambling.
The UK operator of online poker, sport, casino and bingo games on Monday said that it had signed a deal with Avenue Capital Group, the investment firm, to form a new company called the All American Poker Network.
888 already has joint ventures with Caesars, the owner of four Atlantic City casinos, as well as a strategic deal with WMS, a gaming machine manufacturer, while rival Bwin.party has a partnership with MGM and Boyd Gaming.
888 said that the All American Poker Network would launch 888’s brands into the US market when Federal or state-based regulation is finalised and after licences are obtained.
Avenue Capital will provide the financial backing for the deal, although 888 declined to confirm the amount.
“This is the perfect deal for 888, providing the ideal platform through which to launch our business-to-customer brands into the US market, once regulated,” said Brian Mattingley, who added that the move “completed our online strategy”.
“The agreement sees a leading US financial institution backing one of the largest gaming platform operators in the world, joining forces to tackle a potentially huge market.”
Last month, New Jersey legislators passed a long-awaited bill legalising online gambling, following the lead of Delaware and Nevada.
The New Jersey bill, due to come into effect later this year, permits land-based casinos in the state to apply for licences to offer casino and poker games.
“Today’s news is a clear positive, although returns are reliant on final implementation of state online gaming,” said James Hollins, an analyst at Investec, who reiterated his “buy” recommendation on the stock.
888 on Monday also announced that it was poised to launch an online poker operation in Nevada after agreeing a deal with Treasure Island, a Las Vegas gaming group.
The UK operator of online poker, sport, casino and bingo games on Monday said that it had signed a deal with Avenue Capital Group, the investment firm, to form a new company called the All American Poker Network.
888 already has joint ventures with Caesars, the owner of four Atlantic City casinos, as well as a strategic deal with WMS, a gaming machine manufacturer, while rival Bwin.party has a partnership with MGM and Boyd Gaming.
888 said that the All American Poker Network would launch 888’s brands into the US market when Federal or state-based regulation is finalised and after licences are obtained.
Avenue Capital will provide the financial backing for the deal, although 888 declined to confirm the amount.
“This is the perfect deal for 888, providing the ideal platform through which to launch our business-to-customer brands into the US market, once regulated,” said Brian Mattingley, who added that the move “completed our online strategy”.
“The agreement sees a leading US financial institution backing one of the largest gaming platform operators in the world, joining forces to tackle a potentially huge market.”
Last month, New Jersey legislators passed a long-awaited bill legalising online gambling, following the lead of Delaware and Nevada.
The New Jersey bill, due to come into effect later this year, permits land-based casinos in the state to apply for licences to offer casino and poker games.
“Today’s news is a clear positive, although returns are reliant on final implementation of state online gaming,” said James Hollins, an analyst at Investec, who reiterated his “buy” recommendation on the stock.
888 on Monday also announced that it was poised to launch an online poker operation in Nevada after agreeing a deal with Treasure Island, a Las Vegas gaming group.
March 07, 2013
888 launch Facebook casino app for real money
888 have announced the launch of their first real money casino app for Facebook, named MAGIC888.
The online gambling company in December had released on Facebook their first online bingo real money play app, BingoAppy
MAGIC888 casino includes the full range of 888′s in-house developed slots and table games, as well as its popular Live Casino. 888′s secure registration and deposit process includes, amongst others, stringent age verification checks to ensure only eligible Facebook users are able to play the real money app.
Itai Frieberger, COO of 888, commented:
“This launch marks a significant extension in our real money social offering. The successful launch of BingoAppy has indicated the potential that social gaming offers, and we are delighted to expand our gaming portfolio with the launch of our MAGIC888 casino. The app gives Facebook users in the UK the opportunity to enjoy 888′s award winning casino while introducing new features which leverage the social experience Facebook offers.”
The online gambling company in December had released on Facebook their first online bingo real money play app, BingoAppy
MAGIC888 casino includes the full range of 888′s in-house developed slots and table games, as well as its popular Live Casino. 888′s secure registration and deposit process includes, amongst others, stringent age verification checks to ensure only eligible Facebook users are able to play the real money app.
Itai Frieberger, COO of 888, commented:
“This launch marks a significant extension in our real money social offering. The successful launch of BingoAppy has indicated the potential that social gaming offers, and we are delighted to expand our gaming portfolio with the launch of our MAGIC888 casino. The app gives Facebook users in the UK the opportunity to enjoy 888′s award winning casino while introducing new features which leverage the social experience Facebook offers.”
Rank agrees £179 million buyout of Gala Casinos
The Rank Group have announced an agreement to purchase 19 casinos of the 23 from Gala Coral Group for £179 million.
Rank said that Gala Coral’s casinos in Aberdeen, Bristol, Cardiff, Stockton-On-Tees and Gibraltar, its non-operating licences for the City of Westminster, London, and Dundee, its branded online casino activities and all of the central management functions previously associated with Gala Coral’s casino business are not included in the acquisition.
Rank also confirmed that the transfer of the Gala workforce for those casinos totaling 2,200 would be part of the agreement, at present ensuring there is no redundancies; however in the long term that situation is unsure.
In May 2012, Rank announced that it had conditionally agreed to acquire Gala Casinos from Gala Coral. That conditional agreement envisaged Rank purchasing 23 casinos and three non-operating casino licences. However the Office of Fair Trading referred the Proposed Acquisition to the Competition Commission for an in-depth merger review and, as a result, the original agreement lapsed. In February 2013, the Competition Commission published its final report following its review of the Proposed Acquisition. That report recommended the revised number that Rank could purchase without opposition.
The deal is expected to be completed in the second quarter of 2013.
Rank said that Gala Coral’s casinos in Aberdeen, Bristol, Cardiff, Stockton-On-Tees and Gibraltar, its non-operating licences for the City of Westminster, London, and Dundee, its branded online casino activities and all of the central management functions previously associated with Gala Coral’s casino business are not included in the acquisition.
Rank also confirmed that the transfer of the Gala workforce for those casinos totaling 2,200 would be part of the agreement, at present ensuring there is no redundancies; however in the long term that situation is unsure.
In May 2012, Rank announced that it had conditionally agreed to acquire Gala Casinos from Gala Coral. That conditional agreement envisaged Rank purchasing 23 casinos and three non-operating casino licences. However the Office of Fair Trading referred the Proposed Acquisition to the Competition Commission for an in-depth merger review and, as a result, the original agreement lapsed. In February 2013, the Competition Commission published its final report following its review of the Proposed Acquisition. That report recommended the revised number that Rank could purchase without opposition.
The deal is expected to be completed in the second quarter of 2013.
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