The Ongame Network is likely to amount to "surplus assets” once Bwin and PartyGaming have combined platforms following their merger at the end of the current quarter and will either be sold in full or offered to strategic partners to take a stake, a Bwin spokesman has confirmed.
He confirmed that Ongame was included in the assets referred to in the merger prospectus as “no longer needed”, and potentially up for sale to "generate revenue which can subsquently be reinvested".
“There will be surplus assets once platforms are unified, and this may be poker. Bwin and Party have strong platforms, and in order to avoid duplication, not all platforms will be needed” , he said.
“Ongame may be repackaged, offered to a potential buyer. Partnerships are also thinkable, where they would take an interest. But no deadlines for this have been decided.”
The spokesman also emphasised that the companies were “not in a hurry” to offload the network, and would perhaps prefer to await US regulation in order realise the highest possible price and therefore maximise value for shareholders through the merger.
“We believe that the trend to regulation in the US is still there. Even though Congress is not dominated by Democrats any more, this does not make it different from our perspective.
“We understand that that the American gaming industry wants online poker regulated, as they want access to that revenue stream. Regulatory developments in the US would raise interest in these assets. But we haven’t yet established any firm deadline, and will look at all options.”
Bwin acquired the Ongame network for €474m in December 2005, but was subsequently forced to write down the value of its acquisition following its pull-out from the US in October 2006.
Showing posts with label Bwin. Show all posts
Showing posts with label Bwin. Show all posts
February 10, 2011
November 22, 2010
Bwin claims victory for online gambling in Germany
Germany has been resisting online gambling or a long time, but is now finally coming to grips with the fact that internet wagering is here to stay.
Bwin the online betting firm from Austria which is listed on the Austrian stock exchange has been locking horns with the German government in a legal battle that has gone on for far too long, six years in fact.
Most of Bwin’s revenue comes from poker and sports betting and Bwin has over 20 million registered customers in more than 25 core markets with centres located in Vienna Stockholm and Gibraltar.
In September 2004 the monopoly holder West German Lottery Company Westlotto took out an injunction against Bwin to prevent itfrom any further offerings of it’s products. In 2006 the Regional Court of Cologne ruled against Bwin, which was then upheld a year later, and on November 18th 2010 the court overturned the judgement after an appeal.
Co-CEO Norbert Teufelberger, commented on the victory by stating comment “We welcome the judgement by the German Federal Supreme Court, and are glad that we will have to spend less of our time in courtrooms in the future. Now we can concentrate on developing modern regulations for online gaming in Germany.” He added, “It is high time, and in the interests of all those involved, to prepare the way for the modern regulation of online gaming in Germany. We are optimistic that Germany will follow the example of other European states like Italy and France.”
The decision to overturn the prohibition of online gambling marks the beginning of the end for Germany’s monopoly on gambling, and also may open the restrictive market up to other online gambling firms in the country. Germany has been following the USA in it’s prohibition of the online gambling industry and it appears that tough stance may soon soften.
Bwin the online betting firm from Austria which is listed on the Austrian stock exchange has been locking horns with the German government in a legal battle that has gone on for far too long, six years in fact.
Most of Bwin’s revenue comes from poker and sports betting and Bwin has over 20 million registered customers in more than 25 core markets with centres located in Vienna Stockholm and Gibraltar.
In September 2004 the monopoly holder West German Lottery Company Westlotto took out an injunction against Bwin to prevent itfrom any further offerings of it’s products. In 2006 the Regional Court of Cologne ruled against Bwin, which was then upheld a year later, and on November 18th 2010 the court overturned the judgement after an appeal.
Co-CEO Norbert Teufelberger, commented on the victory by stating comment “We welcome the judgement by the German Federal Supreme Court, and are glad that we will have to spend less of our time in courtrooms in the future. Now we can concentrate on developing modern regulations for online gaming in Germany.” He added, “It is high time, and in the interests of all those involved, to prepare the way for the modern regulation of online gaming in Germany. We are optimistic that Germany will follow the example of other European states like Italy and France.”
The decision to overturn the prohibition of online gambling marks the beginning of the end for Germany’s monopoly on gambling, and also may open the restrictive market up to other online gambling firms in the country. Germany has been following the USA in it’s prohibition of the online gambling industry and it appears that tough stance may soon soften.
November 09, 2010
Bwin and PartyGaming merger 'on track'
Leading online betting and gaming provider Bwin Interactive Entertainment AG and Gibraltar-based operator PartyGaming have released a joint statement regarding their ongoing merger and have confirmed that the process is ‘on track’.
The two firms announced at the end of July that they would be merging to create the world’s largest listed online gambling company and realise annualised synergies of around €55 million.
However, they stated late last week that they had ‘become aware of some speculation in the market’ regarding the slow speed of the merger and revealed that they expect the process to be completed by the first quarter of 2011.
The proposed agreement would see the assets and liabilities of Bwin transferred to PartyGaming to create a European joint stock company incorporated in Gibraltar. Jim Ryan, Chief Executive Officer for PartyGaming, is set to serve alongside Norbert Teufelberger, Co-Chief Executive Officer for Bwin, as Co-Chief Executive Officers for the new business with Bwin shareholders receiving 12.23 new PartyGaming shares for each share that they hold in the Austrian firm.
The two firms announced at the end of July that they would be merging to create the world’s largest listed online gambling company and realise annualised synergies of around €55 million.
However, they stated late last week that they had ‘become aware of some speculation in the market’ regarding the slow speed of the merger and revealed that they expect the process to be completed by the first quarter of 2011.
The proposed agreement would see the assets and liabilities of Bwin transferred to PartyGaming to create a European joint stock company incorporated in Gibraltar. Jim Ryan, Chief Executive Officer for PartyGaming, is set to serve alongside Norbert Teufelberger, Co-Chief Executive Officer for Bwin, as Co-Chief Executive Officers for the new business with Bwin shareholders receiving 12.23 new PartyGaming shares for each share that they hold in the Austrian firm.
August 19, 2010
PokerStars and Full Tilt are “operating illegally” says Bwin CEO
Online poker giants PokerStars And Full Tilt are both “operating illegally” in the US, according to Bwin CEOs Norbert Teufelberger and Manfred Bodner, in an interview given by them to EGRMagazine.com.
Bwin has the world’s third strongest poker offering behind PokerStars And Full Tilt, and believe the only reason they are not in pole position themselves was their decision to pull out of the US market in 2006.
Teufelberger believes that the two sites haven’t any particular advantages over other poker sites, and that without their virtual monopoly on US players they would have no chance of maintaining their colossal statures in the industry. As Teufelberger explains to EGRMagazine:
“It’s not because they have premier marketing skills or premier technology, what they have is hundreds of millions of dollars from what we see as an illegal market. We would expect that once the US regulates, these two companies will not have access to the market, and once that happens we’ll then see who the leader will be. They say they’re not operating illegally but I think they are.”
Teufelberger seems to believe strongly that before long the US will deregulate online poker and that PokerStars And Full Tilt will be firmly left out of any future licence considerations in the new market. In fact, he seems to think that the only question remaining would be whether they find themselves prosecuted or not for their so-called illegal activities.
He further dismissed any possibility of PokerStars or Full Tilt being bought out by investors, as nobody bought PartyPoker’s customer database when they pulled out of the US gaming market.
However, in business as in poker, few things are certain and Teufelberger did strike a more cautious note when he mentioned that if PokerStars And Full Tilt were granted licences, then it would have been “the biggest mistake Manfred and I ever made”.
Bwin has the world’s third strongest poker offering behind PokerStars And Full Tilt, and believe the only reason they are not in pole position themselves was their decision to pull out of the US market in 2006.
Teufelberger believes that the two sites haven’t any particular advantages over other poker sites, and that without their virtual monopoly on US players they would have no chance of maintaining their colossal statures in the industry. As Teufelberger explains to EGRMagazine:
“It’s not because they have premier marketing skills or premier technology, what they have is hundreds of millions of dollars from what we see as an illegal market. We would expect that once the US regulates, these two companies will not have access to the market, and once that happens we’ll then see who the leader will be. They say they’re not operating illegally but I think they are.”
Teufelberger seems to believe strongly that before long the US will deregulate online poker and that PokerStars And Full Tilt will be firmly left out of any future licence considerations in the new market. In fact, he seems to think that the only question remaining would be whether they find themselves prosecuted or not for their so-called illegal activities.
He further dismissed any possibility of PokerStars or Full Tilt being bought out by investors, as nobody bought PartyPoker’s customer database when they pulled out of the US gaming market.
However, in business as in poker, few things are certain and Teufelberger did strike a more cautious note when he mentioned that if PokerStars And Full Tilt were granted licences, then it would have been “the biggest mistake Manfred and I ever made”.
July 29, 2010
PartyGaming to merge with bwin
PartyGaming and bwin Interactive Entertainment plan to merge, creating the world's largest listed online gaming business.
The enlarged group will be owned approximately 48.36% by PartyGaming and and 51.64% by bwin shareholders and will be listed on the London Stock Exchange.
Irrevocable undertakings in support of the proposed merger have been received from shareholders holding 28.5% of PartyGaming and 14.4% of Austrian-listed bwin.
Jim Ryan, CEO of PartyGaming, said, 'This is a transformational opportunity for both our companies to create the world's largest listed online gaming business.
'With market-leading positions in poker, sports betting, casino and games (in particular bingo), the enlarged group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team.'
Norbert Teufelberger, co-chief executive of bwin, said, 'This merger of equals makes great strategic, operational and financial sense.
'We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry.'
Ryan and Teufelberger will jointly head the merged group.
The merger is expected to be significantly earnings enhancing for both companies pre-amortisation. Annualised synergies are estimated at 55m.
Pro forma 2009 net gaming revenue was 682m with EBITDA of 196m before synergies.
The proposed merger will be effected by merging bwin into PartyGaming, which will continue to be domiciled in Gibraltar.
bwin shareholders will receive 12.23 new PartyGaming Shares for each bwin Share. The merger is classified as a reverse takeover for PartyGaming under UKLA rules.
The enlarged group will be owned approximately 48.36% by PartyGaming and and 51.64% by bwin shareholders and will be listed on the London Stock Exchange.
Irrevocable undertakings in support of the proposed merger have been received from shareholders holding 28.5% of PartyGaming and 14.4% of Austrian-listed bwin.
Jim Ryan, CEO of PartyGaming, said, 'This is a transformational opportunity for both our companies to create the world's largest listed online gaming business.
'With market-leading positions in poker, sports betting, casino and games (in particular bingo), the enlarged group will have a winning formula to exploit the growing online gaming market, supported by a strong balance sheet, significant cashflow generation and a highly experienced management team.'
Norbert Teufelberger, co-chief executive of bwin, said, 'This merger of equals makes great strategic, operational and financial sense.
'We will be in pole position to capitalise on the wealth of opportunities that will flow from the continued evolution and expansion of the global online gaming industry.'
Ryan and Teufelberger will jointly head the merged group.
The merger is expected to be significantly earnings enhancing for both companies pre-amortisation. Annualised synergies are estimated at 55m.
Pro forma 2009 net gaming revenue was 682m with EBITDA of 196m before synergies.
The proposed merger will be effected by merging bwin into PartyGaming, which will continue to be domiciled in Gibraltar.
bwin shareholders will receive 12.23 new PartyGaming Shares for each bwin Share. The merger is classified as a reverse takeover for PartyGaming under UKLA rules.
June 30, 2010
Androsch refutes Bwin/Party comments
Bwin’s biggest shareholder has issued a disclaimer of earlier comments he made to the Austrian press that the merger talks between Bwin and PartyGaming had collapsed.
Hannes Androsch, chairman of the supervisory board, was reported in Austrian monthly magazine Trend as saying: “It is true, that talks with the English company ultimately did not lead to the desired outcome.”
Bwin then issued a statement saying that Androsch had been “wrongly quoted” and that “he would like to clarify his statement as follows: ‘It is true, that up until now, talks have not lead to any specific outcome.’"
Speculation around a Bwin and PartyGaming merger first surfaced in December of last year, when both refused to confirm stories published in the Times and Sunday Times that merger talks between the two were ongoing.
Trend also reported that Bwin was now seeking a joint venture partner in the US, and was considering the sale of a minority stake of up to 11% to a San Francisco-based company.
Bwin's co-chief executive, Norbert Teufelberger, was also reported as telling the Austrian publication: "Bwin wants to tackle the task of entering the United States with a competent and local partner. We are holding talks to do this,"
The Austrian operator confirmed Teufelberger’s statement regarding the company’s intentions with regard to the US was correct, adding the statement from Androsch that: “We are acting from a position of strength and are under no time pressure."
Hannes Androsch, chairman of the supervisory board, was reported in Austrian monthly magazine Trend as saying: “It is true, that talks with the English company ultimately did not lead to the desired outcome.”
Bwin then issued a statement saying that Androsch had been “wrongly quoted” and that “he would like to clarify his statement as follows: ‘It is true, that up until now, talks have not lead to any specific outcome.’"
Speculation around a Bwin and PartyGaming merger first surfaced in December of last year, when both refused to confirm stories published in the Times and Sunday Times that merger talks between the two were ongoing.
Trend also reported that Bwin was now seeking a joint venture partner in the US, and was considering the sale of a minority stake of up to 11% to a San Francisco-based company.
Bwin's co-chief executive, Norbert Teufelberger, was also reported as telling the Austrian publication: "Bwin wants to tackle the task of entering the United States with a competent and local partner. We are holding talks to do this,"
The Austrian operator confirmed Teufelberger’s statement regarding the company’s intentions with regard to the US was correct, adding the statement from Androsch that: “We are acting from a position of strength and are under no time pressure."
June 08, 2010
Bwin, BetClic, Everest among first French licensees
Bwin has achieved the distinction of being the only non-French operator among the first wave of online gaming licences handed out by French regulator ARJEL this morning.
The Austrian operator received licences to offer poker and sports betting into the French market both directly via its BES SAS French subsidary and in partnership with media conglomerate Amaury Group. Mangas Gaming-owned Everest Poker was the only other operator with significant business outside of France among the 11 operators directly licensed by the French regulatory authority this morning.
Other major egaming operators now in the French market on a B2B basis via partnerships with licensed operators include PartyGaming, via its poker JV with PMU, Paddy Power through providing fixed odds pricing and risk management to PMU, and Unibet, providing pools-based sports betting via France Pari, announced this morning. Software provider Orbis is also providing PMU with its sports betting platforms.
Alex Dreyfus, chief executive of ChiliGaming, awarded a sports betting licence for its joint venture with French telecoms and internet service provider group Iliad, told EGRMagazine.com that the pair had worked “18 months on this project to be one of the first to have a licence.”
Dreyfus however added that the “very tough” technology and compliance requirements of the ARJEL meant they would not be ready to go live ahead of the football World Cup, which starts this Friday.
The ChiliGaming chief executive also remarked on the fact that only one non-French operator, Bwin, was in the first round of approvals. “I think it was a first filter. But they are going to issue more licences at the end of the month,” he added.
The full list of licence approvals this morning was as follows:
BetClic (BetClic.fr): pari-mutuel horse race betting, poker, sports– fixed odds and pool betting.
Beturf (Groupe Paris Turf): pari-mutuel horse race betting.
BES SAS (Bwin’s French subsidiary: Bwin.fr): poker, sports – fixed odds and pool betting.
Bwin/Amaury Groupe (Sajoo.fr): poker, sports – fixed odds and pool betting.
EverestPoker (EverestPoker.fr): poker.
France Pari (France-Pari.fr): sports – pool betting.
La Française des Jeux (ParionsWeb.fr): sports – fixed odds and pool betting.
Iliad Gaming/ChiliGaming (Chilipari.fr): sports – fixed odds and pool betting
Pari Mutuel Urbain (Pmu.fr): poker, sports – fixed odds and pool betting.
SPS Betting (Eurosportbet.fr): poker, sports – fixed odds and pool betting.
Table 14 (Winamax.fr) : poker.
The Austrian operator received licences to offer poker and sports betting into the French market both directly via its BES SAS French subsidary and in partnership with media conglomerate Amaury Group. Mangas Gaming-owned Everest Poker was the only other operator with significant business outside of France among the 11 operators directly licensed by the French regulatory authority this morning.
Other major egaming operators now in the French market on a B2B basis via partnerships with licensed operators include PartyGaming, via its poker JV with PMU, Paddy Power through providing fixed odds pricing and risk management to PMU, and Unibet, providing pools-based sports betting via France Pari, announced this morning. Software provider Orbis is also providing PMU with its sports betting platforms.
Alex Dreyfus, chief executive of ChiliGaming, awarded a sports betting licence for its joint venture with French telecoms and internet service provider group Iliad, told EGRMagazine.com that the pair had worked “18 months on this project to be one of the first to have a licence.”
Dreyfus however added that the “very tough” technology and compliance requirements of the ARJEL meant they would not be ready to go live ahead of the football World Cup, which starts this Friday.
The ChiliGaming chief executive also remarked on the fact that only one non-French operator, Bwin, was in the first round of approvals. “I think it was a first filter. But they are going to issue more licences at the end of the month,” he added.
The full list of licence approvals this morning was as follows:
BetClic (BetClic.fr): pari-mutuel horse race betting, poker, sports– fixed odds and pool betting.
Beturf (Groupe Paris Turf): pari-mutuel horse race betting.
BES SAS (Bwin’s French subsidiary: Bwin.fr): poker, sports – fixed odds and pool betting.
Bwin/Amaury Groupe (Sajoo.fr): poker, sports – fixed odds and pool betting.
EverestPoker (EverestPoker.fr): poker.
France Pari (France-Pari.fr): sports – pool betting.
La Française des Jeux (ParionsWeb.fr): sports – fixed odds and pool betting.
Iliad Gaming/ChiliGaming (Chilipari.fr): sports – fixed odds and pool betting
Pari Mutuel Urbain (Pmu.fr): poker, sports – fixed odds and pool betting.
SPS Betting (Eurosportbet.fr): poker, sports – fixed odds and pool betting.
Table 14 (Winamax.fr) : poker.
April 19, 2010
Bwin has plans for South America and may try US market again
South America apparently features in the plans of the Vienna-listed online gambling group Bwin, which is expanding its traditional European markets and plans a presence in as many as four South American countries over the next two years. And Bwin hasn't yet given up on the US market, it would appear, although that is dependent on positive change in that region.
These informative snippets emerged during an interview conducted by the Austrian newspaper Kurier with Bwin co-chief exec Norbert Teufelberger this week.
"We are in talks with possible partners from the casino and media areas; we want to start by 2011 at the latest," Teufelberger told the newspaper.
Tefelberger also revealed that Bwin has received offers for its Ongame internet poker subsidiary, purchased for half a billion Euros immediately before the UIGEA was passed to the astonishment of the industry back in 2006.
"We have received offers of in and about its purchase price, but we are not interested," said the online gambling executive.
These informative snippets emerged during an interview conducted by the Austrian newspaper Kurier with Bwin co-chief exec Norbert Teufelberger this week.
"We are in talks with possible partners from the casino and media areas; we want to start by 2011 at the latest," Teufelberger told the newspaper.
Tefelberger also revealed that Bwin has received offers for its Ongame internet poker subsidiary, purchased for half a billion Euros immediately before the UIGEA was passed to the astonishment of the industry back in 2006.
"We have received offers of in and about its purchase price, but we are not interested," said the online gambling executive.
April 16, 2010
Bwin, Sportingbet, Unibet, 888 win French casino law suit
Bwin, Sportingbet, Unibet and 888 have won a lawsuit against them in the Paris courts by a group of top French casinos.
Barrière, Joagroupe, Tranchant and the Casinos de France trade union sued the four operators for “illegal competition” in February because the operators offered casino games such as slots, blackjack and roulette to French internet users.
The casinos alleged that offering the games is in contravention of current gaming legislation as well as in contravention of the egaming regulation set to come into effect in June after being approved by France’s National Assembly earlier this month, which prohibits licensed operators from offering online casino games to French players.
The casino groups asked for the four operators to be prevented from receiving licences for two years and for a symbolic payment of €1 in damages, plus €30,000 to cover their legal costs, and for the publication of the court’s judgement in the main French daily newspapers.
However the legal action has been dismissed by the court.
Unibet chief executive Petter Nylander: “We are pleased with this judgment. For the future we hope that the French regulations for online casinos can be addressed within the context of a constructive dialogue and considering the interests of all stakeholders, notably consumers.
“French consumers have a demand for an online casino product, and we believe that a regulatory framework should meet consumer needs. The recent French regulation of part of the online market is a first step in that direction”
Barrière, Joagroupe, Tranchant and the Casinos de France trade union sued the four operators for “illegal competition” in February because the operators offered casino games such as slots, blackjack and roulette to French internet users.
The casinos alleged that offering the games is in contravention of current gaming legislation as well as in contravention of the egaming regulation set to come into effect in June after being approved by France’s National Assembly earlier this month, which prohibits licensed operators from offering online casino games to French players.
The casino groups asked for the four operators to be prevented from receiving licences for two years and for a symbolic payment of €1 in damages, plus €30,000 to cover their legal costs, and for the publication of the court’s judgement in the main French daily newspapers.
However the legal action has been dismissed by the court.
Unibet chief executive Petter Nylander: “We are pleased with this judgment. For the future we hope that the French regulations for online casinos can be addressed within the context of a constructive dialogue and considering the interests of all stakeholders, notably consumers.
“French consumers have a demand for an online casino product, and we believe that a regulatory framework should meet consumer needs. The recent French regulation of part of the online market is a first step in that direction”
March 25, 2010
Bwin and PartyGaming update
Bwin Interactive Entertainment AG, PartyGaming Plc and William Hill Plc, the companies with the biggest shares of Europe’s online gambling revenue, and their competitors may face higher costs as the expansion of that 8.3 billion-euro market comes with new regulations.
French senators have approved regulations that will grant online gambling licenses to foreign companies, ending a ban. Denmark may do the same, and Italy is opening its market in stages. Germany’s prohibition faces a challenge at Europe’s highest court.
Companies moving into the expanded markets face tight restrictions. Building operations that can comply with new regulations in multiple countries requires a minimum investment of about 1 billion euros ($1.4 billion), said Norbert Teufelberger, co-chief executive officer of Vienna-based Bwin.
“This opening up of the market may not be as attractive as PartyGaming and Bwin say,” Martin Oelbermann, director of MECN, a Munich-based consulting firm, said by phone. “Are we really getting more betters, or are we going to get the same clients as before, but now we have to pay taxes on them?”
Europe’s online gambling industry is the world’s largest. Among publicly listed companies, Bwin has the largest European market share by revenue with 8 percent, followed by Gibraltar- based PartyGaming with 6.3 percent and London-based William Hill with 4.5 percent, according to 2008 data from Barclays Capital.
Online gambling in “offshore” markets, in which some companies may have customers in countries with official bans, expanded more than 10-fold between 2003 and 2010 to about 6.5 billion euros, according to figures from H2 Gambling Capital, a Manchester, England-based consulting firm. That growth will slow to 13 percent through 2012 as more countries permit gambling, H2 said. Regulated onshore revenue will climb 37 percent, to 5.11 billion euros.
PartyGaming’s 2009 revenue was $446.2 million, the company said March 4, while William Hill reported 203.5 million pounds ($305 million) in sales from its online division last year. Bwin’s 2008 sales were $488.5 million.
Gambling-industry associations and companies have called for more open markets since online betting became popular in the early 2000s. Efforts to open markets have suffered court setbacks, and more cases are pending.
Changing Minds
“What has happened lately is that some of the toughest opponents have changed their minds,” Petter Nylander, the chief executive officer of Unibet Group Plc, said in an interview in London.
French rules endorsed by the Senate require companies to establish separate sites for French clients and provide permanent records on players to the government, while prohibiting some kinds of betting.
Full prohibition “has never functioned, because gambling has always been part of our history,” then French budget minister Eric Woerth told the Senate on Feb. 23. “The absence of state regulation would lead to untenable situations for players and their families.”
The Remote Gambling Association, which represents operators, in January said it was considering suing France to push for more expansive rules, citing “restrictions which are disproportionate” and disadvantageous to foreign companies.
‘Tough and Expensive’
“Companies have got top lawyers in each country, figuring out how to comply,” Simon Holliday, the director of H2, said by phone. “It becomes tough and expensive.”
Some companies, including Paddy Power Plc and PartyGaming, are teaming up with national gambling monopolies. Paddy Power, Ireland’s biggest bookmaker, in November said it would help manage online betting for France’s Pari Mutuel Urbain. PartyGaming in January signed a similar agreement with Denmark’s Danske Spil A/S.
“While costs will vary, regulation in the market is a good thing,” John Shepherd, a spokesman for PartyGaming, said by phone. “The conditions have to be workable, but they also have to conform with the treaties” of the European Union, he said.
Bwin has already incurred “significant” costs to prepare for the opening, Teufelberger said.
David Hood, a William Hill spokesman, declined to comment.
The European Commission, which has pushed national governments to legalize online gambling under market-access rules, will help determine the shape of regulations, said Sigrid Ligne, the secretary-general of the Brussels-based European Gaming and Betting Association.
Much will depend on the direction taken by new internal market commissioner Michel Barnier, she said.
Legal Setbacks
Bwin in September lost a challenge to Portugal’s state gambling monopoly at the European Court of Justice, the EU’s highest court, which ruled that restrictions may be justified to combat crime as long as they aren’t discriminatory.
Barnier left the door open to commission action against member states to force open gambling markets, telling the European Parliament on Feb. 11 that the Portuguese decision “does not fundamentally change the evolution and evaluation of infraction procedures.”
In addition to a case against German laws at the ECJ, Ladbrokes Plc and Betfair Ltd. have challenged Dutch rules. In December an advocate-general said in a non-binding opinion that the Netherlands doesn’t have to recognize their claims.
Governments are “trying so hard to find a way to define this as a special industry in order to keep the revenues coming,” William Hill general counsel Thomas Murphy said at a conference in January. “This issue is not going to go away.”
French senators have approved regulations that will grant online gambling licenses to foreign companies, ending a ban. Denmark may do the same, and Italy is opening its market in stages. Germany’s prohibition faces a challenge at Europe’s highest court.
Companies moving into the expanded markets face tight restrictions. Building operations that can comply with new regulations in multiple countries requires a minimum investment of about 1 billion euros ($1.4 billion), said Norbert Teufelberger, co-chief executive officer of Vienna-based Bwin.
“This opening up of the market may not be as attractive as PartyGaming and Bwin say,” Martin Oelbermann, director of MECN, a Munich-based consulting firm, said by phone. “Are we really getting more betters, or are we going to get the same clients as before, but now we have to pay taxes on them?”
Europe’s online gambling industry is the world’s largest. Among publicly listed companies, Bwin has the largest European market share by revenue with 8 percent, followed by Gibraltar- based PartyGaming with 6.3 percent and London-based William Hill with 4.5 percent, according to 2008 data from Barclays Capital.
Online gambling in “offshore” markets, in which some companies may have customers in countries with official bans, expanded more than 10-fold between 2003 and 2010 to about 6.5 billion euros, according to figures from H2 Gambling Capital, a Manchester, England-based consulting firm. That growth will slow to 13 percent through 2012 as more countries permit gambling, H2 said. Regulated onshore revenue will climb 37 percent, to 5.11 billion euros.
PartyGaming’s 2009 revenue was $446.2 million, the company said March 4, while William Hill reported 203.5 million pounds ($305 million) in sales from its online division last year. Bwin’s 2008 sales were $488.5 million.
Gambling-industry associations and companies have called for more open markets since online betting became popular in the early 2000s. Efforts to open markets have suffered court setbacks, and more cases are pending.
Changing Minds
“What has happened lately is that some of the toughest opponents have changed their minds,” Petter Nylander, the chief executive officer of Unibet Group Plc, said in an interview in London.
French rules endorsed by the Senate require companies to establish separate sites for French clients and provide permanent records on players to the government, while prohibiting some kinds of betting.
Full prohibition “has never functioned, because gambling has always been part of our history,” then French budget minister Eric Woerth told the Senate on Feb. 23. “The absence of state regulation would lead to untenable situations for players and their families.”
The Remote Gambling Association, which represents operators, in January said it was considering suing France to push for more expansive rules, citing “restrictions which are disproportionate” and disadvantageous to foreign companies.
‘Tough and Expensive’
“Companies have got top lawyers in each country, figuring out how to comply,” Simon Holliday, the director of H2, said by phone. “It becomes tough and expensive.”
Some companies, including Paddy Power Plc and PartyGaming, are teaming up with national gambling monopolies. Paddy Power, Ireland’s biggest bookmaker, in November said it would help manage online betting for France’s Pari Mutuel Urbain. PartyGaming in January signed a similar agreement with Denmark’s Danske Spil A/S.
“While costs will vary, regulation in the market is a good thing,” John Shepherd, a spokesman for PartyGaming, said by phone. “The conditions have to be workable, but they also have to conform with the treaties” of the European Union, he said.
Bwin has already incurred “significant” costs to prepare for the opening, Teufelberger said.
David Hood, a William Hill spokesman, declined to comment.
The European Commission, which has pushed national governments to legalize online gambling under market-access rules, will help determine the shape of regulations, said Sigrid Ligne, the secretary-general of the Brussels-based European Gaming and Betting Association.
Much will depend on the direction taken by new internal market commissioner Michel Barnier, she said.
Legal Setbacks
Bwin in September lost a challenge to Portugal’s state gambling monopoly at the European Court of Justice, the EU’s highest court, which ruled that restrictions may be justified to combat crime as long as they aren’t discriminatory.
Barnier left the door open to commission action against member states to force open gambling markets, telling the European Parliament on Feb. 11 that the Portuguese decision “does not fundamentally change the evolution and evaluation of infraction procedures.”
In addition to a case against German laws at the ECJ, Ladbrokes Plc and Betfair Ltd. have challenged Dutch rules. In December an advocate-general said in a non-binding opinion that the Netherlands doesn’t have to recognize their claims.
Governments are “trying so hard to find a way to define this as a special industry in order to keep the revenues coming,” William Hill general counsel Thomas Murphy said at a conference in January. “This issue is not going to go away.”
March 16, 2010
Bwin launches five million-player Italian poker network
Bwin Ongame Network has launched an Italian poker network with five million players.
The Ongame Network Italy is spearheaded by Gioco Digitale, the Italian operator that Bwin acquired in September 2009, and pools the liquidity of BetPro.it, bwin, Casino di Venezia, Fast Poker, Gioco Digitale, Gmatica and SportingBet.it operators.
The pooling is enabled by the migration of all Italian licencees to Ongame Network’s P5 Poker Engine.
Ongame Network Head Martin Lerby said: “The adaptability of the P5 Poker Engine to power both regional and global networks is showcased by Ongame Network Italy and we continue to work closely with the Italian authorities as we prepare for the anticipated introduction of cash games.”
News of the Ongame Network Italy, which offers Sit & Go, scheduled and multi-table tournaments, follows just a day after Microgaming announced that it was launching an Italian poker network, with Ladbrokes its first customer.
The Ongame network powers 25 brands in 25 countries, including Betsson, Winamax, and hired former Boss Poker CEO Peter Bertilsson in January as MD of Bwin Games to head a B2B push.
The licence holder for Ongame Network Italy is Bwin SRL, Bwin Interactive Entertainment AG’s Italian subsidiary.
The Ongame Network Italy is spearheaded by Gioco Digitale, the Italian operator that Bwin acquired in September 2009, and pools the liquidity of BetPro.it, bwin, Casino di Venezia, Fast Poker, Gioco Digitale, Gmatica and SportingBet.it operators.
The pooling is enabled by the migration of all Italian licencees to Ongame Network’s P5 Poker Engine.
Ongame Network Head Martin Lerby said: “The adaptability of the P5 Poker Engine to power both regional and global networks is showcased by Ongame Network Italy and we continue to work closely with the Italian authorities as we prepare for the anticipated introduction of cash games.”
News of the Ongame Network Italy, which offers Sit & Go, scheduled and multi-table tournaments, follows just a day after Microgaming announced that it was launching an Italian poker network, with Ladbrokes its first customer.
The Ongame network powers 25 brands in 25 countries, including Betsson, Winamax, and hired former Boss Poker CEO Peter Bertilsson in January as MD of Bwin Games to head a B2B push.
The licence holder for Ongame Network Italy is Bwin SRL, Bwin Interactive Entertainment AG’s Italian subsidiary.
February 11, 2010
France courts have no jurisdiction, say Bwin, Sportingbet, Unibet
acting for Bwin, Sportingbet and Unibet, three of the four defendants in a law suit brought in the French courts by a group of French casinos for alleged unfair competition, have called into question the right of the French legal system to judge them.
As reported earlier, casino groups Barrière, Joagroupe, Tranchant and Casinos de France trade union allege that the four operators offering casino games contravenes current gaming legislation and of new egaming laws set to come into effect in June, and are pursuing a symbolic payment of €1 damages, plus €30,000 to cover their legal costs, and will ask for the publication of the court’s judgement in the main French daily newspapers.
However Olivier Gutkes, acting for Bwin, said the use of the French language as one of the 22 languages available on the Bwin site “did not give the French judge the competence” to judge the complaint brought against his client, which operates from Gibraltar.
Martine Karsenty-Ricard, acting for Sportingbet, made the same argument, saying that as the operator’s servers were not based in France, the company could not be prosecuted in France.
Unibet’s lawyer, Dominique Santacru said the casino groups’ additional allegations of the four operators having deprived the French State of tax revenues and of not ’upholding the principles of player protection and fighting against problem gambling, fraud and money laundering’ are matters of public order, and the casino groups could not substitute themselves for the French State.
Santacru added that the plaintives could not claim a loss of financial income since they were not able to evaluate the exact amount of said loss.
In response, Thibault de Montbrial, representing the casino groups, admitted he was unable to establish the amount of the financial loss suffered by his clients since “no one knows the turnover of online casinos (taking bets) in France”. However, he insisted that offline casinos were “tributary of a public service”, as the French state awards the operating licences under strict conditions.
The legal tussle between egaming operators and the French land-based casino groups could help defining a national legal framework, such as was the case in the Santa Casa verdict published by the European court of Justice in September last year.
None of the defendants were willing to comment while the case was ongoing.
As reported earlier, casino groups Barrière, Joagroupe, Tranchant and Casinos de France trade union allege that the four operators offering casino games contravenes current gaming legislation and of new egaming laws set to come into effect in June, and are pursuing a symbolic payment of €1 damages, plus €30,000 to cover their legal costs, and will ask for the publication of the court’s judgement in the main French daily newspapers.
However Olivier Gutkes, acting for Bwin, said the use of the French language as one of the 22 languages available on the Bwin site “did not give the French judge the competence” to judge the complaint brought against his client, which operates from Gibraltar.
Martine Karsenty-Ricard, acting for Sportingbet, made the same argument, saying that as the operator’s servers were not based in France, the company could not be prosecuted in France.
Unibet’s lawyer, Dominique Santacru said the casino groups’ additional allegations of the four operators having deprived the French State of tax revenues and of not ’upholding the principles of player protection and fighting against problem gambling, fraud and money laundering’ are matters of public order, and the casino groups could not substitute themselves for the French State.
Santacru added that the plaintives could not claim a loss of financial income since they were not able to evaluate the exact amount of said loss.
In response, Thibault de Montbrial, representing the casino groups, admitted he was unable to establish the amount of the financial loss suffered by his clients since “no one knows the turnover of online casinos (taking bets) in France”. However, he insisted that offline casinos were “tributary of a public service”, as the French state awards the operating licences under strict conditions.
The legal tussle between egaming operators and the French land-based casino groups could help defining a national legal framework, such as was the case in the Santa Casa verdict published by the European court of Justice in September last year.
None of the defendants were willing to comment while the case was ongoing.
February 10, 2010
888, Bwin, Sportingbet, Unibet face French legal action
888, Bwin, Sportingbet and Unibet are being sued for “illegal competition” in the French courts for offering casino games such as slots, blackjack or roulette to French internet users.
The casino groups Barrière, which launching an online poker product with monopoly Francaise Des Jeux; Joagroupe, Tranchant and the Casinos de France trade union allege that offering the games is in contravention of current gaming legislation and of the egaming regulation set to come into effect in June, which prohibits licensed operators from offering online casino games to French players.
They also accuse the online operators of 'deliberately violating French legislation on games of chance' by not adhering to the strict parameters for operating casinos in the country, and of “depriving the State of substantial tax revenues, and not upholding the principles of player protection and fighting against problem gambling, fraud and money laundering”.
The casino groups are asking for a symbolic payment of €1m in damages, plus €30,000 to cover their legal costs, and will ask for the publication of the court’s judgement in the main French daily newspapers.
In other French egaming news, tax on fixed odds betting in France could be as much as half a percentage point higher than expected, if proposed amendments to draft gaming laws are approved by French politicians this month, while tax on horse racing could fall by the same amount and a ban on pre-pay cards be dropped.
The casino groups Barrière, which launching an online poker product with monopoly Francaise Des Jeux; Joagroupe, Tranchant and the Casinos de France trade union allege that offering the games is in contravention of current gaming legislation and of the egaming regulation set to come into effect in June, which prohibits licensed operators from offering online casino games to French players.
They also accuse the online operators of 'deliberately violating French legislation on games of chance' by not adhering to the strict parameters for operating casinos in the country, and of “depriving the State of substantial tax revenues, and not upholding the principles of player protection and fighting against problem gambling, fraud and money laundering”.
The casino groups are asking for a symbolic payment of €1m in damages, plus €30,000 to cover their legal costs, and will ask for the publication of the court’s judgement in the main French daily newspapers.
In other French egaming news, tax on fixed odds betting in France could be as much as half a percentage point higher than expected, if proposed amendments to draft gaming laws are approved by French politicians this month, while tax on horse racing could fall by the same amount and a ban on pre-pay cards be dropped.
Bwin and PartyGaming confirm merger speculation
Its been a long process that has been leaked into the gambling community via a number of sources but Bwin and PartyGaming have finally moved to confirm that they are holding talks regarding a possible merger deal that will see Bwin operate within the PartyGaming Network.
The confirmation means that the rumors that have been in circulation for almost 6 months were correct and the two companies will look to play off each other as they look to make the PartyGaming empire larger with the addition of the Bwin gambling brand.
Although both parties are happy to confirm that the rumors are in fact true, they are still refusing to make any real comment to the public while they are still trying to hammer out a possible deal between the two big players within the gambling market.
PartyGaming are believed to be linked with a number of other high profile gambling brands too, with the likes of 888, SportingBet and UniBet all also to be believed to be interested in a merger deal.
Should the company be able to secure deals that would include all four companies, the size of the network would increase significantly due to the number of members and users that each of the linked brands already have within their base.
Bwin also brings to the table advanced marketing, with their branding displayed in sports such as the English Premier League, increasing their brand awareness across the world.
This news could be soon to be made bigger still should the UIGEA be lifted in 2010, opening up the opportunity for a number of countries to wager bets through online gambling. Should this happen then we can be pretty sure that we will see the rise of a third major brand within the online gambling industry.
The confirmation means that the rumors that have been in circulation for almost 6 months were correct and the two companies will look to play off each other as they look to make the PartyGaming empire larger with the addition of the Bwin gambling brand.
Although both parties are happy to confirm that the rumors are in fact true, they are still refusing to make any real comment to the public while they are still trying to hammer out a possible deal between the two big players within the gambling market.
PartyGaming are believed to be linked with a number of other high profile gambling brands too, with the likes of 888, SportingBet and UniBet all also to be believed to be interested in a merger deal.
Should the company be able to secure deals that would include all four companies, the size of the network would increase significantly due to the number of members and users that each of the linked brands already have within their base.
Bwin also brings to the table advanced marketing, with their branding displayed in sports such as the English Premier League, increasing their brand awareness across the world.
This news could be soon to be made bigger still should the UIGEA be lifted in 2010, opening up the opportunity for a number of countries to wager bets through online gambling. Should this happen then we can be pretty sure that we will see the rise of a third major brand within the online gambling industry.
December 14, 2009
Merger on cards for PartyGaming and Bwin
Less than a month ago, at the eGaming Review Awards 2009, the online gambling industry’s annual prize-giving, Bwin Interactive Entertainment, the Austrian company, beat off competition from PartyGaming to pick up the award for Operator of the Year. However, by the time next year’s awards come around, the rivalry may have ended if talks over a £2 billion-plus merger are successful.
The companies, both quoted, are expected to face pressure from the Takeover Panel this morning to clarify their position after speculation, first reported in The Times on Thursday, that they are holding formal talks over a merger.
PartyGaming, based in Gibraltar but listed in London, took a small step into sports betting three years ago with the €102 million (£91.6 million) purchase of Gamebookers, but in recent months it has been declaring its determination to seek a bigger target in order to become a leading sportsbook operator and complement its traditional strengths in online poker, casino and, more recently, bingo.
The prospects for a deal have been enhanced by the settlement agreed with the US Department of Justice (DoJ) in April that has effectively closed the book on the possibility that PartyGaming could face prosecution over its activities in America before it withdrew in 2006 when President Bush introduced a formal ban on internet gambling.
The group paid $105 million (£65 million) to settle the case with the DoJ, and since then has already made two acquisitions. In July, it announced the takeover of Cashcade, the owner of Foxy Bingo, for up to £96 million, and then last month it completed the acquisition of the majority of WPT Enterprises, the owner of the World Poker Tour, for a minimum of $15.3 million.
Bwin, too, has outlined plans to participate in industry consolidation. In 2007 it held abortive talks with Sportingbet, its London-listed sports betting rival. Then in September this year, the Vienna-listed group announced the acquisition of Gioco Digitale, the Italian poker room, in a cash-and-shares deal worth €115 million.
Like PartyGaming, Bwin has suffered regulatory problems in recent years, although in its case the country in which it has fallen foul of the law is France, rather than America. At the end of 2006, the group’s joint chief executives were arrested and then bailed after signing a football sponsorship deal with AS Monaco. In recent months, France has relaxed its protectionist gaming laws and Bwin is hoping to be a beneficiary.
Jim Ryan, PartyGaming chief executive, is hoping that the Obama Administration will be receptive to similar moves to remove the ban in America. In the wake of the DoJ settlement, he declared: “We’re hopeful that, in the fullness of time, the new Administration will take steps to regulate it.”
US Congress made it illegal to make payments to online gambling sites in October 2006, prompting quoted operators, including PartyGaming, 888 and Sportingbet, to close their US operations and start negotiations with the DoJ and the US Attorney’s Office for the Southern District of New York.
In its heyday PartyGaming was the world’s biggest online poker company and in the blue-chip FTSE 100. Its colourful founders pocketed billions of pounds in its controversial 2005 flotation and subsequent share sales, but its shares collapsed after the US ban.
One of its biggest issues today is vying with rivals, including PokerStars and Full Tilt, which continue to defy the law and still take bets from American punters. The greater “liquidity” those companies attract from US players also makes them more attractive to European players.
A source close to the talks cautioned that they were still at a “very early stage”, although he admitted the companies knew each other “extremely well”. He said that precise terms, including the make-up of a combined board, had yet to be agreed, although Mr Ryan is tipped to take the chief executive’s role in an enlarged group.
PartyGaming has a market value of about £1 billion, while Bwin is valued at about £1.2 billion. The rumour last night was of a “merger of equals” although analysts said that PartyGaming had the capacity to fund an outright acquisition in cash and shares.
A deal could give PartyGaming a strong hand as it seeks to go one better and pick up the top prize at next year’s EGR Awards.
The companies, both quoted, are expected to face pressure from the Takeover Panel this morning to clarify their position after speculation, first reported in The Times on Thursday, that they are holding formal talks over a merger.
PartyGaming, based in Gibraltar but listed in London, took a small step into sports betting three years ago with the €102 million (£91.6 million) purchase of Gamebookers, but in recent months it has been declaring its determination to seek a bigger target in order to become a leading sportsbook operator and complement its traditional strengths in online poker, casino and, more recently, bingo.
The prospects for a deal have been enhanced by the settlement agreed with the US Department of Justice (DoJ) in April that has effectively closed the book on the possibility that PartyGaming could face prosecution over its activities in America before it withdrew in 2006 when President Bush introduced a formal ban on internet gambling.
The group paid $105 million (£65 million) to settle the case with the DoJ, and since then has already made two acquisitions. In July, it announced the takeover of Cashcade, the owner of Foxy Bingo, for up to £96 million, and then last month it completed the acquisition of the majority of WPT Enterprises, the owner of the World Poker Tour, for a minimum of $15.3 million.
Bwin, too, has outlined plans to participate in industry consolidation. In 2007 it held abortive talks with Sportingbet, its London-listed sports betting rival. Then in September this year, the Vienna-listed group announced the acquisition of Gioco Digitale, the Italian poker room, in a cash-and-shares deal worth €115 million.
Like PartyGaming, Bwin has suffered regulatory problems in recent years, although in its case the country in which it has fallen foul of the law is France, rather than America. At the end of 2006, the group’s joint chief executives were arrested and then bailed after signing a football sponsorship deal with AS Monaco. In recent months, France has relaxed its protectionist gaming laws and Bwin is hoping to be a beneficiary.
Jim Ryan, PartyGaming chief executive, is hoping that the Obama Administration will be receptive to similar moves to remove the ban in America. In the wake of the DoJ settlement, he declared: “We’re hopeful that, in the fullness of time, the new Administration will take steps to regulate it.”
US Congress made it illegal to make payments to online gambling sites in October 2006, prompting quoted operators, including PartyGaming, 888 and Sportingbet, to close their US operations and start negotiations with the DoJ and the US Attorney’s Office for the Southern District of New York.
In its heyday PartyGaming was the world’s biggest online poker company and in the blue-chip FTSE 100. Its colourful founders pocketed billions of pounds in its controversial 2005 flotation and subsequent share sales, but its shares collapsed after the US ban.
One of its biggest issues today is vying with rivals, including PokerStars and Full Tilt, which continue to defy the law and still take bets from American punters. The greater “liquidity” those companies attract from US players also makes them more attractive to European players.
A source close to the talks cautioned that they were still at a “very early stage”, although he admitted the companies knew each other “extremely well”. He said that precise terms, including the make-up of a combined board, had yet to be agreed, although Mr Ryan is tipped to take the chief executive’s role in an enlarged group.
PartyGaming has a market value of about £1 billion, while Bwin is valued at about £1.2 billion. The rumour last night was of a “merger of equals” although analysts said that PartyGaming had the capacity to fund an outright acquisition in cash and shares.
A deal could give PartyGaming a strong hand as it seeks to go one better and pick up the top prize at next year’s EGR Awards.
December 02, 2009
Bwin crowned EGR Operator of the Year 2009
Bwin has won Operator Of The Year at the EGR Awards 2009, the top trophy at the online gaming sectors' industry awards.
The Austrian gaming and betting giant beat off strong competition from rivals including Bet365, PartyGaming and Betfair to land the industry’s top prize, which was presented at London's Old Billingsgate Market last night on the first night of EGR Live, eGaming Review's two-day conference and exhibition for operators.
Collecting the award, Bwin UK country manager Nic Wenn said: ”It's great that Bwin has won this award after ten years. I think Bwin have carried on doing wht Bwin have been doing, leading the way in opening new territories in Europe and leading the technological advance in our industry."
Bwin was shortlisted on the strength of its scale and reach. The company also topped eGaming Review’s Power 50 leading operators for the second year running in 2009 and acquired the leading Italian poker site Gioco Digitale to make it one of the front runners in Italian gaming space.
Judges praised the company for its ‘consistency, leadership, scale, the strength of the brand, for promoting responsible gaming, and for showing continued, consisted leadership.’
UK online bookmaker Bet365 was shortlisted thanks to its huge turnover and for being one the major players in online betting.
Betclick has been one of the major industry growth stories of recent years. The company and its parent group Mangas Gaming has become one of the major players in egaming in just under four years and has major plans.
Betfair, which won UK Sports Betting Operator of the Year, made the list for having changed the face of betting in the past 10 years and has also recorded stellar growth in 2008-09 and has made a move in the US market.
PartyGaming has signed major B2B deals this year and has serious intentions of returning to the highly lucrative US market should it ever regulate.
William Hill Online has effected a major turnaround this year thanks to the Playtech and Orbis deals signed at the tail end of 2008. The company is sure to be a strong contender at future awards events.
The Austrian gaming and betting giant beat off strong competition from rivals including Bet365, PartyGaming and Betfair to land the industry’s top prize, which was presented at London's Old Billingsgate Market last night on the first night of EGR Live, eGaming Review's two-day conference and exhibition for operators.
Collecting the award, Bwin UK country manager Nic Wenn said: ”It's great that Bwin has won this award after ten years. I think Bwin have carried on doing wht Bwin have been doing, leading the way in opening new territories in Europe and leading the technological advance in our industry."
Bwin was shortlisted on the strength of its scale and reach. The company also topped eGaming Review’s Power 50 leading operators for the second year running in 2009 and acquired the leading Italian poker site Gioco Digitale to make it one of the front runners in Italian gaming space.
Judges praised the company for its ‘consistency, leadership, scale, the strength of the brand, for promoting responsible gaming, and for showing continued, consisted leadership.’
UK online bookmaker Bet365 was shortlisted thanks to its huge turnover and for being one the major players in online betting.
Betclick has been one of the major industry growth stories of recent years. The company and its parent group Mangas Gaming has become one of the major players in egaming in just under four years and has major plans.
Betfair, which won UK Sports Betting Operator of the Year, made the list for having changed the face of betting in the past 10 years and has also recorded stellar growth in 2008-09 and has made a move in the US market.
PartyGaming has signed major B2B deals this year and has serious intentions of returning to the highly lucrative US market should it ever regulate.
William Hill Online has effected a major turnaround this year thanks to the Playtech and Orbis deals signed at the tail end of 2008. The company is sure to be a strong contender at future awards events.
November 20, 2009
Bwin and 888 bosses dismiss takeover talks
Bwin and 888 chief executives have dismissed press speculation over an imminent takeover of 888 by the Austrian operator.
Commenting on rumours emerging from the German investment community and widely reported in the UK and German-speaking press that Bwin is in the process of raising cash to carry out the acquisition, co-chief executive Norbert Teufelberger: “We have contacts with everybody [in the industry] and common goals in that we want to operate in regulated markets. So yes, we talk to many operators and consolidation is always an option, but in this instance there has been no call to raise funds from existing shareholders with a view to acquiring 888.”
888 chief executive Gigi Levy also dismissed the speculation: “We have known Bwin for a long time but there is no truth in these rumours.”
Bwin announced strong third quarter results on Wednesday with earnings before interest, debt and amortisation up 75% to €16.8m on the same period last year. The gaming and betting giant also carried out the acquisition of Italy’s leading poker site Gioco Digitale during the period. However, Teufelberger denied this represented an implicit indictment of the achievements of Bwin’s Italian poker activities.
“We are the only international operator with a significant presence in Italy and with the further opening up of the products we will be able to offer, we want to be a strong player there from the word go, and acquiring Gioco Digitale enables us to do that. When we look at it at the end of next year, I believe we will view it as being good value for money.”
Commenting on rumours emerging from the German investment community and widely reported in the UK and German-speaking press that Bwin is in the process of raising cash to carry out the acquisition, co-chief executive Norbert Teufelberger: “We have contacts with everybody [in the industry] and common goals in that we want to operate in regulated markets. So yes, we talk to many operators and consolidation is always an option, but in this instance there has been no call to raise funds from existing shareholders with a view to acquiring 888.”
888 chief executive Gigi Levy also dismissed the speculation: “We have known Bwin for a long time but there is no truth in these rumours.”
Bwin announced strong third quarter results on Wednesday with earnings before interest, debt and amortisation up 75% to €16.8m on the same period last year. The gaming and betting giant also carried out the acquisition of Italy’s leading poker site Gioco Digitale during the period. However, Teufelberger denied this represented an implicit indictment of the achievements of Bwin’s Italian poker activities.
“We are the only international operator with a significant presence in Italy and with the further opening up of the products we will be able to offer, we want to be a strong player there from the word go, and acquiring Gioco Digitale enables us to do that. When we look at it at the end of next year, I believe we will view it as being good value for money.”
November 19, 2009
Sports betting sees Bwin profit surge 75% at Q3
Bwin's profit is up 75% on the previous year, the company’s third quarter results have revealed.
The business recorded a 75% year-on-year (YoY) increase in third-quarter EBITDA to €16.8m, from €9.6m for equivalent period last year, on the back of a strong sports betting and gaming performance in the traditionally slower third quarter.
Bwin, which topped the Power 50 ranking of the globe’s leading egaming companies this year, saw gross gaming revenues up 5.3% YoY to €101m, from €95.9m, underpinned by a 3.4% rise in sports betting gross revenues to €52.7m, from €51m.
Poker revenues grew just 1.3% to €23.1m, while casino experienced a healthier rise of 7% to €18.1m, and the company’s smaller games division experneced a boom of 36.5% to €7.0m.
Net gaming revenues (NGR) for the quarter, however, remained broadly stable at €83.3m, from €83.7m last year, which the company said reflected the cost of new acquisition and retention measures associated with the launch of its new P5 poker platform and increased betting duties due to the growth of online gaming in Italy.
Betting turnover from betting, poker, casino and games in the third quarter was up 8.2% to €790.9m, from €730.8m last year, in the main accounted for by an 8.3% rise in sports betting turnover to €742.6m, from the €685.9m recorded for the same period last year.
The Austrian operator concluded that “the growing popularity of live betting is also resulting in a shift in the proportion of turnover away from conventional sports betting (pre-match) to live betting,” revealing that live betting’s share of the gross gaming revenues from sports betting rose to 57% for the last quarter, from 55% last year.
However, bonus-led reactivation measures after the soccer summer break saw the operator only report moderate growth of 1.1% in NGR from sports betting to €44.9m for the third quarter of 2009, from €44.4.
The company added that Bwin’s acquisition of Gioco Digitale, Italy’s largest poker provider, in September left Bwin “optimally positioned to take full advantage of the booming Italian online gaming market, which is governed by modern, proactive regulations.”
Trading in the fourth quarter had also started strongly, with gross gaming revenues during the first six weeks, excluding Gioco Digitale, of €1.45m, nearly a third more than the €1.1m recorded in the last quarter. Including Gioco Digitale, this figure rose to €1.63m, 48% above the figure achieved at this point in the last quarter.
Poker NGR also fell 10.7% to €17.7m, from €19.8m, due to expenses for bonuses in the third quarter resulting from the changeover to its new P5 poker platform.
Casino NGR for the quarter also fell 2.7% to €14.4m from €14.8m, which the company put down to a planned reduction in marketing activities.
Games NGR however achieved two-digit growth, growing 35.7% €6.3m from €4.7m last year, driven by the development of mini-games and by the launch of the backgammon platform on the Greek Betoto label at the tail end of July.
Active customers grew 18.7% to 1.1 million, from 892,000, with new active customer numbers growing 39.1% to 258,000, from 185,000.
The business recorded a 75% year-on-year (YoY) increase in third-quarter EBITDA to €16.8m, from €9.6m for equivalent period last year, on the back of a strong sports betting and gaming performance in the traditionally slower third quarter.
Bwin, which topped the Power 50 ranking of the globe’s leading egaming companies this year, saw gross gaming revenues up 5.3% YoY to €101m, from €95.9m, underpinned by a 3.4% rise in sports betting gross revenues to €52.7m, from €51m.
Poker revenues grew just 1.3% to €23.1m, while casino experienced a healthier rise of 7% to €18.1m, and the company’s smaller games division experneced a boom of 36.5% to €7.0m.
Net gaming revenues (NGR) for the quarter, however, remained broadly stable at €83.3m, from €83.7m last year, which the company said reflected the cost of new acquisition and retention measures associated with the launch of its new P5 poker platform and increased betting duties due to the growth of online gaming in Italy.
Betting turnover from betting, poker, casino and games in the third quarter was up 8.2% to €790.9m, from €730.8m last year, in the main accounted for by an 8.3% rise in sports betting turnover to €742.6m, from the €685.9m recorded for the same period last year.
The Austrian operator concluded that “the growing popularity of live betting is also resulting in a shift in the proportion of turnover away from conventional sports betting (pre-match) to live betting,” revealing that live betting’s share of the gross gaming revenues from sports betting rose to 57% for the last quarter, from 55% last year.
However, bonus-led reactivation measures after the soccer summer break saw the operator only report moderate growth of 1.1% in NGR from sports betting to €44.9m for the third quarter of 2009, from €44.4.
The company added that Bwin’s acquisition of Gioco Digitale, Italy’s largest poker provider, in September left Bwin “optimally positioned to take full advantage of the booming Italian online gaming market, which is governed by modern, proactive regulations.”
Trading in the fourth quarter had also started strongly, with gross gaming revenues during the first six weeks, excluding Gioco Digitale, of €1.45m, nearly a third more than the €1.1m recorded in the last quarter. Including Gioco Digitale, this figure rose to €1.63m, 48% above the figure achieved at this point in the last quarter.
Poker NGR also fell 10.7% to €17.7m, from €19.8m, due to expenses for bonuses in the third quarter resulting from the changeover to its new P5 poker platform.
Casino NGR for the quarter also fell 2.7% to €14.4m from €14.8m, which the company put down to a planned reduction in marketing activities.
Games NGR however achieved two-digit growth, growing 35.7% €6.3m from €4.7m last year, driven by the development of mini-games and by the launch of the backgammon platform on the Greek Betoto label at the tail end of July.
Active customers grew 18.7% to 1.1 million, from 892,000, with new active customer numbers growing 39.1% to 258,000, from 185,000.
November 13, 2009
Wisła and Lech could lose their sponsors
KKS Lech Poznan and Wisla Krakow and may lose their strategic sponsors! This is due to happen if a new law in Poland is passed to force gambling out of the country. The announcement of the very possible law was made on Tuesday, by Polish Prime Minister Donald Tusk.
The bill is to be ready by mid-November. One of its objectives is to ban online betting in Poland on the Internet. As a result, people would not be able to organize bets or take part in them. Betting services will also not be able to advertise their firms.
Taxes will drastically increase to issue state services to effectively control and enforce the new law on such betting companies and the people using them. This law is said to be Poland's gambling revolution.
Wisla Krakow and Lech Poznan are therefore facing a serious problem, because their sponsors are both important strategic players in the gambling market, respectively Bet-at-home and BetClic. The two top tier clubs signed contract agreements with the bookmakers this year. In February, the White Star has signed a two-year contract with Bet-at-home while in June the Kolejorz inked a three-year deal with BetClic.
"I can say that this is one of the best sponsorship contracts in the history of Polish football," boasted the Chief of Marketing of Lech, Michal Lipczyński.
"If this law passes it would be catastrophic and a step backwards in terms of the club's finances. All Polish clubs have left now is our sponsoring, and even that is being taken away."
One thing is for certain, if the law comes into force, Lech will have to find another big and well known sponsor as BetClic - a task that will not come easy considering the club's current poor league form.
"We will be forced to withdraw from supporting Lech Poznan." announced Tomasz Wlodarczyk of BetClic.
If Lech do part ways with BetClic, it would also mean Lech's big transfer budget for the winter transfer window would disappear, along with any friendlies scheduled with other BetClic sponsored club. The two other clubs sponsored are Olympique Lyon and Olympique de Marseille, with the latter scheduled to play the Polish outfit in a friendly match next year.
Around Europe, some the world's largest clubs are sponsored by internet bookmakers. Bwin has under his tutelage even giants Real Madrid and AC Milan. In Zurich, during the UEFA Champions League the Spaniards were forced to play without Bwin's logo on the club shirt, because of anti-gambling laws in Switzerland. Similarly the same in Belgium, where Lech Poznan played against Club Brugge in UEFA Europa League action. However, the Polish team unlike Real Madrid were able to play with their bookmaker sponsor logo, but as a result the company had to accept to take all the responsibility themselves.
It should also be mentioned, that the Second Division of Poland is also sponsored by a bookmaking company - Unibet. If the league losses it's sponsor, then it is very possible many of the clubs may fall into serious financial trouble.
The bill is to be ready by mid-November. One of its objectives is to ban online betting in Poland on the Internet. As a result, people would not be able to organize bets or take part in them. Betting services will also not be able to advertise their firms.
Taxes will drastically increase to issue state services to effectively control and enforce the new law on such betting companies and the people using them. This law is said to be Poland's gambling revolution.
"I can say that this is one of the best sponsorship contracts in the history of Polish football," boasted the Chief of Marketing of Lech, Michal Lipczyński.
"If this law passes it would be catastrophic and a step backwards in terms of the club's finances. All Polish clubs have left now is our sponsoring, and even that is being taken away."
One thing is for certain, if the law comes into force, Lech will have to find another big and well known sponsor as BetClic - a task that will not come easy considering the club's current poor league form.
"We will be forced to withdraw from supporting Lech Poznan." announced Tomasz Wlodarczyk of BetClic.
If Lech do part ways with BetClic, it would also mean Lech's big transfer budget for the winter transfer window would disappear, along with any friendlies scheduled with other BetClic sponsored club. The two other clubs sponsored are Olympique Lyon and Olympique de Marseille, with the latter scheduled to play the Polish outfit in a friendly match next year.
Around Europe, some the world's largest clubs are sponsored by internet bookmakers. Bwin has under his tutelage even giants Real Madrid and AC Milan. In Zurich, during the UEFA Champions League the Spaniards were forced to play without Bwin's logo on the club shirt, because of anti-gambling laws in Switzerland. Similarly the same in Belgium, where Lech Poznan played against Club Brugge in UEFA Europa League action. However, the Polish team unlike Real Madrid were able to play with their bookmaker sponsor logo, but as a result the company had to accept to take all the responsibility themselves.
It should also be mentioned, that the Second Division of Poland is also sponsored by a bookmaking company - Unibet. If the league losses it's sponsor, then it is very possible many of the clubs may fall into serious financial trouble.
November 12, 2009
Online gaming is driving spend in sports. But will the legislators derail the gravy train?
This season already, the gambling operator 188Bet.com has signed up as shirt sponsor of two Premier League clubs - Wigan Athletic and Bolton Wanderers - in north-west England, while 11 out of 16 Portuguese league clubs have BetClic emblazoned on their shirt-fronts this season.
This multiple sponsorship trend reflects a more general proliferation of gaming sector marketing around sport, and football, in particular… Real Madrid, AC Milan (Bwin) and Lyon (BetClic) are the continent’s market leaders in the promotion of gaming online and the likes of the German Bundesliga (Bwin) and the Australian A-League (Bet365) are among the best bets for combined live action and betting online.
It’s clear that the online gaming sector is no longer about fantasy revenue forecasts and stellar predictions. The amounts gambled online already scale the billions, while the sector represents a multi-million dollar marketing boon for sporting clubs and organisations.
Most importantly in these hard times, it’s a sector that is continuing to grow. According to Global Betting and Gaming Consultants (GBGC) global online gambling yield will increase by 25 per cent over on the next three years, with a significant proportion coming from global interest in football betting.
As Mike Falconer, chief executive of online gaming services firm, BettorLogic, reported in the SportBusiness International sister publication, iGaming Business, “Football has been almost singularly responsible for the steep progression of both Asian and newer [Southern and Eastern] European markets…and can account for 75 per cent - 80 per cent of bets taken in the major Asian countries.”
The 188Bet.com sponsorship of the two clubs in England’s north-west is a case in point, leveraging both local loyalties and the fame of the Premier League globally, especially in the gambling operator’s main market, Asia.
“The Premier League is and has been heavily broadcast globally and is increasing in a number of markets with several pending deals which will take it through pay-per-view to free-to-air in a number of markets,” said 188Bet CEO Andy Scott.
“So, that is a very strong attraction. It gives us a presence in our current markets as well as visibility in new markets."
It’s not only shirt sponsorship that is upping the ante for the gambling sector involvement in sport. 188Bet has signed two ‘official partnership’ agreements with Aston Villa and Chelsea, while Betfair, the leading betting exchange brand, has signed up for three years with current Premier League champions Manchester United.
Yet for clubs or organisations from jurisdictions in the United States or Europe where online gambling is banned or discouraged, such a close relationship between rights holder and gaming operator, may seem strange. And, it should be stressed that many European jurisdictions have yet to de-regulate the online gambling environment in the same way as the UK. But some European markets are catching up - and this is directly reflected in marketing activity. According to iGaming Business, the number of La Liga teams in Spain now sporting the logos of online operators are on a par with that of the UK in the early 2000s.
Similar growth is being witnessed in other EU countries such as Italy. In fact the biggest online gaming sponsorship deals in football are now in Spanish and Italian territories, where Austrian operator Bwin has set up landmark deals with Real Madrid and AC Milan. In the case of the Spanish giants, the sponsorship is thought to be worth around €45m over three years.
But changes to the law can’t come soon enough for Olympic Lyonnais. The French club was forced to start the new French football season without displaying the name of shirt sponsor BetClic, after the French football association rejected the club’s request to display the logo.
Then there is Portugal, once considered among the more accessible online gaming markets - and when BetClic signed up with 11 clubs in the top league for this season they gazumped Bwin which had title sponsored the entire national league from 2005-2008.
But in a move that will encourage other European governments to hold onto their gambling monopolies, the EU recently upheld the Portuguese government’s gambling restrictions as legal. The decision, which arose from a legal challenge brought by Bwin and the Portuguese League, could jeopardise the sponsorship contracts made by BetClic with the 11 Portuguese clubs.
Confusing? You bet. As is the situation Stateside, where the previous Bush administration passed a prohibitive anti-gaming law that has seen some online gaming operators jailed.
Although there are indicators that this legislation may change under the Democrats, any federally regulated online gambling system is likely to be fiercely protected and run by the major Nevada casinos.
Despite the unwanted attentions of government regulators, the online sector continues to grow its customer base - and now it has a new weapon in its marketing arsenal: live sports content. And the gaming sector’s relationship with sports rights is set to run and run. The depth of the relationship, however, will ultimately be determined by national legislators - and at this stage in the game, no one can predict with certainty how that particular story will pan out.
This multiple sponsorship trend reflects a more general proliferation of gaming sector marketing around sport, and football, in particular… Real Madrid, AC Milan (Bwin) and Lyon (BetClic) are the continent’s market leaders in the promotion of gaming online and the likes of the German Bundesliga (Bwin) and the Australian A-League (Bet365) are among the best bets for combined live action and betting online.
It’s clear that the online gaming sector is no longer about fantasy revenue forecasts and stellar predictions. The amounts gambled online already scale the billions, while the sector represents a multi-million dollar marketing boon for sporting clubs and organisations.
Most importantly in these hard times, it’s a sector that is continuing to grow. According to Global Betting and Gaming Consultants (GBGC) global online gambling yield will increase by 25 per cent over on the next three years, with a significant proportion coming from global interest in football betting.
As Mike Falconer, chief executive of online gaming services firm, BettorLogic, reported in the SportBusiness International sister publication, iGaming Business, “Football has been almost singularly responsible for the steep progression of both Asian and newer [Southern and Eastern] European markets…and can account for 75 per cent - 80 per cent of bets taken in the major Asian countries.”
The 188Bet.com sponsorship of the two clubs in England’s north-west is a case in point, leveraging both local loyalties and the fame of the Premier League globally, especially in the gambling operator’s main market, Asia.
“The Premier League is and has been heavily broadcast globally and is increasing in a number of markets with several pending deals which will take it through pay-per-view to free-to-air in a number of markets,” said 188Bet CEO Andy Scott.
“So, that is a very strong attraction. It gives us a presence in our current markets as well as visibility in new markets."
It’s not only shirt sponsorship that is upping the ante for the gambling sector involvement in sport. 188Bet has signed two ‘official partnership’ agreements with Aston Villa and Chelsea, while Betfair, the leading betting exchange brand, has signed up for three years with current Premier League champions Manchester United.
Yet for clubs or organisations from jurisdictions in the United States or Europe where online gambling is banned or discouraged, such a close relationship between rights holder and gaming operator, may seem strange. And, it should be stressed that many European jurisdictions have yet to de-regulate the online gambling environment in the same way as the UK. But some European markets are catching up - and this is directly reflected in marketing activity. According to iGaming Business, the number of La Liga teams in Spain now sporting the logos of online operators are on a par with that of the UK in the early 2000s.
Similar growth is being witnessed in other EU countries such as Italy. In fact the biggest online gaming sponsorship deals in football are now in Spanish and Italian territories, where Austrian operator Bwin has set up landmark deals with Real Madrid and AC Milan. In the case of the Spanish giants, the sponsorship is thought to be worth around €45m over three years.
But changes to the law can’t come soon enough for Olympic Lyonnais. The French club was forced to start the new French football season without displaying the name of shirt sponsor BetClic, after the French football association rejected the club’s request to display the logo.
Then there is Portugal, once considered among the more accessible online gaming markets - and when BetClic signed up with 11 clubs in the top league for this season they gazumped Bwin which had title sponsored the entire national league from 2005-2008.
But in a move that will encourage other European governments to hold onto their gambling monopolies, the EU recently upheld the Portuguese government’s gambling restrictions as legal. The decision, which arose from a legal challenge brought by Bwin and the Portuguese League, could jeopardise the sponsorship contracts made by BetClic with the 11 Portuguese clubs.
Confusing? You bet. As is the situation Stateside, where the previous Bush administration passed a prohibitive anti-gaming law that has seen some online gaming operators jailed.
Although there are indicators that this legislation may change under the Democrats, any federally regulated online gambling system is likely to be fiercely protected and run by the major Nevada casinos.
Despite the unwanted attentions of government regulators, the online sector continues to grow its customer base - and now it has a new weapon in its marketing arsenal: live sports content. And the gaming sector’s relationship with sports rights is set to run and run. The depth of the relationship, however, will ultimately be determined by national legislators - and at this stage in the game, no one can predict with certainty how that particular story will pan out.
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