Romanian operator Offsidebet has launched a Spain-facing bingo site using the Virtue Fusion Alderney network.
The new site will initially target the Spanish market, but Offsidebet also plans to offer bingo products to its core eastern European markets in future.
Offsidebet is headed by chief executive Matt Jellicoe, former marketing director for Sportingbet, and chief operating officer Leonid Ponktrantenko, who has previously worked at at Sportingbet and PartyGaming.
Its product suite already includes Playtech for poker and Net Entertainment for casino.
October 28, 2009
October 27, 2009
Lifting of Oz egaming ban set to spur further growth
The Australian market looks set for significant expansion after the government’s independent advisory body on gambling policy recommended lifting the country’s eight-year-old online gaming ban.
The Productivity Commission last week recommended the Australian government repeal the 2001 Interactive Gambling Act (IGA) to allow operators to offer poker and casino products to Australian residents, subject to a strict regime of consumer protection.
The report reached its recommendation after concluding of the current ban under the IGA: “The long-run consequence of prohibition may be higher problem gambling risks and a loss of commercial opportunities and tax revenue in Australia.”
The IGA made it an offence to provide poker and casino to Australian residents, leading to an estimated total of AU$790m being spent on offshore sites last year.
Australian corporate bookmaker Centrebet’s deputy managing director, Michael McRitchie, said the proposed switch from unregulated online gaming to regulated gaming represented “a win-win” for stakeholders in the Australian market.
“The draft report demonstrates that prohibition doesn’t work, and isn’t working. Its proposals, if adopted, would increase customer protection and harm minimisation procedures, allowing the government to generate funding to assist with problem gaming,” McRitchie told EGRMagazine.com.
As well as allowing Australian wagering operators to increase revenues through cross-selling existing customer bases into gaming, the lifting of the IGA would also operators to increase in-running betting volumes, as the Act currently only allows in-play bets to be placed by telephone.
The Productivity Commission arrived at its draft conclusions after receiving detailed submissions from 264 organisations, including corporate bookmakers, sporting clubs, sports representative bodies and totaliser monopolies.
The Productivity Commission last week recommended the Australian government repeal the 2001 Interactive Gambling Act (IGA) to allow operators to offer poker and casino products to Australian residents, subject to a strict regime of consumer protection.
The report reached its recommendation after concluding of the current ban under the IGA: “The long-run consequence of prohibition may be higher problem gambling risks and a loss of commercial opportunities and tax revenue in Australia.”
The IGA made it an offence to provide poker and casino to Australian residents, leading to an estimated total of AU$790m being spent on offshore sites last year.
Australian corporate bookmaker Centrebet’s deputy managing director, Michael McRitchie, said the proposed switch from unregulated online gaming to regulated gaming represented “a win-win” for stakeholders in the Australian market.
“The draft report demonstrates that prohibition doesn’t work, and isn’t working. Its proposals, if adopted, would increase customer protection and harm minimisation procedures, allowing the government to generate funding to assist with problem gaming,” McRitchie told EGRMagazine.com.
As well as allowing Australian wagering operators to increase revenues through cross-selling existing customer bases into gaming, the lifting of the IGA would also operators to increase in-running betting volumes, as the Act currently only allows in-play bets to be placed by telephone.
The Productivity Commission arrived at its draft conclusions after receiving detailed submissions from 264 organisations, including corporate bookmakers, sporting clubs, sports representative bodies and totaliser monopolies.
October 23, 2009
California poker bill introduced next year, promises new PVA chief
The viability of US intrastate poker systems may hinge on preventing offshore sites such as PokerStars and Full Tilt from taking US bets, according to two leading data providers to the online poker industry.
California and Florida are currently looking at legislation to establish intrastate online poker systems and regulations as permitted by an exemp tion under the Unlawful Internet Gambling Enforcement Act (UIGEA). This explicitly declares that online intrastate wagers do not constitute “unlawful internet gambling” if expressly allowed by the laws of a state.
But according to Poker Players Research (PPR), which provides the poker industry with regular reports and analyses, with almost everyone who is playing online poker for money now doing so in online poker rooms with over a million registered money players, a US intrastate poker site or network would need to get close to this number before it could offer an equal choice of games and size of tournaments as the offshore sites.
“Any site in California [which according to PPR has around 1.5 million online money play ers, compared to New York’s one million and Florida’s 500,000] would need to get what seems to be an unrealistically high percent age of that state’s players to create a viable alternative to the established online poker rooms US players are currently using. This does not seem realistically achievable in a competitive environment,” said director Glenn Flackett.
“Unless the ability of players to play on the sites they currently choose is substantially changed, liquidity advantages of the existing rooms will outweigh any safer, more legiti mate benefits and few existing players will switch,” argued Flackett, who thinks that attracting new players will not only be difficult for intrastate sites, “they will not build liquidity levels that are high enough.”
However, Simon Holliday, director of gam bling data business H2 Gambling Capital, cites Swedish national monopoly Svenska Spel’s 2006 example of how a platform can be built on leisure-oriented players who are comfortable only playing on state-licensed sites. This was achieved in a country with a popu lation of 9.3 million, just over a quarter of California’s and half Florida’s, with nothing done regarding offshore sites.
That said, H2 has calculated its intrastate poker numbers assuming that offshore poker site activity is eradicated.
“Governments have never moved to regulate an industry without offering it some protection. Who would be willing to pay millions of dollars in licence fees and taxation while others were allowed to carry on tax-free?”, explained Holliday.
Thus H2’s baseline for the number of players needed for sustainable, regulated intrastate gambling in the US is lower than PPR’s, for example, citing the need for approximately 500,000 unique active players in Year 1 in California, rising to one million by Year 10, while for Florida, the corresponding numbers are 200,000, rising to 650,000.
But with the federal government having its own tax-raising aims for egaming, it remains to be seen just how supportive it will be in the longer term of individual states’ drive to monopolise the gaming revenues generated within their respective borders.
California and Florida are currently looking at legislation to establish intrastate online poker systems and regulations as permitted by an exemp tion under the Unlawful Internet Gambling Enforcement Act (UIGEA). This explicitly declares that online intrastate wagers do not constitute “unlawful internet gambling” if expressly allowed by the laws of a state.
But according to Poker Players Research (PPR), which provides the poker industry with regular reports and analyses, with almost everyone who is playing online poker for money now doing so in online poker rooms with over a million registered money players, a US intrastate poker site or network would need to get close to this number before it could offer an equal choice of games and size of tournaments as the offshore sites.
“Any site in California [which according to PPR has around 1.5 million online money play ers, compared to New York’s one million and Florida’s 500,000] would need to get what seems to be an unrealistically high percent age of that state’s players to create a viable alternative to the established online poker rooms US players are currently using. This does not seem realistically achievable in a competitive environment,” said director Glenn Flackett.
“Unless the ability of players to play on the sites they currently choose is substantially changed, liquidity advantages of the existing rooms will outweigh any safer, more legiti mate benefits and few existing players will switch,” argued Flackett, who thinks that attracting new players will not only be difficult for intrastate sites, “they will not build liquidity levels that are high enough.”
However, Simon Holliday, director of gam bling data business H2 Gambling Capital, cites Swedish national monopoly Svenska Spel’s 2006 example of how a platform can be built on leisure-oriented players who are comfortable only playing on state-licensed sites. This was achieved in a country with a popu lation of 9.3 million, just over a quarter of California’s and half Florida’s, with nothing done regarding offshore sites.
That said, H2 has calculated its intrastate poker numbers assuming that offshore poker site activity is eradicated.
“Governments have never moved to regulate an industry without offering it some protection. Who would be willing to pay millions of dollars in licence fees and taxation while others were allowed to carry on tax-free?”, explained Holliday.
Thus H2’s baseline for the number of players needed for sustainable, regulated intrastate gambling in the US is lower than PPR’s, for example, citing the need for approximately 500,000 unique active players in Year 1 in California, rising to one million by Year 10, while for Florida, the corresponding numbers are 200,000, rising to 650,000.
But with the federal government having its own tax-raising aims for egaming, it remains to be seen just how supportive it will be in the longer term of individual states’ drive to monopolise the gaming revenues generated within their respective borders.
October 22, 2009
UEFA concerned about match-fixing in Russian football
UEFA is worried about match-fixing in the top two tiers of Russian football, local media revealed Wednesday. In a confidential letter sent to the Russian football federation (RFS), European football's ruling body expressed "serious concern" at the results of at least six first and second division matches, the Vremya Novostei newspaper reported.
"We have reason to be suspicious of these matches because of their possible links to illegal betting," the letter reportedly stated.
The games took place between June 13 and August 17 of this year. So far there has been no reaction from the RFS or the clubs but if the fears are substantiated it could have serious repercussions for Russia's bid to host the 2018 World Cup.
"We have reason to be suspicious of these matches because of their possible links to illegal betting," the letter reportedly stated.
The games took place between June 13 and August 17 of this year. So far there has been no reaction from the RFS or the clubs but if the fears are substantiated it could have serious repercussions for Russia's bid to host the 2018 World Cup.
October 21, 2009
PartyGaming stockholder and billionaire gives $350 million to charity
The world’s largest online gambling company announced Tuesday that Dikshit is preparing to sell 66% of his shares in the company for 350 million dollars. The sale will reduce his stake in the company from 28% to 9.5%.A spokesperson also stated that Anurag plans to sell the rest of his shares in the company in the near future. He wants to give all of his money from the sale of his stock to the Kusuma Trust.
The Kusuma Trust charity was founded by Anurag to provide welfare and educational services to the communities and children in Gibraltar, India and in the United Kingdom. The trust already holds about $80 million.
Anurag spends his days living a modest lifestyle in Gibraltar where he has resided for eight years with his wife. He prefers to walk and although his wife does have a car, he does not have one of his own.
Premier League concern at gambling on junior matches may lead to regulation
The Premier League has pledged to ensure football's relationship with the betting industry is properly regulated after it emerged junior matches can now be gambled on.
SBObet and 188bet, who are both licensed on the Isle of Man, offer live betting on matches at Premier League under-18 level and similar matches across Europe including the German Bundesliga under-17 league. Both betting firms have a presence in the Premier League through tie-ups with several leading clubs.
SBObet are shirt sponsors of West Ham, while 188bet sponsor Bolton and Wigan and are the official gaming partner of Chelsea and official betting partner of Aston Villa.
Betting on junior matches does not contravene any rules, however the Premier League will examine the issue. A Premier League spokesman told the Sunday Telegraph: "We are alarmed at these developments and are currently discussing this matter with our clubs and the government. What is clear is that this further highlights the need for the relationship between sport and the gambling industry to be properly regulated in order to protect the integrity of sport."
The Professional Footballers' Association chief executive Gordon Taylor said: "It is making our youngsters vulnerable, without a shadow of a doubt. Youngsters and gambling is a bad mix, and an unhealthy one."
A spokesman for 188bet said that the company is committed to protecting "betting integrity" and stressed they were unaware of any concerns from the Premier League or PFA. The spokesman said: "A key element of our betting governance includes setting lower bet limits on smaller markets, such as Premier League Academy games, to ensure that maximum individual bets and total bet volume is not of a size that would influence any sporting outcome."
SBObet and 188bet, who are both licensed on the Isle of Man, offer live betting on matches at Premier League under-18 level and similar matches across Europe including the German Bundesliga under-17 league. Both betting firms have a presence in the Premier League through tie-ups with several leading clubs.
The Professional Footballers' Association chief executive Gordon Taylor said: "It is making our youngsters vulnerable, without a shadow of a doubt. Youngsters and gambling is a bad mix, and an unhealthy one."
A spokesman for 188bet said that the company is committed to protecting "betting integrity" and stressed they were unaware of any concerns from the Premier League or PFA. The spokesman said: "A key element of our betting governance includes setting lower bet limits on smaller markets, such as Premier League Academy games, to ensure that maximum individual bets and total bet volume is not of a size that would influence any sporting outcome."
October 20, 2009
Betfair considering Tasmania move
British online betting exchange operator Betfair is considering abandoning its Australian base in Tasmania in favour of a mainland location after being excluded from recent state tax concessions.
Betfair was granted permission to operate from the island state jurisdiction four years ago and its current license is due to expire at end of next year. However, it was recently excluded from legislation that eliminated tax for online bookmakers operating in the jurisdiction in exchange for an annual fee of approximately $231,000.
“One of the things that the board has asked the management team to do is to explore other options,” said Andrew Twaits, Chief Executive Officer for Betfair Australia.
“As you would expect, the environment in Australia is very different now than it was four years or so ago when we were trying to get a licence here in Australia, so we'll just see how it goes. Everything is open for consideration at this stage; some jurisdictions have advantages over others.”
Twaits stated that the tax concession now being offered by Tasmania would stir considerable interest from online bookmakers from around the world.
“Most of the online gambling operators are based around Europe,” Twaits told Australian broadcaster ABC.
“Tax rates around the world are only going one way and that's down. Look at jurisdictions like Malta and Gibraltar. Tasmania becomes all of a sudden competitive with all of those jurisdictions. And one of the advantages that Tasmania has over any other jurisdiction in Australia is that, once you are licensed in Tasmania, you are able to advertise into the UK.”
Betfair currently employs 115 people at its Hobart headquarters and Michael Aird, Treasurer for Tasmania, revealed that the Government would be doing all it could to keep the UK-owned firm on the island while also attracting other corporate bookmakers.
“We have to ensure that we provide opportunities for people to be employed,” said Aird.
“These corporate bookmakers, if they decide to relocate to Tasmania or be established in Tasmania, would be bringing with them very large teams of people and in terms of employment opportunities could start another industry in Tasmania.”
Betfair was granted permission to operate from the island state jurisdiction four years ago and its current license is due to expire at end of next year. However, it was recently excluded from legislation that eliminated tax for online bookmakers operating in the jurisdiction in exchange for an annual fee of approximately $231,000.
“One of the things that the board has asked the management team to do is to explore other options,” said Andrew Twaits, Chief Executive Officer for Betfair Australia.
“As you would expect, the environment in Australia is very different now than it was four years or so ago when we were trying to get a licence here in Australia, so we'll just see how it goes. Everything is open for consideration at this stage; some jurisdictions have advantages over others.”
Twaits stated that the tax concession now being offered by Tasmania would stir considerable interest from online bookmakers from around the world.
“Most of the online gambling operators are based around Europe,” Twaits told Australian broadcaster ABC.
“Tax rates around the world are only going one way and that's down. Look at jurisdictions like Malta and Gibraltar. Tasmania becomes all of a sudden competitive with all of those jurisdictions. And one of the advantages that Tasmania has over any other jurisdiction in Australia is that, once you are licensed in Tasmania, you are able to advertise into the UK.”
Betfair currently employs 115 people at its Hobart headquarters and Michael Aird, Treasurer for Tasmania, revealed that the Government would be doing all it could to keep the UK-owned firm on the island while also attracting other corporate bookmakers.
“We have to ensure that we provide opportunities for people to be employed,” said Aird.
“These corporate bookmakers, if they decide to relocate to Tasmania or be established in Tasmania, would be bringing with them very large teams of people and in terms of employment opportunities could start another industry in Tasmania.”
Ladbrokes to buy Tote?
Despite Ladbrokes being reported as struggling on the London Stock Exchange in recent weeks, there is hope on the horizon for worried investors. The bookmakers are reportedly looking into buying the Government owned bookmakers, Tote.
There have been many previous attempts to sell the tote in the past, however further attempts to sell the business were put on the back burner in October 2008 due to the declining economic environment.
Recently talks of selling the tote have rekindled once again with Ladbrokes being just one of the big named gambling companies looking into buying the currently nationalized company.
William Hill who has regained their stock price lead above Ladbrokes is another company looking into a deal. William Hill has already moved their online operations out of the UK along with Ladbrokes. More companies looking into buying tote include Paddy Power and the Gala Coral group.
The consolidation of the online gaming industry has been a priority in the last few months for some companies as many of the larger players are buying out smaller competitors.
There have been many previous attempts to sell the tote in the past, however further attempts to sell the business were put on the back burner in October 2008 due to the declining economic environment.
Recently talks of selling the tote have rekindled once again with Ladbrokes being just one of the big named gambling companies looking into buying the currently nationalized company.
William Hill who has regained their stock price lead above Ladbrokes is another company looking into a deal. William Hill has already moved their online operations out of the UK along with Ladbrokes. More companies looking into buying tote include Paddy Power and the Gala Coral group.
The consolidation of the online gaming industry has been a priority in the last few months for some companies as many of the larger players are buying out smaller competitors.
German gambling ban could be overturned
Germany’s online gambling ban could be under threat after one of the German states which originally approved the treaty demanded a cancellation over the weekend.
The agreement between the current ruling coalition Christian-Democratic Party (CDU) and the Liberal Party (FDP) in Schleswig-Holstein was published last Saturday; it called for an end to the interstate gambling treaty and asked for a new regulation to replace it.
The FDP and coalition in Schleswig-Holstein leader, Jürgen Koppelin, said that if German states fail to agree on a new regulation to replace the treaty, the coalition would introduce an intrastate licensing system.
Martin Arendts of Arendts Anwalte, a German gaming lawyer said, “The argument that only a monopoly can protect customers, prevent problem gambling and guard against fraud would not hold any more,”
The coalition is only reported to have spoken about the potential impacts of such a move, such as privatizing state owned casinos. Arendts continued that any new licensing system could apply to online gaming and betting as currently all forms of online gambling except horse racing is banned.
EGBA has consistently argued that the protectionist monopoly position of the German Interstate treaty on gambling violates EU law under article 49 of the treaty of Rome as it restricts the rights of its members to provide online gaming services.
Arendts continued to highlight that Schleswig-Holstein only approved the treaty in December 2007 for fiscal reasons as it had previously favoured a different interstate treaty on sports betting which would result in providing licenses for private bookmakers.
If all of the German states fail to ratify a new regulation by 2012 when the current treaty expires it would make the current state gambling monopoly unenforceable.
The agreement between the current ruling coalition Christian-Democratic Party (CDU) and the Liberal Party (FDP) in Schleswig-Holstein was published last Saturday; it called for an end to the interstate gambling treaty and asked for a new regulation to replace it.
The FDP and coalition in Schleswig-Holstein leader, Jürgen Koppelin, said that if German states fail to agree on a new regulation to replace the treaty, the coalition would introduce an intrastate licensing system.
Martin Arendts of Arendts Anwalte, a German gaming lawyer said, “The argument that only a monopoly can protect customers, prevent problem gambling and guard against fraud would not hold any more,”
The coalition is only reported to have spoken about the potential impacts of such a move, such as privatizing state owned casinos. Arendts continued that any new licensing system could apply to online gaming and betting as currently all forms of online gambling except horse racing is banned.
EGBA has consistently argued that the protectionist monopoly position of the German Interstate treaty on gambling violates EU law under article 49 of the treaty of Rome as it restricts the rights of its members to provide online gaming services.
Arendts continued to highlight that Schleswig-Holstein only approved the treaty in December 2007 for fiscal reasons as it had previously favoured a different interstate treaty on sports betting which would result in providing licenses for private bookmakers.
If all of the German states fail to ratify a new regulation by 2012 when the current treaty expires it would make the current state gambling monopoly unenforceable.
Gaming founder Dikshit to sell two-thirds of stake
Anurag Dikshit is to sell two thirds of his 28% stake in the company.
The egaming billionaire will sell 75 million shares through his vehicle Crystal Holdings, cutting his stake to 39 million shares, or 9.5% of the issued share capital in the company.
The shares will be sold by Goldman Sachs through an accelerated offering to institutional investors.
The sale price is yet to be announced, but the shares would be worth circa £213m based on yesterday’s closing price of 284.5p.
Dikshit’s spokesman Shimon Cohen told Bloomberg: “He wants to move on with his life, sell his shares, endow them in his charitable foundation, and move away from the whole issue and industry of PartyGaming.”
Cohen added that Dikshit may go on to sell his entire stake.
Dikshit pleaded guilty to illegal internet gambling last December and agreed to forfeit US$300m to US authorities for his role in the company’s activities in the US prior to the passage of America’s Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006.
In April, PartyGaming settled with the US authorities for its pre-UIGEA activities for $105m, becoming the only major online gambling business to do so. With Dikshit having pleaded guilty to internet gambling charges under the Wire Act, the reduction of his shareholding below the 15% threshold required to nominate to the board is likely to improve the company’s potential for receiving a licence in the US should America legalise online gambling.
However Dikshit’s fellow founders and principal shareholders Russ DeLeon and Ruth Parasol, who each own 58 million shares, have shown no sign of moving towards settlement.
PartyGaming shares initially fell up to 12% upon Dikshit’s announcement this morning, the biggest drop in 11 months of London trading in the equities.
However analysts predict the sale will increase the liquidity of Party’s stock, with ‘free float’ shares, i.e. those that are traded often rather than tied up with individuals, potentially rising from 177m to 290m shares, or 70%, if the entire stake is sold.
However Morgan Stanley analyst Vaughan Lewis argued that the move does not reflect on PartyGaming, but rather on Dikshit’s own desire to devote more time and money towards charitable projects.
Lewis said: “We do not think this reflects any ‘edge’ Dikshit might have on regulatory, trading or other developments, as he is not involved in these areas - he is not on the board – [he is] devoting his time and money to philanthropy.”
The egaming billionaire will sell 75 million shares through his vehicle Crystal Holdings, cutting his stake to 39 million shares, or 9.5% of the issued share capital in the company.
The shares will be sold by Goldman Sachs through an accelerated offering to institutional investors.
The sale price is yet to be announced, but the shares would be worth circa £213m based on yesterday’s closing price of 284.5p.
Dikshit’s spokesman Shimon Cohen told Bloomberg: “He wants to move on with his life, sell his shares, endow them in his charitable foundation, and move away from the whole issue and industry of PartyGaming.”
Cohen added that Dikshit may go on to sell his entire stake.
Dikshit pleaded guilty to illegal internet gambling last December and agreed to forfeit US$300m to US authorities for his role in the company’s activities in the US prior to the passage of America’s Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006.
In April, PartyGaming settled with the US authorities for its pre-UIGEA activities for $105m, becoming the only major online gambling business to do so. With Dikshit having pleaded guilty to internet gambling charges under the Wire Act, the reduction of his shareholding below the 15% threshold required to nominate to the board is likely to improve the company’s potential for receiving a licence in the US should America legalise online gambling.
However Dikshit’s fellow founders and principal shareholders Russ DeLeon and Ruth Parasol, who each own 58 million shares, have shown no sign of moving towards settlement.
PartyGaming shares initially fell up to 12% upon Dikshit’s announcement this morning, the biggest drop in 11 months of London trading in the equities.
However analysts predict the sale will increase the liquidity of Party’s stock, with ‘free float’ shares, i.e. those that are traded often rather than tied up with individuals, potentially rising from 177m to 290m shares, or 70%, if the entire stake is sold.
However Morgan Stanley analyst Vaughan Lewis argued that the move does not reflect on PartyGaming, but rather on Dikshit’s own desire to devote more time and money towards charitable projects.
Lewis said: “We do not think this reflects any ‘edge’ Dikshit might have on regulatory, trading or other developments, as he is not involved in these areas - he is not on the board – [he is] devoting his time and money to philanthropy.”
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