Bwin is rumoured to have become the first online gambling operator to advertise nationally in Argentina in recent years, after a deal with one of the country’s leading publishers.
The daily newspaper Clarin, which has 44% of the market share in Buenos Aires, has carried Bwin adverts on its website. Bwin operates with a license from the Provincia de Misiones in Argentina and is allegedly the first company to advertise since Yahoo! and others were instructed to remove gambling adverts some years ago.
Bwin was the second operator to obtain a legal license in Argentina, following Victor Chandler in November 2006.
Tim Phillips, from Buenos Aires-based Tamarind Media, told eGaming Review that the legal structure, whereby licenses are provincial rather than national, leaves advertising in a potentially grey area. “Bwin has a license to operate from a provincial gaming board, but not from the national gaming authorities, so technically, under Argentine law they are not allowed to advertise in any provinces other than the one they have the license from, and certainly not nationally,” he said. “However, if Bwin has started to advertise with the largest media owner in Argentina, then for sure others will follow. For Bwin to have taken the risk, it must have felt able to do so. This could signal a change.”
Manfred Bodner, co-chief executive at Bwin said that he would not comment on the news “for competitive reasons.”
The legality of advertising regulation has surfaced in the past. In 2005, Bwin announced it had completed a shirt sponsorship deal with Buenos Aires-based football team Boca Juniors. This was cancelled after Argentina’s National Lottery claimed that the US$13.5m deal was illegal as Bwin was unlicensed at the time.
Recent violent disturbances on two ‘floating casinos’ outside Buenos Aires have put into sharp focus the issue of gambling law in a region which has been called the “sleeping giant,” but still presents sizable challenges for operators looking to new territories.
Though riverboat casinos, owned by Barcelona-based Cirsa, and Casino Club, an Argentine company, are reported to have re-opened after a dispute with casino workers over union representation, there is still no schedule for new legislation in the country.
Ramón Moyano, partner at Buenos Aires-based legal firm Estudio Beccar Varela, told eGaming Review that regulations, while possible in the coming year, are not inevitable.
He said: “The issue is stuck at the moment because of political fighting. As far as the casino riots it is a labour-driven conflict.” He added that there have been many predictions that with a new administration, new regulations will follow.
888’s head of Latin American region, Andres Bzurovski, said that its partnership with Tower Torneos was “going strongly”. But he added that there are still difficulties in the region. He said: “The Tower Torneos partnership has proven to be an excellent relationship and we can say that it the largest local community of poker players in the region, creating the trends and culture Latin American Poker. In 2008 we will increase our cooperation and support towards Tower Torneos with the objective of having the two most important brands in the region, each one on its segment.”
He added: “LATAM it a difficult region, where a company needs a great amount of flexibility. It seems that gambling will be part of the political agenda, but you have to remember that there are local interests which are close to the government that do not want to openly discuss anything related to gambling.”
January 18, 2008
William Hill says sportsbook technology not up to in-running; signs up to Turf TV
A failure on the part of William Hill’s in-house sports-betting platform to be able to handle in-running betting largely lies behind the announcement of a switch to a third-party provider, according to finance director Simon Lane.
Orbis is believed to be the new supplier to the UK high-street bookmakers online operation, following the announcement last week that the Leeds-based bookie was scrapping its in-house NextGen sportsbook technology.
“Technically, the system at present can handle some in-running, but it doesn’t deliver the slickness of some of our competitors,” Lane told eGaming Review. “We had originally stolen a march on our competitors, but the market has moved on. You need agility in your technology. Then to a lesser extent there were the demands on the international side.”
The admittance from William Hill points to how important in-running betting has become to the major bookmakers.
Lane said that as 2007 progressed there was growing concern within the company that it was falling behind its competitors in its provision of its in-running offering. “We have made a bold decision. It has been hard, washing your dirty linen in public. It's been embarrassing. But we needed certainty. We had to put our hands up.”
In a trading statement last week, the company admitted that alongside “competitive issues”, it was the impact of technology issues that led to performance at its online operation to continue to be “disappointing”. After a review conducted last November, it was decided to terminate the company’s NextGen technology platform.
The company said the decision would result in an exceptional non-cash impairment charge in relation to the existing technology programme of £22m and restructuring costs of around £4m.
As exclusively revealed by eGaming Review last week, an agreement with Orbis is thought by industry insiders to be a “done deal”. Orbis already supplies the online sportsbook technology to Ladbrokes, Paddy Power and the UK’s Tote.
William Hill saw its share price hit by the news from its trading statement last week. Despite saying that its retail division had performed strongly, traders took a dim view of the company’s short-term prospects. The share price has now fallen over 40% since its autumn high of 672p to its level at the end of last week of 390p.
The market concentrated on the downgraded earnings guidance. William Hill said full-year earnings before interest, tax and exceptional items to be around £285m. This is around 2% less than previous estimates.
However, the share price recovered some ground on Monday following the announcement that William Hill had signed up to TurfTV. The bookmaker will now receive coverage for its 2,275 shops from the 31 UK racecourses which had been unavailable in William Hill shops since 1 January.
William Hill is the latest high-street firm to sign up to the joint venture between the racecourse and Alphameric following similar deals with Coral and Ladbrokes at the turn of the year. It is not known how much the deal is worth.
Alan Morcombe, chief executive at Alphameric, said the deal with William Hill “signifies a milestone in the development of our business”.
Orbis is believed to be the new supplier to the UK high-street bookmakers online operation, following the announcement last week that the Leeds-based bookie was scrapping its in-house NextGen sportsbook technology.
“Technically, the system at present can handle some in-running, but it doesn’t deliver the slickness of some of our competitors,” Lane told eGaming Review. “We had originally stolen a march on our competitors, but the market has moved on. You need agility in your technology. Then to a lesser extent there were the demands on the international side.”
The admittance from William Hill points to how important in-running betting has become to the major bookmakers.
Lane said that as 2007 progressed there was growing concern within the company that it was falling behind its competitors in its provision of its in-running offering. “We have made a bold decision. It has been hard, washing your dirty linen in public. It's been embarrassing. But we needed certainty. We had to put our hands up.”
In a trading statement last week, the company admitted that alongside “competitive issues”, it was the impact of technology issues that led to performance at its online operation to continue to be “disappointing”. After a review conducted last November, it was decided to terminate the company’s NextGen technology platform.
The company said the decision would result in an exceptional non-cash impairment charge in relation to the existing technology programme of £22m and restructuring costs of around £4m.
As exclusively revealed by eGaming Review last week, an agreement with Orbis is thought by industry insiders to be a “done deal”. Orbis already supplies the online sportsbook technology to Ladbrokes, Paddy Power and the UK’s Tote.
William Hill saw its share price hit by the news from its trading statement last week. Despite saying that its retail division had performed strongly, traders took a dim view of the company’s short-term prospects. The share price has now fallen over 40% since its autumn high of 672p to its level at the end of last week of 390p.
The market concentrated on the downgraded earnings guidance. William Hill said full-year earnings before interest, tax and exceptional items to be around £285m. This is around 2% less than previous estimates.
However, the share price recovered some ground on Monday following the announcement that William Hill had signed up to TurfTV. The bookmaker will now receive coverage for its 2,275 shops from the 31 UK racecourses which had been unavailable in William Hill shops since 1 January.
William Hill is the latest high-street firm to sign up to the joint venture between the racecourse and Alphameric following similar deals with Coral and Ladbrokes at the turn of the year. It is not known how much the deal is worth.
Alan Morcombe, chief executive at Alphameric, said the deal with William Hill “signifies a milestone in the development of our business”.
January 10, 2008
Orbis in the frame to provide William Hill with new online sportsbook platform
Orbis is rumoured to be the name in the frame to provide William Hill with its new online sportsbook platform after the UK high-street bookmaking and gaming giant announced it was scrapping its own in-house programme.
According to high-level sources within the bookmaking industry, the agreement with Orbis is “a done deal”. Orbis was unavailable for comment.
A spokesperson for William Hill said it could not comment on the speculation.
William Hill sparked speculation with the announcement this morning in a trading update to the London Stock Exchange where it admitted that performance at its online operation had been “disappointing”.
It added that this reflected legacy technology issues “as well as the competitive market environment”.
Overall, the company said that in the 53 weeks to 1 January its retail operation had performed “strongly” and that the telephone business had “delivered a stable performance”. The firm expected full-year earnings before interest, tax and exceptional items to be around £285m. This represents a fall of around 2% from consensus estimates of around £292m. The share price fell over 6% on the morning of the announcement, down 28.5p to 404.75p.
William Hill already outsources its poker, casino and bingo technology provision form companies such as CryptoLogic and Virtue Fusion.
Back in November, William Hill instigated an independent review of its online sportsbook technology which concluded it should terminate its own NextGen technology programme and implement a third-party solution. The company said the decision would result in an exceptional non-cash impairment charge in relation to the existing technology programme of £22m and restructuring costs of around £4m.
According to high-level sources within the bookmaking industry, the agreement with Orbis is “a done deal”. Orbis was unavailable for comment.
A spokesperson for William Hill said it could not comment on the speculation.
William Hill sparked speculation with the announcement this morning in a trading update to the London Stock Exchange where it admitted that performance at its online operation had been “disappointing”.
It added that this reflected legacy technology issues “as well as the competitive market environment”.
Overall, the company said that in the 53 weeks to 1 January its retail operation had performed “strongly” and that the telephone business had “delivered a stable performance”. The firm expected full-year earnings before interest, tax and exceptional items to be around £285m. This represents a fall of around 2% from consensus estimates of around £292m. The share price fell over 6% on the morning of the announcement, down 28.5p to 404.75p.
William Hill already outsources its poker, casino and bingo technology provision form companies such as CryptoLogic and Virtue Fusion.
Back in November, William Hill instigated an independent review of its online sportsbook technology which concluded it should terminate its own NextGen technology programme and implement a third-party solution. The company said the decision would result in an exceptional non-cash impairment charge in relation to the existing technology programme of £22m and restructuring costs of around £4m.
December 14, 2007
Laughs at Party
There have been few laughs at PartyGaming since it retrenched last year after US hostility against online gambling, but John Davy's appointment to the board raises a smile. He is the founder of Jongleurs comedy clubs and the nominated representative of Ruth Parasol and Russell DeLeon , the PartyGaming founders and 28.4 per cent shareholders. Anurag Dikshit - the tech brains of the outfit and a 27 per cent shareholder - has nominated Emilio Gomez , a former senior partner of Baker Tilly in Gibraltar, where Party is licensed. Also joining the board are Lord Moonie , former junior defence minister, and Stephen Box , former finance director of National Grid and independent director at Michael Page.
http://www.ft.com/cms/s/0/77f0eedc-a9e9-11dc-aa8b-0000779fd2ac.html
http://www.ft.com/cms/s/0/77f0eedc-a9e9-11dc-aa8b-0000779fd2ac.html
Party goes to Hollywood
PartyGaming has announced its latest alliance, this time an exclusive licensing agreement with Paramount Pictures to develop a range of online slots based on four of the studio’s back catalogue.
The announcement came on the same day that Party issued a pre-close trading statement which said its financial performance was in line with expectations.
The company has also announced changes to the board which has seen founders Anurag Dikshit, Russell DeLeon and Ruth Parasol have placements appointed to represent their interests.
The new film-themed slot games will be available next year and will be based around Top Gun, The Godfather, Saturday Night Fever and Mission Impossible. They mark a first for the online gaming industry.
Party has had a busy few months, announcing deals with ITV, RTL in Germany and Sporting Index.
Mitch Garber, chief executive, said: “Popular brands are a differentiating factor in online gaming and this alliance will enhance and distinguish the quality of PartyCasino’s offer.”
Off the back of the trading statement, analysts at Dresdner Kleinwort have suggested the company should be on a greater P/E ratio that 16 times. The note forecasts 77% year-on-year growth for the fourth quarter and revenue growth expectations for 2008 of 28%.
Regarding the changes to the board, Dikshit, DeLeon and Parasol have placed two non-executive directors as board representatives - John Davy, Emilio Gomez.
Stephen Box and Lord Moonie have also been recruited. Parasol and DeLeon are 28.4% shareholders, and have nominated the founder of Jongleurs comedy club Davy, while Dikshit, who owns 27% of the company, nominated former senior partner of Baker Tilly in Gibraltar, Emilio Gomez. Life peer Lord Moonie is a former under secretary of state at the ministry of defence, and was MP for Kirkaldy between 1987 and 2005.
The announcement came on the same day that Party issued a pre-close trading statement which said its financial performance was in line with expectations.
The company has also announced changes to the board which has seen founders Anurag Dikshit, Russell DeLeon and Ruth Parasol have placements appointed to represent their interests.
The new film-themed slot games will be available next year and will be based around Top Gun, The Godfather, Saturday Night Fever and Mission Impossible. They mark a first for the online gaming industry.
Party has had a busy few months, announcing deals with ITV, RTL in Germany and Sporting Index.
Mitch Garber, chief executive, said: “Popular brands are a differentiating factor in online gaming and this alliance will enhance and distinguish the quality of PartyCasino’s offer.”
Off the back of the trading statement, analysts at Dresdner Kleinwort have suggested the company should be on a greater P/E ratio that 16 times. The note forecasts 77% year-on-year growth for the fourth quarter and revenue growth expectations for 2008 of 28%.
Regarding the changes to the board, Dikshit, DeLeon and Parasol have placed two non-executive directors as board representatives - John Davy, Emilio Gomez.
Stephen Box and Lord Moonie have also been recruited. Parasol and DeLeon are 28.4% shareholders, and have nominated the founder of Jongleurs comedy club Davy, while Dikshit, who owns 27% of the company, nominated former senior partner of Baker Tilly in Gibraltar, Emilio Gomez. Life peer Lord Moonie is a former under secretary of state at the ministry of defence, and was MP for Kirkaldy between 1987 and 2005.
December 13, 2007
Sportingbet Releases Third Quarter Results
Leading online sports betting and gaming group Sportingbet has released its results for the third quarter of the year and announced that its operating profit has risen by 110 percent.
Sportingbet was forced to sell or close its entire US operation following the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October of last year and stated that these latest results exclude this business.
Financial highlights include the rise in operating profit to $8.5 million from last year’s $4.1 million and the company reported that 13.8 percent of this increase was down to gaming, up from 2006’s 6.2 percent.
It announced cash on the balance sheet of $52 million, down from last year’s $106 million, and a statutory group losses of $3.4 million, which was considerably down on 2006’s $490.3 million.
'I am delighted with the group's strong performance in the first quarter, which has given us a very solid start to the financial year,” said Andrew McIver, Chief Executive for Sportingbet.
“With much of the restructuring now behind us, our focus can now be on better recruitment and retention of customers, on being a first class retailer of gaming services and on offering a true Internet-based experience. The second quarter has started well with good margins and volumes across the group. With the platform for growth in place, the board looks to the future with confidence.'
Sportingbet was forced to sell or close its entire US operation following the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October of last year and stated that these latest results exclude this business.
Financial highlights include the rise in operating profit to $8.5 million from last year’s $4.1 million and the company reported that 13.8 percent of this increase was down to gaming, up from 2006’s 6.2 percent.
It announced cash on the balance sheet of $52 million, down from last year’s $106 million, and a statutory group losses of $3.4 million, which was considerably down on 2006’s $490.3 million.
'I am delighted with the group's strong performance in the first quarter, which has given us a very solid start to the financial year,” said Andrew McIver, Chief Executive for Sportingbet.
“With much of the restructuring now behind us, our focus can now be on better recruitment and retention of customers, on being a first class retailer of gaming services and on offering a true Internet-based experience. The second quarter has started well with good margins and volumes across the group. With the platform for growth in place, the board looks to the future with confidence.'
888 signs white-label deal with Kamay to provide online poker and casino products in European market
Online gaming and betting operator 888 has entered into a white-label partnership with Kamay Holdings to provide online poker and casino products focusing on the “growing markets in Europe”.
888 said Kamay is led by a team of “industry veterans, with a track record of customer recruitment and traffic generation”. Gigi Levy, chief executive at 888 said: "As part of our vision and action to gain dominant market share in growing markets, we are implementing our white-labelling strategy, which enables us to achieve quick growth in parallel to 888's robust organic growth in those markets. The agreement is a further progression of 888’s diversified, multi-channel strategy to grow our customer reach and appeal globally."
The deal announced today is the latest white-label partnership from 888 after it announced deals with Rileyspoker in the UK and Tower Torneos in Latin America. 888 has also recently entered into a white-label deal with Rank subsidiary Blue Square that will see it 888 with a sports-betting website.
888 said Kamay is led by a team of “industry veterans, with a track record of customer recruitment and traffic generation”. Gigi Levy, chief executive at 888 said: "As part of our vision and action to gain dominant market share in growing markets, we are implementing our white-labelling strategy, which enables us to achieve quick growth in parallel to 888's robust organic growth in those markets. The agreement is a further progression of 888’s diversified, multi-channel strategy to grow our customer reach and appeal globally."
The deal announced today is the latest white-label partnership from 888 after it announced deals with Rileyspoker in the UK and Tower Torneos in Latin America. 888 has also recently entered into a white-label deal with Rank subsidiary Blue Square that will see it 888 with a sports-betting website.
Monopolies accused of using sports-betting corruption fears to ‘prop up failing case’
Allegations from the European State Lotteries and Toto Association (ESLTA) that “uncontrolled expansion” of online sports-betting opportunities has “facilitated attempts to rig matches” have been strongly rejected by the Remote Gambling Association (RGA).
The complaints follow the news last week that European football's governing body UEFA is investigating claims that 26 recent Champions League, UEFA Cup and World Cup qualifiers may have been affected by betting-related corruption.
The ESLTA is reported to have complained about a “growing number of actual and attempted manipulations of sporting competitions through betting”.
But Clive Hawkswood, chief executive of the RGA, accused the ESLTA of taking advantage of UEFA’s action "to prop up its failing case to maintain control of sports-betting services by state monopolies.”
Hawkswood pointed out that regulated private betting operators were “regulated to the same standard as state monopolies, if not better”. He added that it was the betting companies themselves that would be the victims of any match-fixing.
“Furthermore, all out members will collaborate to the extent of the law with the competent authorities on any case of alleged match-fixing. The integrity of sports is of fundamental importance to all betting operators because they provide our core products. Wherever possible we are committed to working with sporting authorities to address any problems which arise and that will continue to be the case.”
The complaints follow the news last week that European football's governing body UEFA is investigating claims that 26 recent Champions League, UEFA Cup and World Cup qualifiers may have been affected by betting-related corruption.
The ESLTA is reported to have complained about a “growing number of actual and attempted manipulations of sporting competitions through betting”.
But Clive Hawkswood, chief executive of the RGA, accused the ESLTA of taking advantage of UEFA’s action "to prop up its failing case to maintain control of sports-betting services by state monopolies.”
Hawkswood pointed out that regulated private betting operators were “regulated to the same standard as state monopolies, if not better”. He added that it was the betting companies themselves that would be the victims of any match-fixing.
“Furthermore, all out members will collaborate to the extent of the law with the competent authorities on any case of alleged match-fixing. The integrity of sports is of fundamental importance to all betting operators because they provide our core products. Wherever possible we are committed to working with sporting authorities to address any problems which arise and that will continue to be the case.”
December 11, 2007
Sportingbet looks to organic expansion in Europe
Sportingbet’s European sports-betting businesses have “huge potential for organic growth”, according to David Hobday, the company’s chief operating officer.
Hobday was speaking after Sportingbet released first quarter figures which showed operating profit before exceptionals rising 110% to £4.2m from £2m in 2006. The company also showed a pre-exceptionals pre-tax profit of £1.5m compared to £1.1m last year.
However, net gaming revenue for the group fell slightly to £30.4m from £32.5m after a fall in poker rake. The company attributed the fall to the migration of its poker player base to the Boss platform following the closure of its standalone Paradise poker platform. But Hobday emphasised that the poker business has stabilised following the migration and said the business had seen a pick-up in November with average daily rake being 17% up on the previous month. The casino offering saw the number of bets placed rise 12%, although at a lower average bet size (£4.60 compared with £5.57 in the same period last year. The company said this represented a “substantial change in product mix”.
In terms of regulatory developments, Hobday said the company remained in talks with eh US Department of Justice regarding a possible settlement related to the company’s previous activities in the US. He added that the situation in Europe remained “uncomfortable” but relatively stable.
Sportingbet’s key European markets include Turkey, Spain, Italy and Greece – all represented at next year’s football European Championships - and Hobday said the competition represented a “good opportunity, but the challenge is to differentiate”.
With regard to European sports-betting, Sportingbet has seen amounts wagered rise to £170m from £148m with net gaming revenue rising to £15m from £13m. The number of sports bets over the period rose 16%, a rise which Hobday attributed to improvements in the company’s product offering, particularly in terms of in-running.
“The products have developed so that the customer is now encouraged to stay with us for longer and bet more,” he said.
The company also highlighted good trading at Sportingbet’s Australian operation, despite the intervention of equine influenza in two states effectively shutting down horse-racing in those territories over the period. Overall customer numbers in Australia rose by 31% to 15,164. However, net gaming revenue fell slightly to £3.5m from £3.9m due to slippage at the high-rollers telephone business.
Looking ahead, the company said trading in the second quarter had “started well” and that amounts wagered in sports-betting was 17% up year-on-year.
Hobday was speaking after Sportingbet released first quarter figures which showed operating profit before exceptionals rising 110% to £4.2m from £2m in 2006. The company also showed a pre-exceptionals pre-tax profit of £1.5m compared to £1.1m last year.
However, net gaming revenue for the group fell slightly to £30.4m from £32.5m after a fall in poker rake. The company attributed the fall to the migration of its poker player base to the Boss platform following the closure of its standalone Paradise poker platform. But Hobday emphasised that the poker business has stabilised following the migration and said the business had seen a pick-up in November with average daily rake being 17% up on the previous month. The casino offering saw the number of bets placed rise 12%, although at a lower average bet size (£4.60 compared with £5.57 in the same period last year. The company said this represented a “substantial change in product mix”.
In terms of regulatory developments, Hobday said the company remained in talks with eh US Department of Justice regarding a possible settlement related to the company’s previous activities in the US. He added that the situation in Europe remained “uncomfortable” but relatively stable.
Sportingbet’s key European markets include Turkey, Spain, Italy and Greece – all represented at next year’s football European Championships - and Hobday said the competition represented a “good opportunity, but the challenge is to differentiate”.
With regard to European sports-betting, Sportingbet has seen amounts wagered rise to £170m from £148m with net gaming revenue rising to £15m from £13m. The number of sports bets over the period rose 16%, a rise which Hobday attributed to improvements in the company’s product offering, particularly in terms of in-running.
“The products have developed so that the customer is now encouraged to stay with us for longer and bet more,” he said.
The company also highlighted good trading at Sportingbet’s Australian operation, despite the intervention of equine influenza in two states effectively shutting down horse-racing in those territories over the period. Overall customer numbers in Australia rose by 31% to 15,164. However, net gaming revenue fell slightly to £3.5m from £3.9m due to slippage at the high-rollers telephone business.
Looking ahead, the company said trading in the second quarter had “started well” and that amounts wagered in sports-betting was 17% up year-on-year.
December 05, 2007
Bodog ‘not subject to Nevada law’ rules Las Vegas magistrate
A federal magistrate in Las Vegas has ruled that Bodog is not subject to Nevada law and that founder Calvin Ayre is not required to appear before the court and thus cannot be found guilty of contempt of court.
In a ruling issued on 28 November, the magistrate denied a motion of contempt on the part of ‘patent troll’ 1st Technology, the company that won a ruling in Washington state which meant Bodog ‘lost’ its domain name.
Ayre said: “This has been an interesting case, and as it progresses, there seems to be plenty of compelling facts emerging. With the recent ruling in favour of the defence, I’m happy that it was also clarified by the judge that I am, by law, not personally in contempt of any order from the Nevada court.”
In Washington state, Bodog is in the process of “seeking clarity” on the law of domain-name ownership rights and whether they are property which can be subject to seizure.
http://www.egrmagazine.com/item/2311
In a ruling issued on 28 November, the magistrate denied a motion of contempt on the part of ‘patent troll’ 1st Technology, the company that won a ruling in Washington state which meant Bodog ‘lost’ its domain name.
Ayre said: “This has been an interesting case, and as it progresses, there seems to be plenty of compelling facts emerging. With the recent ruling in favour of the defence, I’m happy that it was also clarified by the judge that I am, by law, not personally in contempt of any order from the Nevada court.”
In Washington state, Bodog is in the process of “seeking clarity” on the law of domain-name ownership rights and whether they are property which can be subject to seizure.
http://www.egrmagazine.com/item/2311
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