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”.
August 19, 2010
August 11, 2010
Ontario Lottery and Gaming Corp. to bring online gambling to Ontario in 2012
Ontario will start offering online gambling in 2012, with the Ontario Lottery and Gaming Corp. promising a secure environment that will protect young people and problem gamblers.
"OLG needs to be current and to keep in tune with the changing needs of our customers," OLG chair Paul Godfrey told a news conference on Tuesday.
Finance Minister Dwight Duncan said the move was meant to ensure "the competitiveness of OLG going forward."
"We know that we're losing about $400 million per year to offshore websites," Duncan said.
Godfrey added: "If we're going to retain Ontarians' money in Ontario, we've got to start doing it now."
In the 2010 budget, documents showed that OLG revenue dropped by $83 million, mainly due to lower revenue from slot machines.
The returns from the online gambling expansion will be modest, Duncan admitted. Government officials have estimated Ontario will make about $100 million per year within five years of startup. Last year, the OLG generated $1.7 billion in revenue for the province.
Robert Murray, manager of the problem gambling project at the Centre for Addiction and Mental Health in Toronto, said while online gamblers represent only a small portion -- about 2.1 per cent -- of total gamblers, the Internet is one of the fastest-growing methods of gambling.
Murray said he is concerned that more people will want to try online gambling if they know it is government-sanctioned.
"The trick is to balance the need to generate revenue with the social consequences that this expansion of gambling may result in," Murray told CTV News Channel Tuesday afternoon. "There's going to be a social impact here because people are going to have a variety of different ways of now accessing gambling…and this is going to bring gambling in your home."
Duncan said there will be safeguards to ensure responsible gambling.
"Although Ontario is following many other jurisdictions, we feel that by the time OLG launches its site, it will benefit from best practices and policies in use worldwide," he said.
British Columbia launched an online casino last month -- PlayNow.com. Quebec is expected to soon follow. The Atlantic Lottery Corp. offers five interactive games through its website, including Hold'em Poker.
The U.S. is expected to end its Internet gambling ban this fall.
Godfrey said Ontarians currently gambling online are doing so in unlicensed, unregulated environments.
Ontario's online gaming channel will be safe and secure, he said.
There will be strong age-verification procedures to keep underage gamblers from playing, Godfrey said.
"It will implement the gold standard in responsible gaming controls and tools," he said. "Best-in-class security will be utilized to ensure the safety and security of customers' accounts and personal information."
B.C.'s website is having problems. The financial information of some players was compromised, and the B.C. Lottery Corp. had to take PlayNow.com offline and it remains unavailable at this time.
Ontario NDP Leader Andrea Horwath called OLG's move "a big mistake."
"If the government really wanted to show some leadership here, they would be working with the federal government to figure out how we can prevent online gambling in Canada and in Ontario," Horwath told reporters.
Godfrey said players won't be able to participate on the Ontario website anonymously.
"This provides a controlled gaming environment," he said. "It allows us to identify each player, allow for play limits and warning flags around extensive play."
If necessary, free treatment services will be made available, he said.
"OLG needs to be current and to keep in tune with the changing needs of our customers," OLG chair Paul Godfrey told a news conference on Tuesday.
Finance Minister Dwight Duncan said the move was meant to ensure "the competitiveness of OLG going forward."
"We know that we're losing about $400 million per year to offshore websites," Duncan said.
Godfrey added: "If we're going to retain Ontarians' money in Ontario, we've got to start doing it now."
In the 2010 budget, documents showed that OLG revenue dropped by $83 million, mainly due to lower revenue from slot machines.
The returns from the online gambling expansion will be modest, Duncan admitted. Government officials have estimated Ontario will make about $100 million per year within five years of startup. Last year, the OLG generated $1.7 billion in revenue for the province.
Robert Murray, manager of the problem gambling project at the Centre for Addiction and Mental Health in Toronto, said while online gamblers represent only a small portion -- about 2.1 per cent -- of total gamblers, the Internet is one of the fastest-growing methods of gambling.
Murray said he is concerned that more people will want to try online gambling if they know it is government-sanctioned.
"The trick is to balance the need to generate revenue with the social consequences that this expansion of gambling may result in," Murray told CTV News Channel Tuesday afternoon. "There's going to be a social impact here because people are going to have a variety of different ways of now accessing gambling…and this is going to bring gambling in your home."
Duncan said there will be safeguards to ensure responsible gambling.
"Although Ontario is following many other jurisdictions, we feel that by the time OLG launches its site, it will benefit from best practices and policies in use worldwide," he said.
British Columbia launched an online casino last month -- PlayNow.com. Quebec is expected to soon follow. The Atlantic Lottery Corp. offers five interactive games through its website, including Hold'em Poker.
The U.S. is expected to end its Internet gambling ban this fall.
Godfrey said Ontarians currently gambling online are doing so in unlicensed, unregulated environments.
Ontario's online gaming channel will be safe and secure, he said.
There will be strong age-verification procedures to keep underage gamblers from playing, Godfrey said.
"It will implement the gold standard in responsible gaming controls and tools," he said. "Best-in-class security will be utilized to ensure the safety and security of customers' accounts and personal information."
B.C.'s website is having problems. The financial information of some players was compromised, and the B.C. Lottery Corp. had to take PlayNow.com offline and it remains unavailable at this time.
Ontario NDP Leader Andrea Horwath called OLG's move "a big mistake."
"If the government really wanted to show some leadership here, they would be working with the federal government to figure out how we can prevent online gambling in Canada and in Ontario," Horwath told reporters.
Godfrey said players won't be able to participate on the Ontario website anonymously.
"This provides a controlled gaming environment," he said. "It allows us to identify each player, allow for play limits and warning flags around extensive play."
If necessary, free treatment services will be made available, he said.
August 10, 2010
Women a growing force online
A new study from Comscore on the internet behaviour of women could be of interest to online gambling marketers.
The study showed that although women are still slightly in the minority among global Web users, they are closing the gap with men and, once connected, spend about two more hours online a month on average.
Women users aged 55 and over spend an average 214 minutes a month in online gaming, whilst male players aged between 15 and 24 – a key group – spend only an average of 92 minutes a month.
According to Comscore, females exceed males particularly in communications, devoting about one-third of their online time to social networking, instant messaging and e-mail messages compared with about one-quarter for men. Women 45 and older exhibited the greatest growth in social networking.
Women also outpace men in photo sharing and shopping, and in gaming, favouring casual puzzle, card and board games. Female gamers over 55 spend the most time online gaming of any demographic by far and are nearly as common as the most represented group, males 15 to 24.
Women are also being found in increasing numbers on gambling and sexually oriented websites, where they are almost as likely to be found on gambling sites as men, and over a third of women users visit sex-content websites.
“Unlike the earlier days of the Internet, women today exhibit many behaviours that are perhaps surprisingly similar to their male counterparts,” said Andrew Lipsman, senior director of industry analysis at Comscore.
The study showed that although women are still slightly in the minority among global Web users, they are closing the gap with men and, once connected, spend about two more hours online a month on average.
Women users aged 55 and over spend an average 214 minutes a month in online gaming, whilst male players aged between 15 and 24 – a key group – spend only an average of 92 minutes a month.
According to Comscore, females exceed males particularly in communications, devoting about one-third of their online time to social networking, instant messaging and e-mail messages compared with about one-quarter for men. Women 45 and older exhibited the greatest growth in social networking.
Women also outpace men in photo sharing and shopping, and in gaming, favouring casual puzzle, card and board games. Female gamers over 55 spend the most time online gaming of any demographic by far and are nearly as common as the most represented group, males 15 to 24.
Women are also being found in increasing numbers on gambling and sexually oriented websites, where they are almost as likely to be found on gambling sites as men, and over a third of women users visit sex-content websites.
“Unlike the earlier days of the Internet, women today exhibit many behaviours that are perhaps surprisingly similar to their male counterparts,” said Andrew Lipsman, senior director of industry analysis at Comscore.
August 09, 2010
Spoiling tactics will not delay entry to Danish market for PartyGaming
PartyGaming chief executive Jim Ryan addressed a number of questions on operational issues facing PartyGaming during his post-results press conference Friday, and one of these concerned the disruption of the PartyGaming – Danske Spil agreement to partner going into a newly liberalised Danish gambling market.
Licensing in Denmark comes into full effect in January 2011, and the b2b partnership would have seen state monopoly Danske Spil provided with online poker and casino products by Ryan’s company. The wheels temporarily came off the project two months ago when rival software producer Playtech launched a successful spoiler complaint in which it claimed that mandatory tender procedures had not been adhered to.
Whilst not making any direct commitments in regard to the Danish market, Ryan stressed that the PartyGaming platform is fully geared up and ready for a Danish launch, and that it may not necessarily include Danske Spil.
“We positioned ourselves hopefully to do business with Danske Spil in future,” Ryan revealed. “At this point in time, we have nothing to announce, but what I can tell you is that we are readying the PartyGaming platform, to launch in Denmark on January 1 2011.”
He added that the trend for European governments to start regulating online gambling represented a good opportunity for his company to grow and compete more effectively with online poker majors like Pokerstars and Full Tilt, which had been taking advantage of PartyGaming’s withdrawal from the US market to build their businesses.
Describing online poker as an intensely competitive market, Ryan said: “However, as we move into regulated markets, particularly ring fenced regulated markets, where competitors can’t bring worldwide liquidity into the equation to compete, we have a level playing field, an opportunity to invest freely in advertising and these factors equal growth.”
Licensing in Denmark comes into full effect in January 2011, and the b2b partnership would have seen state monopoly Danske Spil provided with online poker and casino products by Ryan’s company. The wheels temporarily came off the project two months ago when rival software producer Playtech launched a successful spoiler complaint in which it claimed that mandatory tender procedures had not been adhered to.
Whilst not making any direct commitments in regard to the Danish market, Ryan stressed that the PartyGaming platform is fully geared up and ready for a Danish launch, and that it may not necessarily include Danske Spil.
“We positioned ourselves hopefully to do business with Danske Spil in future,” Ryan revealed. “At this point in time, we have nothing to announce, but what I can tell you is that we are readying the PartyGaming platform, to launch in Denmark on January 1 2011.”
He added that the trend for European governments to start regulating online gambling represented a good opportunity for his company to grow and compete more effectively with online poker majors like Pokerstars and Full Tilt, which had been taking advantage of PartyGaming’s withdrawal from the US market to build their businesses.
Describing online poker as an intensely competitive market, Ryan said: “However, as we move into regulated markets, particularly ring fenced regulated markets, where competitors can’t bring worldwide liquidity into the equation to compete, we have a level playing field, an opportunity to invest freely in advertising and these factors equal growth.”
August 07, 2010
PartyGaming ready for US re-entry
Last week’s probity agreement with major shareholders Russ De Leon and Ruth Parasol means nothing is preventing PartyGaming from being licensed and re-entering the US, its chief executive has admitted.
De Leon and Parasol’s decision not to follow PartyGaming and the other company founder Anurag Dikshit and settle with US authorities for activities prior to passage of UIGEA had led to questions from the markets surrounding Party's ability to get licensed at federal or state level in the US.
Jim Ryan, however, highlighted that last week’s merger agreement had included a provision that if “perhaps a shareholder is going to be in the way of us getting a licence or completing a suitability review”, the company could obligate the shareholder to liquidate their position.
Ryan said: “There’s always been questions about PartyGaming and our position to do that, but we have now closed the loop and I think we are very well positioned for re-entering. Now all we need is regulation.”
On regulation, Ryan said that there were now three catalysts “driving our enthusiasm about re-entering into this market and regulation.”
“If we were sitting here a year ago, we would be talking about the efforts of lobbyists at various European online gaming organisations had hired to try and move regulation forward. Today, we are talking about in-country catalysts, organisations that are going to benefit from the addition of online gaming products,” Ryan said.
The first of these catalysts, according to Ryan was “new sources of revenue, and not just at a government level, but also at a land-based operator level in that country.”
“Another interesting catalyst are the efforts of Harrah’s and the WSOP, that they’ve announced they are actively pursuing a strategy has moved a lot of their competitors into looking at and exploring and wanting to partner up with other operators in the sector. Then we’ve got the catalyst of GTech acquiring various online gaming assets and talking to state-run lotteries about what online businesses can do for their revenue streams.”
Ryan, however, admitted that although he felt Party’s US settlement, subscription poker and WPT brand would serve the company well as it moves into the regulated environment, he still “didn’t know” if it would be licensed as a B2C operator.
“It is also equally possible, if not more likely, that we would have to offer our services to existing operators or existing licence holders. That’s why developing our B2B and B2G model was fundamental not just for European regulation but equally so for US regulation.”
The company’s negotiations with 12 land-based operators in the US over running events under its WPT Brand had given Party “a chance to talk to them about possibly leveraging that into the online world,” Ryan also revealed.
De Leon and Parasol’s decision not to follow PartyGaming and the other company founder Anurag Dikshit and settle with US authorities for activities prior to passage of UIGEA had led to questions from the markets surrounding Party's ability to get licensed at federal or state level in the US.
Jim Ryan, however, highlighted that last week’s merger agreement had included a provision that if “perhaps a shareholder is going to be in the way of us getting a licence or completing a suitability review”, the company could obligate the shareholder to liquidate their position.
Ryan said: “There’s always been questions about PartyGaming and our position to do that, but we have now closed the loop and I think we are very well positioned for re-entering. Now all we need is regulation.”
On regulation, Ryan said that there were now three catalysts “driving our enthusiasm about re-entering into this market and regulation.”
“If we were sitting here a year ago, we would be talking about the efforts of lobbyists at various European online gaming organisations had hired to try and move regulation forward. Today, we are talking about in-country catalysts, organisations that are going to benefit from the addition of online gaming products,” Ryan said.
The first of these catalysts, according to Ryan was “new sources of revenue, and not just at a government level, but also at a land-based operator level in that country.”
“Another interesting catalyst are the efforts of Harrah’s and the WSOP, that they’ve announced they are actively pursuing a strategy has moved a lot of their competitors into looking at and exploring and wanting to partner up with other operators in the sector. Then we’ve got the catalyst of GTech acquiring various online gaming assets and talking to state-run lotteries about what online businesses can do for their revenue streams.”
Ryan, however, admitted that although he felt Party’s US settlement, subscription poker and WPT brand would serve the company well as it moves into the regulated environment, he still “didn’t know” if it would be licensed as a B2C operator.
“It is also equally possible, if not more likely, that we would have to offer our services to existing operators or existing licence holders. That’s why developing our B2B and B2G model was fundamental not just for European regulation but equally so for US regulation.”
The company’s negotiations with 12 land-based operators in the US over running events under its WPT Brand had given Party “a chance to talk to them about possibly leveraging that into the online world,” Ryan also revealed.
August 06, 2010
Players face court in Belgian match-fixing probe
A total of 31 people, including nine players, are to appear in court as part of a match-fixing probe in Belgium.
The players, connected to Lierse, newly promoted to the top flight, will appear at a pre-trial hearing on Nov. 30, a spokeswoman for Belgium's federal prosecutor said on Thursday. She declined to name the players involved, saying some may not end up being prosecuted.
Nobody at Lierse was immediately available to comment. The prosecutor's office said in a statement that St Truiden, FC Brussels and La Louviere, who merged with Couillet in June 2009 to form FCLL, were also involved.
St Truiden are in the top flight while FC Brussels play in the second division and FCLL feature in the fourth tier.
Belgian police launched an investigation after Internet betting exchange Betfair logged heavy betting patterns relating to La Louviere's 3-1 win over St Truiden in a first division match in Oct. 2005.
In a statement on Thursday, the prosecutor's office said Ye Zheyun, a Chinese businessman suspected of being the lynchpin of the scandal, will also be asked to appear in court.
Ye has previously denied any involvement in the affair.
A total of nine matches were manipulated during the 2004/05 season, the statement said. Sums of 5,000 to 40,000 euros ($6,562-$52,490) were paid per match and per player, it added.
The players, connected to Lierse, newly promoted to the top flight, will appear at a pre-trial hearing on Nov. 30, a spokeswoman for Belgium's federal prosecutor said on Thursday. She declined to name the players involved, saying some may not end up being prosecuted.
Nobody at Lierse was immediately available to comment. The prosecutor's office said in a statement that St Truiden, FC Brussels and La Louviere, who merged with Couillet in June 2009 to form FCLL, were also involved.
St Truiden are in the top flight while FC Brussels play in the second division and FCLL feature in the fourth tier.
Belgian police launched an investigation after Internet betting exchange Betfair logged heavy betting patterns relating to La Louviere's 3-1 win over St Truiden in a first division match in Oct. 2005.
In a statement on Thursday, the prosecutor's office said Ye Zheyun, a Chinese businessman suspected of being the lynchpin of the scandal, will also be asked to appear in court.
Ye has previously denied any involvement in the affair.
A total of nine matches were manipulated during the 2004/05 season, the statement said. Sums of 5,000 to 40,000 euros ($6,562-$52,490) were paid per match and per player, it added.
August 05, 2010
Novibet gets Isle of Man internet gambling licence
Novibet the latest to meet island jurisdiction's standards
The Isle of Man government has revealed that its latest online gambling licensee is e-sports betting company Novigroup Limited, which owns the domain Novibet.com. The company has been awarded an e-gaming licence by the Isle of Man Gambling Supervision Commission (GSC), allowing it to operate on the Isle of Man, a white-listed jurisdiction.
Novibet is a fully licensed online sportsbook which provides customers with on-screen betting offers on screen in a choice of eight different languages, with highlights and live score updates.
The site promises the most competitive odds on select teams, and offers live chat rooms so that punters can interact with each other. Wagering is accepted on a range of sports including all European football events, basketball, tennis, cricket, darts, boxing, ice hockey and motor sports.
Garth Kimber, Head of e-Gaming Development, Isle of Man Government’s Department of Economic Development commented: “The addition of Novibet to the Isle of Man showcases the Island’s success as a leading platform for gaming companies. The high level of regulation and support in the Isle of Man offers an ideal environment for Novibet to develop its business.”
The Isle of Man government has revealed that its latest online gambling licensee is e-sports betting company Novigroup Limited, which owns the domain Novibet.com. The company has been awarded an e-gaming licence by the Isle of Man Gambling Supervision Commission (GSC), allowing it to operate on the Isle of Man, a white-listed jurisdiction.
Novibet is a fully licensed online sportsbook which provides customers with on-screen betting offers on screen in a choice of eight different languages, with highlights and live score updates.
The site promises the most competitive odds on select teams, and offers live chat rooms so that punters can interact with each other. Wagering is accepted on a range of sports including all European football events, basketball, tennis, cricket, darts, boxing, ice hockey and motor sports.
Garth Kimber, Head of e-Gaming Development, Isle of Man Government’s Department of Economic Development commented: “The addition of Novibet to the Isle of Man showcases the Island’s success as a leading platform for gaming companies. The high level of regulation and support in the Isle of Man offers an ideal environment for Novibet to develop its business.”
August 04, 2010
California senator joins fight to legalise sports betting
California poker bill author Senator Rod Wright has said the US’ most populous state could join New Jersey’s legal challenge to the 18-year-old federal ban on sports betting.
Wright confirmed to ESPN Radio Los Angeles yesterday he had joined New Jersey officials in their fight to legalise sports betting: “You’re talking about an industry that’s already a multi-billion dollar industry in the United States.
“We allow three states – Oregon, Delaware and Nevada – to have sports betting. In addition, if you take the internet that is kinda-sorta now going – internet poker in particular but some of the other online gaming that takes place – you’re talking about an industry, in the United States, that’s probably close to US$15 to US$20bn a year already.”
New Jersey’s lawsuit, filed last March by New Jersey Senator Lesniak, iMEGA and two groups representing horse racing interests in the state, argues the Professional and Amateur Sports Protection Act (PASPA) of 1992 is unconstitutional, as it discriminates against the people of New Jersey by allowing four states exempted under the law to reap tax revenue from sports betting while the Garden State cannot.
Wright added that he may ask the California legislature to join the fight: “We’re looking at it. When you talk about gaming or alcohol or prostitution, there’s kind of a push-back from people. … But particularly in this lawsuit, we’re talking about sports betting.
“I’m not a lawyer, but the lawyers to whom I’ve spoken, it’s kind of an equal-protection portion of the federal constitution. How am I able to do something in Oregon that I can’t do in California. What is it about Oregon that gives them a privilege that a guy in San Francisco can’t have?”
Despite being in “general support” of sports betting, recently installed New Jersey Republican Governor Chris Christie announced last month that he will not be joining Lesniak’s legal battle to bring sports betting to the US state.
Wright confirmed to ESPN Radio Los Angeles yesterday he had joined New Jersey officials in their fight to legalise sports betting: “You’re talking about an industry that’s already a multi-billion dollar industry in the United States.
“We allow three states – Oregon, Delaware and Nevada – to have sports betting. In addition, if you take the internet that is kinda-sorta now going – internet poker in particular but some of the other online gaming that takes place – you’re talking about an industry, in the United States, that’s probably close to US$15 to US$20bn a year already.”
New Jersey’s lawsuit, filed last March by New Jersey Senator Lesniak, iMEGA and two groups representing horse racing interests in the state, argues the Professional and Amateur Sports Protection Act (PASPA) of 1992 is unconstitutional, as it discriminates against the people of New Jersey by allowing four states exempted under the law to reap tax revenue from sports betting while the Garden State cannot.
Wright added that he may ask the California legislature to join the fight: “We’re looking at it. When you talk about gaming or alcohol or prostitution, there’s kind of a push-back from people. … But particularly in this lawsuit, we’re talking about sports betting.
“I’m not a lawyer, but the lawyers to whom I’ve spoken, it’s kind of an equal-protection portion of the federal constitution. How am I able to do something in Oregon that I can’t do in California. What is it about Oregon that gives them a privilege that a guy in San Francisco can’t have?”
Despite being in “general support” of sports betting, recently installed New Jersey Republican Governor Chris Christie announced last month that he will not be joining Lesniak’s legal battle to bring sports betting to the US state.
August 03, 2010
OPAP calls tender, grants Intralot interim extension
Greek gaming monopoly operator OPAP has renewed its agreement with existing gaming supplier Intralot by one year while it carries out an international tender for the provision of new gaming systems and respective support services.
OPAP has already started the process of selecting technical and legal advisors who will assist the company in organising the evaluation process and publishing the relevant Request for Proposal (RFP) documents.
The international tender concerns the provision of new gaming systems, infrastructure, gaming operation, and respective support services as well as the installation and transition from its current system to the new system.
While the company awaits bids under the tender, OPAP has agreed to extend its existing contract with Intralot for one additional year, with Intralot tasked with a number of objectives including uninterrupted operations, growth of modern services to clients, expansion of content and games offered, as well as upgrading agency functionality and reducing operating costs.
Intralot will upgrade the existing technology infrastructure of OPAP and provide technical support services, maintenance and operation of the infrastructure, whilst proceeding with the expansion of the LOTOS Horizon audiovisual system that will require the installation of 20,000 TV sets in OPAP’s retail network, which will broadcast information content regarding OPAP games.
Intralot will also develop, install and operate the OPAP/TV system which will broadcast OPAP-specific sports and betting content via satellite and internet exclusively to OPAP agencies.
In addition Intralot will develop and operate new games which will be operated on LOTOS Horizon and on OPAP's self-service terminals, and will provide support services for OPAP’s game ‘Pame Stihima’ and undertake the introduction of new forms of betting content as well as live betting.
Intralot will receive an annual fixed fee of €57m under the contract extension from OPAP, together with an additional fee representing 8 per cent of the gross proceeds of the new games carried out by TAX (autonomous terminals) and Monitor Games, the installation of which will be entirely at Intralot’s expense.
OPAP added that should a new supplier be awarded the tender, the company has the option to extend the contract with Intralot for one further year, in order to secure the transition from the current system to a new system.
OPAP has already started the process of selecting technical and legal advisors who will assist the company in organising the evaluation process and publishing the relevant Request for Proposal (RFP) documents.
The international tender concerns the provision of new gaming systems, infrastructure, gaming operation, and respective support services as well as the installation and transition from its current system to the new system.
While the company awaits bids under the tender, OPAP has agreed to extend its existing contract with Intralot for one additional year, with Intralot tasked with a number of objectives including uninterrupted operations, growth of modern services to clients, expansion of content and games offered, as well as upgrading agency functionality and reducing operating costs.
Intralot will upgrade the existing technology infrastructure of OPAP and provide technical support services, maintenance and operation of the infrastructure, whilst proceeding with the expansion of the LOTOS Horizon audiovisual system that will require the installation of 20,000 TV sets in OPAP’s retail network, which will broadcast information content regarding OPAP games.
Intralot will also develop, install and operate the OPAP/TV system which will broadcast OPAP-specific sports and betting content via satellite and internet exclusively to OPAP agencies.
In addition Intralot will develop and operate new games which will be operated on LOTOS Horizon and on OPAP's self-service terminals, and will provide support services for OPAP’s game ‘Pame Stihima’ and undertake the introduction of new forms of betting content as well as live betting.
Intralot will receive an annual fixed fee of €57m under the contract extension from OPAP, together with an additional fee representing 8 per cent of the gross proceeds of the new games carried out by TAX (autonomous terminals) and Monitor Games, the installation of which will be entirely at Intralot’s expense.
OPAP added that should a new supplier be awarded the tender, the company has the option to extend the contract with Intralot for one further year, in order to secure the transition from the current system to a new system.
888 on radar as takeover fever grips gaming sector
Online gaming firm 888 said it had been contacted by rivals looking for takeover opportunities in the wake of last week's tie-up between Austria's bwin and PartyGaming.
The merger between bwin and PartyGaming will create the world's biggest Internet gambling firm, worth $4 billion at current share prices, and puts pressure on other companies in the sector to strike deals or risk losing out as online gambling laws are relaxed across the world.
"This puts us in a position in which we are one of the best assets in the field -- we got a few phone calls immediately from various people. Everybody in the industry is looking and saying 'who is the best one to merge with if we need to?'," Chief Executive Gigi Levy said in an interview with Reuters.
"Party and bwin took almost a year to close the deal so we don't see anything happening imminently but there's definitely expressions of interest," he said.
KBC Peel Hunt analyst Nick Bartram said 888 must strike a deal in order to fully realise value in its business, especially in light of its weak trading performance in recent quarters.
"The pressure is now on for others to pursue consolidation or risk being left further behind. For 888 consolidation looks imperative and, given the bottom line performance, the group could be pursuing this from a sole position of weakness," he said.
888, which runs online casino, bingo and poker websites, said on Tuesday it made second quarter operating income of $61 million, unchanged on the previous year, after growth in bingo and emerging markets offset weak trading in its poker division.
Poker has been hit by competition from websites continuing to take bets from U.S.-based gamblers illegally.
888 said average daily revenues in July were down 6 percent on the previous quarter, with summer holidays and the soccer World Cup providing alternative attractions for gamblers.
In May, 888 warned full-year earnings would be significantly lower than market expectations.
Shares in 888, which have lost over half their value since the start of the year, were trading down 1.5 percent at 49.25 pence at 0915 GMT.
888 also said it had formed a partnership with Microgame to provide online casino products to the Italian market.
The merger between bwin and PartyGaming will create the world's biggest Internet gambling firm, worth $4 billion at current share prices, and puts pressure on other companies in the sector to strike deals or risk losing out as online gambling laws are relaxed across the world.
"This puts us in a position in which we are one of the best assets in the field -- we got a few phone calls immediately from various people. Everybody in the industry is looking and saying 'who is the best one to merge with if we need to?'," Chief Executive Gigi Levy said in an interview with Reuters.
"Party and bwin took almost a year to close the deal so we don't see anything happening imminently but there's definitely expressions of interest," he said.
KBC Peel Hunt analyst Nick Bartram said 888 must strike a deal in order to fully realise value in its business, especially in light of its weak trading performance in recent quarters.
"The pressure is now on for others to pursue consolidation or risk being left further behind. For 888 consolidation looks imperative and, given the bottom line performance, the group could be pursuing this from a sole position of weakness," he said.
888, which runs online casino, bingo and poker websites, said on Tuesday it made second quarter operating income of $61 million, unchanged on the previous year, after growth in bingo and emerging markets offset weak trading in its poker division.
Poker has been hit by competition from websites continuing to take bets from U.S.-based gamblers illegally.
888 said average daily revenues in July were down 6 percent on the previous quarter, with summer holidays and the soccer World Cup providing alternative attractions for gamblers.
In May, 888 warned full-year earnings would be significantly lower than market expectations.
Shares in 888, which have lost over half their value since the start of the year, were trading down 1.5 percent at 49.25 pence at 0915 GMT.
888 also said it had formed a partnership with Microgame to provide online casino products to the Italian market.
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