A former International Cricket Council chief on Tuesday accused India of fostering corruption in the sport, saying illegal betting in the country was the root cause of the problem.
Ehsan Mani, who headed the ICC between 2003 and 2006, estimated that Sunday's Asia Cup match between India and Pakistan in Dhaka attracted $500 million-worth of bets, but did not say how he had arrived at the figure.
"Unless the betting industry is brought under control in India, you can't stop match-fixing," he told the New Delhi-based Mail Today in an interview.
"There's no doubt that India, certainly Delhi and Mumbai, is the epicentre of cricket betting."
"I'm a strong advocate of legalising betting in India, and bringing it under control of regulatory authorities so that... the conduct of bookies can be monitored properly," he added.
"You'll find that the risk of corrupting players around the world will reduce significantly."
Mani urged the ICC, headed by federal Indian minister Sharad Pawar, and the Board of Control for Cricket in India (BCCI), to pressure the government to legalise betting.
"It's a matter of how you control it because there's no way, I believe, that it can be stamped out in India. So, if (it) can't be stamped out, how do they control it in a way that it can stop corrupting the game."
Mani, a Pakistani chartered accountant, said India should look at the legal gambling systems in Britain and Australia.
Legal betting firms inform the ICC's Anti-Corruption and Security Unit (ACSU) if they encounter suspicious betting patterns, Mani said.
Mani said lucrative Twenty20 tournaments such as the Indian Premier League and the Big Bash in Australia, had emboldened illegal bookies.
"Obviously, high profile matches like the IPL and Big Bash leave a lot of scope for players to be corrupted; whether they are being corrupted or not, I can't say," he said.
"I think IPL must have added hugely to the cricket betting industry in India."
BCCI spokesman Rajiv Shukla was not available to comment on Mani's remarks.
Cricket has been under a cloud since 2000 when three former captains -- the late Hansie Cronje of South Africa, Mohammad Azharuddin of India and Salim Malik of Pakistan -- were handed life bans for their alleged dealing with bookmakers.
Three Pakistani cricketers were last year jailed in Britain after being found guilty of spot-fixing. Indian bookmakers have often being accused of underhand dealings with players.
March 20, 2012
Olympics - Bookmakers to monitor big bets on minor sports
British bookmakers will be monitoring unusually big wagers placed on minor sports during the London Olympics to help prevent fixing scandals from blighting the Games, a senior industry figure said on Tuesday.
Betting industry representatives and Games organisers held a seminar in London to discuss strategies to help ensure that illegal gambling syndicates do not corrupt athletes.
"If I see a bet of more than 50 pounds ($79.5) I'll be looking at who it is, because I'm not expecting 50 pounds on weightlifting or badminton," said Mike O'Kane, Business Director at British bookmaker Ladbrokes which chaired the meeting.
Concerns centre on back-street bookmakers based in Asia who have been linked to high-profile fixing scandals in cricket. Corruption has been cited as posing as serious a threat to the Olympics as doping.
"Where the issues are if there are any issues will be illegal betting out of Asia," O'Kane told Reuters.
"What we've got to do is make sure that that market isn't able to influence a participant and that is something the IOC (International Olympic Committee) has got to get hold of," he added.
Athletes and officials are banned from betting on events during the Games. The IOC plans to set up an information booth in the Olympic village to warn athletes of the risk of gambling.
"You've got to ask yourself the question if you're an Olympic participant are you going to risk all of the kudos of representing your country and for what financial gain." O'Kane said.
Operators would not take bets that risked undermining the IOC, he added.
"We will not offer bets that are likely to threaten the integrity of the Games so we're not going to offer, for instance, bets on how many failed drugs tests there will be or markets that clearly are likely to lead to integrity problems."
The British betting industry says that the Euro 2012 soccer tournament in June is a much bigger event for it than the Olympics.
"The average person on the street loves the Olympics, it's a great spectacle but it's not really a betting medium. It's something to enjoy on the television with the family or go to the Games," O'Kane said. ($1 = 0.6292 British pounds)
Betting industry representatives and Games organisers held a seminar in London to discuss strategies to help ensure that illegal gambling syndicates do not corrupt athletes.
"If I see a bet of more than 50 pounds ($79.5) I'll be looking at who it is, because I'm not expecting 50 pounds on weightlifting or badminton," said Mike O'Kane, Business Director at British bookmaker Ladbrokes which chaired the meeting.
Concerns centre on back-street bookmakers based in Asia who have been linked to high-profile fixing scandals in cricket. Corruption has been cited as posing as serious a threat to the Olympics as doping.
"Where the issues are if there are any issues will be illegal betting out of Asia," O'Kane told Reuters.
"What we've got to do is make sure that that market isn't able to influence a participant and that is something the IOC (International Olympic Committee) has got to get hold of," he added.
Athletes and officials are banned from betting on events during the Games. The IOC plans to set up an information booth in the Olympic village to warn athletes of the risk of gambling.
"You've got to ask yourself the question if you're an Olympic participant are you going to risk all of the kudos of representing your country and for what financial gain." O'Kane said.
Operators would not take bets that risked undermining the IOC, he added.
"We will not offer bets that are likely to threaten the integrity of the Games so we're not going to offer, for instance, bets on how many failed drugs tests there will be or markets that clearly are likely to lead to integrity problems."
The British betting industry says that the Euro 2012 soccer tournament in June is a much bigger event for it than the Olympics.
"The average person on the street loves the Olympics, it's a great spectacle but it's not really a betting medium. It's something to enjoy on the television with the family or go to the Games," O'Kane said. ($1 = 0.6292 British pounds)
WorldSpread staff lose jobs
The group of 52 City workers were informed of their fate on Monday by administrators at KPMG, The Daily Telegraph has learnt. Staff were told that they will need to apply to the Government's Redundancy Payments Office for compensation - which can take several weeks to pay out.
A spokesman for KPMG said: "We can confirm that, unfortunately 52 staff from Worldspreads Limited have been made redundant as administrators wind down the business.
"Around 12 have been retained to help with the wind down. KPMG is helping staff made redundant, who will need to claim wages owed through the Government redundancy scheme."
WorldSpreads was put into administration late on Sunday after a £13m "black hole" was found in the accounts, putting around 15,000 clients – mostly retail customers – at risk of losing almost half their money. KPMG said clients were owed £29.7m, which should have been held in a segregated customer account, but that the group's total cash came to just £16.6m.
KPMG has said there will be no actual sale of the business, although some of its software and data centre assets could be sold.
ETX Capital is thought to be among the interested parties although experts have warned it may be hard to sell client data as spreadbetters typically gamble with more than one provider.
"It's very hard to gain market share by buying client lists full of people that already bet with you," one well placed source said.
Clients at the company have set up an action group following its collapse.
Experts fear WorldSpread's collapse will lower consumer confidence in financial services providers such as brokers and spreadbetters. Segregated customer accounts are meant to ensure that client money is not "commingled" with company money.
Simon Bevan, head of Fraud at BDO, said: " When it comes to client funds there is no room for light touch regulation. Such businesses should be subjected to onerous regulatory oversight. This approach should be taken to any area where the potential fraud victims are individual investors or customers."
A spokesman for KPMG said: "We can confirm that, unfortunately 52 staff from Worldspreads Limited have been made redundant as administrators wind down the business.
"Around 12 have been retained to help with the wind down. KPMG is helping staff made redundant, who will need to claim wages owed through the Government redundancy scheme."
WorldSpreads was put into administration late on Sunday after a £13m "black hole" was found in the accounts, putting around 15,000 clients – mostly retail customers – at risk of losing almost half their money. KPMG said clients were owed £29.7m, which should have been held in a segregated customer account, but that the group's total cash came to just £16.6m.
KPMG has said there will be no actual sale of the business, although some of its software and data centre assets could be sold.
ETX Capital is thought to be among the interested parties although experts have warned it may be hard to sell client data as spreadbetters typically gamble with more than one provider.
"It's very hard to gain market share by buying client lists full of people that already bet with you," one well placed source said.
Clients at the company have set up an action group following its collapse.
Experts fear WorldSpread's collapse will lower consumer confidence in financial services providers such as brokers and spreadbetters. Segregated customer accounts are meant to ensure that client money is not "commingled" with company money.
Simon Bevan, head of Fraud at BDO, said: " When it comes to client funds there is no room for light touch regulation. Such businesses should be subjected to onerous regulatory oversight. This approach should be taken to any area where the potential fraud victims are individual investors or customers."
JAXX revenues rise as myBet prepares for Italy launch
Germany’s JAXX said Monday that it expects to report a 19 per cent increase in revenues to €60.7m for the 2011 year following strong growth during the fourth quarter from the company’s myBet subsidiary.
In its provisional unaudited figures for the year ended December 31st, JAXX said that it expects consolidated earnings before interest and taxes to amount to €1.6m during the period, following a 19 per cent rise in revenues to €60.7m.
No other financial data was revealed, with the company expecting to publish its 2011 Annual Report on March 30th.
The company stated however that the sale of its lottery operation had been delayed by several weeks, claiming that the task of demerging the companies and assets, as well as drawing up the agreements, was taking up more time than originally envisaged.
Based on its negotiations, JAXX expects the sale of the business to as yet unnamed investors to yield proceeds of €12.5m.
JAXX confirmed that the company and its myBet subsidiary submitted applications for sports betting and casino licences in the German state of Schleswig-Holstein before the deadline of March 1st.
“Although the authorities have not yet given a precise date for the awarding of the licence, JAXX expects it to be granted in the course of April, so that business operations can then start,” the company said in a statement yesterday.
myBet has already secured a licence from Italian regulator AAMS which will allow the company to launch online sports betting, casino and poker products via myBet.it in the next few weeks. The company is still awaiting official approval from Spanish regulators however, and does not expect to launch operations during the second quarter, as previously anticipated.
In its provisional unaudited figures for the year ended December 31st, JAXX said that it expects consolidated earnings before interest and taxes to amount to €1.6m during the period, following a 19 per cent rise in revenues to €60.7m.
No other financial data was revealed, with the company expecting to publish its 2011 Annual Report on March 30th.
The company stated however that the sale of its lottery operation had been delayed by several weeks, claiming that the task of demerging the companies and assets, as well as drawing up the agreements, was taking up more time than originally envisaged.
Based on its negotiations, JAXX expects the sale of the business to as yet unnamed investors to yield proceeds of €12.5m.
JAXX confirmed that the company and its myBet subsidiary submitted applications for sports betting and casino licences in the German state of Schleswig-Holstein before the deadline of March 1st.
“Although the authorities have not yet given a precise date for the awarding of the licence, JAXX expects it to be granted in the course of April, so that business operations can then start,” the company said in a statement yesterday.
myBet has already secured a licence from Italian regulator AAMS which will allow the company to launch online sports betting, casino and poker products via myBet.it in the next few weeks. The company is still awaiting official approval from Spanish regulators however, and does not expect to launch operations during the second quarter, as previously anticipated.
Channel 4 replaces BBC as exclusive UK racing broadcaster
British horseracing will continue to be broadcast on UK terrestrial television but will switch from the BBC to Channel 4 from 2013 following an exclusive domestic rights deal which includes the Grand National, the Derby and Royal Ascot.
Channel 4’s financial commitment to racing over the next four years amounts to one of its largest programming outlays and continues its 28-year association with British racing.
“We are delighted Channel 4 is to become the sole destination for British horseracing after securing such iconic events as Royal Ascot, the John Smith’s Grand National and the Investec Derby,” said Jay Hunt, Channel 4’s chief creative officer. “These will sit alongside our established coverage of The Cheltenham Festival and major Flat meetings such as Glorious Goodwood and the Ebor Festival and means we can extend our distinctive approach to all the crown jewels of the sport.”
A highly competitive domestic TV rights bidding process saw interest from a range of broadcasters, with Channel 4 winning the rights to a number of popular races which are currently televised by the BBC, which will be shown alongside the channel’s existing 80 days of racing it broadcasts.
“Our coverage this year will mark the end of a partnership covering some of the key events of British racing that extends over 50 years,” said BBC director of sport Barbara Slater. “The BBC are proud of their long heritage of broadcasting horse racing and put in as competitive a bid as possible in the current climate.”
Negotiations were headed by Racecourse Media Group (RMG), alongside The Jockey Club, Ascot Racecourse and British Champions Series Ltd as rights holders, with Martin Baker, director of commercial affairs, at the helm of the Channel 4 team.
“Channel 4 has shown a total commitment to our sport,” said Richard FitzGerald, chief executive of RMG, who headed racing’s negotiating team. “This new deal will not only deliver increased revenues for British racing, but with all of our sport’s crown jewels in its portfolio, Channel 4 offers a compelling vision to innovate the way racing is broadcast. They have also committed to use diverse programming platforms to promote our sport more widely. This is a great opportunity for racing in the long-term.
“The BBC has been a fantastic partner for British racing and helped the sport to grow its attendances and TV audience in recent times. We look forward to continuing to work together through radio, online and TV news coverage over the next four years until the next TV negotiation period.”
Jamie Aitchison, Channel 4’s Sports Editor, added: “This is an opportunity for us to work together to grow the sport, painting the full picture of both the Flat and Jumps seasons to attract new viewers whilst rewarding those loyal viewers we value so highly. Channel 4 fully understands the heritage and cultural importance of British racing, but also the sport’s thirst for a bright future, and we relish the challenge ahead.”
The new arrangement will see all 35 races in the QIPCO British Champions Series of premier Flat racing broadcast on Channel 4.
“Since its inception, we’ve aimed to showcase the very best of British Flat racing within the QIPCO British Champions Series via a single domestic terrestrial broadcaster,” said Rod Street, chief executive of British Champions Series. “We believe this new deal with Channel 4 will make the Series even easier to follow for the racing and wider sports fan. Hugely exciting times lie ahead.”
Channel 4’s financial commitment to racing over the next four years amounts to one of its largest programming outlays and continues its 28-year association with British racing.
“We are delighted Channel 4 is to become the sole destination for British horseracing after securing such iconic events as Royal Ascot, the John Smith’s Grand National and the Investec Derby,” said Jay Hunt, Channel 4’s chief creative officer. “These will sit alongside our established coverage of The Cheltenham Festival and major Flat meetings such as Glorious Goodwood and the Ebor Festival and means we can extend our distinctive approach to all the crown jewels of the sport.”
A highly competitive domestic TV rights bidding process saw interest from a range of broadcasters, with Channel 4 winning the rights to a number of popular races which are currently televised by the BBC, which will be shown alongside the channel’s existing 80 days of racing it broadcasts.
“Our coverage this year will mark the end of a partnership covering some of the key events of British racing that extends over 50 years,” said BBC director of sport Barbara Slater. “The BBC are proud of their long heritage of broadcasting horse racing and put in as competitive a bid as possible in the current climate.”
Negotiations were headed by Racecourse Media Group (RMG), alongside The Jockey Club, Ascot Racecourse and British Champions Series Ltd as rights holders, with Martin Baker, director of commercial affairs, at the helm of the Channel 4 team.
“Channel 4 has shown a total commitment to our sport,” said Richard FitzGerald, chief executive of RMG, who headed racing’s negotiating team. “This new deal will not only deliver increased revenues for British racing, but with all of our sport’s crown jewels in its portfolio, Channel 4 offers a compelling vision to innovate the way racing is broadcast. They have also committed to use diverse programming platforms to promote our sport more widely. This is a great opportunity for racing in the long-term.
“The BBC has been a fantastic partner for British racing and helped the sport to grow its attendances and TV audience in recent times. We look forward to continuing to work together through radio, online and TV news coverage over the next four years until the next TV negotiation period.”
Jamie Aitchison, Channel 4’s Sports Editor, added: “This is an opportunity for us to work together to grow the sport, painting the full picture of both the Flat and Jumps seasons to attract new viewers whilst rewarding those loyal viewers we value so highly. Channel 4 fully understands the heritage and cultural importance of British racing, but also the sport’s thirst for a bright future, and we relish the challenge ahead.”
The new arrangement will see all 35 races in the QIPCO British Champions Series of premier Flat racing broadcast on Channel 4.
“Since its inception, we’ve aimed to showcase the very best of British Flat racing within the QIPCO British Champions Series via a single domestic terrestrial broadcaster,” said Rod Street, chief executive of British Champions Series. “We believe this new deal with Channel 4 will make the Series even easier to follow for the racing and wider sports fan. Hugely exciting times lie ahead.”
Platini wants match-fixers criminalised
UEFA president Michel Platini on Thursday called for match-fixing to be criminalised in all European countries.
"Let's not accept the autonomy of sport to be an obstacle to intervention by public authorities," Platini told a Council of Europe conference of sports ministers.
"We have to deal with a real problem of a political order, therefore we will regulate it not only with the means (available) to sports federations."
Platini urged the states participating in the conference to "declare match fixing illegal". "Judicial and police cooperation between the European countries must be able to break the power of the criminals," he insisted.
The Council of Europe called for all nations to adopt similar stances towards match-fixing.
"A harmonization of norms and adoption of penal sanctions for sporting frauds will be necessary as there are only several countries that have such codes", Anne Brasseur of the Council of Europe Parliamentary Assembly told AFP.
Platini also noted that European teams "accumulated more than 1.6 billion euros ($ two billion) losses in 2010".
"At the same time, they (the clubs) have never gained so much money," he said, renewing his call for financial discipline in football.
Such a situation has shown a "fragility of the system that has converted some of these clubs into gigantic casinos," he said.
"Let's not accept the autonomy of sport to be an obstacle to intervention by public authorities," Platini told a Council of Europe conference of sports ministers.
"We have to deal with a real problem of a political order, therefore we will regulate it not only with the means (available) to sports federations."
Platini urged the states participating in the conference to "declare match fixing illegal". "Judicial and police cooperation between the European countries must be able to break the power of the criminals," he insisted.
The Council of Europe called for all nations to adopt similar stances towards match-fixing.
"A harmonization of norms and adoption of penal sanctions for sporting frauds will be necessary as there are only several countries that have such codes", Anne Brasseur of the Council of Europe Parliamentary Assembly told AFP.
Platini also noted that European teams "accumulated more than 1.6 billion euros ($ two billion) losses in 2010".
"At the same time, they (the clubs) have never gained so much money," he said, renewing his call for financial discipline in football.
Such a situation has shown a "fragility of the system that has converted some of these clubs into gigantic casinos," he said.
March 19, 2012
Bulgaria moves to block unlicensed online operators
Bulgarian news reports that the country’s lawmakers have approved an online gambling regulatory measure, & have already started to move on implementing internet blocks on unlicensed operators.
The ban will become effective after regulations are finalized by the State Gambling Commission & the approval of the Sofia Regional Court has been obtained.
The practicalities of the ban were discussed at the second reading of the bill in a discussion on the use of black lists to exclude foreign & unlicensed operators from the local market.
The new law sets licensing requirements for all online casino operators, both Bulgarian & foreign, & makes provision for requests to Internet service providers to block access to unlicensed gambling websites, despite earlier protests against this tactic by the ISPs & Internet action groups worried about the practice extending beyond internet gambling.
There are also clauses restricting gambling advertising to licensed operators.
Government advisers have estimated that the regulation of online gambling could bring another Euro 50 million of annual revenues.
The ban will become effective after regulations are finalized by the State Gambling Commission & the approval of the Sofia Regional Court has been obtained.
The practicalities of the ban were discussed at the second reading of the bill in a discussion on the use of black lists to exclude foreign & unlicensed operators from the local market.
The new law sets licensing requirements for all online casino operators, both Bulgarian & foreign, & makes provision for requests to Internet service providers to block access to unlicensed gambling websites, despite earlier protests against this tactic by the ISPs & Internet action groups worried about the practice extending beyond internet gambling.
There are also clauses restricting gambling advertising to licensed operators.
Government advisers have estimated that the regulation of online gambling could bring another Euro 50 million of annual revenues.
Playboy Club to leave the Palms Las Vegas
The Palms in Las Vegas on Thursday said the Playboy Club there will close for undisclosed reasons.
“After a strong six-year run, the Palms Casino Resort and Playboy Enterprises will end their partnership in early June and each pursue new brand opportunities in Las Vegas nightlife. The Palms and Playboy Enterprises have shared a great relationship and wish each other future success,” the Palms said in a statement.
A spokesman was asked how many employees would be affected and what the Playboy Club space will be converted to, but he said the resort had no further details to share.
The Playboy Comedy Lounge at the Palms closed after the New Year’s holiday, raising questions about how long the Playboy Club would remain at the Palms.
The Playboy Club regularly hosted events with Playboy founder Hugh Hefner and his playmates, bringing a unique vibe to the Palms and Las Vegas. The Playboy Club is part of the N9NE Group restaurant and nightclub company that operates mainly at the Palms.
For a time the Palms had the world’s only Playboy Club, but other Playboy Clubs to open around the world recently are in Cancun, London and Macau in China.
“After a strong six-year run, the Palms Casino Resort and Playboy Enterprises will end their partnership in early June and each pursue new brand opportunities in Las Vegas nightlife. The Palms and Playboy Enterprises have shared a great relationship and wish each other future success,” the Palms said in a statement.
A spokesman was asked how many employees would be affected and what the Playboy Club space will be converted to, but he said the resort had no further details to share.
The Playboy Comedy Lounge at the Palms closed after the New Year’s holiday, raising questions about how long the Playboy Club would remain at the Palms.
The Playboy Club regularly hosted events with Playboy founder Hugh Hefner and his playmates, bringing a unique vibe to the Palms and Las Vegas. The Playboy Club is part of the N9NE Group restaurant and nightclub company that operates mainly at the Palms.
For a time the Palms had the world’s only Playboy Club, but other Playboy Clubs to open around the world recently are in Cancun, London and Macau in China.
WorldSpreads in administration, 15,000 clients face losses
WorldSpreads, an AIM-listed operator of online and phone betting services based in Dublin, was placed in administration late on Sunday after the Financial Services Authority (FSA) uncovered “accounting irregularities”.
It is believed that the company broke the golden rule that client money should not be “co-mingled” with company money.
Administrators KPMG said the clients were owed £29.7m, which should have been held in a segregated customer account, but that the group’s total cash balance – including “segregated money” – was just £16.6m. The police have been alerted over suspected criminal action.
The development follows the departure last week of chief executive Conor Foley and finance director Niall O’Kelly. Mr O’Kelly had originally tendered his resignation in February after a profits warning. At the time, the company said it “maintains a strong balance sheet with net cash of €7m [£5.8m]”.
WorldSpreads’ clients will be eligible for £50,000 compensation under the Financial Services Compensation Scheme. Beyond that, they will be treated as preferential creditors ahead of WorldSpreads’ general estate. As a result, shareholders and lenders are likely to bear the bulk of the final losses.
The collapse of WorldSpreads will also pose questions for its auditors, Ernst & Young.
It will also lead to comparisons with the insolvency of the far-larger US brokerage, MF Global, which also broke the law by mingling client money with its own. KPMG is administrator to the brokerage’s UK arm, which was audited by PricewaterhouseCoopers.
WorldSpreads employed 66 staff, most of whom were based in London, whose jobs are now at risk. Last year, it made a €797,000 loss before tax.
The FSA said: “Clients should be aware that any shortfall in the client money accounts will impact the amount of money that can be returned.”
It is believed that the company broke the golden rule that client money should not be “co-mingled” with company money.
Administrators KPMG said the clients were owed £29.7m, which should have been held in a segregated customer account, but that the group’s total cash balance – including “segregated money” – was just £16.6m. The police have been alerted over suspected criminal action.
The development follows the departure last week of chief executive Conor Foley and finance director Niall O’Kelly. Mr O’Kelly had originally tendered his resignation in February after a profits warning. At the time, the company said it “maintains a strong balance sheet with net cash of €7m [£5.8m]”.
WorldSpreads’ clients will be eligible for £50,000 compensation under the Financial Services Compensation Scheme. Beyond that, they will be treated as preferential creditors ahead of WorldSpreads’ general estate. As a result, shareholders and lenders are likely to bear the bulk of the final losses.
The collapse of WorldSpreads will also pose questions for its auditors, Ernst & Young.
It will also lead to comparisons with the insolvency of the far-larger US brokerage, MF Global, which also broke the law by mingling client money with its own. KPMG is administrator to the brokerage’s UK arm, which was audited by PricewaterhouseCoopers.
WorldSpreads employed 66 staff, most of whom were based in London, whose jobs are now at risk. Last year, it made a €797,000 loss before tax.
The FSA said: “Clients should be aware that any shortfall in the client money accounts will impact the amount of money that can be returned.”
Rank & Gala Coral deal
Rank in late January confirmed it is in discussions with Gala Coral over the possible acquisition of Gala’s casino business. The deal would make Rank, which owns the Grosvenor Casino and Mecca Bingo chains, Britain’s biggest casino operator. However it has been now several weeks and no deal has yet been announced.
Rank’s confirmation came after the Sunday Times reported that it was in advanced discussions to acquire Gala Casinos for £250m. The deal would see Rank, which is 74% owned by Malaysian-based gambling group Guoco, merge its 35 Grosvenor Casinos chain with the 24 casinos owned by Gala.
While Rank doing the deal would expect that there could be some competition issues and it may take time to deliver synergies, the deal would make sense financially and strategically for Rank.
A break-up of Gala, has been on the cards ever since the company became embroiled in a complex debt restructuring in 2010. In December it disclosed it had net debts of £1.3bn.
Rank has long been mooted as a possible buyer of Gala casinos for quite a long time, though acquisitions were temporarily put on hold last year when it was itself controversially purchased by its biggest shareholder – Malaysia’s Guoco.
However now the dust has settled on Rank, Buying Gala’s casinos would accelerate the plans of Ian Burke, Rank’s executive chairman, to expand the gaming group’s Grosvenor chain to 45 venues by 2015.
Ian Burke is already converting many of the Grosvenor outlets to a new G Casino brand, the first of which was rolled out in Manchester in 2006, aimed at attracting a younger clientele.
Selling the casino wing would help Gala strengthen its balance sheet – but could also herald further break-up of the group, which is run by chief executive Carl Leaver, the former head of Marks & Spencer’s international arm.
So why the delay in announcing the deal has been done?
One reason certainly is the logistics of some of Gala Casinos would have to close should Rank buy them, the operator would not want to have two or even three casinos in one town. Either closure and redundancies or possibly a sell on to Genting of those properties or another buyer, could be delaying the deal.
The possibility of the competitions rule could be another and finally the asking price from Gala Coral. Although what is believed to be £250 million, is not that expensive as analysts have already indicated.
Whenever the deal is announced and certainly will be, the UK will see the emergence of the biggest casino operator, called Grosvenor Casinos.
Rank’s confirmation came after the Sunday Times reported that it was in advanced discussions to acquire Gala Casinos for £250m. The deal would see Rank, which is 74% owned by Malaysian-based gambling group Guoco, merge its 35 Grosvenor Casinos chain with the 24 casinos owned by Gala.
While Rank doing the deal would expect that there could be some competition issues and it may take time to deliver synergies, the deal would make sense financially and strategically for Rank.
A break-up of Gala, has been on the cards ever since the company became embroiled in a complex debt restructuring in 2010. In December it disclosed it had net debts of £1.3bn.
Rank has long been mooted as a possible buyer of Gala casinos for quite a long time, though acquisitions were temporarily put on hold last year when it was itself controversially purchased by its biggest shareholder – Malaysia’s Guoco.
However now the dust has settled on Rank, Buying Gala’s casinos would accelerate the plans of Ian Burke, Rank’s executive chairman, to expand the gaming group’s Grosvenor chain to 45 venues by 2015.
Ian Burke is already converting many of the Grosvenor outlets to a new G Casino brand, the first of which was rolled out in Manchester in 2006, aimed at attracting a younger clientele.
Selling the casino wing would help Gala strengthen its balance sheet – but could also herald further break-up of the group, which is run by chief executive Carl Leaver, the former head of Marks & Spencer’s international arm.
So why the delay in announcing the deal has been done?
One reason certainly is the logistics of some of Gala Casinos would have to close should Rank buy them, the operator would not want to have two or even three casinos in one town. Either closure and redundancies or possibly a sell on to Genting of those properties or another buyer, could be delaying the deal.
The possibility of the competitions rule could be another and finally the asking price from Gala Coral. Although what is believed to be £250 million, is not that expensive as analysts have already indicated.
Whenever the deal is announced and certainly will be, the UK will see the emergence of the biggest casino operator, called Grosvenor Casinos.
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