You tell us we won £1,000 on a bet and we’d probably run faster than Speedy Gonzales to claim our winnings. You tell us we won almost £400,000 and we’d make a straight bee-line to any of your shops and start banging at your door – even if it’s at 3 in the morning.
But that’s us, and apparently, not everybody has that sudden rush to instantly collect winning bets. Or maybe they just don’t know that they’d won.
A Betfred shop customer who won £394,487 from a £2 bet during last weekend’s totescoop6 has yet to pick-up their fortune, and Betfred is worried that the person, whoever he or she is, doesn’t even know they’ve won.
The punter placed their bet at the Befred shop in Newcastle-Upon-Tyne, improbably picking the six winners of the nominated Scoop6 races over the weekend. But the problem is, the winnings have yet to be claimed with the winner potentially missing out on registering for the bonus race at the 3.20 Newcastle – the John Smith’s Northumberland Plate at Newcastle this weekend for a chance to add another £251,996 to their bank account.
Oh, the predicament.
“Usually punters are banging my doors down to collect their winnings, said Betfred boss Fred Done, “and I’m really worried that our Scoop6 winner may not actually know they’ve won.”
So how exactly can someone win such a massive amount of money without them knowing it?
According to BetFred: “under the rules of the bet, any selections made that are non-runners are automatically placed onto the eventual favorite and given the fact there were eighteen horses withdrawn across the six Scoop6 races last Saturday, there is a strong possibility that the winner may not have realized they have actually won.”
The new “half-a-millionaire” has until 2pm this Saturday to go to any Betfred shop or phone in at the number 0800-028-4418 to be eligible for the bonus race and a chance to up his or her winnings to £650,000.
June 29, 2012
June 28, 2012
The Allure of Large Jackpots
Almost three months ago to the day the US was being swept with lottery fever. The multi-state game Mega Millions had reached boiling point as the March 30th drawing involved a jackpot worth the princely sum of $640 million.
It is this jackpot total that saw ticket buyers flood to licensed retailers. Some travelled hours and queued for even longer just in order to get their hands on those $1-$20 tickets.
At the time it didn’t take a genius to figure out that this lottery had sent US residents into near pandemonium. Even the most level headed of people in the country may well have caught afforded themselves just a minute to imagine what they would do with such an incredible amount of money.
Now, three months on, the dust has settled and we can truly see the extent to which lottery players, or just normal citizens, went mad for this tantalising total.
When this incredible jackpot run began, on January 27, sales for that draw were at around $10 million. By March 23 the jackpot was almost at $300 million and we began to see the expected jackpot total being increased on the back of strong ticket sales. By the time the draw was made on March 30, $650 million of tickets had been sold and the jackpot total had increased by more than $200 million as a result.
Interestingly, along with all the new players that came in that week came new trends. In Washington one of these was that new players tended to buy $5 tickets just as much as $1 tickets creating a more efficient selling machine.
In the end, this gargantuan jackpot was divided between three winning ticket holders. They went to residents of Maryland, Kansas and Illinois. Conveniently, the last of these states recently became the first to offer online lottery tickets through their own site.
Having launched on March 25, the $640 million jackpot five days later was a stern test of the capabilities of Illinois’ new online system. Within six days of launching the system had taken sales of $1.1 million with a around 110,000 registering with the new service. This was despite brief down time during that first week as well as many users being confused by the unfamiliar interface. If a jackpot that size were to come around again now we could expect far bigger figures from Illinois.
But while these figures show just how much other US state lotteries are missing out on by not being online, it’s most likely of little consequence to most of the iGaming industry. For them, those who aren’t official state organisations, their chance to profit from lottery sales is now and by the looks of things won’t be around for much longer with DC, California and many others looking to embrace the online technology.
A centralised online ticket sales site for each state will mean that those who had been selling tickets online through various methods will find it near impossible to compete. For affiliates and those who have been able to create commission from the sale of tickets, it’s highly unlikely that the official state sites are going to give a piece of the pie away to them.
Aside from showing the iGaming industry what it’s soon to be missing out on, the events of the week leading up to March 30 did teach us a thing or two.
The most significant of these is fairly obvious. It is the fact that regular people still go wild for a large prize. Of course this is no revelation but the extent to how popular Mega Millions became will have surprised a few.
So if we’re going to take something from this experience then it’s that, ironically, big money sells.
The question is therefore how to adapt this into casino, poker and any other products that come within gaming or sports betting.
SBO Bet CEO Bill Mummery commented recently that the allure of winning a large prize from a small bet is a trait found particularly in Western gamblers so those facing any non-Asian market should be placing extra focus on answering this question.
Casino gaming is the most obvious area where large money prizes can be found within gaming. But the NetEnt jackpot of $15,844,900 won at Betsson which is currently the largest online casino prize ever still pales in comparison to lottery jackpots. And when you consider the Powerball Lottery’s $40 million starting jackpot and the increase in the size of rollovers this figure appears paltry.
But why are lottery jackpots so much larger than that of those which can be found in casinos?
Surely the fact that casino players are constantly playing across a variety of outlets should mean that their progressive networks should be able to rise to a level where the sort of hype seen in March could be recreated. Admittedly, casino players are gamblers whereas lottery players are just regular people which means that the number of people likely to play casino games is lower and therefore the network of people contributing to a progressive jackpot is smaller.
But having said that, the number of players that must play Microgaming or Playtech games in any number of countries surely create a fairly large network of players.
So is it not worth taking less profit immediately by pumping more into the progressive pot in order to create something remotely similar to the scenes created by Mega Millions?
Not only would it work in the short run with increased player numbers but it would also do a world of good for brand recognition. For an operator or software providor in the position to be able to do this it must be worth a shot.
It is this jackpot total that saw ticket buyers flood to licensed retailers. Some travelled hours and queued for even longer just in order to get their hands on those $1-$20 tickets.
At the time it didn’t take a genius to figure out that this lottery had sent US residents into near pandemonium. Even the most level headed of people in the country may well have caught afforded themselves just a minute to imagine what they would do with such an incredible amount of money.
Now, three months on, the dust has settled and we can truly see the extent to which lottery players, or just normal citizens, went mad for this tantalising total.
When this incredible jackpot run began, on January 27, sales for that draw were at around $10 million. By March 23 the jackpot was almost at $300 million and we began to see the expected jackpot total being increased on the back of strong ticket sales. By the time the draw was made on March 30, $650 million of tickets had been sold and the jackpot total had increased by more than $200 million as a result.
Interestingly, along with all the new players that came in that week came new trends. In Washington one of these was that new players tended to buy $5 tickets just as much as $1 tickets creating a more efficient selling machine.
In the end, this gargantuan jackpot was divided between three winning ticket holders. They went to residents of Maryland, Kansas and Illinois. Conveniently, the last of these states recently became the first to offer online lottery tickets through their own site.
Having launched on March 25, the $640 million jackpot five days later was a stern test of the capabilities of Illinois’ new online system. Within six days of launching the system had taken sales of $1.1 million with a around 110,000 registering with the new service. This was despite brief down time during that first week as well as many users being confused by the unfamiliar interface. If a jackpot that size were to come around again now we could expect far bigger figures from Illinois.
But while these figures show just how much other US state lotteries are missing out on by not being online, it’s most likely of little consequence to most of the iGaming industry. For them, those who aren’t official state organisations, their chance to profit from lottery sales is now and by the looks of things won’t be around for much longer with DC, California and many others looking to embrace the online technology.
A centralised online ticket sales site for each state will mean that those who had been selling tickets online through various methods will find it near impossible to compete. For affiliates and those who have been able to create commission from the sale of tickets, it’s highly unlikely that the official state sites are going to give a piece of the pie away to them.
Aside from showing the iGaming industry what it’s soon to be missing out on, the events of the week leading up to March 30 did teach us a thing or two.
The most significant of these is fairly obvious. It is the fact that regular people still go wild for a large prize. Of course this is no revelation but the extent to how popular Mega Millions became will have surprised a few.
So if we’re going to take something from this experience then it’s that, ironically, big money sells.
The question is therefore how to adapt this into casino, poker and any other products that come within gaming or sports betting.
SBO Bet CEO Bill Mummery commented recently that the allure of winning a large prize from a small bet is a trait found particularly in Western gamblers so those facing any non-Asian market should be placing extra focus on answering this question.
Casino gaming is the most obvious area where large money prizes can be found within gaming. But the NetEnt jackpot of $15,844,900 won at Betsson which is currently the largest online casino prize ever still pales in comparison to lottery jackpots. And when you consider the Powerball Lottery’s $40 million starting jackpot and the increase in the size of rollovers this figure appears paltry.
But why are lottery jackpots so much larger than that of those which can be found in casinos?
Surely the fact that casino players are constantly playing across a variety of outlets should mean that their progressive networks should be able to rise to a level where the sort of hype seen in March could be recreated. Admittedly, casino players are gamblers whereas lottery players are just regular people which means that the number of people likely to play casino games is lower and therefore the network of people contributing to a progressive jackpot is smaller.
But having said that, the number of players that must play Microgaming or Playtech games in any number of countries surely create a fairly large network of players.
So is it not worth taking less profit immediately by pumping more into the progressive pot in order to create something remotely similar to the scenes created by Mega Millions?
Not only would it work in the short run with increased player numbers but it would also do a world of good for brand recognition. For an operator or software providor in the position to be able to do this it must be worth a shot.
German States Chart Online Gambling Future
The German state of Schleswig Holstein (SH) had enacted a liberal online gambling legislation that had been approved by the European Union (EU) and accepted by the industry. Then the elections resulted in a change in political leadership. Certain prominent members of the new regime stated their intent to repeal the progressive licensing and regulation policy and join the other states in signing the restrictive State Treaty. The good news is that the Ministry of the Interior has confirmed that until the law is amended or repealed, the current legislation applies and the required processes will not be put on hold but will be executed. Fears have also been voiced that any repeal of the legislation now could result in expensive legal actions brought by the seven major online gambling companies that have made investments based on licenses already issued.
A report from the Public Gaming Research Institute stated that SH has continued to issue licenses for sports betting with a validity of six years. Earlier this month the Ministry of the Interior had issued licenses to bet-at-home, bwin, Bet365 and Sportingbet. According to the Ministry, twenty four online gaming operators have applied for a sports betting license. These applications are under consideration and are being evaluated in stages. Six new sports betting licenses are likely to be issued within the next few weeks. Another four to six licenses are apparently also in the pipeline and are likely to be issued later. Seventeen operators have applied for an online casino gaming license.
What the future ultimately holds for the German state of SH one cannot say. But, the further the authorities tread on the liberal path, the more difficult it will be to retract the steps. However the rest of the German states are clearly going the other way. There had been an ongoing debate on a new Interstate Treaty on gambling to replace the one that expired last year. The states have been trying to carry on as before by paying mere lip service to the growing EU concerns. A few proposals actually sent to the EU have not found acceptability.
It has now been reported that thirteen states have come to an agreement. This is the minimum threshold required to give effect to the new treaty. This situation was reached last week when Thuringia and Mecklenburg-Vorpommern climbed on board. It seems the four-year new treaty will come into play from July 1 2012. The new treaty is only slightly less restrictive than the earlier one. It allows for 20 private sports betting licenses priced at about €50 million each, and levies a turnover tax of 5%. Online casino gambling remains out of bounds for private operators.
A report from the Public Gaming Research Institute stated that SH has continued to issue licenses for sports betting with a validity of six years. Earlier this month the Ministry of the Interior had issued licenses to bet-at-home, bwin, Bet365 and Sportingbet. According to the Ministry, twenty four online gaming operators have applied for a sports betting license. These applications are under consideration and are being evaluated in stages. Six new sports betting licenses are likely to be issued within the next few weeks. Another four to six licenses are apparently also in the pipeline and are likely to be issued later. Seventeen operators have applied for an online casino gaming license.
What the future ultimately holds for the German state of SH one cannot say. But, the further the authorities tread on the liberal path, the more difficult it will be to retract the steps. However the rest of the German states are clearly going the other way. There had been an ongoing debate on a new Interstate Treaty on gambling to replace the one that expired last year. The states have been trying to carry on as before by paying mere lip service to the growing EU concerns. A few proposals actually sent to the EU have not found acceptability.
It has now been reported that thirteen states have come to an agreement. This is the minimum threshold required to give effect to the new treaty. This situation was reached last week when Thuringia and Mecklenburg-Vorpommern climbed on board. It seems the four-year new treaty will come into play from July 1 2012. The new treaty is only slightly less restrictive than the earlier one. It allows for 20 private sports betting licenses priced at about €50 million each, and levies a turnover tax of 5%. Online casino gambling remains out of bounds for private operators.
Titan Poker, Winner and Bet-At-Home blocked in Denmark
The Danish Gambling authority has blacklisted and ordered the blocking of 12 websites targeting the country’s online gambling market without a local licence.
Denmark’s dot.dk online gambling market went live at the start of this year, with the majority of Europe’s major online operators applying for licences to offer sports betting, poker and casino after the tax rate was set at a sensible 20% of gross profit and the poker market was left open to dot.com liquidity.
The Danish Gambling Authority however announced this morning that a minority of websites had not responded to their request to cease offering products into the market without a Danish licence, and that the bailiffs court in had Frederiksberg had imposed an injunction on internet service provider “3”, requiring it to block 12 websites within 14 days. The regulator added that it expected other internet service providers to follow the court’s lead and block the 12 websites in question.
Playtech-powered Titan Poker and Winner are among the three highest profile dot.com gambling websites on a list sent to the ISP that also includes BetClic Everest-owned Bet-At-Home. The other soon-to-be-blocked domains are Playtech-powered casinos CasinoRedVegas, CasinoTropez, Casino Del Rio, Casino Bellini and Europa Casino. Microgaming-powered poker room Cool Hand Poker also appears on the list, alongwith three casinos running on CGTV software, Casinomel, Casino-Alhambra and AmazingVideoPoker.
The blacklisting and blocking of websites without a local licence in Denmark follows a similar move by the Belgian Gaming Commission. bwin.party’s legal action aimed at getting its bwin.com domain removed from the list was thrown out by a Belgian court earlier this month.
Denmark’s dot.dk online gambling market went live at the start of this year, with the majority of Europe’s major online operators applying for licences to offer sports betting, poker and casino after the tax rate was set at a sensible 20% of gross profit and the poker market was left open to dot.com liquidity.
The Danish Gambling Authority however announced this morning that a minority of websites had not responded to their request to cease offering products into the market without a Danish licence, and that the bailiffs court in had Frederiksberg had imposed an injunction on internet service provider “3”, requiring it to block 12 websites within 14 days. The regulator added that it expected other internet service providers to follow the court’s lead and block the 12 websites in question.
Playtech-powered Titan Poker and Winner are among the three highest profile dot.com gambling websites on a list sent to the ISP that also includes BetClic Everest-owned Bet-At-Home. The other soon-to-be-blocked domains are Playtech-powered casinos CasinoRedVegas, CasinoTropez, Casino Del Rio, Casino Bellini and Europa Casino. Microgaming-powered poker room Cool Hand Poker also appears on the list, alongwith three casinos running on CGTV software, Casinomel, Casino-Alhambra and AmazingVideoPoker.
The blacklisting and blocking of websites without a local licence in Denmark follows a similar move by the Belgian Gaming Commission. bwin.party’s legal action aimed at getting its bwin.com domain removed from the list was thrown out by a Belgian court earlier this month.
June 26, 2012
U.S. Sports Leagues Should Get in the Sports Betting Game While They Can
While internet wagering is on the lips of most gambling writers nowadays, sports betting is actually the topic du jour. New Jersey has passed a bill that will legalize sports betting in the state and are prepared to challenge PASPA in an effort to implement it. In fact Governor Christie is almost daring the DoJ and sports leagues to try and stop him. California also introduced a bill to legalize sports betting but will disallow wagering on California based NCAA teams or any college games that take place in the state and, like New Jersey, California is willing to take the issue as high as the Supreme Court if they need to. There’s no question that Delaware is still interested in offering single game sports betting and Nevada based American Gaming made a deal with William Hill to set up hundreds of sports betting kiosks throughout Nevada to generate more interest in sports betting as a betting option. Furthermore, reports suggest that least a dozen other states are seriously looking at introducing bills to legalize sports betting in their states and Canada is about to pass a single game sports betting bill that will allow their provincial governments to offer traditional sportsbooks in addition to the parlay lottery they have now. And not only does almost 20% of America’s population live less than a 5 hour drive from the Canadian border, but in Canada there is no tax on windfalls.
Yet despite the efforts of all the states to introduce sports as a betting option that they feel is necessary to prop up their casino and horse racing business, the sports leagues still maintain that they will vehemently challenge any efforts to introduce expanded sports betting in any state in order to “protect the integrity of the game.” However, if the leagues were smart they would give up this notion and try to figure out ways in which they could benefit from legalized sports wagering. Throughout the world sports betting is legal and sports teams have created partnerships with the bookmaking companies which have benefitted them greatly. In fact some of the most famous sports paraphernalia are from sportsbooks. Bwin, Betclic and Ladbrokes sponsor some of the most famous teams in Europe and Bet365 has deals with a couple of CFL franchises. And in Australia, almost every team is sponsored by a gambling company. It’s uncertain just how much money the leagues could make with sponsorships but a gaming conference in Montreal 8 years ago, Marc Blandford, the CEO of Sportingbet at the time said he would give $1 billion to the NFL if they would agree to allow the company to be “the official sportsbook of the NFL.” Naturally that offer was laughed off but many teams are struggling greatly and could use the influx of advertising revenue from sportsbooks if they were legalized. Without question teams like the Tampa Bay Lightning or Phoenix Coyotes in the NHL or the Buffalo Bills in the NFL would benefit greatly from sportsbook sponsorships and in NASCAR all the start and park teams could almost certainly pick up some sportsbook advertising which would allow them to run the whole race. It wasn’t that long ago when companies were lining up to sponsor race cars but the failing economy and the ban on tobacco and hard alcohol advertising has eroded that interest and consequently there is talk that the Craftsman Truck Series could end next year. It’s no longer the 1990s and companies like General Electric, General Mills and the Bank of America no longer have the resources to simply throw out money in hopes it may generate business. But the nature of bookmaking would certainly compel all legal sportsbooks to seek partnerships with teams in an effort to create awareness of their product. And like Betclic and Bwin, people would wear uniforms sporting their names and logos.
As for protecting the integrity of the game, legalized and regulated sports betting has actually been shown to be the best way to achieve that goal. Almost every famous gambling scandal in the past, including most recently the Ted Donaghy mess, was done with illegal, underground bookmakers. And it’s only after the fact when one of the cheaters makes a mistake that the truth comes out that leagues and the public are made aware of the scandal. In Europe, however, where gambling is legal, there have been quite a few betting scandals lately in horse racing, soccer, cricket and tennis, but unlike with Donaghy it was the bookmakers who notified the sports leagues about the likely cheating as a result of strange betting patterns. The unusual results in Ted Donaghy refereed games could have been spotted if the bets were made legally but because they were all conducted illegally, the sportsbooks couldn’t help. In fact Betfair, a major world gaming exchange, has initiated memoranda of understanding with over 40 leagues including horse racing boards, soccer leagues, the tennis federation and the NHL whereby any suspicious betting is reported to the leagues. With over 7 million transactions taking place on the exchange each day, all which are recorded and analyzed in real time by a designated integrity department, Betfair has been able to alert numerous leagues of suspicious betting patterns and it has led to arrests and suspensions in horse racing, soccer and tennis. And other bookmakers are following suit. In fact, Australia has it in their rules and regulations that licensed bookmakers must be on the lookout for illegal bets and report to them to the authorities immediately so that action can be taken. A major UK newspaper even stated recently “with the cooperation of the sports leagues and Betfair’s technology, cheating athletes know their days of deception are numbered.” Yet for some reason, North American sports leagues (with the exception of the NHL), have preferred to keep their head in the sand and pretend that gambling doesn’t take place on their games. Obviously they know otherwise but they would rather take the approach that what they don’t know won’t hurt them, rather than facing reality. Gambling does take place every day and some sports even rely on it. There’s absolutely no question the NFL would not be as popular as it is today if there weren’t NFL pools taking place in offices every weekend and if the point spreads weren’t posted in every major newspaper. And contrary to what the leagues may believe it’s better to learn about cheating ahead of time and be proactive rather than just reacting to the news.
Another reason the leagues should consider embracing sports betting now is because at this point they have some leverage in adopting regulations for sports betting. California, as mentioned, has put in a rule disallowing college betting on sports within the state and no doubt other states that are interested in sports betting would be willing to follow suit if it means they don’t have to go through the legal process of challenging PASPA. In fact the leagues can even put in regulations relating to who can’t bet on sports (i.e. disallow players or referees from placing bets on their sport) and can possibly even work in a percentage of the revenues from the betting to be used towards scholarships, increased minimum salaries and the like. But if the leagues choose to continue to challenge it and if the courts eventually rule against PASPA, and almost every gambling lawyer I spoke to believes PASPA will be determined to be unconstitutional at some point, the states and gambling companies will have no reason to work with the leagues to give them a share of the revenue or ask for their input. Once sports betting is declared legal, the states will say to the leagues “you had your chance and you blew it,” just as the leagues are telling New Jersey for opting out of PASPA two decades ago.
This is crunch time for sports betting in the U.S. Legalized wagering on sports will happen in every state that wants it sooner or later and there’s absolutely nothing the leagues can do about it. They may own their trademarks and patents but they don’t own the right to stop gambling on it. Sports betting has taken place in Nevada for over 70 years and it has taken place underground for far longer than that. It’s time for the leagues to face reality and work with the states to come up with a solution that they all can live with. Failing to do so will just leave the leagues on the outside looking in and when the leagues want some revenue and input into the betting the states will simply tell them “you had your chance and you blew it.”
Yet despite the efforts of all the states to introduce sports as a betting option that they feel is necessary to prop up their casino and horse racing business, the sports leagues still maintain that they will vehemently challenge any efforts to introduce expanded sports betting in any state in order to “protect the integrity of the game.” However, if the leagues were smart they would give up this notion and try to figure out ways in which they could benefit from legalized sports wagering. Throughout the world sports betting is legal and sports teams have created partnerships with the bookmaking companies which have benefitted them greatly. In fact some of the most famous sports paraphernalia are from sportsbooks. Bwin, Betclic and Ladbrokes sponsor some of the most famous teams in Europe and Bet365 has deals with a couple of CFL franchises. And in Australia, almost every team is sponsored by a gambling company. It’s uncertain just how much money the leagues could make with sponsorships but a gaming conference in Montreal 8 years ago, Marc Blandford, the CEO of Sportingbet at the time said he would give $1 billion to the NFL if they would agree to allow the company to be “the official sportsbook of the NFL.” Naturally that offer was laughed off but many teams are struggling greatly and could use the influx of advertising revenue from sportsbooks if they were legalized. Without question teams like the Tampa Bay Lightning or Phoenix Coyotes in the NHL or the Buffalo Bills in the NFL would benefit greatly from sportsbook sponsorships and in NASCAR all the start and park teams could almost certainly pick up some sportsbook advertising which would allow them to run the whole race. It wasn’t that long ago when companies were lining up to sponsor race cars but the failing economy and the ban on tobacco and hard alcohol advertising has eroded that interest and consequently there is talk that the Craftsman Truck Series could end next year. It’s no longer the 1990s and companies like General Electric, General Mills and the Bank of America no longer have the resources to simply throw out money in hopes it may generate business. But the nature of bookmaking would certainly compel all legal sportsbooks to seek partnerships with teams in an effort to create awareness of their product. And like Betclic and Bwin, people would wear uniforms sporting their names and logos.
As for protecting the integrity of the game, legalized and regulated sports betting has actually been shown to be the best way to achieve that goal. Almost every famous gambling scandal in the past, including most recently the Ted Donaghy mess, was done with illegal, underground bookmakers. And it’s only after the fact when one of the cheaters makes a mistake that the truth comes out that leagues and the public are made aware of the scandal. In Europe, however, where gambling is legal, there have been quite a few betting scandals lately in horse racing, soccer, cricket and tennis, but unlike with Donaghy it was the bookmakers who notified the sports leagues about the likely cheating as a result of strange betting patterns. The unusual results in Ted Donaghy refereed games could have been spotted if the bets were made legally but because they were all conducted illegally, the sportsbooks couldn’t help. In fact Betfair, a major world gaming exchange, has initiated memoranda of understanding with over 40 leagues including horse racing boards, soccer leagues, the tennis federation and the NHL whereby any suspicious betting is reported to the leagues. With over 7 million transactions taking place on the exchange each day, all which are recorded and analyzed in real time by a designated integrity department, Betfair has been able to alert numerous leagues of suspicious betting patterns and it has led to arrests and suspensions in horse racing, soccer and tennis. And other bookmakers are following suit. In fact, Australia has it in their rules and regulations that licensed bookmakers must be on the lookout for illegal bets and report to them to the authorities immediately so that action can be taken. A major UK newspaper even stated recently “with the cooperation of the sports leagues and Betfair’s technology, cheating athletes know their days of deception are numbered.” Yet for some reason, North American sports leagues (with the exception of the NHL), have preferred to keep their head in the sand and pretend that gambling doesn’t take place on their games. Obviously they know otherwise but they would rather take the approach that what they don’t know won’t hurt them, rather than facing reality. Gambling does take place every day and some sports even rely on it. There’s absolutely no question the NFL would not be as popular as it is today if there weren’t NFL pools taking place in offices every weekend and if the point spreads weren’t posted in every major newspaper. And contrary to what the leagues may believe it’s better to learn about cheating ahead of time and be proactive rather than just reacting to the news.
Another reason the leagues should consider embracing sports betting now is because at this point they have some leverage in adopting regulations for sports betting. California, as mentioned, has put in a rule disallowing college betting on sports within the state and no doubt other states that are interested in sports betting would be willing to follow suit if it means they don’t have to go through the legal process of challenging PASPA. In fact the leagues can even put in regulations relating to who can’t bet on sports (i.e. disallow players or referees from placing bets on their sport) and can possibly even work in a percentage of the revenues from the betting to be used towards scholarships, increased minimum salaries and the like. But if the leagues choose to continue to challenge it and if the courts eventually rule against PASPA, and almost every gambling lawyer I spoke to believes PASPA will be determined to be unconstitutional at some point, the states and gambling companies will have no reason to work with the leagues to give them a share of the revenue or ask for their input. Once sports betting is declared legal, the states will say to the leagues “you had your chance and you blew it,” just as the leagues are telling New Jersey for opting out of PASPA two decades ago.
This is crunch time for sports betting in the U.S. Legalized wagering on sports will happen in every state that wants it sooner or later and there’s absolutely nothing the leagues can do about it. They may own their trademarks and patents but they don’t own the right to stop gambling on it. Sports betting has taken place in Nevada for over 70 years and it has taken place underground for far longer than that. It’s time for the leagues to face reality and work with the states to come up with a solution that they all can live with. Failing to do so will just leave the leagues on the outside looking in and when the leagues want some revenue and input into the betting the states will simply tell them “you had your chance and you blew it.”
June 25, 2012
Shareholders approve Lotto24 spin-off from Tipp24
Tipp24 shareholders have approved plans by the company to spin-off its German online lottery brokerage business.
In an almost unanimous decision Friday at the company’s Annual General Meeting, 99.99 per cent of Tipp24’s shareholders approved the separation of the business under the Lotto24 brand.
Shares in Lotto24 AG will be distributed as a dividend-in-kind to the shareholders of Tipp24 by a 1:1 ratio.
“With today's decision, our shareholders have laid the track for the successful further expansion of the online lottery brokerage business of Lotto24 AG in Germany,” said Tipp24 CEO Hans Cornehl. “I am pleased that the spin-off of Lotto24 AG has been supported by an overwhelming majority of our shareholders.
“We see this as a confirmation of our strategy to focus on the international business with Tipp24 SE, thereby enabling Lotto24 AG to start their activities in the German market free of the burden of legal disputes.”
The transfer of the Lotto24 shares to shareholders will commence tomorrow (June 26th), with the first trading of Lotto24 shares expected to begin on July 3rd on the Prime Standard of Frankfurt Stock Exchange.
Lotto24 will be headed up by Petra von Strombeck, previously chief marketing officer for Tipp24, while Magnus von Zitzewitz will also serve as an executive board member.
In an almost unanimous decision Friday at the company’s Annual General Meeting, 99.99 per cent of Tipp24’s shareholders approved the separation of the business under the Lotto24 brand.
Shares in Lotto24 AG will be distributed as a dividend-in-kind to the shareholders of Tipp24 by a 1:1 ratio.
“With today's decision, our shareholders have laid the track for the successful further expansion of the online lottery brokerage business of Lotto24 AG in Germany,” said Tipp24 CEO Hans Cornehl. “I am pleased that the spin-off of Lotto24 AG has been supported by an overwhelming majority of our shareholders.
“We see this as a confirmation of our strategy to focus on the international business with Tipp24 SE, thereby enabling Lotto24 AG to start their activities in the German market free of the burden of legal disputes.”
The transfer of the Lotto24 shares to shareholders will commence tomorrow (June 26th), with the first trading of Lotto24 shares expected to begin on July 3rd on the Prime Standard of Frankfurt Stock Exchange.
Lotto24 will be headed up by Petra von Strombeck, previously chief marketing officer for Tipp24, while Magnus von Zitzewitz will also serve as an executive board member.
Founders of Stan James face Tax tribunal
The Stan James family founders are embroiled in a battle with the taxman after they moved part of the business to Gibraltar.
Stephen and Anne Fisher and son Peter are heading for a tribunal hearing after they moved their phone and internet betting business to a Gibraltar arm of its parent company in 2000.
Revenue & Customs says the move was made solely to avoid UK gambling duties. Court documents show that it wants to tax the telebetting business’s profit as if it were the shareholders’ personal income. This will certainly be at the higher rate of income tax.
A normal Gibraltar-based company would pay corporation tax at only 22 per cent on profits.
The special tax charge kicks in if a company moves offshore merely to try to pay tax at a lower rate and is designed to discourage individuals from doing this.
Firms can move without incurring the charge only if genuine commercial reasons for doing so can be proved.
Gambling groups have long battled the Government over the way it taxes telebetting, with many big names being run from Gibraltar.
Details of the Stan James tax battle emerged as part of a row over what documents should be revealed in relation to the case.
Stephen and Anne Fisher and son Peter are heading for a tribunal hearing after they moved their phone and internet betting business to a Gibraltar arm of its parent company in 2000.
Revenue & Customs says the move was made solely to avoid UK gambling duties. Court documents show that it wants to tax the telebetting business’s profit as if it were the shareholders’ personal income. This will certainly be at the higher rate of income tax.
A normal Gibraltar-based company would pay corporation tax at only 22 per cent on profits.
The special tax charge kicks in if a company moves offshore merely to try to pay tax at a lower rate and is designed to discourage individuals from doing this.
Firms can move without incurring the charge only if genuine commercial reasons for doing so can be proved.
Gambling groups have long battled the Government over the way it taxes telebetting, with many big names being run from Gibraltar.
Details of the Stan James tax battle emerged as part of a row over what documents should be revealed in relation to the case.
Mystery casino owner gives $1 million to families
Normally news from Las Vegas is about licenses, new games, new developments and most recently law suits, so it is great to report on some news that means a great deal to the families in Las Vegas who are having a real difficult time at present.
One case in particular is Laureene Furnari, who lives in LV, she had to move out of her home and put her stuff in storage.
She had to split her family apart. The 50-year-old mother of two is now staying with a friend. Her 11-year-old daughter is living with a family member, and her 20-year-old son is sleeping at a buddy’s house while trying to find a job.
Money is really tight for families like Laureene and many others, so Saturday the 23rd June was truly amazing.
She was among 2,000 Las Vegas families given $500 U.S. Bank gift cards in a gymnasium at the Boys & Girls Clubs of Las Vegas.
The cards, a result of a $1 million donation to United Way of Southern Nevada from an anonymous Las Vegas casino owner, were delivered to people the United Way and its partner programs determined needed it most.
The cards can be used for anything. As soon as the backs are signed, the plastic becomes as good as cash.
It is the second time the same anonymous person has made a million-dollar United Way donation. The first came in December.
The only thing that changed this time was the donor’s nickname, Summer Santa instead of Secret Santa.
The donor and United Way wanted the gift cards to be a surprise. Workers sent letters and made phone calls, inviting families to come to the gym. The families were told they would receive something, but they never knew exactly what.
Some found out early.
Tyler Griffin, 10, said a worker from his school told him he would get a gift card when they got to the gym. That gave him some time to think about what he wanted to buy.
“Video games!” he said after jumping up and throwing his hands above his head.
“Shoes,” his dad corrected him.
For others, like Furnari, the card remained a surprise until she tore back the flap of a white envelope.
In a parking lot outside the gym, she expressed gratitude for a stranger’s generosity.
“God bless him,” she said. “Whoever he is.”
Then tears started building behind her glasses as she explained how the gift card will help her find another place – the first step in putting her family back together.
“We can feel like a normal family again,” Furnari said.
It does show that Las Vegas casino owners do have hearts and atleast one owner wants to help the people of LV, without all the glory and publicity for doing so.
One case in particular is Laureene Furnari, who lives in LV, she had to move out of her home and put her stuff in storage.
She had to split her family apart. The 50-year-old mother of two is now staying with a friend. Her 11-year-old daughter is living with a family member, and her 20-year-old son is sleeping at a buddy’s house while trying to find a job.
Money is really tight for families like Laureene and many others, so Saturday the 23rd June was truly amazing.
She was among 2,000 Las Vegas families given $500 U.S. Bank gift cards in a gymnasium at the Boys & Girls Clubs of Las Vegas.
The cards, a result of a $1 million donation to United Way of Southern Nevada from an anonymous Las Vegas casino owner, were delivered to people the United Way and its partner programs determined needed it most.
The cards can be used for anything. As soon as the backs are signed, the plastic becomes as good as cash.
It is the second time the same anonymous person has made a million-dollar United Way donation. The first came in December.
The only thing that changed this time was the donor’s nickname, Summer Santa instead of Secret Santa.
The donor and United Way wanted the gift cards to be a surprise. Workers sent letters and made phone calls, inviting families to come to the gym. The families were told they would receive something, but they never knew exactly what.
Some found out early.
Tyler Griffin, 10, said a worker from his school told him he would get a gift card when they got to the gym. That gave him some time to think about what he wanted to buy.
“Video games!” he said after jumping up and throwing his hands above his head.
“Shoes,” his dad corrected him.
For others, like Furnari, the card remained a surprise until she tore back the flap of a white envelope.
In a parking lot outside the gym, she expressed gratitude for a stranger’s generosity.
“God bless him,” she said. “Whoever he is.”
Then tears started building behind her glasses as she explained how the gift card will help her find another place – the first step in putting her family back together.
“We can feel like a normal family again,” Furnari said.
It does show that Las Vegas casino owners do have hearts and atleast one owner wants to help the people of LV, without all the glory and publicity for doing so.
June 22, 2012
PokerStars brings in tennis champ as poker ambassador
Online poker operator PokerStars has signed up Spanish tennis icon Rafael Nadal as an ambassador for the brand as the company prepares to make its mark in the newly regulated online poker market in Spain.
Nadal becomes the fourth member of PokerStars’ Team SportStars, which the company acclaims as a “group of elite icons that have brought their competitive nature to the poker world.”
Other members currently include German tennis legend Boris Becker, Dutch field hockey Olympic gold medallist Fatima Moreira De Melo, and Swedish cross-country skiing Olympic gold medal winner Marcus Hellner.
“It’s no secret that I love to compete and try my very best in everything, whether that’s tennis, golf or video games,” said Rafa Nadal. “When I discovered the game of poker, I chose to join PokerStars because they understand what it takes to be the best and associate themselves with the qualities of champions. I’m very happy to be working with them.”
Nadal is an Olympic gold medallist and multiple Grand Slam tennis champion, and recently secured his eleventh grand slam title earlier this month with his seventh victory at the French Open.
PokerStars said that Nadal will play poker in spare moments this summer while he concentrates on his tennis. In the Autumn, he will be able to devote more time to poker and to representing PokerStars in online tournaments, in advertising campaigns and at charity events.
“Rafa Nadal represents all that is great about competition – the mix of talent, intellect, dedication and mental strength that you find in champions in every sport,” said Mark Scheinberg, PokerStars’ chairman of the board. “We are proud to have Rafa as an ambassador for the brand and excited at the opportunity to help him enjoy and improve his game.”
Nadal is expected to play a key role in introducing new players to the game of poker, particularly in Spain where PokerStars was recently granted licence approval (under Reel Spain plc) by Spain's General Directorate for the Regulation of Gambling.
Nadal becomes the fourth member of PokerStars’ Team SportStars, which the company acclaims as a “group of elite icons that have brought their competitive nature to the poker world.”
Other members currently include German tennis legend Boris Becker, Dutch field hockey Olympic gold medallist Fatima Moreira De Melo, and Swedish cross-country skiing Olympic gold medal winner Marcus Hellner.
“It’s no secret that I love to compete and try my very best in everything, whether that’s tennis, golf or video games,” said Rafa Nadal. “When I discovered the game of poker, I chose to join PokerStars because they understand what it takes to be the best and associate themselves with the qualities of champions. I’m very happy to be working with them.”
Nadal is an Olympic gold medallist and multiple Grand Slam tennis champion, and recently secured his eleventh grand slam title earlier this month with his seventh victory at the French Open.
PokerStars said that Nadal will play poker in spare moments this summer while he concentrates on his tennis. In the Autumn, he will be able to devote more time to poker and to representing PokerStars in online tournaments, in advertising campaigns and at charity events.
“Rafa Nadal represents all that is great about competition – the mix of talent, intellect, dedication and mental strength that you find in champions in every sport,” said Mark Scheinberg, PokerStars’ chairman of the board. “We are proud to have Rafa as an ambassador for the brand and excited at the opportunity to help him enjoy and improve his game.”
Nadal is expected to play a key role in introducing new players to the game of poker, particularly in Spain where PokerStars was recently granted licence approval (under Reel Spain plc) by Spain's General Directorate for the Regulation of Gambling.
New South Africa casino tax will be extremely punitive
South African casino business profits could take a hit under new tax plans unveiled by the government. Nikki Forster, PricewaterhouseCoopers South African hospitality and gaming sector leader, called the extra 1 percent levy on gaming “extremely punitive” and added: “Profit margins will be squeezed significantly at casinos, particularly at smaller casinos.”
The country’s finance minister Pravin Gordhan put the new measure forward in February and it will see the industry taxed an extra 1 percent from April 1 next year. It’s less than the original proposal to tax anything above R25,000 at 15 percent and Forster added: “Undoubtedly it is a relief for the industry that the Government has scrapped plans to introduce a withholding tax as this would have had a negative effect on the sector, particularly high-stake gamblers.”
The gambling industry in South Africa does, according to the release from PwC, give a “significant contribution” to the state and any changes must be approached with “caution”. It’s the problem that some governments encounter when regulating the online gaming industry and could end up driving it into illicit hands.
In terms of future expansion, Forster recognized there’s “little room for further expansion” in the sector but thinks there will still be some investment in the market in the future.
After this they could do worse than look at regulating the country’s online gambling industry on a national basis. As it is, they’re in a similar situation to the U.S.A. with the industry operating on a state by state basis and only sports betting permitted. The hunger for gambling is definitely there and if regulated well the consumers would be see better protection whilst the government would make large amounts from the regulation.
The country’s finance minister Pravin Gordhan put the new measure forward in February and it will see the industry taxed an extra 1 percent from April 1 next year. It’s less than the original proposal to tax anything above R25,000 at 15 percent and Forster added: “Undoubtedly it is a relief for the industry that the Government has scrapped plans to introduce a withholding tax as this would have had a negative effect on the sector, particularly high-stake gamblers.”
The gambling industry in South Africa does, according to the release from PwC, give a “significant contribution” to the state and any changes must be approached with “caution”. It’s the problem that some governments encounter when regulating the online gaming industry and could end up driving it into illicit hands.
In terms of future expansion, Forster recognized there’s “little room for further expansion” in the sector but thinks there will still be some investment in the market in the future.
After this they could do worse than look at regulating the country’s online gambling industry on a national basis. As it is, they’re in a similar situation to the U.S.A. with the industry operating on a state by state basis and only sports betting permitted. The hunger for gambling is definitely there and if regulated well the consumers would be see better protection whilst the government would make large amounts from the regulation.
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