Mark Blandford the well known founder of Sportingbet has set up a new venture capital company with some £100 million war chest named Burlywood Capital.
Neil Goulden, the former Gala Coral Group chief executive officer & Panmure Gordon investment banker Andrew Burnett are understood also to be involved in the private equity venture, that will be chaired by Sir David Michels who was the former Hilton Group executive.
The fund is looking to invest in a multiple range of businesses that includes online poker, social gaming and pay-to-play entertainment, the venutre will start the launch at the end of August with an initial £50 million, then raising to the full £100 million early in 2013.
July 31, 2012
Richard Ames Product Director at Ladbrokes leaves
Richard Ames product director at Ladbrokes has left the company it is reported, Britain’s second largest bookmaker, which is set to announce further costly delays to its beleaguered technology platform this week.
The company has already issued a profit warning about its technology division. But Thursday’s half-year results will show delays have eaten even further into the £15m of profits expected from digital- which are less than half the £31m achieved in the same period last year.
Richard Glynn, Ladbrokes’ chief executive, has overseen a series of management changes since joining the company in April 2010. Insiders say morale has fallen to an all-time low, with very little hope of devising a winning strategy that can compete with William Hill, the UK’s leading bookmaker. Last week, William Hill was able to ramp up pressure on its long-time rival by announcing a 23% increase in online operating profits to £68.9m.
Ladbrokes decided to spend £50m developing its own in-house digital technology, a move many in the industry say was its undoing. Almost all other traditional bookmakers team up with industry respected supliers, such as the done between William Hill and Playtech.
Ladbrokes, however, pushed forward with its own project, which has come up short against rivals and diverted much-needed capital from the advertising budget.
Mr Ames is the last of the old guard who served under Chris Bell, the former chief executive. Last year, he earned in the region of £380,000. But his removal is really designed to appease shareholders who have started to lose their patience with Ladbrokes’ online strategy.
Some insiders suggest Mr Ames’ departure is simply designed to offer up a scapegoat to protect Mr Glynn.
Meanwhile, Nick Rust, who was hired by Mr Glynn, will take over online operations, as well as retail and trading.
The company has already issued a profit warning about its technology division. But Thursday’s half-year results will show delays have eaten even further into the £15m of profits expected from digital- which are less than half the £31m achieved in the same period last year.
Richard Glynn, Ladbrokes’ chief executive, has overseen a series of management changes since joining the company in April 2010. Insiders say morale has fallen to an all-time low, with very little hope of devising a winning strategy that can compete with William Hill, the UK’s leading bookmaker. Last week, William Hill was able to ramp up pressure on its long-time rival by announcing a 23% increase in online operating profits to £68.9m.
Ladbrokes decided to spend £50m developing its own in-house digital technology, a move many in the industry say was its undoing. Almost all other traditional bookmakers team up with industry respected supliers, such as the done between William Hill and Playtech.
Ladbrokes, however, pushed forward with its own project, which has come up short against rivals and diverted much-needed capital from the advertising budget.
Mr Ames is the last of the old guard who served under Chris Bell, the former chief executive. Last year, he earned in the region of £380,000. But his removal is really designed to appease shareholders who have started to lose their patience with Ladbrokes’ online strategy.
Some insiders suggest Mr Ames’ departure is simply designed to offer up a scapegoat to protect Mr Glynn.
Meanwhile, Nick Rust, who was hired by Mr Glynn, will take over online operations, as well as retail and trading.
Betfair gets snookered
Betfair, has signed a deal to sponsor the World Snooker’s new European Tour this season.
The European Tour is a series of six events over the next few months, capitalising on the sport’s burgeoning popularity across the continent. It will be known as the Betfair European Tour with each event broadcast on Eurosport.
The six events, which form part of the Players Tour Championship series, are:
- Paul Hunter Classic, Furth, Germany August 23-26
- Gydnia Open, Gdynia, Poland, October 5-7
- Belgian Open, Antwerp, Belgium, October 19-21
- Bulgarian Open, Sofia, Bulgaria, November 16-18
- Scottish Open, Ravenscraig, Scotland, December 14-16
- Munich Open, Munich, Germany, January 4-6
World Snooker Chairman Barry Hearn said: “We are delighted to bring in Betfair as the sponsor of the European Tour. Just like us, they are targeting emerging markets in many areas of Europe, and this tour will provide tremendous exposure for their brand.
“Each of these events will receive extensive television coverage from Eurosport and the viewing figures are phenomenal. We are extremely excited about the potential snooker has on the continent in the coming years. These events will attract the best professionals and amateurs, providing great opportunities for the players. And for the passionate fans in places like Bulgaria and Poland it’s a chance to see the world’s leading stars compete.”
Matt Robinson, International Director at Betfair, said: “We are delighted to add World Snooker’s new European Tour to our sponsorship portfolio. The tour visits some key European markets so it’s a great way to raise awareness for our brand. We’re excited to support a game which attracts fans both old and new.”
The European Tour is a series of six events over the next few months, capitalising on the sport’s burgeoning popularity across the continent. It will be known as the Betfair European Tour with each event broadcast on Eurosport.
The six events, which form part of the Players Tour Championship series, are:
- Paul Hunter Classic, Furth, Germany August 23-26
- Gydnia Open, Gdynia, Poland, October 5-7
- Belgian Open, Antwerp, Belgium, October 19-21
- Bulgarian Open, Sofia, Bulgaria, November 16-18
- Scottish Open, Ravenscraig, Scotland, December 14-16
- Munich Open, Munich, Germany, January 4-6
World Snooker Chairman Barry Hearn said: “We are delighted to bring in Betfair as the sponsor of the European Tour. Just like us, they are targeting emerging markets in many areas of Europe, and this tour will provide tremendous exposure for their brand.
“Each of these events will receive extensive television coverage from Eurosport and the viewing figures are phenomenal. We are extremely excited about the potential snooker has on the continent in the coming years. These events will attract the best professionals and amateurs, providing great opportunities for the players. And for the passionate fans in places like Bulgaria and Poland it’s a chance to see the world’s leading stars compete.”
Matt Robinson, International Director at Betfair, said: “We are delighted to add World Snooker’s new European Tour to our sponsorship portfolio. The tour visits some key European markets so it’s a great way to raise awareness for our brand. We’re excited to support a game which attracts fans both old and new.”
Argentina’s government looks to nationalise casinos
The AFIP (Administración Federal de Ingresos Públicos) of Argentina last week requested that casinos and bingo halls nationwide supply their slot turnover to the government.
This raised speculation amongst employees that Argentina’s President Cristina Kirchner wants to nationalise gaming, as the AFIP already poses the requested information from the receipt of taxes.
The government has the power to automatically nationalise all casinos controlled by the national government. Under existing legislation, it includes cities that take the lion share collecting around us$70 million a year.
According to recent reports, the industry located inside the capital city’s limits would be subject to any new legislation.
There are three large gaming establishments in Buenos Aires, a racino in the upmarket area of Palermo, and two floating casinos permanently moored next to each other in the city centre.
Congressman Mario Daniel Caputo recently drafted legislation that would give the state “exploitation, regulation, control and administration” of gaming in the state, whilst banning “privatisation, awarding and outsourcing under any conditions.”
Mario Caputo, commented, “From the Chamber of Representatives of the Province of Buenos Aires, it is essential to revise the whole system to bring the regional government a legal instrument that enables to take the most of the resources generated by the games of chance.”
In the case of bingo and gaming halls in Argentina provinces, a bill first needs to be drafted and approved by local legislative leaders.
Privatisation of gaming in Argentina comes as a great shock to the country under Cristina Kirchner, who assumed presidency in 2007. The previous president and former husband of Cristina, the late Néstor Kirchner, had close ties to the gaming industry.
Casino Club, one of the country’s largest gaming operators and owned by a close friend of Mr. Kirchner, was granted permission to run three casinos in Santa Cruz in 2001. Two years later, Casino Club took over the slot machine operation at the Palermo racino and bought a significant share of the floating casinos from CIRSA.
However, things changed with the new President, who according to local media reports, is shutting all correspondence with the industry. The idea of nationalising the gaming industry seems to be gaining ground in Buenos Aires and a newly submitted draft would not renew existing casino and bingo licenses.
Nationalisation is still in the speculative stage and no concrete plans have been announced, but the industry is preparing for a possible change. This would include a central system that would license operators and collect gaming tax.
This raised speculation amongst employees that Argentina’s President Cristina Kirchner wants to nationalise gaming, as the AFIP already poses the requested information from the receipt of taxes.
The government has the power to automatically nationalise all casinos controlled by the national government. Under existing legislation, it includes cities that take the lion share collecting around us$70 million a year.
According to recent reports, the industry located inside the capital city’s limits would be subject to any new legislation.
There are three large gaming establishments in Buenos Aires, a racino in the upmarket area of Palermo, and two floating casinos permanently moored next to each other in the city centre.
Congressman Mario Daniel Caputo recently drafted legislation that would give the state “exploitation, regulation, control and administration” of gaming in the state, whilst banning “privatisation, awarding and outsourcing under any conditions.”
Mario Caputo, commented, “From the Chamber of Representatives of the Province of Buenos Aires, it is essential to revise the whole system to bring the regional government a legal instrument that enables to take the most of the resources generated by the games of chance.”
In the case of bingo and gaming halls in Argentina provinces, a bill first needs to be drafted and approved by local legislative leaders.
Privatisation of gaming in Argentina comes as a great shock to the country under Cristina Kirchner, who assumed presidency in 2007. The previous president and former husband of Cristina, the late Néstor Kirchner, had close ties to the gaming industry.
Casino Club, one of the country’s largest gaming operators and owned by a close friend of Mr. Kirchner, was granted permission to run three casinos in Santa Cruz in 2001. Two years later, Casino Club took over the slot machine operation at the Palermo racino and bought a significant share of the floating casinos from CIRSA.
However, things changed with the new President, who according to local media reports, is shutting all correspondence with the industry. The idea of nationalising the gaming industry seems to be gaining ground in Buenos Aires and a newly submitted draft would not renew existing casino and bingo licenses.
Nationalisation is still in the speculative stage and no concrete plans have been announced, but the industry is preparing for a possible change. This would include a central system that would license operators and collect gaming tax.
July 30, 2012
Hills hire lawyers to fight a whole kingdom
William Hill chief executive Ralph Topping is confident about a legal challenge against the UK government point of consumption (POC) tax plans. Hills has instructed lawyers to challenge the legality of the tax as they claim it’s an attempt to flout EU law by restricting the movement of goods and services for taxation purposes. A Telegraph story quotes Topping as stating he has heard “encouraging noises” from lawyers working on the case. If introduced the new POC tax will take 15 percent of all bets placed on UK soil and thus challenge some of the territories that host UK-facing gambling brands. Gibraltar has already signaled its intention to battle the UK over the new tax plans and don’t be surprised if more opponents come out of the woodwork to take them on.
The UK Gambling Commission is considering creating a “kite-mark” that will encourage operators to adhere to the new regulatory rules. The House of Commons Culture, Media and Sport Committee, which published its findings last week, are looking to limit any “grey” market that might start to operate as a result of the new rules.
“We recommend that the Gambling Commission should consider, as a part of efforts to communicate to online gamblers the potential risks to their funds, introducing a kite-marking system for gambling websites, indicating which sites are regulated in the UK,” the committee said. “This could protect consumers by encouraging them to use UK-regulated sites and by incentivising suppliers to choose to be regulated here.”
Knowing the gambling industry as we do, maybe shit loads of free drinks vouchers for a party at Chequers would be a better idea…
The UK Gambling Commission is considering creating a “kite-mark” that will encourage operators to adhere to the new regulatory rules. The House of Commons Culture, Media and Sport Committee, which published its findings last week, are looking to limit any “grey” market that might start to operate as a result of the new rules.
“We recommend that the Gambling Commission should consider, as a part of efforts to communicate to online gamblers the potential risks to their funds, introducing a kite-marking system for gambling websites, indicating which sites are regulated in the UK,” the committee said. “This could protect consumers by encouraging them to use UK-regulated sites and by incentivising suppliers to choose to be regulated here.”
Knowing the gambling industry as we do, maybe shit loads of free drinks vouchers for a party at Chequers would be a better idea…
July 29, 2012
Betfair create Olympic market without winner
I’ve been interested in what the Olympics couldn’t bring on the trading front for Bet Angel users. Athletics markets are pretty quiet in general, but are often full of surprises. Nothing is guaranteed in sport, especially where markets are tricky to price.
I watched the Men’s Cycling race today with half a eye on whether Mark Cavendish was to get his just reward, alas it was not to be. As the competitors re-entered the streets of London I started collecting data and scanning the markets to judge what would have been a useful trading position. Curiously I couldn’t find one of the two leaders and wondered if I had just completely failed to interpret the action correctly, or mis-heard the commentator. I made a few notes and returned to the horse racing markets. When I returned to the Cycling there was the leader in the market but traded only at very short odds, hardly any competitors had been. I thought I was going mad!
As it turns out there were 144 competitiors at the start of the race but Betfair had only formed a market around 143. Incredibly the only one they left off won the race! To profit you just needed to lay anything in the market. When Betfair added the runner late on, you would have mysteriously created a profit at every backers expense. An interesting start to the Olympics!
Betfair later issued a clarifying statement: -
“We created the Men’s Olympics Cycling Road Race market on 20th July from the official London 2012 website, which at that point did not show Alexandre Vinokourov as a listed competitor. The market remained ‘incomplete’ allowing us to add any further runners on request. We did not receive any requests for Vinokourov to be added, but when it became apparent that he was in a two-man breakaway group towards the latter stages of the race, we added him into the market (approximately 5km from the finish).”
I watched the Men’s Cycling race today with half a eye on whether Mark Cavendish was to get his just reward, alas it was not to be. As the competitors re-entered the streets of London I started collecting data and scanning the markets to judge what would have been a useful trading position. Curiously I couldn’t find one of the two leaders and wondered if I had just completely failed to interpret the action correctly, or mis-heard the commentator. I made a few notes and returned to the horse racing markets. When I returned to the Cycling there was the leader in the market but traded only at very short odds, hardly any competitors had been. I thought I was going mad!
As it turns out there were 144 competitiors at the start of the race but Betfair had only formed a market around 143. Incredibly the only one they left off won the race! To profit you just needed to lay anything in the market. When Betfair added the runner late on, you would have mysteriously created a profit at every backers expense. An interesting start to the Olympics!
Betfair later issued a clarifying statement: -
“We created the Men’s Olympics Cycling Road Race market on 20th July from the official London 2012 website, which at that point did not show Alexandre Vinokourov as a listed competitor. The market remained ‘incomplete’ allowing us to add any further runners on request. We did not receive any requests for Vinokourov to be added, but when it became apparent that he was in a two-man breakaway group towards the latter stages of the race, we added him into the market (approximately 5km from the finish).”
July 27, 2012
European bookmakers pledge to support fair Olympics
Europe’s leading online sports betting operators have said that they will suspend or void Olympic bets if instructed to do so by the UK Gambling Commission, as part of their commitment to keeping the games free from corruption and match fixing.
The European Sports Security Association (ESSA), whose members comprise the leading online sports book operators in Europe, says it is working closely with the British Gambling Commission and the IOC to support the sports and betting integrity of the games.
The Association said its members will offer bets on any Olympic event and will monitor and report all unusual betting patterns and any identified breaches of IOC rules to the UK Gambling Commission’s Sports Betting Integrity Unit.
ESSA members will also take steps to ensure that no bets are knowingly taken from IOC accredited individuals and that senior personnel manage their internal systems and offer a 24-hour reporting service.
“ESSA and our members will make sure that everything possible is done to make sure that the London 2012 Olympic Summer Games are free from corruption and match fixing,” said ESSA secretary general Khalid Ali. “We are all looking forward to a tremendous sporting competition that will be enjoyed by millions around the world.”
As part of its commitment to sports integrity, ESSA has signed over 20 memorandums of understanding with leading international sports governing bodies, including FIFA, UEFA, the IOC, the ATP as well as national gambling regulators in jurisdictions including Alderney, Gibraltar, Malta and the UK.
The European Sports Security Association (ESSA), whose members comprise the leading online sports book operators in Europe, says it is working closely with the British Gambling Commission and the IOC to support the sports and betting integrity of the games.
The Association said its members will offer bets on any Olympic event and will monitor and report all unusual betting patterns and any identified breaches of IOC rules to the UK Gambling Commission’s Sports Betting Integrity Unit.
ESSA members will also take steps to ensure that no bets are knowingly taken from IOC accredited individuals and that senior personnel manage their internal systems and offer a 24-hour reporting service.
“ESSA and our members will make sure that everything possible is done to make sure that the London 2012 Olympic Summer Games are free from corruption and match fixing,” said ESSA secretary general Khalid Ali. “We are all looking forward to a tremendous sporting competition that will be enjoyed by millions around the world.”
As part of its commitment to sports integrity, ESSA has signed over 20 memorandums of understanding with leading international sports governing bodies, including FIFA, UEFA, the IOC, the ATP as well as national gambling regulators in jurisdictions including Alderney, Gibraltar, Malta and the UK.
July 23, 2012
32Red announce booming profits
32Red has announced their 6 month results and are at a record for the Gibraltar based online operator, with total Gross Win up 50% to £16.5m (2011: £11.0m) in the first six months of 2012.
The results represent a sixth successive 6 month period of record revenues for 32Red, here are some of the highlights:
Casino Performance:
Gross Win (revenue) £14.5m, up 52% on 2011
Active casino customers* of 31,722 up 81% on H1 11
Casino player yield £457* (H1 11: £543)
New Casino players 18,724*, up 93% on H1 11
Casino cost per acquisition*: £166 (H1 11: £173)
Current Trading and Outlook for the Full Year
Gross Win for the twenty days to 20 July is up 28% on the corresponding period in 2011. The strong H1 trading performance and current trading is likely to see the Company deliver revenues that are ahead of current market expectations for 2012. The Company continues to invest in marketing and confirms that profits remain in line with management expectations.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
“The continued growth in revenues, particularly in light of strong comparatives, is testament to the strong new player recruitment resulting from more investment in our main market, the UK. We aim to continue in this regard as well as taking our first measured steps in entering the Italian market. We look forward to launching 32Red.it during the second half of the year and welcome the recent decision by the Italian authorities to commence the procedures to approve online slots games from December 2012 onwards.
”While we recognise the potential for economic and regulatory uncertainty across Europe, we look forward to further progress during the second half of 2012.”
The results represent a sixth successive 6 month period of record revenues for 32Red, here are some of the highlights:
Casino Performance:
Gross Win (revenue) £14.5m, up 52% on 2011
Active casino customers* of 31,722 up 81% on H1 11
Casino player yield £457* (H1 11: £543)
New Casino players 18,724*, up 93% on H1 11
Casino cost per acquisition*: £166 (H1 11: £173)
Current Trading and Outlook for the Full Year
Gross Win for the twenty days to 20 July is up 28% on the corresponding period in 2011. The strong H1 trading performance and current trading is likely to see the Company deliver revenues that are ahead of current market expectations for 2012. The Company continues to invest in marketing and confirms that profits remain in line with management expectations.
Commenting on the performance, Ed Ware, CEO of 32Red, said:
“The continued growth in revenues, particularly in light of strong comparatives, is testament to the strong new player recruitment resulting from more investment in our main market, the UK. We aim to continue in this regard as well as taking our first measured steps in entering the Italian market. We look forward to launching 32Red.it during the second half of the year and welcome the recent decision by the Italian authorities to commence the procedures to approve online slots games from December 2012 onwards.
”While we recognise the potential for economic and regulatory uncertainty across Europe, we look forward to further progress during the second half of 2012.”
£50 million plus being bet on the Olympics
The Olympics fever has triggered a £50million betting bonanza with one in eight Brits having a flutter on the Games according to Coral the bookmaker, which found that half of those placing bets on London 2012, a whopping three million people, were entirely new to gambling.
A surge in patriotism has seen many punters keen to back Team GB medal hopefuls including distance runner Mo Farah, 29, and heptathlete Jessica Ennis, 26.
Ennis is 8-11 to top the podium, while Farah is 6-4 to bag a gold medal.
Other British stars being backed include 400m hurdler Dai Greene, 26, who is 11-4 to take the top prize.
David Stevens of Coral said: “Turnover across the industry could top £50m, with one in eight of those we questioned saying they would be enjoying a flutter on the Games.
“British sport is on a high, with Andy Murray reaching the Wimbledon final and Bradley Wiggins becoming the first British winner of the Tour de France.”
A surge in patriotism has seen many punters keen to back Team GB medal hopefuls including distance runner Mo Farah, 29, and heptathlete Jessica Ennis, 26.
Ennis is 8-11 to top the podium, while Farah is 6-4 to bag a gold medal.
Other British stars being backed include 400m hurdler Dai Greene, 26, who is 11-4 to take the top prize.
David Stevens of Coral said: “Turnover across the industry could top £50m, with one in eight of those we questioned saying they would be enjoying a flutter on the Games.
“British sport is on a high, with Andy Murray reaching the Wimbledon final and Bradley Wiggins becoming the first British winner of the Tour de France.”
Tipico looking to double business in 3 years
Tipico, the Malta based international betting and broker company, is set to double its business within three years as it taps new igaming markets in Europe and beyond from Malta.
“Tipico is in Malta for good,” chief executive officer Jan Bolz told The Sunday Times. “We are not planning to relocate any function from the island. Even if we expanded into the US in the long-term, we would not change anything about our headquarters here. The Maltese authorities have created advantages that are hard to find anywhere else.”
The German-owned company, which currently occupies two floors at Portomaso Business Tower and is in the process of taking over a third, announced its intention to double its workforce to 200-plus employees by 2013 when it hosted the Prime Minister at its premises on July 11.
Tipico set up operations on the island in 2004 with two members of staff as it was having difficulties obtaining the right licences in Germany. Its Maltese licence allows it to operate in several markets, and it has licence applications pending in Italy and Denmark, while it prepares to file applications in Austria and Belgium.
Mr Bolz, who has previously been based in London, Geneva and San Francisco, understands the implications of asking executives to move countries. The toll on young children, language barriers and myriad unforeseen factors may translate into talent loss.
Portomaso’s business tower and its vibrant environs are major assets not only to its corporate image, but also to its teams’ wellbeing. Mr Bolz maintains the secret to running a successful business is to make sure the teams are having as much fun as the customers.
The chief executive brought a wealth of experience in fast-growing industries to Tipico when he joined last year.
Between 2003 and 2008, he was vice-president, marketing and sales, first for Europe and then internationally, for Electronic Arts, the interactive entertainment software company. At EA, he was instrumental in developing executive strategies for EA’s online business model including the Fifa Interactive World Cup and Sims Online in Europe and Asia.
Earlier, he built the first ever music-talent partnership team for the whole of EA Europe with artists like Justin Timberlake, Black Eyes Peas, and Christina Aguilera to promote EA games.
Between 1989 and 2003, he held various roles at record company BMG, for which he built BMG Ariola Munich into the most profitable record label within the group outside the US. In the mid- to late 1990s, he was responsible for the marketing activities of artists including Whitney Houston, Carlos Santana, David Bowie, Puff Daddy, Pink and R. Kelly.
While he was deputy managing director and head of international business at BMG Ariola Muenchen, the company signed the then unknown Backstreet Boys for the German-speaking territories and signed NSYNC with all their rights worldwide, including Justin Timberlake.
“Fast-growing industries are more fun,” Mr Bolz said. “The atmosphere is happier when your problem is where to discover 10 new people, not how to lay 10 more off. I hope to use my background in entertainment, particularly games, to grow new business models at Tipico. There is potential in various target groups in the sports betting industry.”
Tipico, he added, is currently talking to half a million customers in Germany where 30 million people viewed Euro 2012 last month. The company aims to win 10 per cent of the 29.5 million football fans not on its books – football makes up 80 per cent of Tipico’s betting business – while building a larger international market share.
The company’s long-term strategy is to diversify its business – Mr Bolz “lives and breathes games” – as it seeks to tap the synergies and cross-opportunities in the games and betting sectors over the next five years.
Growth in the next 12 months will stem from Tipico’s core betting business, Mr Bolz emphasised, particularly after Euro 2012 led the company to its best month ever, with revenues up by 70 per cent over June last year.
Tipico’s growth in Malta comes with some challenges, Mr Bolz pointed out. Specialised software developers and engineers are in short supply around the world.
The shortage is acute in Malta, where Tipico could build a team of 24 given the talent. It hopes to foster relations with the University and other colleges with a view to offering internships as part of its strategy to build its employer brand.
Meanwhile, Mr Bolz and his wife are enjoying showing Malta off to their friends who visit from around the world.
“Malta is about the bright light when you open the door and the ability to organise a barbecue party for September 13 and you know the sun will shine. It compares beautifully with any other place we’ve lived.”
“Tipico is in Malta for good,” chief executive officer Jan Bolz told The Sunday Times. “We are not planning to relocate any function from the island. Even if we expanded into the US in the long-term, we would not change anything about our headquarters here. The Maltese authorities have created advantages that are hard to find anywhere else.”
The German-owned company, which currently occupies two floors at Portomaso Business Tower and is in the process of taking over a third, announced its intention to double its workforce to 200-plus employees by 2013 when it hosted the Prime Minister at its premises on July 11.
Tipico set up operations on the island in 2004 with two members of staff as it was having difficulties obtaining the right licences in Germany. Its Maltese licence allows it to operate in several markets, and it has licence applications pending in Italy and Denmark, while it prepares to file applications in Austria and Belgium.
Mr Bolz, who has previously been based in London, Geneva and San Francisco, understands the implications of asking executives to move countries. The toll on young children, language barriers and myriad unforeseen factors may translate into talent loss.
Portomaso’s business tower and its vibrant environs are major assets not only to its corporate image, but also to its teams’ wellbeing. Mr Bolz maintains the secret to running a successful business is to make sure the teams are having as much fun as the customers.
The chief executive brought a wealth of experience in fast-growing industries to Tipico when he joined last year.
Between 2003 and 2008, he was vice-president, marketing and sales, first for Europe and then internationally, for Electronic Arts, the interactive entertainment software company. At EA, he was instrumental in developing executive strategies for EA’s online business model including the Fifa Interactive World Cup and Sims Online in Europe and Asia.
Earlier, he built the first ever music-talent partnership team for the whole of EA Europe with artists like Justin Timberlake, Black Eyes Peas, and Christina Aguilera to promote EA games.
Between 1989 and 2003, he held various roles at record company BMG, for which he built BMG Ariola Munich into the most profitable record label within the group outside the US. In the mid- to late 1990s, he was responsible for the marketing activities of artists including Whitney Houston, Carlos Santana, David Bowie, Puff Daddy, Pink and R. Kelly.
While he was deputy managing director and head of international business at BMG Ariola Muenchen, the company signed the then unknown Backstreet Boys for the German-speaking territories and signed NSYNC with all their rights worldwide, including Justin Timberlake.
“Fast-growing industries are more fun,” Mr Bolz said. “The atmosphere is happier when your problem is where to discover 10 new people, not how to lay 10 more off. I hope to use my background in entertainment, particularly games, to grow new business models at Tipico. There is potential in various target groups in the sports betting industry.”
Tipico, he added, is currently talking to half a million customers in Germany where 30 million people viewed Euro 2012 last month. The company aims to win 10 per cent of the 29.5 million football fans not on its books – football makes up 80 per cent of Tipico’s betting business – while building a larger international market share.
The company’s long-term strategy is to diversify its business – Mr Bolz “lives and breathes games” – as it seeks to tap the synergies and cross-opportunities in the games and betting sectors over the next five years.
Growth in the next 12 months will stem from Tipico’s core betting business, Mr Bolz emphasised, particularly after Euro 2012 led the company to its best month ever, with revenues up by 70 per cent over June last year.
Tipico’s growth in Malta comes with some challenges, Mr Bolz pointed out. Specialised software developers and engineers are in short supply around the world.
The shortage is acute in Malta, where Tipico could build a team of 24 given the talent. It hopes to foster relations with the University and other colleges with a view to offering internships as part of its strategy to build its employer brand.
Meanwhile, Mr Bolz and his wife are enjoying showing Malta off to their friends who visit from around the world.
“Malta is about the bright light when you open the door and the ability to organise a barbecue party for September 13 and you know the sun will shine. It compares beautifully with any other place we’ve lived.”
Subscribe to:
Posts (Atom)