William Hill has announced that William Hill Online will no longer make its products available to customers located in Greece until such time that there is greater clarity on the regulatory approach to be taken by the Greek authorities in relation to such customers.
On 5 November 2012, the Greek Gaming Commission issued a Decision that includes provisions for financial penalties and criminal sanctions against gaming operators that continue to accept custom from the market after 5 December without a locally issued licence. William Hill believes that there are significant issues with the legality and enforceability of these proposals; however, until greater clarity is received, it has taken the decision to withdraw from this market.
Based on legal advice, it considers the gambling legislation in Greece to be inconsistent with European law and the associated fiscal conditions attached to these licences – which may include payment of retrospective taxes on past revenues – makes the market economically unattractive. On this basis, William Hill Online does not currently intend to apply for a licence to operate in Greece.
William Hill, along with other operators, has been working with various parties to achieve legislation that allows fair competition in the market in Greece and elsewhere. William Hill is disappointed that the European Commission continues, despite previously stated intentions to the contrary, not to take effective action to prevent protectionist behaviour on behalf of member states, of which the Greek, German and Belgian regimes are only the most recent examples.
Prior to the decision to withdraw from Greece, William Hill Online had been expecting to generate £4-5 million of operating profit p.a. from Greek resident customers.
December 07, 2012
December 06, 2012
Irish Olympian Peter O’Leary off the hook on Olympic betting allegations
By virtue of what can be best described as naiveté-can-get-you-off-the-hook, Irish sailor and Olympian Peter O’Leary will not face an Olympic ban after betting on one of his direct competitors to win at the 2008 Beijing Olympics. After a four-month investigation that began shortly after the opening ceremonies of the 2012 London Olympics, the International Olympic Committee determined that O’Leary didn’t do anything wrong, except for not knowing that Olympic athletes are prohibited from making bets on Olympic events, especially those that they’re competing in.
According to a statement on the IOC’s website, the Executive Board decided to “issue a warning to Irish sailor Peter O’Leary who admitted betting on an Olympic sailing event at the Beijing 2008 Games, but denied any competition fixing.”
In explaining the proverbial slap on the wrist punishment given to O’Leary, IOC spokesman Mark Adams told reporters that there was no evidence of O’Leary engaging in some kind of match-fixing and that the Irish sailor’s only fault was not knowing he could not bet on Olympic events.
“It is not something we agree with and we condemn it, but we will not take any more action,” Adams added.
According to Eurosport Asia, O’Leary made two bets worth a total of €300 on the British boat to win the gold medal in the Star class at the 2008 Beijing Olympics at 12/1 odds (an event that he actually failed to qualify in). O’Leary’s call for the British to win proved to be correct, netting the sailor €3,600.
It can be said that O’Leary was fortunate enough to have made those wagers during the 2008 Olympics. It was a time when the IOC was only beginning its campaign to educate athletes on the risk of irregular and illegal betting. Had he made the wagers at the 2012 London Olympics, though, then we wouldn’t be surprised if the IOC did give him a lifetime ban.
But as such, the unique circumstance surrounding the time he made the wager, coupled with his admission that he didn’t know that it was illegal to bet on any Olympic event, prompted the IOC to be lenient on his punishment. No bans, just a warning akin to a heavy slap on the wrist.
For all intents and purposes, that’s like the equivalent of winning a gold medal.
According to a statement on the IOC’s website, the Executive Board decided to “issue a warning to Irish sailor Peter O’Leary who admitted betting on an Olympic sailing event at the Beijing 2008 Games, but denied any competition fixing.”
In explaining the proverbial slap on the wrist punishment given to O’Leary, IOC spokesman Mark Adams told reporters that there was no evidence of O’Leary engaging in some kind of match-fixing and that the Irish sailor’s only fault was not knowing he could not bet on Olympic events.
“It is not something we agree with and we condemn it, but we will not take any more action,” Adams added.
According to Eurosport Asia, O’Leary made two bets worth a total of €300 on the British boat to win the gold medal in the Star class at the 2008 Beijing Olympics at 12/1 odds (an event that he actually failed to qualify in). O’Leary’s call for the British to win proved to be correct, netting the sailor €3,600.
It can be said that O’Leary was fortunate enough to have made those wagers during the 2008 Olympics. It was a time when the IOC was only beginning its campaign to educate athletes on the risk of irregular and illegal betting. Had he made the wagers at the 2012 London Olympics, though, then we wouldn’t be surprised if the IOC did give him a lifetime ban.
But as such, the unique circumstance surrounding the time he made the wager, coupled with his admission that he didn’t know that it was illegal to bet on any Olympic event, prompted the IOC to be lenient on his punishment. No bans, just a warning akin to a heavy slap on the wrist.
For all intents and purposes, that’s like the equivalent of winning a gold medal.
December 05, 2012
Bwin.party Co-CEO Jim Ryan To Retire
One of the iGaming industry’s strongest marriages is coming to an amicable end after bwin.party digital entertainment announced that Jim Ryan is retiring from his position as co-CEO of the group. Ryan will leave his role at the iGaming firm on Jan. 15, 2013, and retire to a life of pancakes and poutine in Canada.
Commenting on his departure, Ryan said: “Being Co-CEO of bwin.party has been my dream job. As we approach the final stages of our merger integration I am immensely proud of what we have achieved and know that with Norbert at the helm, the business is in excellent hands and is particularly well-placed for the future. Having given over 11 years of my life to the online gaming industry, I am now looking forward to returning to Canada and enjoying more time with my family.”
Ryan can lay claim to being the group’s first ever CEO from the time bwin and PartyGaming merged back in March 2011. Before that he was at the helm of PartyGaming from June 2008 and in the past worked in Gibraltar for the iGaming firm St Minver during his career in the industry that stretches back to 2001.
It turns out that Ryan’s speech at October’s Global Gaming Expo (G2E) in Las Vegas, which focused on iGaming’s prospects in the USA, was one of his last as co-head honcho of bwin.party – so get those conference lanyards up on eBay for a quick buck! It’s the precursor to the company’s continued efforts towards becoming one of the first companies to move into the US market and Ryan is hopeful part of his legacy will include facilitating the company’s passage into the US market.
The company is now left in the hands of a man that has been more used to the back seat of a prison van than anything else in the past few weeks – Norbert Teufelberger. Shareholders will start to see over the coming months and years whether Ryan was the more intelligent of the two of them all along. Does it mean Norbert will finally start to get involved in more of those dirty unregulated markets that he likes so much? Is he just a power hungry narc? Or is Ryan simply not really bothered anymore? Only time – or the stock market – will tell…
Commenting on his departure, Ryan said: “Being Co-CEO of bwin.party has been my dream job. As we approach the final stages of our merger integration I am immensely proud of what we have achieved and know that with Norbert at the helm, the business is in excellent hands and is particularly well-placed for the future. Having given over 11 years of my life to the online gaming industry, I am now looking forward to returning to Canada and enjoying more time with my family.”
Ryan can lay claim to being the group’s first ever CEO from the time bwin and PartyGaming merged back in March 2011. Before that he was at the helm of PartyGaming from June 2008 and in the past worked in Gibraltar for the iGaming firm St Minver during his career in the industry that stretches back to 2001.
It turns out that Ryan’s speech at October’s Global Gaming Expo (G2E) in Las Vegas, which focused on iGaming’s prospects in the USA, was one of his last as co-head honcho of bwin.party – so get those conference lanyards up on eBay for a quick buck! It’s the precursor to the company’s continued efforts towards becoming one of the first companies to move into the US market and Ryan is hopeful part of his legacy will include facilitating the company’s passage into the US market.
The company is now left in the hands of a man that has been more used to the back seat of a prison van than anything else in the past few weeks – Norbert Teufelberger. Shareholders will start to see over the coming months and years whether Ryan was the more intelligent of the two of them all along. Does it mean Norbert will finally start to get involved in more of those dirty unregulated markets that he likes so much? Is he just a power hungry narc? Or is Ryan simply not really bothered anymore? Only time – or the stock market – will tell…
December 04, 2012
Microgaming rebrands its Poker Network to the ‘MPN’
Microgaming, the world’s largest provider of online gaming software, announces the re-brand of its main poker network to the ‘MPN’ and the launch of its new website.
The MPN, formerly called the Microgaming Poker Network, has undergone a significant transformation over the past two years, encompassing sweeping changes to its design, architecture and game offering.
Lydia Melton, Microgaming Head of Network Games, commented, “The rebrand of the network to MPN and the launch of the network website are both significant milestones for Microgaming poker.”
The rebrand to ‘MPN’ marks the culmination of a project, initiated in January 2010, which includes the following changes:
- A new poker lobby, designed for both beginner and advanced players, rolling out to operators over Q4 2012 and Q1 2013;
- A re-architecture of the poker platform, live January 2010;
- A new Flash client, rolling out alongside the new poker lobby;
- An HTML5 client;
- Blaze Poker;
- Anonymous Tables;
- Joint promotions with key operators, live December 2012;
- True Value, a unique and patent-pending rake allocation model;
- The formation of the Network Management Board, the industry’s first operator/network board, which works to shape the development roadmap and strategies for the entire MPN, and is now a year old.
The final steps in this process are the re-brand of the poker network and the launch of the network website. Success of the project can be clearly quantified. Over the last several weeks, announcements have been made for new operators joining the network, including Betsson, BetVictor and iGame Malta. Additional operators have signed with Microgaming and intend to launch over the coming weeks.
“We are approaching our 10th year in operation, and we are stronger than ever,” added Melton, “However, we will not be resting on our laurels. What we have done with all these changes is build the framework for a scalable and sustainable network. Now that the framework is in place, we are more flexible, resilient and adaptable to change.”
The MPN, formerly called the Microgaming Poker Network, has undergone a significant transformation over the past two years, encompassing sweeping changes to its design, architecture and game offering.
Lydia Melton, Microgaming Head of Network Games, commented, “The rebrand of the network to MPN and the launch of the network website are both significant milestones for Microgaming poker.”
The rebrand to ‘MPN’ marks the culmination of a project, initiated in January 2010, which includes the following changes:
- A new poker lobby, designed for both beginner and advanced players, rolling out to operators over Q4 2012 and Q1 2013;
- A re-architecture of the poker platform, live January 2010;
- A new Flash client, rolling out alongside the new poker lobby;
- An HTML5 client;
- Blaze Poker;
- Anonymous Tables;
- Joint promotions with key operators, live December 2012;
- True Value, a unique and patent-pending rake allocation model;
- The formation of the Network Management Board, the industry’s first operator/network board, which works to shape the development roadmap and strategies for the entire MPN, and is now a year old.
The final steps in this process are the re-brand of the poker network and the launch of the network website. Success of the project can be clearly quantified. Over the last several weeks, announcements have been made for new operators joining the network, including Betsson, BetVictor and iGame Malta. Additional operators have signed with Microgaming and intend to launch over the coming weeks.
“We are approaching our 10th year in operation, and we are stronger than ever,” added Melton, “However, we will not be resting on our laurels. What we have done with all these changes is build the framework for a scalable and sustainable network. Now that the framework is in place, we are more flexible, resilient and adaptable to change.”
UK publishes draft gambling act revisions for wary industry to contemplate
The UK Department for Culture, Media and Sport (DCMS) published its long-awaiting draft legislation on Monday.
The Draft Gambling (Licensing & Advertising) Bill amends existing legislation to require all operators that advertise and accept bets from UK customers to obtain a license and pay tax on UK wagers.
Changes were first proposed back in mid-2011, followed by a period of industry consultation. It received the expected mention in the 2012 budget, and the legislation could be adopted by the end of 2014.
The existing system, introduced in the 2005 Gambling Act, saw the creation of the new UK Gambling Commission to oversee the licensing and regulation of online gaming in the UK along with traditional gambling. Since 2005, all operators in the UK are required to apply for a license and pay 15% tax on gross profits.
However, it also introduced a “white list” of foreign jurisdictions, which includes all the European Economic Area, Gibraltar, Alderney, Isle of Man, Tasmania and Antigua and Barbuda. Companies in these areas may continue to operate in the UK while avoiding the UK’s high levy. The result was the vast majority of the online gambling moved offshore.
The new bill thus proposes a switch to a “point of consumption tax,” meaning the location of the bettor, not the operator, is the deciding factor on what tax must be paid. Under the new legislation, rake collected by a poker room attributed to a player in the UK will be subject to taxation.
The current tax of 15% on gross profits introduced in 2005 has been deemed too high by many in the industry. The new draft bill does not specify a tax rate. The DCMS itself recently released a report that concluded that the 15% taxation forced many online operators offshore, and if maintained when switching to a point of consumption tax could lead to 40% of the industry leaving the market.
William Hill has strongly opposed the plan and is considering its legal options.
In the “impact assessment” report in the draft bill, it concludes that “the proposals are cost- and benefit-neutral to British-based remote gambling operators, as there will be no additional costs and may even be some … marginal net benefits in relation to fees.”
The point does not apply for the majority of operators, who are no longer “British-based” since the introduction of the 2005 legislation. Although there are approximately 100 active licenses issued by the UKGC to online operators, most are smaller casino and bingo sites; nearly all major online poker rooms and bookmakers are based in white-listed jurisdictions.
The bill promises an easy transition for these operators, with a transitional period where operators receive automatic provisional licenses.
“The proposals not designed to duplicate the work of other regulators or to unnecessarily increase burdens imposed on operators,” it also states. Operators in unspecified “well-regulated jurisdictions” will not face significant increases in licensing costs.
Beyond the increased costs of operation, which may be a cost partially passed on to the customer, online poker players should see little change to the introduction of the new legislation. There is no requirement for segregating the player pool, reducing stakes and games spread, or other such restrictions.
The Draft Gambling (Licensing & Advertising) Bill amends existing legislation to require all operators that advertise and accept bets from UK customers to obtain a license and pay tax on UK wagers.
Changes were first proposed back in mid-2011, followed by a period of industry consultation. It received the expected mention in the 2012 budget, and the legislation could be adopted by the end of 2014.
The existing system, introduced in the 2005 Gambling Act, saw the creation of the new UK Gambling Commission to oversee the licensing and regulation of online gaming in the UK along with traditional gambling. Since 2005, all operators in the UK are required to apply for a license and pay 15% tax on gross profits.
However, it also introduced a “white list” of foreign jurisdictions, which includes all the European Economic Area, Gibraltar, Alderney, Isle of Man, Tasmania and Antigua and Barbuda. Companies in these areas may continue to operate in the UK while avoiding the UK’s high levy. The result was the vast majority of the online gambling moved offshore.
The new bill thus proposes a switch to a “point of consumption tax,” meaning the location of the bettor, not the operator, is the deciding factor on what tax must be paid. Under the new legislation, rake collected by a poker room attributed to a player in the UK will be subject to taxation.
The current tax of 15% on gross profits introduced in 2005 has been deemed too high by many in the industry. The new draft bill does not specify a tax rate. The DCMS itself recently released a report that concluded that the 15% taxation forced many online operators offshore, and if maintained when switching to a point of consumption tax could lead to 40% of the industry leaving the market.
William Hill has strongly opposed the plan and is considering its legal options.
In the “impact assessment” report in the draft bill, it concludes that “the proposals are cost- and benefit-neutral to British-based remote gambling operators, as there will be no additional costs and may even be some … marginal net benefits in relation to fees.”
The point does not apply for the majority of operators, who are no longer “British-based” since the introduction of the 2005 legislation. Although there are approximately 100 active licenses issued by the UKGC to online operators, most are smaller casino and bingo sites; nearly all major online poker rooms and bookmakers are based in white-listed jurisdictions.
The bill promises an easy transition for these operators, with a transitional period where operators receive automatic provisional licenses.
“The proposals not designed to duplicate the work of other regulators or to unnecessarily increase burdens imposed on operators,” it also states. Operators in unspecified “well-regulated jurisdictions” will not face significant increases in licensing costs.
Beyond the increased costs of operation, which may be a cost partially passed on to the customer, online poker players should see little change to the introduction of the new legislation. There is no requirement for segregating the player pool, reducing stakes and games spread, or other such restrictions.
November 28, 2012
Apple to revolutionize gambling on TV
Apple is reported to be working on a television set that will change the way we watch TV and gamble.
According to business rumors, the launch of Apple’s highly awaited television set is “imminent.”, the gossip has been around for at least two years, but recent leaks from various sources suggest the expected debut is as near as the early first half of 2013.
Allegedly, the design will resemble Apple’s LED Cinema Displays, but much bigger. Imagine watching a horse racing broadcast in normal size, and not in an iPhone gambling app.
The new TV will come with built-in Siri enabling viewers to control it without a remote. Facetime will be used on the big screen for high-quality video chat. Apple is supposed to include a console similar to Xbox Kinect as well.
Maybe the most interesting is how Apple handles TV content. The boys in Cupertino want to offer TV channels as streaming apps on their television that one can stream content through. You could pay for each app channel individually instead of subscribing for a package as you would normally do at your cable provider.
You will be able to reach all sorts of extras including mobile gambling content on your Apple devices that are connected with the television set. Apple devices such as iPhone, iPod or iPad could control your TV using a version of AirPlay.
Apple has not even commented on its television plans. There are no known names for the new product. Possible guesses include iTV, “iPanel” or simply just “Apple TV.”
Whatever Apple’s choice will be, we can be sure that its approach towards television will change the rules as iPod changed the music business, iPhone transformed the mobile industry and iPads created a new category in personal computing, gaming and mobile casinos.
According to business rumors, the launch of Apple’s highly awaited television set is “imminent.”, the gossip has been around for at least two years, but recent leaks from various sources suggest the expected debut is as near as the early first half of 2013.
Allegedly, the design will resemble Apple’s LED Cinema Displays, but much bigger. Imagine watching a horse racing broadcast in normal size, and not in an iPhone gambling app.
The new TV will come with built-in Siri enabling viewers to control it without a remote. Facetime will be used on the big screen for high-quality video chat. Apple is supposed to include a console similar to Xbox Kinect as well.
Maybe the most interesting is how Apple handles TV content. The boys in Cupertino want to offer TV channels as streaming apps on their television that one can stream content through. You could pay for each app channel individually instead of subscribing for a package as you would normally do at your cable provider.
You will be able to reach all sorts of extras including mobile gambling content on your Apple devices that are connected with the television set. Apple devices such as iPhone, iPod or iPad could control your TV using a version of AirPlay.
Apple has not even commented on its television plans. There are no known names for the new product. Possible guesses include iTV, “iPanel” or simply just “Apple TV.”
Whatever Apple’s choice will be, we can be sure that its approach towards television will change the rules as iPod changed the music business, iPhone transformed the mobile industry and iPads created a new category in personal computing, gaming and mobile casinos.
November 21, 2012
California approves exchange-wagering rules; implementation at least months away
The California Horse Racing Board approved rules allowing for exchange wagering in the state on Thursday, but the launch of such wagers is still months away and faces the potential of legal challenges, officials said.
The state’s Office of Administrative Law is expected to receive the rules and supporting documents from the racing board in early December, and will have 30 working days to review materials. If the rules are approved, the racing industry can move forward in early 2013 with the implementation of the oversight technology and training to administer exchange wagering in the state.
A racetrack and horsemen’s group would then need to reach a financial agreement with an account-wagering provider and receive approval from the board before exchange wagering could start.
If the Office of Administrative Law expresses concern about the 25 rules approved on Thursday, it is possible that the legal approval could be delayed extensively.
There is also the possibility of lawsuits that could challenge the legality of exchange wagering, which allows bettors to back or lay horses to win or lose. Exchange wagering was approved by the state legislature in 2010, pending the development of rules by the racing board.
Betfair-TVG officials told the racing board on Thursday that they need several months before they are ready to implement exchange wagering in California.
Betfair-TVG and Twinspires.com approached the board for licenses to conduct exchange wagering. The board issued a provisional license to Betfair-TVG, subject to the opinion of the office of administrative law on exchange wagering rules. Twinspires.com is expected to apply for a provisional license in the near future.
The two account-wagering providers were asked to purchase computer hardware and software that will be used in the racing’s board regulation of exchange wagering. The cost of the software is part of the account-wagering providers’ license fee to conduct exchange wagering.
The hardware, software, and training of staff has an estimated cost of $530,000 through the end of the fiscal year, on June 30, 2013. All exchange-wagering providers must pay for regulation of such wagers, according to the 2010 legislation.
The state’s Office of Administrative Law is expected to receive the rules and supporting documents from the racing board in early December, and will have 30 working days to review materials. If the rules are approved, the racing industry can move forward in early 2013 with the implementation of the oversight technology and training to administer exchange wagering in the state.
A racetrack and horsemen’s group would then need to reach a financial agreement with an account-wagering provider and receive approval from the board before exchange wagering could start.
If the Office of Administrative Law expresses concern about the 25 rules approved on Thursday, it is possible that the legal approval could be delayed extensively.
There is also the possibility of lawsuits that could challenge the legality of exchange wagering, which allows bettors to back or lay horses to win or lose. Exchange wagering was approved by the state legislature in 2010, pending the development of rules by the racing board.
Betfair-TVG officials told the racing board on Thursday that they need several months before they are ready to implement exchange wagering in California.
Betfair-TVG and Twinspires.com approached the board for licenses to conduct exchange wagering. The board issued a provisional license to Betfair-TVG, subject to the opinion of the office of administrative law on exchange wagering rules. Twinspires.com is expected to apply for a provisional license in the near future.
The two account-wagering providers were asked to purchase computer hardware and software that will be used in the racing’s board regulation of exchange wagering. The cost of the software is part of the account-wagering providers’ license fee to conduct exchange wagering.
The hardware, software, and training of staff has an estimated cost of $530,000 through the end of the fiscal year, on June 30, 2013. All exchange-wagering providers must pay for regulation of such wagers, according to the 2010 legislation.
November 14, 2012
Greece gives online operators until Dec. 6 to get lost or face blacklist, prison
Truly, this week is only a couple days old but the board of directors at Bwin.party digital entertainment likely already wishes it was over. As co-CEO Norbert Teufelberger beats an inglorious retreat to the UK following his detention by Belgian police, Greece is now telling Bwin.party and other unlicensed operators serving Greek punters to get the hell out of Dodge (and Athens) by Dec. 6 or face a decade in prison, up to €500k in fines and ‘severe administration penalties,’ which we assume means being forced to untangle the country’s messy finances using only a slide rule and a No. 2 pencil.
The Hellenic Gaming Commission issued warning notices on Nov. 5 to all operators currently serving the Greek market without the government’s say-so. These operators are being given a one-month grace period in which to wind down their affairs, after which any operators still serving the market will be put on a blacklist (much as in Belgium). Banks will be forbidden to process transactions for any company on the blacklist and IP-blocking will cut off punter access. The Commission’s notice said it was asking for support from other EU regulators “and will appreciate proactivity” by same “to inform and strongly advise” operators they regulate to comply with Greek wishes.
Greece passed a new gaming law in August 2011, which was supposed to be followed by a public tender for online gaming licenses. While that has yet to occur, Greece issued temporary permits to 24 operators – including Sportingbet and Paddy Power – on the condition that they ante up two years of back taxes (similar to what transpired in Spain). Other major European operators, including Betfair, Bet365 and William Hill, chose instead to file a grievance (via the Remote Gambling Association) with the European Commission over what they viewed as the Greek gaming law’s discriminatory provisions.
Bwin.party, reportedly Greece’s online gambling market leader, also chose not to apply for a license and filed its own EC complaint in November via its European Gaming and Betting Association (EGBA) mouthpiece. Unless Bwin.party has learned a lesson from Tuesday’s strong-arm tactics in Belgium, a business-as-usual approach in Greece would result in its name appearing on yet another blacklist and creating another no-fly zone for Bwin.party execs.
With Bwin.party’s Nevada online poker tech provider license application hearing expected sometime early in the new year, shareholders are likely starting to wonder if Bwin.party execs are treating the hearing as a foregone conclusion. If continued nose-thumbing at European regulators ultimately proves too blatant for US regulators to ignore and eliminates the possibility of Bwin.party adding a US revenue stream, could the next Bwin.party AGM be a bring-your-own-pitchfork-and-torch affair? (Entirely uncorroborated scuttlebutt has Teufelberger’s arrest the result of a tipoff Belgian authorities received from co-CEO Jim Ryan, who is presumably itching to ditch the ‘co-’ from his business card.)
Of course, the public companies currently doing business in Greece will eventually ‘choose’ to leave, much in the way one ‘chooses’ to keep breathing. Their shareholders have no appetite for risk and video clips of senior management being frog-marched away in handcuffs tend to have a depressing effect on share prices. Public protestations about ‘illegal’ laws don’t mean much in practical terms; it’s been seven years since the World Trade Organization declared the US anti-online gambling stance to be a breach of international trade rules yet Antigua still hasn’t received its rightful redress.
It will be interesting to see how the Greeks treat Playtech, which, via its partnership with German outfit Gauselmann, is one of eight prospective bidders for the Greek government’s one-third stake in lottery/betting monopoly OPAP. Playtech also supplies technology to a number of Greek-facing operators, including (for the moment) William Hill Online. If Playtech licensees choose to ignore the Greek blacklist, would Playtech escape criticism and/or legal action?
In the past, Playtech has taken an “it’s our clients that are breaking the law, not us” stance regarding its revenue streams from licensees operating in China, Malaysia and Germany, but much will depend on how broadly Greece chooses to define ‘operator.’ As with Bwin.party’s Belgian brouhaha, the fallout from the Greek clampdown may extend well beyond its borders. The fact that Playtech founder Teddy Sagi did time in an Israeli prison in the 1990s for stock manipulation was noted by Nevada regulators when William Hill’s sports betting license was being considered and further European controversy might eliminate any possibility of Playtech participating in a regulated US online poker market.
The Hellenic Gaming Commission issued warning notices on Nov. 5 to all operators currently serving the Greek market without the government’s say-so. These operators are being given a one-month grace period in which to wind down their affairs, after which any operators still serving the market will be put on a blacklist (much as in Belgium). Banks will be forbidden to process transactions for any company on the blacklist and IP-blocking will cut off punter access. The Commission’s notice said it was asking for support from other EU regulators “and will appreciate proactivity” by same “to inform and strongly advise” operators they regulate to comply with Greek wishes.
Greece passed a new gaming law in August 2011, which was supposed to be followed by a public tender for online gaming licenses. While that has yet to occur, Greece issued temporary permits to 24 operators – including Sportingbet and Paddy Power – on the condition that they ante up two years of back taxes (similar to what transpired in Spain). Other major European operators, including Betfair, Bet365 and William Hill, chose instead to file a grievance (via the Remote Gambling Association) with the European Commission over what they viewed as the Greek gaming law’s discriminatory provisions.
Bwin.party, reportedly Greece’s online gambling market leader, also chose not to apply for a license and filed its own EC complaint in November via its European Gaming and Betting Association (EGBA) mouthpiece. Unless Bwin.party has learned a lesson from Tuesday’s strong-arm tactics in Belgium, a business-as-usual approach in Greece would result in its name appearing on yet another blacklist and creating another no-fly zone for Bwin.party execs.
With Bwin.party’s Nevada online poker tech provider license application hearing expected sometime early in the new year, shareholders are likely starting to wonder if Bwin.party execs are treating the hearing as a foregone conclusion. If continued nose-thumbing at European regulators ultimately proves too blatant for US regulators to ignore and eliminates the possibility of Bwin.party adding a US revenue stream, could the next Bwin.party AGM be a bring-your-own-pitchfork-and-torch affair? (Entirely uncorroborated scuttlebutt has Teufelberger’s arrest the result of a tipoff Belgian authorities received from co-CEO Jim Ryan, who is presumably itching to ditch the ‘co-’ from his business card.)
Of course, the public companies currently doing business in Greece will eventually ‘choose’ to leave, much in the way one ‘chooses’ to keep breathing. Their shareholders have no appetite for risk and video clips of senior management being frog-marched away in handcuffs tend to have a depressing effect on share prices. Public protestations about ‘illegal’ laws don’t mean much in practical terms; it’s been seven years since the World Trade Organization declared the US anti-online gambling stance to be a breach of international trade rules yet Antigua still hasn’t received its rightful redress.
It will be interesting to see how the Greeks treat Playtech, which, via its partnership with German outfit Gauselmann, is one of eight prospective bidders for the Greek government’s one-third stake in lottery/betting monopoly OPAP. Playtech also supplies technology to a number of Greek-facing operators, including (for the moment) William Hill Online. If Playtech licensees choose to ignore the Greek blacklist, would Playtech escape criticism and/or legal action?
In the past, Playtech has taken an “it’s our clients that are breaking the law, not us” stance regarding its revenue streams from licensees operating in China, Malaysia and Germany, but much will depend on how broadly Greece chooses to define ‘operator.’ As with Bwin.party’s Belgian brouhaha, the fallout from the Greek clampdown may extend well beyond its borders. The fact that Playtech founder Teddy Sagi did time in an Israeli prison in the 1990s for stock manipulation was noted by Nevada regulators when William Hill’s sports betting license was being considered and further European controversy might eliminate any possibility of Playtech participating in a regulated US online poker market.
November 08, 2012
Microgaming heralds another win with Betsson move
The Microgaming Poker Network (MPN) has received another boost with the addition of Betsson.com to the network.
Betsson will offer its poker customers access to MPN alongside its existing offering on the Ongame Network, while its Euro Tables product powered by IGT Entraction will close down on November 20th as a result of IGT’s decision to close the network.
Microgaming said Wednesday that it has worked closely with Betsson and a number of other key operators in shaping the design and functionality of the new MPN lobby, with Betsson one of the first operators to go live with the improved interface.
“We are thrilled to have Betsson.com join the Microgaming Poker Network,” said Microgaming’s head of networked games, Lydia Melton. “The MPN has undergone a transformation this year, and we are delighted that our efforts have resulted in the signing of such major operators. We look forward to working closely with Betsson.com on the MPN and in the Network Management Board over the coming years.”
Henric Andersson, product director at Betsson Group, added: “The MPN is one of the world’s most established online poker networks; naturally we are delighted to be joining the MPN. At Betsson.com, we strive to create the finest gaming experience for our players and we are confident that by adding the MPN to our offering, we will deliver an exceptional experience to all of our poker players.”
Betsson will offer its poker customers access to MPN alongside its existing offering on the Ongame Network, while its Euro Tables product powered by IGT Entraction will close down on November 20th as a result of IGT’s decision to close the network.
Microgaming said Wednesday that it has worked closely with Betsson and a number of other key operators in shaping the design and functionality of the new MPN lobby, with Betsson one of the first operators to go live with the improved interface.
“We are thrilled to have Betsson.com join the Microgaming Poker Network,” said Microgaming’s head of networked games, Lydia Melton. “The MPN has undergone a transformation this year, and we are delighted that our efforts have resulted in the signing of such major operators. We look forward to working closely with Betsson.com on the MPN and in the Network Management Board over the coming years.”
Henric Andersson, product director at Betsson Group, added: “The MPN is one of the world’s most established online poker networks; naturally we are delighted to be joining the MPN. At Betsson.com, we strive to create the finest gaming experience for our players and we are confident that by adding the MPN to our offering, we will deliver an exceptional experience to all of our poker players.”
November 06, 2012
Full Tilt relaunch – 22,000 players on site in one hour
The long awaited relaunch of the hugely popular online poker site, Full Tilt Poker started up for business just one hour ago, with tens of thousands of players jumping on the website to play, cashout and generally see what the new owner PokerStars had done to FTP.
Reports early on have said there are problems with players depositing on the FTP site, however there seems no problems for the players looking to withdraw the $184 million that has been frozen in their accounts since the previous owners left the company in almost collapse prior to PokerStars saving the online site and indeed the millions of poker players funds.
With so much traffic on the website there will be teething problems, but at present apart from the odd player having a problem depositing funds using credit card, it seems the FTP launch has been a huge success.
Reports early on have said there are problems with players depositing on the FTP site, however there seems no problems for the players looking to withdraw the $184 million that has been frozen in their accounts since the previous owners left the company in almost collapse prior to PokerStars saving the online site and indeed the millions of poker players funds.
With so much traffic on the website there will be teething problems, but at present apart from the odd player having a problem depositing funds using credit card, it seems the FTP launch has been a huge success.
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