The final member of the Full Tilt Poker team that federal prosecutors alleged, in September 2011, had been operating a “global Ponzi scheme” reportedly will plead guilty.
The Wall Street Journal reported Monday that Raymond Bitar needs a heart transplant and this medical development has affected his criminal case.
“It’s a very unusual situation,” Bitar’s attorney told The Wall Street Journal. “We’ve been able to work out something with the government that takes into account the unique circumstances. We appreciate the government’s courtesy in this regard.”
It’s unclear what kind of “courtesy” has been dealt to Bitar. He was facing life in prison after being accused of a handful of financial-related crimes in running Full Tilt. He has been residing in California since being released on bond in 2012.
Howard Lederer, Rafe Furst and Chris Ferguson, who were originally alleged to be part of the Ponzi scheme, all have settled their respective civil cases with the federal government. None of them admitted to any wrongdoing with running the online poker site.
Hundreds of millions were owed to former customers when the site shut its doors, as American victims are still waiting on compensation from the government.
Full Tilt Poker software is back in cyberspace thanks to a government-approved takeover by former rival PokerStars, which also fell into hot water on Black Friday in April 2011.
April 16, 2013
April 12, 2013
Online bingo: A very full house
Switch on the television or flick through a newspaper and there's a good chance that you'll come across an advert for online bingo. But who is playing - and why?
A typical evening sees Anita Heffernan, 50, spending two or three hours playing bingo online.
It's not for the money - her biggest ever win was about £400 and, being a game of chance, players typically spend more than they win.
"It is a hobby," says Heffernan. "I would much rather do that than spend a night out in town."
There's been a rapid growth of bingo websites. As recently as 2004 fewer than 20 such sites operated in the UK, now there are thought to be about 350.
Operators include everyone from bingo hall owners Mecca and Gala, to newspapers like The Sun and Daily Mail.
For a game strongly associated with the camaraderie of a night spent at crowded tables with friends any move online could be seen as being at odds with the very reasons for playing.
Many of the vast concrete and neon bingo halls on High Streets across the country may now be showing their age, but millions still visit them every year.
For the uninitiated, bingo is a game of pure chance. There's no skill involved other than the ability to keep up - in the UK version of the game players listen intently for the 25 random numbers between one and 90 printed on their card to be called out.
One by one they are crossed off until someone has none left and there's a winner - then they might shout "bingo" or "house".
The figure at the centre of the action - the caller - traditionally announces each number in a language so familiar it has become corny: "Two fat ladies - 88", "clickety click - 66".
Advertised - and played - against a backdrop typically drawn in purples and pinks, it is not difficult to work out who the marketing for the online version is aimed at, says the University of Glasgow's Prof Gerda Reith, an expert in gambling and addiction.
Examples include the suave, purple-suited fox who leads a bus full of women on a big day out in Foxy Bingo's television adverts.
"They're trying to appeal to people they know like bingo and get them to play online. That's women."
There are younger players. Anni Nevison, 21, plays two or three times a week, including five hours on a Sunday.
"I get excitement and friendship," says Nevison, who has been playing since she was 18. "You go into a bingo site and it's like a little family, it's so chatty," she says of the other players she messages in the sites' chatrooms.
She would love to meet the people she talks to, although that is difficult as they are spread across the UK.
It is this chatroom-type element which is key to the appeal of online bingo for many players. Talking is frowned upon in traditional halls while the game is being played (the social element happens between and after games) lest players be distracted as the numbers are called. But online users can talk as much as they like.
Many sites fill players' bingo cards in automatically, so that they can concentrate on chatting. Online bingo terms have appeared as a result, including BLNG (better luck next game) and HABO (have a better one).
Should they wish to, some sites also allow players to message one another privately.
The cost of a bingo card can be as little as 1p, although most are about 10p and can be more. Prizes can run into several thousand pounds, although winnings usually depend on how many other people are playing and are often just a few pounds.
Few would see themselves as being involved in an activity comparable to poker, or playing slot machines, but the growth of online bingo is part of the "feminisation" of gambling, says Mark Griffiths, professor of gambling studies at Nottingham Trent University.
The focus on its social aspects makes it more appealing, he says.
"People conceptualise it as a bit of harmless fun, a harmless flutter and even though they know its a form of gambling, they never use the word," says Griffiths.
It might be expected that the growth of online bingo would have seen linked reports of problem gambling, but support organisations GamCare and the National Problem Gambling Clinic are yet to encounter it as a significant issue.
However, Liz Karter, author of Women and Problem Gambling, has seen a significant rise in the number of women with an online gambling problem - including bingo.
"The things that they report as being particularly difficult are the constant advertisements - it makes recovery very difficult," she says.
The rapid growth of the sites came after the 2005 Gambling Act, which swept aside strict regulation and allowed advertising for the first time, says Reith.
Not only could women be actively encouraged to have a flutter, but there was also a chance to make up for falling numbers in bingo halls.
"The traditional game is not a money maker... bingo is low stakes low turnover and it's got worse since the [2007] smoking ban," says Reith.
Before the ban, players could light up inside during games and would have no need to go outside during breaks - making the bar and nearby slot machines busier.
Online bingo provides a chance to make up for some of that lost income.
The Gambling Commission's 2010 British Gambling Prevalence Survey suggests that 12% of women (compared to 6% of men) play bingo.
Among the big brands, Mecca Bingo reports that a fifth of the money it now takes is online, rather than in bingo halls.
The shift online is likely to continue, says Griffiths, who believes bingo is at the centre of a new type of "soft gambling".
Heffernan wagers £20 a night and likes concentrating on the numbers - "watching the game play out, when you get close it's quite exciting".
"I do enjoy it," she says of visits to real world bingo halls. "But it is slow in comparison."
It is not something her family understands, but nor does she expect them to.
"Bird watching? No thanks. Some people could spend hours looking at car magazines or whatever. This is just what I do."
A typical evening sees Anita Heffernan, 50, spending two or three hours playing bingo online.
It's not for the money - her biggest ever win was about £400 and, being a game of chance, players typically spend more than they win.
"It is a hobby," says Heffernan. "I would much rather do that than spend a night out in town."
There's been a rapid growth of bingo websites. As recently as 2004 fewer than 20 such sites operated in the UK, now there are thought to be about 350.
Operators include everyone from bingo hall owners Mecca and Gala, to newspapers like The Sun and Daily Mail.
For a game strongly associated with the camaraderie of a night spent at crowded tables with friends any move online could be seen as being at odds with the very reasons for playing.
Many of the vast concrete and neon bingo halls on High Streets across the country may now be showing their age, but millions still visit them every year.
For the uninitiated, bingo is a game of pure chance. There's no skill involved other than the ability to keep up - in the UK version of the game players listen intently for the 25 random numbers between one and 90 printed on their card to be called out.
One by one they are crossed off until someone has none left and there's a winner - then they might shout "bingo" or "house".
The figure at the centre of the action - the caller - traditionally announces each number in a language so familiar it has become corny: "Two fat ladies - 88", "clickety click - 66".
Advertised - and played - against a backdrop typically drawn in purples and pinks, it is not difficult to work out who the marketing for the online version is aimed at, says the University of Glasgow's Prof Gerda Reith, an expert in gambling and addiction.
Examples include the suave, purple-suited fox who leads a bus full of women on a big day out in Foxy Bingo's television adverts.
"They're trying to appeal to people they know like bingo and get them to play online. That's women."
There are younger players. Anni Nevison, 21, plays two or three times a week, including five hours on a Sunday.
"I get excitement and friendship," says Nevison, who has been playing since she was 18. "You go into a bingo site and it's like a little family, it's so chatty," she says of the other players she messages in the sites' chatrooms.
She would love to meet the people she talks to, although that is difficult as they are spread across the UK.
It is this chatroom-type element which is key to the appeal of online bingo for many players. Talking is frowned upon in traditional halls while the game is being played (the social element happens between and after games) lest players be distracted as the numbers are called. But online users can talk as much as they like.
Many sites fill players' bingo cards in automatically, so that they can concentrate on chatting. Online bingo terms have appeared as a result, including BLNG (better luck next game) and HABO (have a better one).
Should they wish to, some sites also allow players to message one another privately.
The cost of a bingo card can be as little as 1p, although most are about 10p and can be more. Prizes can run into several thousand pounds, although winnings usually depend on how many other people are playing and are often just a few pounds.
Few would see themselves as being involved in an activity comparable to poker, or playing slot machines, but the growth of online bingo is part of the "feminisation" of gambling, says Mark Griffiths, professor of gambling studies at Nottingham Trent University.
The focus on its social aspects makes it more appealing, he says.
"People conceptualise it as a bit of harmless fun, a harmless flutter and even though they know its a form of gambling, they never use the word," says Griffiths.
It might be expected that the growth of online bingo would have seen linked reports of problem gambling, but support organisations GamCare and the National Problem Gambling Clinic are yet to encounter it as a significant issue.
However, Liz Karter, author of Women and Problem Gambling, has seen a significant rise in the number of women with an online gambling problem - including bingo.
"The things that they report as being particularly difficult are the constant advertisements - it makes recovery very difficult," she says.
The rapid growth of the sites came after the 2005 Gambling Act, which swept aside strict regulation and allowed advertising for the first time, says Reith.
Not only could women be actively encouraged to have a flutter, but there was also a chance to make up for falling numbers in bingo halls.
"The traditional game is not a money maker... bingo is low stakes low turnover and it's got worse since the [2007] smoking ban," says Reith.
Before the ban, players could light up inside during games and would have no need to go outside during breaks - making the bar and nearby slot machines busier.
Online bingo provides a chance to make up for some of that lost income.
The Gambling Commission's 2010 British Gambling Prevalence Survey suggests that 12% of women (compared to 6% of men) play bingo.
Among the big brands, Mecca Bingo reports that a fifth of the money it now takes is online, rather than in bingo halls.
The shift online is likely to continue, says Griffiths, who believes bingo is at the centre of a new type of "soft gambling".
Heffernan wagers £20 a night and likes concentrating on the numbers - "watching the game play out, when you get close it's quite exciting".
"I do enjoy it," she says of visits to real world bingo halls. "But it is slow in comparison."
It is not something her family understands, but nor does she expect them to.
"Bird watching? No thanks. Some people could spend hours looking at car magazines or whatever. This is just what I do."
April 05, 2013
Swansea head for top ten finish as they exit sponsorship deal
Swansea City have plenty to be smiling about. Not only the prospect of mouth-watering derby games against arch rivals Cardiff but a top ten Premier League finish.
City currently lie 9th in the table despite three straight defeats, a point ahead of Fulham and four ahead of 11th placed West Ham.
Success on the field also creates opportunities off it, and as part of their developing off-field strategy current main sponsor, online gaming operator 32Red has agreed to end its shirt sponsorship deal with the Welsh club following the conclusion of the current season in May.
Gibraltar-based 32Red is the firm behind the online casino at 32Red.com and has served as the Welsh club’s primary shirt sponsor for four years. Its current deal was set to run until the conclusion of the 2013/14 season.
However, in a joint statement the pair explained that the decision had been taken in order to allow Swansea to ‘engage with third parties who may be able to assist in the physical development of the stadium and support the club in its next phase of growth’.
“It's been a fantastic relationship with the Swans,” said Ed Ware, Chief Executive Officer for 32Red.
“Our association has coincided with Swansea City's most successful period ever so far. We will look back on the partnership fondly and wish the club the very best of luck for the future.”
The original sponsorship deal with 32Red was signed in June 2009 when Swansea were a mid-table Championship club. They have since managed to secure promotion to the top-flight for only the second time in their history and celebrated their 100th birthday this season by winning the Capital One Cup.
“I’d like to place on record the club’s enormous thanks for the support that 32Red has given us over the last four years,” said Leigh Dineen, Vice-Chairman for Swansea City.
“It has been a pleasure to deal with and played an important factor in our progress. I feel we have some exciting opportunities in the marketplace and have agreed to conclude the agreement with 32Red one year early and on friendly terms.”
City currently lie 9th in the table despite three straight defeats, a point ahead of Fulham and four ahead of 11th placed West Ham.
Success on the field also creates opportunities off it, and as part of their developing off-field strategy current main sponsor, online gaming operator 32Red has agreed to end its shirt sponsorship deal with the Welsh club following the conclusion of the current season in May.
Gibraltar-based 32Red is the firm behind the online casino at 32Red.com and has served as the Welsh club’s primary shirt sponsor for four years. Its current deal was set to run until the conclusion of the 2013/14 season.
However, in a joint statement the pair explained that the decision had been taken in order to allow Swansea to ‘engage with third parties who may be able to assist in the physical development of the stadium and support the club in its next phase of growth’.
“It's been a fantastic relationship with the Swans,” said Ed Ware, Chief Executive Officer for 32Red.
“Our association has coincided with Swansea City's most successful period ever so far. We will look back on the partnership fondly and wish the club the very best of luck for the future.”
The original sponsorship deal with 32Red was signed in June 2009 when Swansea were a mid-table Championship club. They have since managed to secure promotion to the top-flight for only the second time in their history and celebrated their 100th birthday this season by winning the Capital One Cup.
“I’d like to place on record the club’s enormous thanks for the support that 32Red has given us over the last four years,” said Leigh Dineen, Vice-Chairman for Swansea City.
“It has been a pleasure to deal with and played an important factor in our progress. I feel we have some exciting opportunities in the marketplace and have agreed to conclude the agreement with 32Red one year early and on friendly terms.”
Kansas says NO to online gambling
It seems Kansas will not be entering the state by state race to legalize online gambling anytime soon as Senators rejected a bill to allow residents to place bets online.
Senators rejected the bill by 26-11 on Tuesday 2nd April to allow for a new state owned casino to be built in the state and at the same time voting against online gambling in the state.
The vote on Tuesday which would revise a 2007 law authorizing state-owned casinos and slot machines at dog and horse tracks to extend was called down and included the provision for online gambling also.
The bill would require any prospective developer to invest at least $225 million in a southeast Kansas casino, and backers of such a project say the investment is too high. The bill proposed was to drop it to $50 million.
Senators rejected the bill by 26-11 on Tuesday 2nd April to allow for a new state owned casino to be built in the state and at the same time voting against online gambling in the state.
The vote on Tuesday which would revise a 2007 law authorizing state-owned casinos and slot machines at dog and horse tracks to extend was called down and included the provision for online gambling also.
The bill would require any prospective developer to invest at least $225 million in a southeast Kansas casino, and backers of such a project say the investment is too high. The bill proposed was to drop it to $50 million.
April 04, 2013
Betradar unveil new Live Sports Centre
Betradar, the world’s leading supplier of sports and betting related data, announces the release of its new sports content solution “Live Sports Centre”.
Providing bettors with the necessary information to analyse their bets, as well as tools that entertain and stimulate further betting activity, is a daily challenge for bookmakers. Establishing a strong relationship with the customers through offering a good mixture of information and entertainment is the key to a successful online sportsbook. Therefore, Betradar’s sports content solutions cater for exactly this need and provide customers with all the information they are looking for.
Betradar’s latest innovation, the new Live Sports Centre, makes sports betting websites even more interactive, providing in-depth and graphically enhanced live content on various sports. “With the new Live Sports Centre, we offer a fully customisable solution for multiple media platforms. We took a conscious decision to focus on high flexibility through three sizing variations and modular usage of content”, says Erik Lorenz, Managing Director Sales from Sportradar, “so bookmakers are able to pick and choose between the available components to perfectly suit their needs”.
Betradar’s new Live Sports Centre is currently available for Soccer and will be launched soon for Tennis and Formula 1. The soccer solution impresses with attack visualisation and positional data of all on-pitch action and covers more than 25 soccer leagues and tournaments. Furthermore, a new ball spotting feature will be launched soon, enabling bettors to follow the course of a match. Due, not least, to the increasing number of mobile users, Betradar has developed a web-based mobile solution as well as a native app, which is compatible with all iPhone/iPad devices and focuses on what is so important for the customer: functionality and ease of navigation.
“With the new Live Sports Centre, Betradar has launched a solution offering great new features and lots of improvements. To give our customers the opportunity to learn more about the key features of Betradar’s new Live Sports Centre, we have created a video-campaign, focusing on the benefits for online sportsbooks. The campaign is available on our new YouTube channel”, says Tobias Brunner, Associate Director Marketing from Sportradar.
Providing bettors with the necessary information to analyse their bets, as well as tools that entertain and stimulate further betting activity, is a daily challenge for bookmakers. Establishing a strong relationship with the customers through offering a good mixture of information and entertainment is the key to a successful online sportsbook. Therefore, Betradar’s sports content solutions cater for exactly this need and provide customers with all the information they are looking for.
Betradar’s latest innovation, the new Live Sports Centre, makes sports betting websites even more interactive, providing in-depth and graphically enhanced live content on various sports. “With the new Live Sports Centre, we offer a fully customisable solution for multiple media platforms. We took a conscious decision to focus on high flexibility through three sizing variations and modular usage of content”, says Erik Lorenz, Managing Director Sales from Sportradar, “so bookmakers are able to pick and choose between the available components to perfectly suit their needs”.
Betradar’s new Live Sports Centre is currently available for Soccer and will be launched soon for Tennis and Formula 1. The soccer solution impresses with attack visualisation and positional data of all on-pitch action and covers more than 25 soccer leagues and tournaments. Furthermore, a new ball spotting feature will be launched soon, enabling bettors to follow the course of a match. Due, not least, to the increasing number of mobile users, Betradar has developed a web-based mobile solution as well as a native app, which is compatible with all iPhone/iPad devices and focuses on what is so important for the customer: functionality and ease of navigation.
“With the new Live Sports Centre, Betradar has launched a solution offering great new features and lots of improvements. To give our customers the opportunity to learn more about the key features of Betradar’s new Live Sports Centre, we have created a video-campaign, focusing on the benefits for online sportsbooks. The campaign is available on our new YouTube channel”, says Tobias Brunner, Associate Director Marketing from Sportradar.
April 02, 2013
Betfair acquires Blue Square for £5 million
Betfair have confirmed that they have purchased online sports site Blue Square from the Rank Group for £5 million, the purchase includes all assets and the customer database.
The deal means that effectively Blue Square is now non operational and all customers will be directed to the Betfair platform to sing up and receive a welcome bonus to join Betfair.
The deal with Rank to purchase the Blue Square business has been known for some time but today it was confirmed by the betting exchange giant. The brand that has struggled against fierce competition over recent years is a move by Rank to now focus on their land based gaming and online casino brand.
Betfair said in a statement: “the acquisition is consistent with Betfair’s strategy of focusing on regulated markets and growing its sportsbook and gaming operations alongside the exchange.”
The deal means that effectively Blue Square is now non operational and all customers will be directed to the Betfair platform to sing up and receive a welcome bonus to join Betfair.
The deal with Rank to purchase the Blue Square business has been known for some time but today it was confirmed by the betting exchange giant. The brand that has struggled against fierce competition over recent years is a move by Rank to now focus on their land based gaming and online casino brand.
Betfair said in a statement: “the acquisition is consistent with Betfair’s strategy of focusing on regulated markets and growing its sportsbook and gaming operations alongside the exchange.”
Illinois to be fourth online gambling state?
Could Illinois be the fourth state to enter the online gambling business? Lawmankers in the state have sent another gambling expansion bill to Governor Pat Quinn for consideration and hopefully signing into law.
Previously the state Governor has had concerns over problem gambling safeguards, proper regulation and oversight of the gambling industry.
Senators have sent proposals to the Governor to expand gambling with five new casinos, including one in Chicago, increasing the number of slots machines in the state, which would include Chicago’s two airports. However the biggest of them could be the inclusion of online gambling in the state.
Illinois has a population of over 12 million residents, making the state by far the largest to enter the online gambling world, should the Governor sign the bill into law.
The possibility of this happening this time is more likely, the democratic Governor has previously kicked out two other attempts by lawmakers to expand gambling in the state because of his concerns, but in his March budget speech he said he was now open to the prospect of gambling expansion.
The bill includes some provisions this time to help the Governor put pen to paper with; a ban on political contributions from the gambling industry, appointing an inspector general to monitor gaming and giving the state gaming board more authority over a Chicago casino.
“The stars are probably lining up better than they’ve ever lined up,” said Sen. Terry Link, who’s a main sponsor of the legislation. “We’re doing a lot of the things that the governor wanted.”
It is well known that the Governor is skeptical over online gambling, but supporters say that online gambling could help the states serious financial problems. However Pat Quinn has said that the most important issue for the state is the $100 billion pension black hole, which could delay the progress of the gambling expansion bill, until this is sorted out.
“There hasn’t been much review on that at all,” Quinn told reporters last week. “Any time you have something brand new, it shouldn’t just be thrown into a bill at the last minute.”
But Senator Link, who has sponsored gambling legislation for the state for over ten years, says it only makes sense because people are doing it online illegally, and legalizing it would help bring profits to the state.
Part of the proposal calls for splitting profits, between treatment programs for problem gamblers and the pension problem. Supporters estimate the profits that would go toward the state’s public pension system could exceed $50 million.
“This is the only revenue-generating bill that’s been introduced,” Link said.
However, when asked last week by reporters, Quinn said he won’t consider gambling until lawmakers solve the pension problem. Quinn has made pensions his number one issue since 2011.
Previously the state Governor has had concerns over problem gambling safeguards, proper regulation and oversight of the gambling industry.
Senators have sent proposals to the Governor to expand gambling with five new casinos, including one in Chicago, increasing the number of slots machines in the state, which would include Chicago’s two airports. However the biggest of them could be the inclusion of online gambling in the state.
Illinois has a population of over 12 million residents, making the state by far the largest to enter the online gambling world, should the Governor sign the bill into law.
The possibility of this happening this time is more likely, the democratic Governor has previously kicked out two other attempts by lawmakers to expand gambling in the state because of his concerns, but in his March budget speech he said he was now open to the prospect of gambling expansion.
The bill includes some provisions this time to help the Governor put pen to paper with; a ban on political contributions from the gambling industry, appointing an inspector general to monitor gaming and giving the state gaming board more authority over a Chicago casino.
“The stars are probably lining up better than they’ve ever lined up,” said Sen. Terry Link, who’s a main sponsor of the legislation. “We’re doing a lot of the things that the governor wanted.”
It is well known that the Governor is skeptical over online gambling, but supporters say that online gambling could help the states serious financial problems. However Pat Quinn has said that the most important issue for the state is the $100 billion pension black hole, which could delay the progress of the gambling expansion bill, until this is sorted out.
“There hasn’t been much review on that at all,” Quinn told reporters last week. “Any time you have something brand new, it shouldn’t just be thrown into a bill at the last minute.”
But Senator Link, who has sponsored gambling legislation for the state for over ten years, says it only makes sense because people are doing it online illegally, and legalizing it would help bring profits to the state.
Part of the proposal calls for splitting profits, between treatment programs for problem gamblers and the pension problem. Supporters estimate the profits that would go toward the state’s public pension system could exceed $50 million.
“This is the only revenue-generating bill that’s been introduced,” Link said.
However, when asked last week by reporters, Quinn said he won’t consider gambling until lawmakers solve the pension problem. Quinn has made pensions his number one issue since 2011.
March 22, 2013
Illinois Lottery Fines Northstar Group $20m For Missing Revenue Target
New Jersey is currently contemplating privatizing the management of its state lottery, which posted a record $2.7b in sales in 2012 and is the state’s fourth largest revenue stream. Gov. Chris Christie has been accused of exercising unnecessary secrecy in his privatization plans, so on Monday a suspicious state Senate passed legislation requiring both houses of the state legislature to sign off on any contract Christie might strike with lottery operators.
It’s not clear whether Christie will be willing to sign the bill and thus surrender his autonomy, but perhaps it would be better than to have the contract ripped up after the fact, similar to what happened recently in neighboring Pennsylvania. State treasury officials insist Christie would have the power to cancel the 15-year, $120m contract at any time should the operator prove incapable of increasing lottery revenue for two years. (This is what we call foreshadowing.)
As in Pennsylvania, there has been just one bidder for the New Jersey lottery contract, a consortium of GTECH, Scientific Games (SGMS) and a Canadian pension fund called OMERS, all of which is grouped under the banner of Northstar New Jersey. Northstar is also the name of the joint venture GTECH and SGMS entered into to operate the Illinois Lottery. Illinois was the first state to privatize management of its lottery in 2011, but the venture has yet to live up to its advance billing.
True, the Illinois Lottery increased sales from $2.27b to $2.68b and earned record revenue of $757m in 2012, the first full year of the 10-year Northstar contract, but that was $94m short of its promised $851.2m revenue target. Northstar quibbled about the revenue target figure, eventually convincing the state to reduce it to $822.8m, but that still left Northstar down nearly $66m. Northstar is also arguing that its total revenue tally was closer to $781m, but even that would leave it nearly $42m shy of its goal. (Nice try, guys, but unless you’re willing to claw back the odd jackpot or two, the two ends of this rope ain’t ever gonna meet.) As such, the Illinois Lottery Department is preparing to withhold monthly payments to Northstar until it has recouped a $20m penalty as stipulated under the terms of the management contract. Northstar earned $85m in management fees last year.
It’s not clear whether Christie will be willing to sign the bill and thus surrender his autonomy, but perhaps it would be better than to have the contract ripped up after the fact, similar to what happened recently in neighboring Pennsylvania. State treasury officials insist Christie would have the power to cancel the 15-year, $120m contract at any time should the operator prove incapable of increasing lottery revenue for two years. (This is what we call foreshadowing.)
As in Pennsylvania, there has been just one bidder for the New Jersey lottery contract, a consortium of GTECH, Scientific Games (SGMS) and a Canadian pension fund called OMERS, all of which is grouped under the banner of Northstar New Jersey. Northstar is also the name of the joint venture GTECH and SGMS entered into to operate the Illinois Lottery. Illinois was the first state to privatize management of its lottery in 2011, but the venture has yet to live up to its advance billing.
True, the Illinois Lottery increased sales from $2.27b to $2.68b and earned record revenue of $757m in 2012, the first full year of the 10-year Northstar contract, but that was $94m short of its promised $851.2m revenue target. Northstar quibbled about the revenue target figure, eventually convincing the state to reduce it to $822.8m, but that still left Northstar down nearly $66m. Northstar is also arguing that its total revenue tally was closer to $781m, but even that would leave it nearly $42m shy of its goal. (Nice try, guys, but unless you’re willing to claw back the odd jackpot or two, the two ends of this rope ain’t ever gonna meet.) As such, the Illinois Lottery Department is preparing to withhold monthly payments to Northstar until it has recouped a $20m penalty as stipulated under the terms of the management contract. Northstar earned $85m in management fees last year.
March 18, 2013
Playtech to offer financial spread betting platform
Playtech have confirmed in their companies annual report that they are working on a new financial betting platform. As early as the beginning of 2012 rumours were abound that the software provider company was working on a new platform for financial spread betting however were not confirmed at that time by Playtech.
But late last week Chief executive officer Mor Weizer said that extensive research into the possibilities for a new financial betting platform had shown that such a binary option service would be popular in the market, constituting a viable & revenue generating standalone service for Playtech licensees.
The financial spread betting sector already has many offerings for operators and has seen one or two of those platforms collapse because of competition, however, Weizer pointed out that these were focused on different demographics, creating an opportunity for his company & its licensees.
“The conversion rates between such a sports betting audience & financial betting present a great opportunity for operators, not only to maximise the returns from players, but to approach a larger audience.” Weizer said.
But late last week Chief executive officer Mor Weizer said that extensive research into the possibilities for a new financial betting platform had shown that such a binary option service would be popular in the market, constituting a viable & revenue generating standalone service for Playtech licensees.
The financial spread betting sector already has many offerings for operators and has seen one or two of those platforms collapse because of competition, however, Weizer pointed out that these were focused on different demographics, creating an opportunity for his company & its licensees.
“The conversion rates between such a sports betting audience & financial betting present a great opportunity for operators, not only to maximise the returns from players, but to approach a larger audience.” Weizer said.
March 14, 2013
Cyprus could have casinos within two years
Land-based casinos could soon be on their way to the southern European island of Cyprus, declared the Commerce Minister in Parliament on Monday. The new Cypriot government, elected last month, has a new ideology on casino gaming that could quickly develop a new market.
Newly appointed Minister of Commerce, Industry and Tourism, Giorgos Lakkotrypis explained that he has appointed the Cyprus Tourism Organisation (CTO) to update a 2007 study looking at the introduction of casino gaming in the country. Asked if Cyprus could expect casinos within two years, the minister avowed, “Yes, this is what we hope.”
This was the first time Lakkotrypis has expressed his views on the matter with MPs since assuming his duties, and he stressed the urgency of casinos. Parliamentarians and the Minister agreed to continue their cooperation and a progress report will be submitted every two months. Establishing a plan to roll out casinos would only be done once the all the relevant information has been presented, the Minister affirmed.
Since the Republic of Cyprus was granted independence from Britain in 1960, all forms of gambling other than sports betting have remained strictly outlawed in the island nation. Gaming operators caught on to a flaw in the anachronous legislation, which did not provide any stature online gaming and between 2002-2010, Cyprus witnessed a gradual development of gambling shops advertised as casino kiosks.
New gambling legislation was unanimously passed by the government in 2012 to clarify the law. It gave OPAP a monopoly over sports betting and placed an official ban on online casinos, poker, slots, exchange betting and gambling advertising. The administration had stubbornly refused to even look at the possibility of opening a casino sector as part of the legislation, giving the EU incentive to explore the issue.
Demetris Christofias, President of Cyprus at the time, said that casinos are an “expression of corruption and can create a crisis to the system. My party has struggled for years against any establishment of casinos, and there will be none while Christofias is President.” However, it is widely reported that Cypriots are already spending millions gambling on illegal online games and casinos in the north.
The CTO study conducted 6 years ago, estimated that over €6m per year is also being spent on gambling by Greek Cypriots in the country’s Turkish-controlled north. It projected that the creation of casinos could generate millions in revenues and a significant boost in employment opportunities.
Newly appointed Minister of Commerce, Industry and Tourism, Giorgos Lakkotrypis explained that he has appointed the Cyprus Tourism Organisation (CTO) to update a 2007 study looking at the introduction of casino gaming in the country. Asked if Cyprus could expect casinos within two years, the minister avowed, “Yes, this is what we hope.”
This was the first time Lakkotrypis has expressed his views on the matter with MPs since assuming his duties, and he stressed the urgency of casinos. Parliamentarians and the Minister agreed to continue their cooperation and a progress report will be submitted every two months. Establishing a plan to roll out casinos would only be done once the all the relevant information has been presented, the Minister affirmed.
Since the Republic of Cyprus was granted independence from Britain in 1960, all forms of gambling other than sports betting have remained strictly outlawed in the island nation. Gaming operators caught on to a flaw in the anachronous legislation, which did not provide any stature online gaming and between 2002-2010, Cyprus witnessed a gradual development of gambling shops advertised as casino kiosks.
New gambling legislation was unanimously passed by the government in 2012 to clarify the law. It gave OPAP a monopoly over sports betting and placed an official ban on online casinos, poker, slots, exchange betting and gambling advertising. The administration had stubbornly refused to even look at the possibility of opening a casino sector as part of the legislation, giving the EU incentive to explore the issue.
Demetris Christofias, President of Cyprus at the time, said that casinos are an “expression of corruption and can create a crisis to the system. My party has struggled for years against any establishment of casinos, and there will be none while Christofias is President.” However, it is widely reported that Cypriots are already spending millions gambling on illegal online games and casinos in the north.
The CTO study conducted 6 years ago, estimated that over €6m per year is also being spent on gambling by Greek Cypriots in the country’s Turkish-controlled north. It projected that the creation of casinos could generate millions in revenues and a significant boost in employment opportunities.
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