Turkey is proposing new legislation to put teeth into its fight against illegal online gambling, including stiff financial penalties for gamblers who bet with the sites. Turkey has long campaigned against online gambling, passing laws expressly outlawing the activity in 2007. The uncertainty surrounding the market led Sportingbet to sell its Turkish-facing Superbahis operation to GVC Holdings in 2011 and the new proposed measures could take a serious bite out of GVC’s future earnings.
On Wednesday, Turkish newspaper Hurriyet revealed that parliamentarians were intent on targeting not just operators, but affiliates, financial institutions, media companies and even players. Under the draft law’s terms, agents of the online sites who reside in Turkey would face prison sentences of several years. Similar sentences would await those who assist the sites in processing payments, while media companies that carry advertisements for the sites would face sentences of one to three years.
It will be up to the Turkish Banking Regulation and Supervising Agency to ensure that online gambling firms cannot process payments by debit cards or credit cards. The Telecommunication Communications Agency would be responsible for imposing IP-blocking of online sites.
Players, meanwhile, would face fines of between 100k-500k Turkish lira (US $55k to $278k). In a country with a median annual income of less than $6k, this proposal marks a serious escalation of Turkey’s fight against unauthorized sites. Just as Greece’s war against online gambling sites was viewed as a way to boost the value of betting monopoly OPAP, Turkey is planning to privatize its sports betting lottery this summer, and eliminating the lottery’s online competition might help Turkey realize the $10b sale price it’s seeking.
May 10, 2013
May 09, 2013
Paddy Power in wholesale rethink of corporate brand
Paddy Power has launched a wide-ranging review of its UK comms operation as it seeks to boost its voice in corporate Britain.
The Irish betting firm’s relationships with Powerscourt for UK financial comms and Weber Shandwick for public affairs are both under review following the arrival of Brunswick director Catherine Colloms as its first director of corporate affairs in January.
It is thought the brand has held early-stage discussions with both multidisciplinary and specialist agencies, some of which are exploring pitching for the diverse work as a consortium. However, Colloms said no official brief had yet been issued and all options remained on the table.
‘We are thinking about how we tackle some of the bigger issues affecting both the company and the industry and exploring how we deliver messages across the whole suite of communications,’ she explained.
The review will encompass public affairs, regulatory comms, CSR and corporate comms to transition Paddy Power into a more issues-led comms approach.
It is understood that regulatory issues and governmental comms in particular will play a more fundamental part in the company’s strategy.
The news comes amid a legal row between the company and the Government over the use of gaming machines in betting shops, after Newham Council turned down an application for a new Paddy Power unit on the grounds that it would not be a traditional bookmaker.
The brand is well known for its headline-grabbing PR stunts, but Colloms wants to grow a stronger corporate voice in the UK.
‘The consumer brand is so strong that it can dwarf everything else,’ she said. ‘But as one of the largest online bookmakers in the UK we want the corporate brand to compete with the consumer brand.
‘In Ireland Paddy Power has the premium corporate reputation of a Waitrose or John Lewis, but that has been slightly lost in translation in the UK.’
Agencies that work for other major gambling firms, including William Hill's PR agency Brunswick, are certain to be conflicted out of any pitch process.
Paddy Power is listed in the UK and Ireland. Drury Communications, which handles the company's financial comms in Ireland is unaffected by the review as are the brand's consumer agencies.
The Irish betting firm’s relationships with Powerscourt for UK financial comms and Weber Shandwick for public affairs are both under review following the arrival of Brunswick director Catherine Colloms as its first director of corporate affairs in January.
It is thought the brand has held early-stage discussions with both multidisciplinary and specialist agencies, some of which are exploring pitching for the diverse work as a consortium. However, Colloms said no official brief had yet been issued and all options remained on the table.
‘We are thinking about how we tackle some of the bigger issues affecting both the company and the industry and exploring how we deliver messages across the whole suite of communications,’ she explained.
The review will encompass public affairs, regulatory comms, CSR and corporate comms to transition Paddy Power into a more issues-led comms approach.
It is understood that regulatory issues and governmental comms in particular will play a more fundamental part in the company’s strategy.
The news comes amid a legal row between the company and the Government over the use of gaming machines in betting shops, after Newham Council turned down an application for a new Paddy Power unit on the grounds that it would not be a traditional bookmaker.
The brand is well known for its headline-grabbing PR stunts, but Colloms wants to grow a stronger corporate voice in the UK.
‘The consumer brand is so strong that it can dwarf everything else,’ she said. ‘But as one of the largest online bookmakers in the UK we want the corporate brand to compete with the consumer brand.
‘In Ireland Paddy Power has the premium corporate reputation of a Waitrose or John Lewis, but that has been slightly lost in translation in the UK.’
Agencies that work for other major gambling firms, including William Hill's PR agency Brunswick, are certain to be conflicted out of any pitch process.
Paddy Power is listed in the UK and Ireland. Drury Communications, which handles the company's financial comms in Ireland is unaffected by the review as are the brand's consumer agencies.
UK Gambling Bill Moves Forward as Online Participation Stagnant
The UK government will follow through on its plans to introduce new online gambling legislation in the current session of Parliament, possibly as early as next week. On Wednesday, the Gambling (Licensing and Advertising) Bill was one of 15 pieces of legislation mentioned in the Queen’s Speech, the blueprint for the government’s immediate legislative intentions that accompanies the opening of every new parliamentary session.
The Gambling Bill’s main features are the effective scuttling of the so-called White List, which allowed online gambling firms to advertise their wares in the UK under licenses issued by Alderney, Antigua and the Isle of Man. Under the new scheme, white-listed operators – as well as those licensed in Gibraltar or other European Union territories – will be required to hold a license issued by the UK Gambling Commission if they wish to promote their product in the UK. Operators doing business in the UK will also be required to alert the Commission if they detect suspicious betting patterns.
The Gambling Bill also proposes a point of consumption (POC) tax, the specific rate of which has yet to be formalized, although 15% appears to be the Treasury’s target. A week ago, the Culture, Media and Sport Committee published a report on the Bill warning the government not to make the tax so steep that operators cannot offer a product that’s competitive with unlicensed operators. UK bookies William Hill, whose online operations are based in Gibraltar, stated last year that even a 10% POC tax would drive 27% of cost-conscious punters into the arms of unlicensed operators. Most operators have proposed a tax more in the range of 5%-8%.
While estimates have put the UK government’s potential annual tax windfall as high as £386m, the Bill’s authors insist that boosting tax collections is a consequence of the legislation, not the primary aim. But then they have to say that, as legislation that made tax collection its primary aim wouldn’t pass muster with EU watchdogs. Critics of the legislation point to the fact that the government’s own representatives admit that 95% of all online wagering conducted in the UK is done with regulators with which the UK gov’t had no complaint to make, suggesting claims of consumer protection were a smokescreen designed to camouflage a naked tax grab.
The Gambling Commission has released the results of its latest gambling participation survey (read it here), which show gambling habits remarkably stable. The percentage of Britons who’d engaged in any form of gambling (including the National Lottery) in the year to March 2013 was 58%, virtually unmoved from 57% the previous year. Online gambling participation was equally predictable, unchanged at 8% (once you strip out those whose only online action is the National Lottery). Online gamblers are more likely to be male (18%) than female (12%) and 41% of all online gamblers are between 25-44 years old.
Online sports betting and casino games were the most popular form of online-only wagering at 46% participation, followed by ‘betting on other events’ at 41%, horseracing (30%), football pools (22%), National Lottery draws (16%), other lotteries (11%) and bingo (11%). Online betting exchanges accounted for 11% of horserace wagering, 10% of sports betting and 5% of non-sports betting.
Sports bettors were evenly split between land-based and online, with 46% claiming to exclusively patronize one form or the other. A mere 8% reported splitting their wagers between betting shops and online betting sites. Casino games were similarly divided, with just 9% claiming to split their time between brick-and-mortar and online casinos. Horserace betting remains a predominantly in-person phenomenon, with 58% opting to place their bets at a wicket, and just 12% splitting their time with online shops.
The Gambling Bill’s main features are the effective scuttling of the so-called White List, which allowed online gambling firms to advertise their wares in the UK under licenses issued by Alderney, Antigua and the Isle of Man. Under the new scheme, white-listed operators – as well as those licensed in Gibraltar or other European Union territories – will be required to hold a license issued by the UK Gambling Commission if they wish to promote their product in the UK. Operators doing business in the UK will also be required to alert the Commission if they detect suspicious betting patterns.
The Gambling Bill also proposes a point of consumption (POC) tax, the specific rate of which has yet to be formalized, although 15% appears to be the Treasury’s target. A week ago, the Culture, Media and Sport Committee published a report on the Bill warning the government not to make the tax so steep that operators cannot offer a product that’s competitive with unlicensed operators. UK bookies William Hill, whose online operations are based in Gibraltar, stated last year that even a 10% POC tax would drive 27% of cost-conscious punters into the arms of unlicensed operators. Most operators have proposed a tax more in the range of 5%-8%.
While estimates have put the UK government’s potential annual tax windfall as high as £386m, the Bill’s authors insist that boosting tax collections is a consequence of the legislation, not the primary aim. But then they have to say that, as legislation that made tax collection its primary aim wouldn’t pass muster with EU watchdogs. Critics of the legislation point to the fact that the government’s own representatives admit that 95% of all online wagering conducted in the UK is done with regulators with which the UK gov’t had no complaint to make, suggesting claims of consumer protection were a smokescreen designed to camouflage a naked tax grab.
The Gambling Commission has released the results of its latest gambling participation survey (read it here), which show gambling habits remarkably stable. The percentage of Britons who’d engaged in any form of gambling (including the National Lottery) in the year to March 2013 was 58%, virtually unmoved from 57% the previous year. Online gambling participation was equally predictable, unchanged at 8% (once you strip out those whose only online action is the National Lottery). Online gamblers are more likely to be male (18%) than female (12%) and 41% of all online gamblers are between 25-44 years old.
Online sports betting and casino games were the most popular form of online-only wagering at 46% participation, followed by ‘betting on other events’ at 41%, horseracing (30%), football pools (22%), National Lottery draws (16%), other lotteries (11%) and bingo (11%). Online betting exchanges accounted for 11% of horserace wagering, 10% of sports betting and 5% of non-sports betting.
Sports bettors were evenly split between land-based and online, with 46% claiming to exclusively patronize one form or the other. A mere 8% reported splitting their wagers between betting shops and online betting sites. Casino games were similarly divided, with just 9% claiming to split their time between brick-and-mortar and online casinos. Horserace betting remains a predominantly in-person phenomenon, with 58% opting to place their bets at a wicket, and just 12% splitting their time with online shops.
May 08, 2013
Holland Casino struggles with increasing losses
Holland Casino the State owned gambling group announced a loss of €652,000 for 2012 and seems to be under more pressure with results looking worse for the first three months of 2013.
It is reported that the state run company is seeing lower visitor figures than ever before and is also unable to meet agreed payments on loans to supporting banks
Visitor numbers fell 2% to 5.6 million last year while average spending per client fell by €2 to €96. The company said in November it would make redundancies of 400 of some 3,000 jobs but now that figure is believed to be increasing to be able to sustain their falling revenues.
‘Our focus is on further reducing costs and making the organisation more efficient and effective,’ chairman Dick Flink is quoted as saying.
It is reported that the state run company is seeing lower visitor figures than ever before and is also unable to meet agreed payments on loans to supporting banks
Visitor numbers fell 2% to 5.6 million last year while average spending per client fell by €2 to €96. The company said in November it would make redundancies of 400 of some 3,000 jobs but now that figure is believed to be increasing to be able to sustain their falling revenues.
‘Our focus is on further reducing costs and making the organisation more efficient and effective,’ chairman Dick Flink is quoted as saying.
Phil Ivey sues Crockfords
Phil Ivey is taking legal action against Crockfords Casino in Mayfair for allegedly withholding money he won playing punto banco last August. The American poker ace is believed to be the world’s sixth-highest earner from punto banco tournaments, amassing winnings of $14.6m (£9m).
Ivey said he was “deeply saddened” to file a writ at the High Court but he had been left with no alternative. He continued: “Over the years, I have won and lost substantial sums at Crockfords and I have always honoured my commitments.
“At the time, I was given a receipt for my winnings but Crockfords subsequently withheld payment. I therefore feel I have no alternative but to take legal action.”
Ivey who is 35, was with a female companion last August when he started a winning run at the table and over two days of gaming, he is thought to have ended his first night £2.3m ahead, rising to £7.3m by the end of the second night. But bosses as the casino which is owned by gaming giant Genting, allegedly withheld his winnings and opened an investigation.
The Independent understands that investigators have flown to London from Kuala Lumpur to interview staff – including a croupier working on the nights Mr Ivey played – and to review surveillance video footage and examine the cards used.
Mr Ivey’s lawyer, Matthew Dowd of Archerfield Partners, said: “It is with great regret that Phil has been forced to issue court proceedings against Crockfords to secure payment of his winnings.”
Ivey said he was “deeply saddened” to file a writ at the High Court but he had been left with no alternative. He continued: “Over the years, I have won and lost substantial sums at Crockfords and I have always honoured my commitments.
“At the time, I was given a receipt for my winnings but Crockfords subsequently withheld payment. I therefore feel I have no alternative but to take legal action.”
Ivey who is 35, was with a female companion last August when he started a winning run at the table and over two days of gaming, he is thought to have ended his first night £2.3m ahead, rising to £7.3m by the end of the second night. But bosses as the casino which is owned by gaming giant Genting, allegedly withheld his winnings and opened an investigation.
The Independent understands that investigators have flown to London from Kuala Lumpur to interview staff – including a croupier working on the nights Mr Ivey played – and to review surveillance video footage and examine the cards used.
Mr Ivey’s lawyer, Matthew Dowd of Archerfield Partners, said: “It is with great regret that Phil has been forced to issue court proceedings against Crockfords to secure payment of his winnings.”
April 30, 2013
Ultimate Poker Launches First Licensed US Online Poker Room
Ultimate Poker made online poker history minutes ago by launching the first real money online poker room ever to be licensed in the United States.
As of Tuesday, April 30th, 2013, the Ultimate Poker client can be downloaded, accounts can be created and money deposited. As of 1:50am PT, no actual games are currently being run. Real money games are expected to be introduced later this morning, reportedly at 9:00am PT.
Ultimate Poker is only available to players that are physically within the borders of Nevada at the time of play. Geo blocking technology is used to recognize login attempts outside Nevada. While other players cannot use Ultimate Poker for real money, the client is available to download and view from anywhere in the world.
Ultimate Poker is operated by a subsidiary of Station Casinos known as Fertitta Interactive. Station Casinos owns a 57.3% stake in the company. Tom Breitling was recently approved to be a 14.3% owner of the interactive division. The remainder of the company is owned by minority partners.
As of Tuesday, April 30th, 2013, the Ultimate Poker client can be downloaded, accounts can be created and money deposited. As of 1:50am PT, no actual games are currently being run. Real money games are expected to be introduced later this morning, reportedly at 9:00am PT.
Ultimate Poker is only available to players that are physically within the borders of Nevada at the time of play. Geo blocking technology is used to recognize login attempts outside Nevada. While other players cannot use Ultimate Poker for real money, the client is available to download and view from anywhere in the world.
Ultimate Poker is operated by a subsidiary of Station Casinos known as Fertitta Interactive. Station Casinos owns a 57.3% stake in the company. Tom Breitling was recently approved to be a 14.3% owner of the interactive division. The remainder of the company is owned by minority partners.
April 25, 2013
Greece gives OPAP suitor more time to raise bid
Greece's privatization agency has given Greek-Czech fund Emma Delta more time to improve its bid for a controlling stake in gaming firm OPAP, two officials directly involved in the sale talks told Reuters on Thursday.
"They asked for and were given a postponement until Wednesday, May 1,» said one official at Greece's privatization agency, who declined to be named, after a first deadline expired. An official at Emma Delta confirmed the move.
Emma Delta, controlled by Czech investor Jiri Smejc and Greek shipowner George Melisanidis on Monday offered 622 million euros ($808 million) for 33 percent of Greek gambling monopoly OPAP and management rights at the company.
Emma Delta submitted the only valid bid in the sale, Greece's first big privatization under its international bailout program.
But privatization agency HRADF asked the fund to raise its offer to at least 650 million euros, the stake's minimum value as estimated by an external assessor.
Deutsche Bank and National Bank, Greece's main sale advisers, had put the stake's value at 610 million.
OPAP shares were up 0.3 percent to 6.9 euros in early trading in Athens, giving a 33 percent stake in the company a stock market value of 726 million euros.
"They asked for and were given a postponement until Wednesday, May 1,» said one official at Greece's privatization agency, who declined to be named, after a first deadline expired. An official at Emma Delta confirmed the move.
Emma Delta, controlled by Czech investor Jiri Smejc and Greek shipowner George Melisanidis on Monday offered 622 million euros ($808 million) for 33 percent of Greek gambling monopoly OPAP and management rights at the company.
Emma Delta submitted the only valid bid in the sale, Greece's first big privatization under its international bailout program.
But privatization agency HRADF asked the fund to raise its offer to at least 650 million euros, the stake's minimum value as estimated by an external assessor.
Deutsche Bank and National Bank, Greece's main sale advisers, had put the stake's value at 610 million.
OPAP shares were up 0.3 percent to 6.9 euros in early trading in Athens, giving a 33 percent stake in the company a stock market value of 726 million euros.
April 24, 2013
Bwin.party look to withdraw from 18 countries.
Bwin.party have announced they are blocking players from 18 countries within the EU and also South America. Those countries involved are Greece, Poland, Romania, Cyprus, Finland, Serbia, Armenia, Belarus, Croatia, Hungary, Latvia, Lithuania, Macedonia, Slovenia, Ukraine, Argentina, Brazil and finally Colombia.
The move was announced to affiliates by the company on an email on Friday 19th April.
On the email it said that from the 30th April no new singups will be accepted from those countries and also there was a request that all marketing material aimed at those countries be removed. However all existing accounts will remain open, and affiliate commission to those accounts will continue to be paid.
It is thought the move is connected with those countries mentioned looking to reduce or prohibit online gambling within their borders in the future along with the commercial aspect that those mentioned are small in operating value and allows bwin.party to focus their efforts on more lucrative markets such as the US and more recognised and profitable regions such as the UK and Spain.
The move was announced to affiliates by the company on an email on Friday 19th April.
On the email it said that from the 30th April no new singups will be accepted from those countries and also there was a request that all marketing material aimed at those countries be removed. However all existing accounts will remain open, and affiliate commission to those accounts will continue to be paid.
It is thought the move is connected with those countries mentioned looking to reduce or prohibit online gambling within their borders in the future along with the commercial aspect that those mentioned are small in operating value and allows bwin.party to focus their efforts on more lucrative markets such as the US and more recognised and profitable regions such as the UK and Spain.
April 23, 2013
Betfair says “No” to £910 million takeover
Betfair have rejected the takeover offer from CVC Capital Partners of some £910 million, saying it believes in its “unique” business and prospects.
The bid from CVC Capital Partners who are behind Formula 1, was rejected by Betfair on valuation grounds.
CVC announced last week that it has held talks with other investors, including Betfair shareholder and Richard Koch, about a possible joint approach for the online betting exchange.
The proposal from CVC valued the company’s shares at £8.80, compared with the £13.00 seen on its stock market debut in 2010.
Betfair says it is going through one of the “most exciting phases in its development”, thanks to a new strategy revealed in December and the appointment of a new management team led by chief executive Breon Corcoran.
Chairman Gerald Corbett said: “We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise.”
CVC owns luggage firm Samsonite and also has stakes in Brit Insurance and theme park giant Merlin Entertainments.
The bid from CVC Capital Partners who are behind Formula 1, was rejected by Betfair on valuation grounds.
CVC announced last week that it has held talks with other investors, including Betfair shareholder and Richard Koch, about a possible joint approach for the online betting exchange.
The proposal from CVC valued the company’s shares at £8.80, compared with the £13.00 seen on its stock market debut in 2010.
Betfair says it is going through one of the “most exciting phases in its development”, thanks to a new strategy revealed in December and the appointment of a new management team led by chief executive Breon Corcoran.
Chairman Gerald Corbett said: “We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise.”
CVC owns luggage firm Samsonite and also has stakes in Brit Insurance and theme park giant Merlin Entertainments.
Japan to open casinos in two years
Reports in Japan say that a pro-casino group of Japanese lawmakers are pushing for plans to be submitted this year for legislation aimed at opening the world’s third-largest economy to land based casino gambling.
Currently gambling in casinos is illegal in Japan, but a large portion of the population do gamble on a pinball-like game called pachinko, which generates an estimated $200 billion in revenue each year.
Japan having a large and wealthy population along with the geographical location to Shanghai and Beijing means that Japan could become a serious gambling location in competition to Macau and newly opened Singapore.
It is estimated that Japan’s gaming market could be worth some $10 billion if two large-scale integrated resorts are approved – more than Singapore’s $5.9 billion and Las Vegas’ $6.2 billion in 2012.
The cross-party casino group aims to submit a promotional bill to parliament in the autumn, which could be followed by concrete laws within two years, Takeshi Iwaya, the deputy head of the lobby of more than 100 lawmakers said to reporters.
Currently gambling in casinos is illegal in Japan, but a large portion of the population do gamble on a pinball-like game called pachinko, which generates an estimated $200 billion in revenue each year.
Japan having a large and wealthy population along with the geographical location to Shanghai and Beijing means that Japan could become a serious gambling location in competition to Macau and newly opened Singapore.
It is estimated that Japan’s gaming market could be worth some $10 billion if two large-scale integrated resorts are approved – more than Singapore’s $5.9 billion and Las Vegas’ $6.2 billion in 2012.
The cross-party casino group aims to submit a promotional bill to parliament in the autumn, which could be followed by concrete laws within two years, Takeshi Iwaya, the deputy head of the lobby of more than 100 lawmakers said to reporters.
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