The UK’s largest bookmaker William Hill says that the recent UK budget announced by Chancellor George Osborne would have damaged the companies profits by 40% if the new levy on Fixed Odds Betting Terminals (FOBTs) had been introduced last year, hitting the firm with a drop in profits by £22 million.
Previously the bookmaker had said it would have impacted by £16 million but following discussion with the treasury the online and land based bookmaker increased its projections.
The new tax on FOBTs comes along at the same time as the online gambling tax increase to 15%, hitting William Hill both in their betting shops and their lucrative online operation.
Following the budget announcements William Hill shares slid 7%.
March 24, 2014
March 20, 2014
Paddy Power Oscar Pistorius ‘money back if he walks’ ad broke rules and brought UK advertising into disrepute, ASA finds
A Paddy Power advert that offered a “money back if he walks” guarantee for betting on the Oscar Pistorius murder trial broke rules and brought the UK’s advertising industry into disrepute, the regulator has found.
In a ruling issued today against the bookmaker, the Advertising Standards Authority (ASA) said the ad had amassed 5,525 complaints – a record in Britain.
The ASA had already ordered Paddy Power to withdraw the ad pending the investigation, after complainants said it trivialised domestic violence towards women and made fun of double amputee Pistorius’ disability.
The regulator ruled that those who saw the advert would interpret it as a reference to someone who had died and to the Paralympic athlete as a double amputee, the BBC reported
“Given the content of the ad, and the prevailing circumstances at the time of its publication, we concluded that it brought advertising into disrepute,” it said.
Paddy Power appeared aware at the time the advert was published, in the Sun on Sunday newspaper on 2 March, that it would prove controversial.
The company also offered odds on the outcome of the murder trial of 7/4 for a guilty verdict and 2/5 for not guilty, in an offer branded “vile” and “disgusting” by social media users.
Writing in a blog post at the time, the firm said: “Global media attention, bar-stool conversation and pillow talk will shift from the Oscars on Sunday night to Oscar on Monday when the Blade Runner straps on his prosthetic limbs for the long walk to the high court.
“As an international media circus descends on South Africa, Paddy Power's marketing department has entered the fray.”
Today the company defended the reference to Pistorius’ disability on the grounds that it was “subtle”, and a spokesperson told the BBC: “It was one ad in one newspaper on one day. I don't think there's an apology coming - criticise us for bad taste, which is fine.”
In a ruling issued today against the bookmaker, the Advertising Standards Authority (ASA) said the ad had amassed 5,525 complaints – a record in Britain.
The ASA had already ordered Paddy Power to withdraw the ad pending the investigation, after complainants said it trivialised domestic violence towards women and made fun of double amputee Pistorius’ disability.
The regulator ruled that those who saw the advert would interpret it as a reference to someone who had died and to the Paralympic athlete as a double amputee, the BBC reported
“Given the content of the ad, and the prevailing circumstances at the time of its publication, we concluded that it brought advertising into disrepute,” it said.
Paddy Power appeared aware at the time the advert was published, in the Sun on Sunday newspaper on 2 March, that it would prove controversial.
The company also offered odds on the outcome of the murder trial of 7/4 for a guilty verdict and 2/5 for not guilty, in an offer branded “vile” and “disgusting” by social media users.
Writing in a blog post at the time, the firm said: “Global media attention, bar-stool conversation and pillow talk will shift from the Oscars on Sunday night to Oscar on Monday when the Blade Runner straps on his prosthetic limbs for the long walk to the high court.
“As an international media circus descends on South Africa, Paddy Power's marketing department has entered the fray.”
Today the company defended the reference to Pistorius’ disability on the grounds that it was “subtle”, and a spokesperson told the BBC: “It was one ad in one newspaper on one day. I don't think there's an apology coming - criticise us for bad taste, which is fine.”
Bulgaria Grants Sports Betting Licences to Betfair & Eurofootball
Bulgaria’s State Gambling Commission (SGC) has granted approval to sports betting operator Eurofootball and betting exchange Betfair to allow Bulgarian betting transactions and promotion of betting services to Bulgarian citizens.
The SGC will allow both operators to promote sports betting services through .bg access url’s. The license further grants the operators will the inclusion of promoting online casino and poker services to Bulgarian residents.
Betfair and Eurofootball join a select group of igaming operators who have been granted licenses by the SGC, the other operators granted approval to promote igaming services are – Pokerstars, Efbet.com and Bulgarian sports lottery operator Sports Toto.
Industry analysts believe that the Bulgarian Government is likely to issue further approval to new operators seeking entry into the market. The Bulgarian Gambling restructured proposed igaming taxes to 15%. Additionally all operators who wish to enter the market must also by an entry levy of €35,000 to the state in order to gain a license.
In the past six months the SGC, have blacklisted sports betting and igaming operators that have not complied with regulations, enforcing site access restrictions from Bulgarian regional internet IP’s.
The SGC will allow both operators to promote sports betting services through .bg access url’s. The license further grants the operators will the inclusion of promoting online casino and poker services to Bulgarian residents.
Betfair and Eurofootball join a select group of igaming operators who have been granted licenses by the SGC, the other operators granted approval to promote igaming services are – Pokerstars, Efbet.com and Bulgarian sports lottery operator Sports Toto.
Industry analysts believe that the Bulgarian Government is likely to issue further approval to new operators seeking entry into the market. The Bulgarian Gambling restructured proposed igaming taxes to 15%. Additionally all operators who wish to enter the market must also by an entry levy of €35,000 to the state in order to gain a license.
In the past six months the SGC, have blacklisted sports betting and igaming operators that have not complied with regulations, enforcing site access restrictions from Bulgarian regional internet IP’s.
OPAP deal Validates GTECH online credentials
GTECH Interactive CEO Walter Bugno has shown his full support for the recently agreed software supply partnership with Greek licensed gambling operator – OPAP, stating it represents a major coup for GTECH Interactive and that it validates the company’s online capabilities.
OPAP selected GTECH Interactive as its supplier of igaming inventory, in a closed tender that saw 888 Holdingss, Playtech and Openbet bid for the suppliers contract . Furthermore GTECH Interactive announced that it would supply OPAP with a new online sportsbook, which will be launched at the end of the year.
Walter Bugno believes that the partnership represents a validation of GTECH’s online gambling services. OPAP holds exclusive rights to offer online gambling services in Greece. In 2012 the ex-state owned betting operator renewed terms with the Greek Government that would see the operator maintain its betting monopoly in the region until 2020.
Bugno commented in a corporate statement ”This decision is a validation of the successful ongoing performance and cross-channel capabilities of GTECH’s online portfolio, which we are providing to World Lottery Association customers, including the Ontario Lottery and Gaming Corporation, Norsk Tipping in Norway, and Veikkaus in Finland,”
OPAP are set to integrate GTECH’s player management system and sports betting services. Bugno further added “This will fulfill OPAP’s online betting strategy by reliably driving program growth as technology and player preferences evolve. In addition, the open architecture of the Player Account Management system will enable OPAP to implement its preferred strategy for a single view of the player through the creation of a single player account across multiple games and gaming channels.”
OPAP had operated as the state owned igaming operator previously using GTECH software, in 2013 the Greek Government would sell all shares in its asset to the EMMA DELTA consortium for €625 million. The consortium consists of Lottomatica (owner of GTECH), Czech investor Jiri Smejc and Greek shipbuilding giant the Melissanidis Group.
The OPAP represents good news for the GTECH Corporation, last week it announced that it had seen a fall in net revenue of 23%. GTECH Interactive have been effected by the loss of key clients, and its failure to release product inventory into the igaming market. The software provider announced the closure its poker network - IPN, earlier this year.
OPAP selected GTECH Interactive as its supplier of igaming inventory, in a closed tender that saw 888 Holdingss, Playtech and Openbet bid for the suppliers contract . Furthermore GTECH Interactive announced that it would supply OPAP with a new online sportsbook, which will be launched at the end of the year.
Walter Bugno believes that the partnership represents a validation of GTECH’s online gambling services. OPAP holds exclusive rights to offer online gambling services in Greece. In 2012 the ex-state owned betting operator renewed terms with the Greek Government that would see the operator maintain its betting monopoly in the region until 2020.
Bugno commented in a corporate statement ”This decision is a validation of the successful ongoing performance and cross-channel capabilities of GTECH’s online portfolio, which we are providing to World Lottery Association customers, including the Ontario Lottery and Gaming Corporation, Norsk Tipping in Norway, and Veikkaus in Finland,”
OPAP are set to integrate GTECH’s player management system and sports betting services. Bugno further added “This will fulfill OPAP’s online betting strategy by reliably driving program growth as technology and player preferences evolve. In addition, the open architecture of the Player Account Management system will enable OPAP to implement its preferred strategy for a single view of the player through the creation of a single player account across multiple games and gaming channels.”
OPAP had operated as the state owned igaming operator previously using GTECH software, in 2013 the Greek Government would sell all shares in its asset to the EMMA DELTA consortium for €625 million. The consortium consists of Lottomatica (owner of GTECH), Czech investor Jiri Smejc and Greek shipbuilding giant the Melissanidis Group.
The OPAP represents good news for the GTECH Corporation, last week it announced that it had seen a fall in net revenue of 23%. GTECH Interactive have been effected by the loss of key clients, and its failure to release product inventory into the igaming market. The software provider announced the closure its poker network - IPN, earlier this year.
March 19, 2014
Betfred to Refund All Bets on Manchester United Winning the Title
Manchester United fans have had a torrid season, but one bookmaker is giving those die-hards who backed the Red Devils to retain the title a touch of relief.
Betfred owner Fred Done has said that any punter who had a bet on United to win the Premier League will get a full refund.
The Manchester Evening News said it will cost the bookie £200,000.
Done infamously paid out early on United winning the title in 1998, only for Arsenal to overtake Sir Alex Ferguson's men.
He was quoted in the paper as saying:
"These loyal fans never had a chance of winning with United. This season the Reds have been useless, hopeless and meaningless. One of the reasons I’m doing this is, and becoming the first bookmaker ever to do so, is because of the way the fans were still singing for their team even though we were losing 3-0 to Liverpool. I couldn’t believe it and they deserve a team much better than that put out by David Moyes."
Trouble is we fear that most United fans ripped up their slips many months ago.
Betfred owner Fred Done has said that any punter who had a bet on United to win the Premier League will get a full refund.
The Manchester Evening News said it will cost the bookie £200,000.
Done infamously paid out early on United winning the title in 1998, only for Arsenal to overtake Sir Alex Ferguson's men.
He was quoted in the paper as saying:
"These loyal fans never had a chance of winning with United. This season the Reds have been useless, hopeless and meaningless. One of the reasons I’m doing this is, and becoming the first bookmaker ever to do so, is because of the way the fans were still singing for their team even though we were losing 3-0 to Liverpool. I couldn’t believe it and they deserve a team much better than that put out by David Moyes."
Trouble is we fear that most United fans ripped up their slips many months ago.
March 14, 2014
Betfred get Tote rebate of £32m after an early payment clause allowed them to reduce the original bill of £265m to £233m
The Mail Online has revealed that the UK bookmaker Betfred managed to acquire the Government-owned Tote for a mind boggling £32m cheaper than was originally thought to be the case.
The process to acquire the seven-year license to operate the Tote began in Nov 2010 and ended when Fred Done and his team were awarded the contract in June 2011.
The fee was said to be £265m with £90m going towards horse racing and £90m being returned to the taxpayer. Additionally, Betfred would commit to paying the racing industry £11m up to March 2012 and payments of £9m per year for the next six years. The Tote’s 517 Retail outlets were rebranded in Betfred livery and they were soon managing the pool betting at 60 UK racecourses.
The story claims that Betfred actually paid £233m after cutting a deal with the government for paying the fee early, saving £25m in scheduled interest payments, and earning a £7m early-payment rebate.
A spokesperson for the Department for Culture, Media & Sport (DCMS) told the Mail Online: “The sale of the Tote to Betfred was about getting the best possible deal for racing. The Government has begun discussions with racing on the arrangements for paying their final share of the net proceeds, after Betfred’s early completed payment on the deal.’
Betfred’s main rivals at the time of the tender were Sport Investment Partners, a consortium led by the former Chairman of Liverpool FC Sir Martin Broughton. Speaking from the Cheltenham Festival Broughton said: “I feel aggrieved because I’ve always considered we had the best bid.”
The current license for the Tote ends in 2018 but as Fred Done said at the time of the initial announcement, “there’s no reason why this can’t go on forever.”
The process to acquire the seven-year license to operate the Tote began in Nov 2010 and ended when Fred Done and his team were awarded the contract in June 2011.
The fee was said to be £265m with £90m going towards horse racing and £90m being returned to the taxpayer. Additionally, Betfred would commit to paying the racing industry £11m up to March 2012 and payments of £9m per year for the next six years. The Tote’s 517 Retail outlets were rebranded in Betfred livery and they were soon managing the pool betting at 60 UK racecourses.
The story claims that Betfred actually paid £233m after cutting a deal with the government for paying the fee early, saving £25m in scheduled interest payments, and earning a £7m early-payment rebate.
A spokesperson for the Department for Culture, Media & Sport (DCMS) told the Mail Online: “The sale of the Tote to Betfred was about getting the best possible deal for racing. The Government has begun discussions with racing on the arrangements for paying their final share of the net proceeds, after Betfred’s early completed payment on the deal.’
Betfred’s main rivals at the time of the tender were Sport Investment Partners, a consortium led by the former Chairman of Liverpool FC Sir Martin Broughton. Speaking from the Cheltenham Festival Broughton said: “I feel aggrieved because I’ve always considered we had the best bid.”
The current license for the Tote ends in 2018 but as Fred Done said at the time of the initial announcement, “there’s no reason why this can’t go on forever.”
March 11, 2014
Holland Casino workers to go on strike
Workers at Holland Casino are going on strike this Friday 14th March to demand a better social plan for those being made redundant due to the companies financial crisis. Several hundred casino workers are losing their jobs in the companies efforts to reduce cost but Trade Union leader Huug Brinkers of Unie says that Holland Casino is doing better now financially and they should be treating their personnel to an improved social plan.
Brinkers said “The personnel are sick of it and that’s why we are not going to work on Friday.”
Holland Casino is trying to reduce their operating costs by 36 million Euros and have made the decision to lose several hundred of its workforce in an attempt to stem continued operating losses. The casino operators businesses in both Utrecht and Rotterdam are being targeted by the union and believe that both operations will have to close during the strike.
Brinkers said “The personnel are sick of it and that’s why we are not going to work on Friday.”
Holland Casino is trying to reduce their operating costs by 36 million Euros and have made the decision to lose several hundred of its workforce in an attempt to stem continued operating losses. The casino operators businesses in both Utrecht and Rotterdam are being targeted by the union and believe that both operations will have to close during the strike.
February 18, 2014
California preparing online gambling bill
California could be the only state this year to go for legalizing online gambling, according to industry watchers the largest and most populous state in the US with over 38 million residents is gaining support from the powerful Indian tribes to push for online gambling this year.
Indeed there is huge anticipation that when the new session of the legislature opens on the 22nd February a bill proposing legalizing online gambling will be presented.
It is thought that with now seven tribes for online gambling the most influential of them all the Pechanga tribe will draft a bill to allow for online poker in the state.
Some close to the proposed bill say that it will contain a no interstate compact, keeping all the 38 million potential players to themselves. Also rumoured to include a similar rule on “bad actors” such as Nevada has, removing any applicant that has operated in the US post the UIGEA.
Another inclusion will be one online gambling site for each licensee, not multiple sites. On licensing it is believed that a single license will be $5 million one off payment and tax of 5% of GGR.
Clearly California see the value of their size and do not want to give away their value cheaply, there will be many watching next week to see if a bill will be presented for online gambling.
Indeed there is huge anticipation that when the new session of the legislature opens on the 22nd February a bill proposing legalizing online gambling will be presented.
It is thought that with now seven tribes for online gambling the most influential of them all the Pechanga tribe will draft a bill to allow for online poker in the state.
Some close to the proposed bill say that it will contain a no interstate compact, keeping all the 38 million potential players to themselves. Also rumoured to include a similar rule on “bad actors” such as Nevada has, removing any applicant that has operated in the US post the UIGEA.
Another inclusion will be one online gambling site for each licensee, not multiple sites. On licensing it is believed that a single license will be $5 million one off payment and tax of 5% of GGR.
Clearly California see the value of their size and do not want to give away their value cheaply, there will be many watching next week to see if a bill will be presented for online gambling.
February 10, 2014
New Report says Australians lose the most
A new report by the Economist says that Australians gamble more and lose more than any other country in the World.
According to the report Australians top the list with losses of $1144 per person
“Gambling is just like eucalyptus oil – it’s natural,” said Tim Costello, chairman of the Australian Churches Gambling Taskforce.
The biggest reason for the losses say anti-gambling campaigners are poker machines, which they say Australia has the highest concentration of poker machines in the world.
With the biggest clusters being in disadvantaged areas along the east coast, fuelling domestic violence, crime and mental illness, campaigners claim.
British consultancy firm H2 Gambling Capital said that Australians on average lose about $520 on non-casino based poker machines last year.
The independent senator Nick Xenophon said the figures were an “urgent wake-up call” for politicians.
“Let’s not forget that, with pokies, 40% of losses come from problem gamblers, with five to 10 people affected by each problem gambler,” he said.
Xenophon is renewing his push for maximum $1 bets on poker machines with hourly losses capped at $120, in line with recommendations of the 2010 parliamentary joint select committee on gambling reform.
“State and territory governments in Australia derive an average 10% or more of their taxation revenue from legalised gambling,” he said.
Although Australia had the biggest gambling losses per resident, America had the biggest loss of any nation at $136bn. Australians lost a total $21.5bn, the report said.
According to the report Australians top the list with losses of $1144 per person
“Gambling is just like eucalyptus oil – it’s natural,” said Tim Costello, chairman of the Australian Churches Gambling Taskforce.
The biggest reason for the losses say anti-gambling campaigners are poker machines, which they say Australia has the highest concentration of poker machines in the world.
With the biggest clusters being in disadvantaged areas along the east coast, fuelling domestic violence, crime and mental illness, campaigners claim.
British consultancy firm H2 Gambling Capital said that Australians on average lose about $520 on non-casino based poker machines last year.
The independent senator Nick Xenophon said the figures were an “urgent wake-up call” for politicians.
“Let’s not forget that, with pokies, 40% of losses come from problem gamblers, with five to 10 people affected by each problem gambler,” he said.
Xenophon is renewing his push for maximum $1 bets on poker machines with hourly losses capped at $120, in line with recommendations of the 2010 parliamentary joint select committee on gambling reform.
“State and territory governments in Australia derive an average 10% or more of their taxation revenue from legalised gambling,” he said.
Although Australia had the biggest gambling losses per resident, America had the biggest loss of any nation at $136bn. Australians lost a total $21.5bn, the report said.
Online gambler suing operator that has consequences for whole of EU
A gambler that lost €1,000,000 playing online casino games in Austria is suing the online operator based on the fact that the company operated in conflict to Austrian monopoly laws towards online gambling, hence the player says makes it illegal and wants his losses back.
The case has reached the Austrian Supreme Court (OGH) which asked for a revision of the entire national gambling legislation.
The court that heard the initial case has supported the claim by the player but was overruled by Austria’s Supreme Court which decided in favour of the online operator which claimed that the national gambling law established in Austria was a monopoly against European treaties on the free movement of services.
Because of the complexity of the case and rulings so far given the case has now gone to the European Court of Justice (ECJ) for further evaluations.
The conclusion and decision of the ECJ will have huge consequences should they favour the idea of gambling monopolies being against European rules.
With countries such as Belgium, Cyprus, Czech Republic, Lithuania, Poland, and Romania facing legal actions similar to those of Austria, not only this but should the gambler win his fight for compensation it would see thousands of other online gamblers going to court in those countries with similar laws as Austria.
The decision of the ECJ is crucial and a wake-up call for the EU to get a coherent and regulated law across the states to prevent this exploding into massive court cases.
The case has reached the Austrian Supreme Court (OGH) which asked for a revision of the entire national gambling legislation.
The court that heard the initial case has supported the claim by the player but was overruled by Austria’s Supreme Court which decided in favour of the online operator which claimed that the national gambling law established in Austria was a monopoly against European treaties on the free movement of services.
Because of the complexity of the case and rulings so far given the case has now gone to the European Court of Justice (ECJ) for further evaluations.
The conclusion and decision of the ECJ will have huge consequences should they favour the idea of gambling monopolies being against European rules.
With countries such as Belgium, Cyprus, Czech Republic, Lithuania, Poland, and Romania facing legal actions similar to those of Austria, not only this but should the gambler win his fight for compensation it would see thousands of other online gamblers going to court in those countries with similar laws as Austria.
The decision of the ECJ is crucial and a wake-up call for the EU to get a coherent and regulated law across the states to prevent this exploding into massive court cases.
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