April 07, 2014

English Football Facing Its Biggest Match Fixing Scandal

English football facing its biggest match fixing scandal as local police arrest a further seven footballers on suspicions of match fixing in the English football league.

Seven more footballers have been arrested in what is fast turning out to be the most controversial match fixing scandal in English footballing history.

Six players from Preston North End, and a solitary player from Barnsley, now take the official number of players arrested in connection with spot-fixing to 13, following the arrest of six players in the back end of 2013.

The National Crime Agency (NCA) told members of the UK tabloid press that the players were being interviewing by local police in connection with the case that made all of the headlines thanks to undercover reporters.

The Preston players are believed to be Captain John Welsh, Keith Keane, Bailey Wright, David Buchanan, Ben Davies and Graham Cummins, with Barnsley defender Stephen Dawson also taken in for questioning. Davies and Cummins are on loan at York City and Rochdale respectively meaning the scale of the cheating could be even further than just the fields involving Preston and Barnsley.

The tabloids also report that the previous six players have also been rearrested for further questioning into alleged bribery and money laundering matters.

The madness started when undercover reporters video taped the former Portsmouth star Sam Sodje admitting to getting deliberately sent off in return for a £70,000 bribe.

Sodje’s brothers Steve and Akpo who play for Tranmere, Blackburn striker DJ Campbell, Oldham winger Cristian Montano and Tranmere defender Ian Goodison have all been rearrested after the NCA stated ‘new evidence’ had surfaced in the proceedings.

Preston released a statement in reaction to the arrests.

“In response to media inquiries received, Preston North End Football Club can confirm that today, April 3 2014, the club has been contacted by the National Crime Agency in relation to a wide-ranging investigation into ‘spot fixing’ in football.

“There are no suggestions that any offences that might have occurred involved match-fixing.

“None of our employees have been charged with any offence at this time and until or unless this position changes we will be taking no further action nor making any further comment.

“All of our contracted employees are available for selection by the manager.”

The case continues.

April 03, 2014

Can increasing odds save UK bookmakers?

March was a pretty important month for many online and offline UK gambling companies. The budget provided benefits to bingo operators while bookmakers are preparing to take a hit on their B2 Gaming Machines.

Can increasing odds save UK bookmakers?In the online sector the progress made in introducing the Point of Consumption Tax meant that the landscape is set to drastically change. Regardless of the vertical, having to pay a 15% tax on UK revenue will hit every operator hard.

Global Betting and Gaming Consultant’s chief executive Warwick Bartlett wrote an interesting piece on the implications of this new tax for operators and he estimated that had the tax have been implemented recently that both Ladbrokes and Coral would have failed to make a profit.

Unfortunately for Ladbrokes and Coral this look back may prove to be a good indication of their future. Given that just under 45% of Ladbrokes’ digital revenue came from sportsbook in 2013 and a similar amount at Gala Coral, it’s going to be important for companies to make their digital sports betting operations profitable.

Unlike casino, poker and bingo where percentages can be tweaked it seems like a tough task to figure out where extra profits are going to come from for bookmakers. The obvious answer would be to change the odds, but given the potential pitfalls of that strategy, is it even worth considering?

Speaking last week about the effect that the point of consumption tax will have for UK-facing operators, Deloitte’s betting and gaming lead Simon Oaten explained that won’t be easy as it will be online bookmakers who have the toughest task to survive.

He said: “It’s going to be difficult for operators in the sports betting environment to adjust price too much because there are operators that already pay this level of tax and are offering similar prices online.”

In a sector where value is a primary factor in the acquisition of many potential customers, being able to offer improved odds would be a simple move to increase profit. Unfortunately that clearly isn’t going to be a viable option.

GBGC’s Bartlett voiced a similar opinion, but applied it to all sectors, by saying: “I have completely discounted the idea of building bigger margin into the offer to the customers. The Internet is ultra competitive, it will not happen. Well, not in the interim period anyway.”

It could be argued that given the uniformity of payout percentages across casinos due to the use of a small number of software providers that this isn’t necessarily going to be the case in this sector. However bookmakers are free to set their own odds.

In order for a similar situation to work in sports betting all operators would need to agree to increase their prices and that’s far from feasible.

As alluded to above it’s an obvious conclusion to say that increasing the odds simply isn’t a viable option. However, speaking last week Deloitte’s Simon Oaten raised an interesting point regarding two of the most rapidly growing areas of sports betting at the moment.

He said: “It’s not all doom and gloom for sports betting companies. In mobile and bet in-play activity there is less price sensitivity so there will be opportunities there for margin to be increased to account for point of consumption tax.”

Focusing on in-play, the speed at which bets are placed means that this statement should ring true. Once customers have an account they have the ability to place several bets within a small time period and the ninety-minute nature of football – the most popular sport for in-play betting – encourages this.

Gambling Data estimated that in-play betting was the main driver between the 50% growth in online sports betting between 2009 and 2011 and while that growth rate may have slowed since, in-play continues to be a huge part of the vertical.

When it comes to mobile, bets aren’t necessarily placed in such rapid succession but the size of this market has the potential to be simply staggering. At the end of last year Juniper Research predicted that more than 164 million will be gambling on their mobile phones in 2018.

While the majority of this growth was expected to come from the US market you can bet that the UK market won’t exactly be shrinking. Given the smaller screen size users are less inclined to ‘shop around’ meaning that the operators who are able to acquire customers are likely to see a higher level of loyalty than may have previously been experienced.

On the face of it, implementing higher odds seems like a sure-fire way to lose customers to your competitors. However the lower importance of odds on in-play and mobile betting coupled with the growing importance of these two areas within the industry mean that it may not be quite as outrageous as first thought.

Spain to allow gambling TV advertising

The Spanish gambling regulatory body is set to establish new provisions and laws that will allow the promotion and coverage of igaming verticals to be broadcast on Spanish national television.

Although online gambling is permitted, through granted national license the Spanish Government and Advertising Standards do not permit the broadcasting of television adverts promoting igaming verticals.

The new incentives to allow further promotion of licensed will be drafted by the Spanish advertising watchdog – Autocontrol. It is widely thought that TV advertisements promoting gambling will be placed during the hours of 22:00 – 06:00, in order to protect minors viewing the content. Autocontrol have taken on board advertising policies implemented by the UK advertising standards, such as the introduction of a watershed in order to limit promotion of gambling to the general public.

Igaming operators, who have decided to enter the Spanish regulated market, have welcomed the decision to allow them access to further marketing channels. The Spanish igaming market has proved to be a tough undertaking for several operators who have been burdened by heavy tax levy and restrictions of higher grossing gaming games such as casino slots.

Autocontrol have yet to give a further breakdown on how the advertising regulations and policy will be implemented, and which igaming verticals will be allowed to be advertised to the general public through televised mediums.

Digibet asks the EC to clarify German igaming laws

German sports betting market focused operator Digibet has asked the European Court of Justice to bring clarity to the German sports betting licensing procedure. The operator has brought fourth a case concerning German licensing procedure, stating it to be cumbersome and lacking in transparency, which has in turn affected its business practices.

Digibet are concern by the slow progress, of issuing licenses for the region and the inability of the government to set corporate guidelines and best practice for the governance of the sector.

German ministers have indicated that the first batch of licenses will be set for Q4 2014, it is unknown which operators will be granted permission to market igaming services in the region. Ministers have also not given specific details with regards to implementations of new laws which may affect the sector.

Digibet hope that the European Court of Justice may add pressure to the German policy makers on the issuing of igaming policy. The Q4 target has been thought of as being optimistic given the circumstances.

German focused operators are hoping for transparency in 2014, given the sporting significance of 2014, operators in the region will be hoping for less stringent policies that have affected igaming markets in other legislated European Jurisdictions

Russia explores Crimean gaming zone options

Russian officials are examining proposals to create a gambling zone in Crimea, the Black Sea peninsula annexed from Ukraine, according to sources quoted in Bloomsberg. Officials reportedly discussed the option with Deputy Prime Minister Dmitry Kozak, while Russia’s ministries of economy, finance and regional development have been given an April 15 deadline to present a plan for the gambling project with spending and revenue estimates. With the running a fiscal deficit of around $1.5bn this year, Russia is said to be exploring ways in which to make Crimea less reliant on the state budget.

OPAP announces profit plunge

Greek gambling firm OPAP announced a collapse in net profits of 72.1 percent, to €141.1m in 2013, which it attributed to the introduction of a new 30 percent gross gaming revenue tax in the country. Full-year revenue fell 6.6 percent from €4bn in 2012 to €3.7bn in the last 12 months, while gross gaming revenue dropped 6.3 percent to €1.2bn.

Rounding out a disastrous year, EBITDA fell 67.1 percent, from €673.8m to €221.7m in 2013.

OPAP's fourth fourth-quarter performance was equally as bleak, with net profit reaching just €29.4m, 77.6 percent lower than the €133.8m achieved in the corresponding period last year.

Kamil Ziegler, chairman and chief executive officer of OPAP, said that despite the disappointing overall performance, the firm’s results in Q4 were “encouraging” and is keen to push for further improvements in 2014.

“Within an overall difficult year for the Greek economy, OPAP’s financial results of the fourth quarter mark an encouraging trend,” Ziegler said.

“The addition of extra features in a variety of products in our portfolio, along with the stabilisation of consumer spending, led to an increase of revenues year-on-year, which is a positive indication for 2014.

“It is important to note that 2013 was the first year that a 30% gross gaming revenue tax was applied, which in terms of OPAP’s numbers translates into a yield of € 345 million for the Greek state.

“We remain focused on the improvement of OPAP’s operational efficiency as well as on the modernisation of our product portfolio, towards the benefit of all our stakeholders: customers, agents, shareholders and the Greek state and society as a whole.”

April 02, 2014

The End Is Near for Online Gambling in Costa Rica

In the last few years, the online gambling industry of Costa Rica has experienced one major upheaval after another. On one hand, there’s the overzealous law enforcement and prosecutorial actions taken by the United States; on the other hand, powerful lobby groups are slandering Internet gaming and wagering operations in Costa Rica for the purpose of encouraging lawmakers to allow gambling in various jurisdictions. At the current rate of events, online gambling may disappear in Costa Rica by the end of this decade.

Writing for the respected online magazine Slate, technology columnist and investor Jon Nathanson recently predicted that online gambling:

[...] will be broadly legal in the United States by the end of this decade. It will start with online poker, which is currently legal only in Nevada, New Jersey, and Delaware. But it will expand from there, both in categories of games and in geographic acceptance. This is already happening, to a certain extent: The wheel’s started spinning, and the ball is in play. When it drops, the video gaming business will win big. The makers of today’s mobile games will build tomorrow’s mobile casinos.

Mr. Nathanson’s wager is one that The Costa Rica Star can certainly get behind. This was explained in October 2013 by the bold move taken by the American Gaming Association (AGA) in adopting the film Runner Runner, which was based on a story about online poker in Costa Rica even though it was not filmed here, as a cautionary tale about the fictionally shady Internet gambling industry in this country.

The Runner Runner article was followed by another look into various other reasons why online casinos and sportsbooks are moving their operations out of Costa Rica:

More than two years have passed since Black Friday, and the online gambling industry in Costa Rica has shrunk considerably. In the sportsbook world, the proliferation of Pay-Per-Head (PPH) business models has consolidated sports wagering down to just a few call centers. Bookies with U.S. clients can make use of these PPH services and run their underground business from a smartphone.

Notice how sportsbooks can streamline their operations through PPH services that can be accessed by smartphones. Mr, Nathanson argues that the mobile platform will be the ace in the hole for the AGA to push their gambling legalization proposals through across the U.S.:

Worldwide, revenues from online casinos exceed $32 billion, and Juniper Research estimates that revenues from gambling on mobile devices alone will top $100 billion by 2017. As more states soften gambling laws, and more follow the example set by Nevada and Delaware, expect the $12 billion mobile gaming industry to pay close attention. Zynga, King, and other giants in the mobile gaming business won’t be content to sit on the sidelines. I suspect they’ll strike partnerships with state-based gambling companies to provide the software for the next generation of virtual casinos.

Since the great majority of online gambling and sportsbooks operations in Costa Rica cater to U.S. players, the gradual legalization in that North American nation will spell the end for the industry in this country -and it could all go down in the next few years.

April 01, 2014

PKR and Sofia Lovgren part ways

The young Swedish starlet Sofia Lovgren has parted ways with her sponsors PKR prompting speculation that she may have been headhunted to become the latest addition to the teams at either PokerStars or Full Tilt.


Lovgren leaves after four-years and in her farewell message to the community pledged to reveal her ‘next big adventure’ in the next few weeks. PKR Danski, released the news onto the PKR forum, and he also made it known that there were bigger things to come from Lovgren after he wrote, “She has been offered an opportunity which any of us would find hard to decline.”

Danski went on to pour lavish praise on the young Swede, known to the PKR community as Wellbet, when he said, “Of the more than 20 Team Pros we have been associated with, Sofia has had the greatest impact on our own players, and outside PKR’s walls. Her poker ability and more importantly her loyalty, professionalism, determination and work ethic are the reasons she has done so well, and why new doors have opened for her.”

“PKR has been like my second family and it has been an absolute pleasure to work with so many genuine and nice people and to represent this unique poker site and community.” Said Lovgren in her statement.

So Lovgren leaves some pretty tall high heels to fill and that burden now falls onto the slender shoulders of Eleanor ‘Elz442’ Gudger who joined the team just days before Lovgren announced her separation from the company.

Gudger doesn’t have too many big live score to her name, with the exception of a sixth place finish at the 2013 World Series of Poker (WSOP) Ladies Event, but she is the most successful female MTT player of all-time on PKR, amassing $225,000 in cashes – enough to give her a place in the PKR Hall of Fame.

She becomes the third female poker player to earn a PKR contract after the aforementioned Lovgren and the PKR.fr hotshot Patty ‘BabyTes’ Beaumier.

Ads That Show How Gambling Can Reduce You From Royalty To Nothing

Brazillian ad agency Revolution has created some gorgeous ads for their client, Quatro Estações.

Instituto Quatro Estações is institute for the treatment of psychiatric disorders in Brazil.

In these beautifully art directed ads, it shows the damages that gambling can do to you, reducing you from being a King, or Queen, to being haggard and out of energy.

March 31, 2014

Ed Miliband promises to ban FOBTs

Labour leader and hopeful new Prime Minister in 2015 Ed Miliband has promised that should he get into power that he will promise to remove Fixed Odds Betting Terminals (FOBTs) from high street bookmakers.

He has also offered to give local councils more powers to stop what he called “clustering” of betting shops on town and city high streets.

Mr Miliband also said that he would change the 2005 Gambling Act to give councils the power to review betting shop licenses in their area in hopes that it will help to reduce the negative impact that gambling and betting in bookmakers may have on communities.

It is clear that the Labour leader sees the FOBT issue as a vote winner is areas of the country that FOBTs have been criticized for problem gambling, however the bookmaking industry says that without the machines many of their local high street businesses would go out of business as horse and dog racing betting declines with the move to online gambling becoming more popular.