Stoke City have announced that the Britannia Stadium will be known as the bet365 Stadium from the start of the 2016-17 Premier League season.
The club are owned by bet365, the world's largest online gambling company, and have signed up to an initial six-year stadium naming rights agreement as well as a three-year extension to their shirt sponsorship deal.
"The Premier League is constantly evolving and to ensure that Stoke City remain as competitive as possible it's important we explore as many ways as possible of generating revenue," Stoke City chief executive Tony Scholes said.
"As supporters are no doubt aware the Britannia brand no longer exists and it was important that we attracted a new stadium naming rights partner.
"The Premier League is watched around the world and bet365 are a truly global company. We are delighted that we have been able to reach an agreement with them over the stadium naming rights for an initial six year period, along with the extension of their shirt sponsorship agreement.
"bet365 are taking over from Britannia and I would like to take this opportunity to thank Britannia and the Co-operative Bank for their tremendous support over the past 19 years.
"We also felt the time was right to redevelop the corner of the ground between the DPD and Marston's Pedigree Stands. Planning permission has been in place for some time but it was important we carried out the work when we felt the Club was ready for an increase in seat capacity."
John Coates, joint chief executive of bet365 and vice-chairman of Stoke City, added: "We have been looking to extend our portfolio of sports sponsorship and entering into a stadium naming rights agreement with Stoke City seemed a natural fit, especially as the city of Stoke-on-Trent is home to bet365.
"We are looking forward to what we hope will be a successful future for both the Club and bet365 with both organisations working closely together."
The Britannia Stadium has been the club's home since they left the Victoria Ground in 1997.
April 21, 2016
April 20, 2016
Paddy Power Betfair falls after negative broker comments
The merger of Paddy Power and Betfair has seen the combined company join the FTSE 100, but analysts at Credit Suisse believe its share price performance has been overdone.
Two months after the merger, which was completed at the start of February, Paddy Power Betfair announced 650 job cuts, but Credit Suisse says cost cutting is not the best reason for combining the two businesses. Analyst Ed Birkin said:
The negative comments have helped send the company’s shares down 250p to £90.80. Birkin said there was potential for increased earnings from the the merger but said:
Two months after the merger, which was completed at the start of February, Paddy Power Betfair announced 650 job cuts, but Credit Suisse says cost cutting is not the best reason for combining the two businesses. Analyst Ed Birkin said:
We feel that cost synergies alone are a poor rationale for M&A in a growth industry such as online gaming. Furthermore, we believe that scale is not as important as many believe, and is no indication of potential market share gains. With regards to Paddy Power and Betfair, as both companies already had strong brands, high quality management teams and good product/technology offerings, we question the extent of the benefits from a merger.
We think the post-merger share price reaction has been overdone and, given the integration risk and limited revenue synergies, we initiate with an underperform rating and 8,650p target price (c.9% downside potential).
The valuation looks expensive versus peers, with only 15% of the current enterprise value of Paddy Power Betfair being generated by cash flows over the next five years, compared to 29% for William Hill and 28% for Ladbrokes, on our numbers.
The negative comments have helped send the company’s shares down 250p to £90.80. Birkin said there was potential for increased earnings from the the merger but said:
The consensus view on Paddy Power Betfair is that its scale will allow it to make significant market share gains and achieve strong operational gearing.
By contrast, we show that:
- Market share gains are very difficult to achieve in the UK, and Paddy Power/Betfair has consistently underperformed the market on a pro-forma view 2010-2014.
- Operational gearing is difficult in the online gaming space. While both companies showed underlying operational gearing last year, we think this was due to one off cost savings to offset the point of consumption tax rather than it being sustainable on a multi-year view. We use the case study of William Hill Online, where the company has seen little if any operational gearing, in a period where revenues have almost trebled.
- Revenue synergies will likely be relatively immaterial – the company has guided to the cost synergies of the deal, but there has been significant market focus on potential revenue synergies. By contrast, we do not think the deal has the potential to generate significant revenues synergies – in part due to the desire to keep the brands differentiated.
Is Major League Baseball Ready To Embrace Sports Betting?
here is a new player in the realm of sports data and analysis, which comes by way of a merger between two notable technology companies – SportingPulse and Betgenius. The result is Genius Sports, a London-based data-driven solution provider for sports, media and regulated betting markets, employing over 750 people across 10 locations worldwide.
Because Genius Sports is a merger, it is not starting its business operations from scratch. It begins with a bounty of partners, including more than 100 leagues and sporting federations such as the English Premier League, La Liga, Major League Baseball, ATP, WTA, FIBA/IBF and over 150 basketball leagues worldwide.
The mix between SportingPulse and Betgenius will be an item to follow, as Betgenius has worked with many international bookmakers and lottery operators in driving turnover, increasing margins and acquiring consumers. Its clients include Paddy Power Betfair, Sky Betting & Gaming, Betsson and Intralot. Major League Baseball, now a client of Genius Sports alongside the aforesaid bookmakers, has traditionally been an ardent opponent of legalized sports betting across the United States, but even that may be changing.
“What I’ve said about legalized gambling is that the landscape is changing and that baseball, during this offseason, principally will take a look at its relationships with legalized gambling — whether it’s sponsorship, whatever — and re-evaluate given that the country has changed in terms of its approach to legalized gambling,” said MLB Commissioner Rob Manfred in November 2015.
Earlier in 2015, Manfred said that MLB needs to give “fresh consideration” to legalized sports betting, and that it is important for there to be a conversation between him and MLB owners about what MLB’s institutional position will be.
ports betting largely remains illegal across the U.S. despite illegal gambling being at an all-time high. The results of Manfred’s offseason discussions are unknown, along with whether there will be a change in MLB’s institutional position. However, MLB is now a partner alongside numerous sports betting and lottery entities that look to Genius Sports to improve customer performance and drive profits.
“Genius Sports has a new name and a new look, but our mandate, mission and values remain the same,” said Nick Maywald, founder of SportingPulse and now Genius Sports’ CCO. “We believe the collection, protection and commercialisation of sports data is critical to the future success and growth of the sports industry. We understand that as a leading sports data and technology provider, we must build on our reputation as a trusted partner to the sports industry with innovation, intelligence and integrity.”
One of the popular products offered by Betgenius (and now Genius Sports) has been “Sportsbook Management,” which includes a sportsbook manager that is promoted as a vehicle to increase a bookmaker’s revenues and automate 195,000+ events per year with event creation, pricing and resulting included therein. “It’s a product respected by the entire industry,” said the editor of OnlineCasinoReports.com. “Data points cover over 4,500 events per month.”
Perhaps MLB is not any closer than it has ever been to accepting the potential of legalized gambling on its product outside of Nevada. It has used SportingPulse’s services to monitor and protect its sport as well as to prevent and manage integrity concerns associated with match-fixing and betting-related corruption. SportingPulse’s merger with Betgenius could be nothing more then a coincidence for the league, but it also has the potential to further educate Manfred and other MLB executives on why sports betting should not pose a problem for the integrity of the sport, especially if the league is equipped with a vehicle focused on killing corruption and maintaining integrity.
An event at the U.S. Capitol Visitor Center this Wednesday will focus on sports betting and integrity with a briefing titled, “The World of Sports Betting and Safeguarding Sports Integrity.” Mark Locke, newly named CEO of Genius Sports, is listed as a panelist at the discussion to be focused on the global issues, opportunities and public opinion associated with legal and regulated sports betting. Maybe a transcript of the event will appear on Manfred’s desk come Thursday morning.
Because Genius Sports is a merger, it is not starting its business operations from scratch. It begins with a bounty of partners, including more than 100 leagues and sporting federations such as the English Premier League, La Liga, Major League Baseball, ATP, WTA, FIBA/IBF and over 150 basketball leagues worldwide.
The mix between SportingPulse and Betgenius will be an item to follow, as Betgenius has worked with many international bookmakers and lottery operators in driving turnover, increasing margins and acquiring consumers. Its clients include Paddy Power Betfair, Sky Betting & Gaming, Betsson and Intralot. Major League Baseball, now a client of Genius Sports alongside the aforesaid bookmakers, has traditionally been an ardent opponent of legalized sports betting across the United States, but even that may be changing.
“What I’ve said about legalized gambling is that the landscape is changing and that baseball, during this offseason, principally will take a look at its relationships with legalized gambling — whether it’s sponsorship, whatever — and re-evaluate given that the country has changed in terms of its approach to legalized gambling,” said MLB Commissioner Rob Manfred in November 2015.
Earlier in 2015, Manfred said that MLB needs to give “fresh consideration” to legalized sports betting, and that it is important for there to be a conversation between him and MLB owners about what MLB’s institutional position will be.
ports betting largely remains illegal across the U.S. despite illegal gambling being at an all-time high. The results of Manfred’s offseason discussions are unknown, along with whether there will be a change in MLB’s institutional position. However, MLB is now a partner alongside numerous sports betting and lottery entities that look to Genius Sports to improve customer performance and drive profits.
“Genius Sports has a new name and a new look, but our mandate, mission and values remain the same,” said Nick Maywald, founder of SportingPulse and now Genius Sports’ CCO. “We believe the collection, protection and commercialisation of sports data is critical to the future success and growth of the sports industry. We understand that as a leading sports data and technology provider, we must build on our reputation as a trusted partner to the sports industry with innovation, intelligence and integrity.”
One of the popular products offered by Betgenius (and now Genius Sports) has been “Sportsbook Management,” which includes a sportsbook manager that is promoted as a vehicle to increase a bookmaker’s revenues and automate 195,000+ events per year with event creation, pricing and resulting included therein. “It’s a product respected by the entire industry,” said the editor of OnlineCasinoReports.com. “Data points cover over 4,500 events per month.”
Perhaps MLB is not any closer than it has ever been to accepting the potential of legalized gambling on its product outside of Nevada. It has used SportingPulse’s services to monitor and protect its sport as well as to prevent and manage integrity concerns associated with match-fixing and betting-related corruption. SportingPulse’s merger with Betgenius could be nothing more then a coincidence for the league, but it also has the potential to further educate Manfred and other MLB executives on why sports betting should not pose a problem for the integrity of the sport, especially if the league is equipped with a vehicle focused on killing corruption and maintaining integrity.
An event at the U.S. Capitol Visitor Center this Wednesday will focus on sports betting and integrity with a briefing titled, “The World of Sports Betting and Safeguarding Sports Integrity.” Mark Locke, newly named CEO of Genius Sports, is listed as a panelist at the discussion to be focused on the global issues, opportunities and public opinion associated with legal and regulated sports betting. Maybe a transcript of the event will appear on Manfred’s desk come Thursday morning.
April 19, 2016
Czech government nears proper online gambling laws
The Czech government is slowing moving towards legalising online gambling in the country and at the same time preparing to hunt down and close any illegal offshore online gambling firms.
With the new tax on slot machines coming into effect shortly at 28% to 35% and sports betting and lotteries paying 23%, these taxes separate from corporation tax which is 19% expected to go through parliament and be signed by the Czech President.
With the current online laws inadequate for purpose these laws need to be updated and regulated before a proper framework for allowing operators to be correctly licensed by the State Supervision of Gambling and Lotteries Department of the Ministry of Finance, of which there are five licensees currently in operation Sazka, Synot Tip, Chance, Fortuna and Tipsport. However these operators have been highly critical of the current tax laws which have restricted their growth.
It is expected that new online gambling laws and a framework for regulators to work with will be present in early 2017.
With the new tax on slot machines coming into effect shortly at 28% to 35% and sports betting and lotteries paying 23%, these taxes separate from corporation tax which is 19% expected to go through parliament and be signed by the Czech President.
With the current online laws inadequate for purpose these laws need to be updated and regulated before a proper framework for allowing operators to be correctly licensed by the State Supervision of Gambling and Lotteries Department of the Ministry of Finance, of which there are five licensees currently in operation Sazka, Synot Tip, Chance, Fortuna and Tipsport. However these operators have been highly critical of the current tax laws which have restricted their growth.
It is expected that new online gambling laws and a framework for regulators to work with will be present in early 2017.
Metalist Kharkiv Dissolve First Team after Match-Fixing Scandal
The uncertainty at Metalist Kharkiv continues. On April 18 the Ukrainian Premier League team—they are currently tenth on the table—announced that they had fired head coach Aleksandr Sevidov.
The move was made after Metalist suffered heavy defeats in recent weeks—a 5-0 derby loss against Dnipro Dnipropetrovsk on April 16, and an 8-1 defeat against Shakhtar Donetsk on April 1.
Following the game against Shakhtar, Tribuna reported that head coach Sevidov was taken to hospital. Sevidov then missed the derby against Dnipro Dnipropetrovsk, which ended in the above-mentioned 5-0 defeat.
Matchday.ua reported that sporting director Aleksandr Boytsan flew to Moscow to convene with Metalist’s controversial owner Sergey Kurchenko. Kurchenko is currently wanted for on corruption charges, as the businessman was closely associated to the former Ukrainian President Viktor Yanukovich, and therefore resides in Russian exile. Yet it appears that he still remains in control of his club.
Sevidov meanwhile learned about his dismissal while being in hospital where Tribuna reached the coach for a comment. “I am dismissed? The club must comment on the situation. I am in hospital for treatment. As you can see my health does not permit me to work as a coach at the moment.”
Yet the situation became even more bizarre as Tribuna would then state that the management had not only dismissed Sevidov, but was indeed in the process of firing all players from the first squad as well, effectively dissolving the club.
According to Tribuna, Metalist will dissolve the first team, and then finish the season with the second team under the leadership of youth team coach Aleksandr Prizetko. It has since emerged that the reason for these drastic measures are suspicions of match-fixing.
Ukrainian journalist Roman Bebekh told Matchday.ua that the match against Dnipro especially was under suspicion. Bebekh also claimed that Sevidov “knew what was going on”, and that his condition was due to the fact that he was under stress from the knowledge that his team had to throw the above-mentioned matches.
Bebekh also stated that one of the Metalist players told him before the Dnipro match that “they can fix the amount of goals needed for any bet.”
As a result of this scandal Metalist have now purged players from the first team of the club, and named 23 youth team players to the squad, which will face Stal Dniprodzerzhynsk for the first time this weekend.
Match-fixing is sadly a common phenomenon in Ukrainian football, as players from financially weaker clubs are forced to supplement their wages by throwing games for betting companies.
Most clubs in Ukraine either turn a blind eye to the problem, or even endorse it, as they can supplement the club’s budget by selling games. But Metalist, along with Zorya Luhansk, had already suspended players involved in match-fixing last December. Hence, club officials must have felt that the widespread culture of match-fixing among its players was unfixable and that the club needed to be rebuilt.
But together with the financial problems plaguing the club Ukraine’s biggest could seize operations at the end of the season. Making it likely that Kharkiv—Ukraine’s second largest city—will be without Premier League football next season.
The move was made after Metalist suffered heavy defeats in recent weeks—a 5-0 derby loss against Dnipro Dnipropetrovsk on April 16, and an 8-1 defeat against Shakhtar Donetsk on April 1.
Following the game against Shakhtar, Tribuna reported that head coach Sevidov was taken to hospital. Sevidov then missed the derby against Dnipro Dnipropetrovsk, which ended in the above-mentioned 5-0 defeat.
Matchday.ua reported that sporting director Aleksandr Boytsan flew to Moscow to convene with Metalist’s controversial owner Sergey Kurchenko. Kurchenko is currently wanted for on corruption charges, as the businessman was closely associated to the former Ukrainian President Viktor Yanukovich, and therefore resides in Russian exile. Yet it appears that he still remains in control of his club.
Sevidov meanwhile learned about his dismissal while being in hospital where Tribuna reached the coach for a comment. “I am dismissed? The club must comment on the situation. I am in hospital for treatment. As you can see my health does not permit me to work as a coach at the moment.”
Yet the situation became even more bizarre as Tribuna would then state that the management had not only dismissed Sevidov, but was indeed in the process of firing all players from the first squad as well, effectively dissolving the club.
According to Tribuna, Metalist will dissolve the first team, and then finish the season with the second team under the leadership of youth team coach Aleksandr Prizetko. It has since emerged that the reason for these drastic measures are suspicions of match-fixing.
Ukrainian journalist Roman Bebekh told Matchday.ua that the match against Dnipro especially was under suspicion. Bebekh also claimed that Sevidov “knew what was going on”, and that his condition was due to the fact that he was under stress from the knowledge that his team had to throw the above-mentioned matches.
Bebekh also stated that one of the Metalist players told him before the Dnipro match that “they can fix the amount of goals needed for any bet.”
As a result of this scandal Metalist have now purged players from the first team of the club, and named 23 youth team players to the squad, which will face Stal Dniprodzerzhynsk for the first time this weekend.
Match-fixing is sadly a common phenomenon in Ukrainian football, as players from financially weaker clubs are forced to supplement their wages by throwing games for betting companies.
Most clubs in Ukraine either turn a blind eye to the problem, or even endorse it, as they can supplement the club’s budget by selling games. But Metalist, along with Zorya Luhansk, had already suspended players involved in match-fixing last December. Hence, club officials must have felt that the widespread culture of match-fixing among its players was unfixable and that the club needed to be rebuilt.
But together with the financial problems plaguing the club Ukraine’s biggest could seize operations at the end of the season. Making it likely that Kharkiv—Ukraine’s second largest city—will be without Premier League football next season.
April 17, 2016
UK watchdog may require Ladbrokes Coral sell 1K betting shops
The proposed merger of UK gambling giants Ladbrokes and Gala Coral Group may have hit a snag over how many retail betting shops the companies will be forced to sell.
The UK’s Competition Markets Authority (CMA) was expected to issue a provisional decision by April 18 on whether to permit the £2.3b Lads-Coral merger to proceed. On Thursday, City AM quoted sources saying that this timeline was now ‘highly unlikely.”
While the CMA’s final ruling on the merger is still expected to be released on June 24, City AM’s source claimed a potential hiccup had arisen over how many of the two operators’ combined 4k betting shops would need to be sold off to address competition concerns.
Scuttlebutt had it that the two operators would be required to reduce their retail presence by between 300 and 500 shops, but City AM claimed the CMA may require as many as 1k shops to be sold to smaller betting operators to ensure a healthy and competitive market for retail punters.
The CMA is expected to identify which shops give it the most competition concerns and the CMA is also believed to be insisting that the shops in question be sold rather than merely closed, public knowledge of which could put Lads-Coral in an unwanted ‘motivated seller’ position when it comes to negotiating prices for these shops.
The merger has been opposed by rival William Hill, whose high street dominance would be eclipsed should the Lads-Coral union receive the regulatory thumbs-up. The CMA’s reported insistence on a larger sell-off of shops may be a response to Hills’ objections, which claimed the market “may not be capable of establishing the third national force which would be lost as a result of this merger.”
The UK’s Competition Markets Authority (CMA) was expected to issue a provisional decision by April 18 on whether to permit the £2.3b Lads-Coral merger to proceed. On Thursday, City AM quoted sources saying that this timeline was now ‘highly unlikely.”
While the CMA’s final ruling on the merger is still expected to be released on June 24, City AM’s source claimed a potential hiccup had arisen over how many of the two operators’ combined 4k betting shops would need to be sold off to address competition concerns.
Scuttlebutt had it that the two operators would be required to reduce their retail presence by between 300 and 500 shops, but City AM claimed the CMA may require as many as 1k shops to be sold to smaller betting operators to ensure a healthy and competitive market for retail punters.
The CMA is expected to identify which shops give it the most competition concerns and the CMA is also believed to be insisting that the shops in question be sold rather than merely closed, public knowledge of which could put Lads-Coral in an unwanted ‘motivated seller’ position when it comes to negotiating prices for these shops.
The merger has been opposed by rival William Hill, whose high street dominance would be eclipsed should the Lads-Coral union receive the regulatory thumbs-up. The CMA’s reported insistence on a larger sell-off of shops may be a response to Hills’ objections, which claimed the market “may not be capable of establishing the third national force which would be lost as a result of this merger.”
April 06, 2016
Man accused of opperating a $61.8B online casino nabbed
Police in Vietnam arrested a Chinese man who was believed to have been running an online gambling site worth more than $60 billion has been arrested
Chinese man accused of operating a $61.8B online casino nabbed in VietnamThe man, surnamed Zhou, is wanted by the Chinese government on suspicion of operating an online casino, the Shanghai Daily reported.
Zhou, who was born in 1969 in Wenzhou in the Zhejiang province, reportedly set up an online gambling site in 2011 with his accomplices. The site was built using capital of 400 billion yuan (US$61.77 billion) and made a profit of 580 million yuan (US$89.6 million) when it was in operation, according to the report.
Two years ago, the International Criminal Police Organization issued a red notice for Zhou, who has fled the country. A year later, the Chinese Ministry of Public Security sent a request to its counterpart in Vietnam to arrest Zhou.
In March, a joint team of Hanoi and Chinese police officers arrested Zhou at a restaurant in the city. Zhou has since been deported to mainland China.
In 2011, the Chinese government announced a nationwide crackdown on gambling, which they considered a vice that needs to be expunged together with prostitution, among other things.
The government stepped up its monitoring of land-based entertainment venues, including clubs, bath houses, massage parlors and internet cafes, for signs that their list of entertainment options included gambling or sex for sale.
In Zhejiang province–where, incidentally, Zhou also hailed from—police uncovered a ring of Hongbao gamblers on the Wechat social network. Wechat’s option for Hongbao, or red envelopes containing money, was allegedly used by some enterprising users to attract several hundred members who paid US$16 each as an upfront guarantee. The member who received the lowest amount in the first random round was required to issue the next envelope, which had to contain at least 200 yuan. Organizers reportedly took a % percent rake on the contents of the envelopes.
Chinese man accused of operating a $61.8B online casino nabbed in VietnamThe man, surnamed Zhou, is wanted by the Chinese government on suspicion of operating an online casino, the Shanghai Daily reported.
Zhou, who was born in 1969 in Wenzhou in the Zhejiang province, reportedly set up an online gambling site in 2011 with his accomplices. The site was built using capital of 400 billion yuan (US$61.77 billion) and made a profit of 580 million yuan (US$89.6 million) when it was in operation, according to the report.
Two years ago, the International Criminal Police Organization issued a red notice for Zhou, who has fled the country. A year later, the Chinese Ministry of Public Security sent a request to its counterpart in Vietnam to arrest Zhou.
In March, a joint team of Hanoi and Chinese police officers arrested Zhou at a restaurant in the city. Zhou has since been deported to mainland China.
In 2011, the Chinese government announced a nationwide crackdown on gambling, which they considered a vice that needs to be expunged together with prostitution, among other things.
The government stepped up its monitoring of land-based entertainment venues, including clubs, bath houses, massage parlors and internet cafes, for signs that their list of entertainment options included gambling or sex for sale.
In Zhejiang province–where, incidentally, Zhou also hailed from—police uncovered a ring of Hongbao gamblers on the Wechat social network. Wechat’s option for Hongbao, or red envelopes containing money, was allegedly used by some enterprising users to attract several hundred members who paid US$16 each as an upfront guarantee. The member who received the lowest amount in the first random round was required to issue the next envelope, which had to contain at least 200 yuan. Organizers reportedly took a % percent rake on the contents of the envelopes.
Paddy Power Betfair reveals plans to cut 300 Irish jobs
Now that the €10 billion merger of Paddy Power and Betfair has been completed and the company had enough time to do calculations, the new entity, Paddy Power Betfair, revealed plans to cut around 10% of its workforce.
The group’s overall number of employees counts 7,200 people and the operator wants to let go 650 of them in order to save approximately £50 million (€62 million) a year. This will be accomplished by cutting 300 Irish jobs and additional 350 British ones.
Luckily for Paddy Power’s retail staffers, Betfair had no land-based operations and therefore they’ll get to keep their jobs for the time being. Unfortunately, the situation is far worse for those holding legal, finance and human resources positions as well as technology, risk and trading professionals. It has to be highlighted that the top management hasn’t been spared either; last month Gav Thompson, chief marketing officer, left the team alongside Andy McCue who was chief operating officer.
Paddy Power Betfair has notified all employees about its plans via emails on Monday, offering four weeks’ pay for each year of service plus their statutory redundancy entitlement to those whose services are no longer needed. In other words, redundant staff would get a total severance package of six weeks’ pay for each year they spent in the company. Additionally, the group explained that there will be limited opportunities for redeployment and pointed out that redundant employees were likely to get new jobs quickly because their skills were in demand.
Remaining staff, according to the revealed plan, will be located in single offices. Therefore, Betfair’s office in Ringsend, Dublin will be moved to Paddy Power’s HQ in Clonskeagh. The company’s main office in Britain will be in Hammersmith, London. Relocation is expected to end by August, when the group will publish its first interim results as well.
The group’s overall number of employees counts 7,200 people and the operator wants to let go 650 of them in order to save approximately £50 million (€62 million) a year. This will be accomplished by cutting 300 Irish jobs and additional 350 British ones.
Luckily for Paddy Power’s retail staffers, Betfair had no land-based operations and therefore they’ll get to keep their jobs for the time being. Unfortunately, the situation is far worse for those holding legal, finance and human resources positions as well as technology, risk and trading professionals. It has to be highlighted that the top management hasn’t been spared either; last month Gav Thompson, chief marketing officer, left the team alongside Andy McCue who was chief operating officer.
Paddy Power Betfair has notified all employees about its plans via emails on Monday, offering four weeks’ pay for each year of service plus their statutory redundancy entitlement to those whose services are no longer needed. In other words, redundant staff would get a total severance package of six weeks’ pay for each year they spent in the company. Additionally, the group explained that there will be limited opportunities for redeployment and pointed out that redundant employees were likely to get new jobs quickly because their skills were in demand.
Remaining staff, according to the revealed plan, will be located in single offices. Therefore, Betfair’s office in Ringsend, Dublin will be moved to Paddy Power’s HQ in Clonskeagh. The company’s main office in Britain will be in Hammersmith, London. Relocation is expected to end by August, when the group will publish its first interim results as well.
David Baazov, CEO and Chair of Amaya takes leave of absence amid insider trading charges
After a seemingly miraculous rise to becoming the world’s largest online gambling company, Amaya’s CEO, David Baazov is taking a leave of absence after insider trading charges were leveled against him. Rafi Ashkenazi, CEO of Rational Group will take over the role of chief while Baazov remains on the board of directors with Divyesh (Dave) Gadhia taking over the Chair. Stock trades around Amaya’s acquisition of Rational Group, which operates PokerStars and Full Tilt Poker were the impetus of an investigation that eventually uncovered illegal insider trading in seven companies owned by or associated with Amaya, according to Canada’s AMF.
Amaya (TSX:AYA) completed it’s takeover of Oldford Group, parent of Rational Group for US$4.9 billion in August 2014 creating the largest online gaming company in the world. Stocks went through the roof and over $800,000 was allegedly made in illegal trades related to that transaction. Allegations of insider trading go back as far as 2011 and include at least seven transactions and thirteen people including Baazov and his brother Josh.
Documents point to Josh Baazov being the conduit of information that was spread through a web of friends and acquaintances. Those individuals allegedly bought Amaya shares before acquisitions were announced, and then sold them at a profit once Amaya stock prices rose.
David Baazov denies any wrongdoing and says he will be exonerated of all charges. None of the allegations have been proven and the thirteen associates have not been charged, although they have been directed to cease trading and are not allowed to access funds allegedly derived from the illegal trades.
Amaya stock continues to trade under 15 after falling from nearly 19 before the news of charges against the CEO.
Baazov made a bid to take the company private earlier this month and currently there’s no indication he plans to abandon the idea.
Amaya (TSX:AYA) completed it’s takeover of Oldford Group, parent of Rational Group for US$4.9 billion in August 2014 creating the largest online gaming company in the world. Stocks went through the roof and over $800,000 was allegedly made in illegal trades related to that transaction. Allegations of insider trading go back as far as 2011 and include at least seven transactions and thirteen people including Baazov and his brother Josh.
Documents point to Josh Baazov being the conduit of information that was spread through a web of friends and acquaintances. Those individuals allegedly bought Amaya shares before acquisitions were announced, and then sold them at a profit once Amaya stock prices rose.
David Baazov denies any wrongdoing and says he will be exonerated of all charges. None of the allegations have been proven and the thirteen associates have not been charged, although they have been directed to cease trading and are not allowed to access funds allegedly derived from the illegal trades.
Amaya stock continues to trade under 15 after falling from nearly 19 before the news of charges against the CEO.
Baazov made a bid to take the company private earlier this month and currently there’s no indication he plans to abandon the idea.
Playtech’s Teddy Sagi linked to 16 offshore accounts by Panama Papers
Well known names like Vladimir Putin and the Prime Minister of Iceland have been mentioned around the seismic leak of documents surrounding off-shore law firm, Mossack Fonseca of Panama City, Panama. On Sunday an international coalition of media outlets published the results of an ongoing investigation based on secret documents provided by an anonymous source. The cache of documents totaling some 11.5 million records gave the cadre of more than 100 journalists worldwide a behind-the-scenes look into the offshore banking activity of world leaders, businessmen, celebrities, sports stars, and criminals. One of the businessmen linked to offshore corporations was Israeli gaming entrepreneur and Playtech founder, Teddy Sagi.
Among correspondences examined were those between the Panamanian law firm and Israel’s Bank Leumi. According to Haaretz, the communications discussed Leumi’s Jersey branch in the Channel Islands; a tax haven. One of the bank’s customers is billionaire Teddy Sagi who founded Playtech in 1999 and grew it into one of the most powerful gaming companies in the world. Mr. Sagi also invests in real estate, having contributed heavily to the development of Camden Market into a vibrant a commercial real estate space in London.
Most of the 16 offshore companies Sagi owns, that were established by Mossack Fonseca, deal in real estate. Sagi is listed as the sole shareholder of all 16 companies. Branch officers of Bank Leumi serve as directors on many of the company boards.
None of the companies have been linked to wrong-doing. Sagi is well known in the casino industry as a creative entrepreneur who gained much of his fortune through legally buying or creating gaming related companies and then selling them to Playtech or subsidiaries at substantial profits. Analysts, if not regulators, have raised concerns on several occasions that Playtech acquiring assets from its founder and largest shareholder could some day put the larger company in a tight spot. The fact that Sagi controlled many of those companies was not known until the sales were publicized.
As the result of a 2014 investigation not connected to the Jersey branch, Bank Leumi was found to have assisted about 1,500 American clients evade taxes. The bank paid a fine of 1.5 billion shekels (US$400 million).
All indications are that Sagi turned his life around after being convicted of, and sentenced for, fraud and bribery in a Tel Aviv court 20 years ago after he admitted to manipulating bond prices according to Wikipedia and the International Business Times. There are no allegations that he has done anything illegal with the offshore companies revealed today. For all his success there would likely be more without that dark mark from a virtual lifetime ago. In spite of that, Sagi was listed as a Forbes billionaire before the age of 40, and in 2014 alone floated three companies on the London Stock Market.
Haaretz reports that associates have said Sagi didn’t create the companies, only purchased them. They said that having branch bank managers on the boards of those companies was simply a service Bank Leumi provides its customers. Bank Leumi told the outlet that it’s sale of the Jersey branch last October was “part of the bank’s policy to diminish its international activity,” that the branch operated within the laws and regulations of the Jersey Financial Services Commission, and that, “Naturally, we are unable to address specific costumer issues due to banking confidentiality,” a representative said.
Playtech (LON: PTEC) stock closed at 841.50 GBX down 20.50 points (2.38%) unaffected by the news that the company’s founder has had 16 offshore accounts revealed. Hundreds of other prominent Israeli business persons and lawyers were also linked to shell companies in the documents.
Among correspondences examined were those between the Panamanian law firm and Israel’s Bank Leumi. According to Haaretz, the communications discussed Leumi’s Jersey branch in the Channel Islands; a tax haven. One of the bank’s customers is billionaire Teddy Sagi who founded Playtech in 1999 and grew it into one of the most powerful gaming companies in the world. Mr. Sagi also invests in real estate, having contributed heavily to the development of Camden Market into a vibrant a commercial real estate space in London.
Most of the 16 offshore companies Sagi owns, that were established by Mossack Fonseca, deal in real estate. Sagi is listed as the sole shareholder of all 16 companies. Branch officers of Bank Leumi serve as directors on many of the company boards.
None of the companies have been linked to wrong-doing. Sagi is well known in the casino industry as a creative entrepreneur who gained much of his fortune through legally buying or creating gaming related companies and then selling them to Playtech or subsidiaries at substantial profits. Analysts, if not regulators, have raised concerns on several occasions that Playtech acquiring assets from its founder and largest shareholder could some day put the larger company in a tight spot. The fact that Sagi controlled many of those companies was not known until the sales were publicized.
As the result of a 2014 investigation not connected to the Jersey branch, Bank Leumi was found to have assisted about 1,500 American clients evade taxes. The bank paid a fine of 1.5 billion shekels (US$400 million).
All indications are that Sagi turned his life around after being convicted of, and sentenced for, fraud and bribery in a Tel Aviv court 20 years ago after he admitted to manipulating bond prices according to Wikipedia and the International Business Times. There are no allegations that he has done anything illegal with the offshore companies revealed today. For all his success there would likely be more without that dark mark from a virtual lifetime ago. In spite of that, Sagi was listed as a Forbes billionaire before the age of 40, and in 2014 alone floated three companies on the London Stock Market.
Haaretz reports that associates have said Sagi didn’t create the companies, only purchased them. They said that having branch bank managers on the boards of those companies was simply a service Bank Leumi provides its customers. Bank Leumi told the outlet that it’s sale of the Jersey branch last October was “part of the bank’s policy to diminish its international activity,” that the branch operated within the laws and regulations of the Jersey Financial Services Commission, and that, “Naturally, we are unable to address specific costumer issues due to banking confidentiality,” a representative said.
Playtech (LON: PTEC) stock closed at 841.50 GBX down 20.50 points (2.38%) unaffected by the news that the company’s founder has had 16 offshore accounts revealed. Hundreds of other prominent Israeli business persons and lawyers were also linked to shell companies in the documents.
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