Online Gambling firm 888 Holdings is making a run at buying Bwin.Party Digital Entertainment, the Gibraltar-based online gambling company. There are reports that Amaya, the world’s biggest publicly-traded online gambling company, is joining tiny GVC Holdings to try to buy and carve up Bwin.Party. Playtech, the gambling software developer, has not emerged as a potential bidder, but has shown interest in Bwin.Party in the past.
The sale of Bwin.Party may still not happen, but negotiations for the company have reached their most serious stage since activist hedge fund manager Jason Ader’s SpringOwl Asset Management struck a deal with Bwin.Party last year that seemed to put the company in play. The details of the bids have not been disclosed and remain murky.
A deal for Bwin.Party would be a big moment in the online gambling industry. Bwin.Party was formed in 2011, combining Bwin’s sports betting business and PartyGaming’s online casino and online poker offerings. Before it chose to leave the U.S. market in 2006, PartyGaming was the most valuable online gambling company in the world.
What makes Bwin.Party valuable to other online gambling companies today, however, is its big sports betting business. Billionaire Denise Coates’ Bet365 is the world’s biggest online sports betting company, but Bwin’s sports betting business is one of the next largest. Bwin’s sport betting business in Europe might be bigger than Bet365.
Amaya, 888 and Playtech have been working on becoming big online sports betting players. For any online gambling company looking for a sports betting business, buying Bwin would be the quickest way to do it.
Amaya reportedly is bidding with GVC by creating a special purpose vehicle controlled by GVC that would hold the bulk of Bwin.Party’s assets. There is precedent for such a partnership. GVC, which focuses on so-called gray markets, teamed up with British bookmaker William Hill in 2013 to buy Sportingbet for $850 million. William Hill took Sportingbet’s online gambling operations in Australia and Spain; GVC took Sportingbet’s business in unregulated markets.
Bwin.Party is scheduled to host its annual shareholders meeting in Gibraltar on Thursday.
Showing posts with label Sportingbet. Show all posts
Showing posts with label Sportingbet. Show all posts
May 19, 2015
February 23, 2015
Sportingbet rebranded as William Hill in Australia
Bookmaker William Hill will officially launch in the Australian market tomorrow when its Sportingbet.com.au business is rebranded.
Existing Sportingbet clients will be migrated to the global betting giant’s new local website, WilliamHill.com.au. New clients will also be able to sign-up through the site.
William Hill acquired the Sportingbet Australia business, which included Centrebet, in March 2013, and the acquisition of TomWaterhouse.com followed in August 2013. Centrebet and TomWaterhouse.com will also be rebranded as William Hill in due course.
Tom Waterhouse, CEO William Hill Australia, commented:
“This is the exciting first step towards merging three Australian betting brands into one highly regarded, international brand. Placing all of our assets behind one brand will allow us to provide our customers with the best possible wagering experience and more diverse betting opportunities. William Hill has a rich history in betting on racing and sports, and the brand will enable us to leverage decades of global wagering expertise and understanding to help us establish the best possible product for punters in Australia.”
Founded in the UK in 1934, William Hill today employs more than 17,000 staff around the world and has more than 240 employees in Australia.
The company has over 2300 betting shops throughout the UK, and operates businesses in countries including Italy, Spain and the US.
Existing Sportingbet clients will be migrated to the global betting giant’s new local website, WilliamHill.com.au. New clients will also be able to sign-up through the site.
William Hill acquired the Sportingbet Australia business, which included Centrebet, in March 2013, and the acquisition of TomWaterhouse.com followed in August 2013. Centrebet and TomWaterhouse.com will also be rebranded as William Hill in due course.
Tom Waterhouse, CEO William Hill Australia, commented:
“This is the exciting first step towards merging three Australian betting brands into one highly regarded, international brand. Placing all of our assets behind one brand will allow us to provide our customers with the best possible wagering experience and more diverse betting opportunities. William Hill has a rich history in betting on racing and sports, and the brand will enable us to leverage decades of global wagering expertise and understanding to help us establish the best possible product for punters in Australia.”
Founded in the UK in 1934, William Hill today employs more than 17,000 staff around the world and has more than 240 employees in Australia.
The company has over 2300 betting shops throughout the UK, and operates businesses in countries including Italy, Spain and the US.
April 07, 2014
William Hill announces technical migration of Australian brands into one platform
William Hill has announced the complete migration of its three acquired Australian brands - Centrebet, Tom Waterhouse and Sportingbet Australia. The integration will see all brands managed under a single platform, promoting unified technologies and products to its Australian customer base.
William Hill will maintain all three brands active, which counters previous industry speculation that the operator would be looking to condolidate its Australian brands into one.
2013 saw William Hill acquire all three brands in order to enter the Australian online sport betting market. The acquisition saw William Hill become the third biggest online gambling operator behind Paddy Power and Tabcorp. The combined acquisition contributed £86.7 million in net revenue and £12 million in profit for 2013 performance.
William Hill will re-launch Sportingbet.com.au with a new mobile friendly responsive site. The operator further announced that the re-launch would be supported by an ongoing Australian tv advertising campaign which would be promoted by former Australian international cricketer Shane Warne (former brand ambassador for 888 Poker).
William Hill will maintain all three brands active, which counters previous industry speculation that the operator would be looking to condolidate its Australian brands into one.
2013 saw William Hill acquire all three brands in order to enter the Australian online sport betting market. The acquisition saw William Hill become the third biggest online gambling operator behind Paddy Power and Tabcorp. The combined acquisition contributed £86.7 million in net revenue and £12 million in profit for 2013 performance.
William Hill will re-launch Sportingbet.com.au with a new mobile friendly responsive site. The operator further announced that the re-launch would be supported by an ongoing Australian tv advertising campaign which would be promoted by former Australian international cricketer Shane Warne (former brand ambassador for 888 Poker).
March 27, 2014
Russia blocks online gambling firms
Russian authorities have made Internet Service Providers (ISP) in the country block online poker websites from offering their services to Russian players.
Although it was back in late 2012 that the Russian government said that ISPs should block online gambling sites it was mainly online casino sites that were blocked and not online poker, now with the latest move many in the online poker industry both players and companies are concerned about the latest developments, with Russian players making up a large portion of the online sectors players.
The Deputy Head Maxim Ksenzov said that the blocking of the online sites has occurred at the request of the prosecutor’s office based on these court decisions in 2012, why they have only just decided to get round to it now is not clear.
Of the big online operators that have now been affected they are Ladbrokes, Sportingbet, PokerStars, Betway and Unibet among many others.
PokerStars released a message to all players that had concerns about the latest blocking by Russia saying that their deposits were safe and can be withdrawn as normal, as well as saying that the company will continue to offer online poker to Russian players along with operating under several licenses issued to PokerStars in various jurisdictions and that they always abide by all relevant laws and regulations.
How if any way PokerStars and the other online operators will overcome the latest attempt by Russia to block their services is unclear at present and will continue to cover this story on any future developments.
June 24, 2013
Belgium, Bulgaria add names to online gambling blacklists
The itchy trigger fingers of the Belgian Gaming Commission (BGC) have added five new names to its online gambling blacklist, including Gibraltar-licensed BetVictor, whose CEO Michael Carlton co-authored a public letter last November expressing his disdain for Belgium’s protectionist online gambling stance. The BGC also blackballed two UK-registered firms – Casino GrandLuxe and MonaCasino – as well as two Curaçao-licensed outfits, City Club Casino and RoyalCasino. The additions bring the BGC’s naughty list to a total of 74 enemies of the state.
That’s 54 more names than on the first blacklist drawn up by the Bulgarian State Gambling Commission. Among the 20 names thus tarred and feathered are the familiar faces of 888, Bet365, Betfair, Befred, Ladbrokes, Sportingbet and Unibet. Bulgaria first announced plans to IP-block unlicensed gambling sites last year, with the digital firewall scheduled to go up this March. The move was supposed to precede the introduction of a regulated online gambling regime, but while the necessary legislation has been published, it has yet to be officially enacted.
In less punitive regulatory news, the Isle of Man Gambling Supervision Commission has inked an info-sharing agreement with the Estonian Tax and Customs Board, which regulates gambling and lottery activity in the Baltic country. The goal of the agreement is to improve regulatory standards in both online and land-based gaming sectors to better protect consumers and to create efficiencies for businesses.
Not to be outdone, the Alderney Gambling Control Commission (AGCC) has teamed up with Spectrum Gaming Group to help regulatory agencies craft online gambling regulations. Andre Wilsenach, exec director of the AGCC, says the new Alderney Spectrum eGaming Advisors (ASeGA) will provide “an opportunity to progress common best practice standards of operation.” Spectrum Gaming managing director Michael Pollock called the joint venture a “perfect fit between an experienced, respected regulatory agency and a private firm that already serves tribal, state and national governments around the world.” ASeGA will also provide due-diligence and background investigations to determine a licensee’s suitability to operate in a given jurisdiction.
That’s 54 more names than on the first blacklist drawn up by the Bulgarian State Gambling Commission. Among the 20 names thus tarred and feathered are the familiar faces of 888, Bet365, Betfair, Befred, Ladbrokes, Sportingbet and Unibet. Bulgaria first announced plans to IP-block unlicensed gambling sites last year, with the digital firewall scheduled to go up this March. The move was supposed to precede the introduction of a regulated online gambling regime, but while the necessary legislation has been published, it has yet to be officially enacted.
In less punitive regulatory news, the Isle of Man Gambling Supervision Commission has inked an info-sharing agreement with the Estonian Tax and Customs Board, which regulates gambling and lottery activity in the Baltic country. The goal of the agreement is to improve regulatory standards in both online and land-based gaming sectors to better protect consumers and to create efficiencies for businesses.
Not to be outdone, the Alderney Gambling Control Commission (AGCC) has teamed up with Spectrum Gaming Group to help regulatory agencies craft online gambling regulations. Andre Wilsenach, exec director of the AGCC, says the new Alderney Spectrum eGaming Advisors (ASeGA) will provide “an opportunity to progress common best practice standards of operation.” Spectrum Gaming managing director Michael Pollock called the joint venture a “perfect fit between an experienced, respected regulatory agency and a private firm that already serves tribal, state and national governments around the world.” ASeGA will also provide due-diligence and background investigations to determine a licensee’s suitability to operate in a given jurisdiction.
January 24, 2013
Greece monopoly ruled illegal
OPAP’s gambling monopoly in Greece is close to the end of the road after the Court of Justice for the European Union (CJEU) ruled it illegal. The monopoly contravenes European Union (EU) law as it grants exclusive rights without serving the public interest by limiting the amount of betting opportunities, according to a court ruling this morning. The current case was one filed by Stanleybet, William Hill and Sportingbet, with the result sending OPAP’s share price sliding downwards on the Stoxx Europe 600 Index – 11 percent to €6.27 at the last check.
There is still breathing room for Greece and if they implement stricter controls to ensure consumer protection they will be allowed to preserve it. If that doesn’t happen then Greece will have to open up the market to allow firms from other EU countries to operate.
Immediate reaction to the ruling came from Sigrid Ligné, secretary general of the European Gaming and Betting Association, who stated: Given the factual setup of OPAP’s monopoly which clearly fails to meet the CJEU test we hardly expect effective control to be implemented in the future. Therefore, Greece should follow the Court’s clear advice to liberalise the market. The ruling is highly relevant and gives the EC yet more jurisprudence to put an end to non-compliant gambling policies across the EU.”
Ligne is hopeful this ruling will give way to more cases being investigated by the EU regarding other member states that contravene EU law.
“At this stage only the EC, as the Guardian of the Treaties, can restore legal security by acting directly on the many complaints it has received, not only against Greece, but also against many other Member States. The EC can now take firm action on all pending infringement cases in order to ensure all Member States are in full compliance,” she added.
There is still breathing room for Greece and if they implement stricter controls to ensure consumer protection they will be allowed to preserve it. If that doesn’t happen then Greece will have to open up the market to allow firms from other EU countries to operate.
Immediate reaction to the ruling came from Sigrid Ligné, secretary general of the European Gaming and Betting Association, who stated: Given the factual setup of OPAP’s monopoly which clearly fails to meet the CJEU test we hardly expect effective control to be implemented in the future. Therefore, Greece should follow the Court’s clear advice to liberalise the market. The ruling is highly relevant and gives the EC yet more jurisprudence to put an end to non-compliant gambling policies across the EU.”
Ligne is hopeful this ruling will give way to more cases being investigated by the EU regarding other member states that contravene EU law.
“At this stage only the EC, as the Guardian of the Treaties, can restore legal security by acting directly on the many complaints it has received, not only against Greece, but also against many other Member States. The EC can now take firm action on all pending infringement cases in order to ensure all Member States are in full compliance,” she added.
December 20, 2012
Sportingbet investors anger over senior pay-offs
2012 was the year of the Shareholder Spring and we almost certainly saw the last one of the year on Wednesday as more than 20% of Sportingbet investors staged a rebellion over multi-million pound pay-offs for the betting companies senior executives.
The company is expected to announce as early as Friday that it has accepted a £485m takeover approach from rival William Hill and GVC Holdings.
However, Andrew McIver Sportingbet’s chief executive, and its finance director, Jim Wilkinson, will not have a bad Christmas if the company does accept as they walk away from the group with two years’ worth of salary, bonuses, pension payments and other benefits if they leave as expected following the acquisition.
The bumper two-year pay-offs contravene the UK corporate governance code and attracted the ire of one of the major shareholders, group Pirc.
At Sportingbet’s annual meeting on Wednesday, more than 20% of votes were cast against the company’s remuneration report. It was the second time Sportingbet has received controversy over executive pay and almost 14% of investors voted against its remuneration report at 2011’s annual meeting.
Mr McIver, 49, who has been chief executive of Sportingbet since 2006, could walk away with a severance package worth up to £2.4m if a maximum bonus is approved.
The betting boss also holds more than 3m Sportingbet shares, meaning he stands to bank more than £1.7m in cash and shares if William Hill’s latest offer is accepted.
The three parties have until Friday to agree a deal.
William Hill and GVC recently reduced their offer to 56.1p from 61.1p a share following weaker than expected quarterly results from Sportingbet. The majority of Sportingbet shareholders are expected to receive about 50.4p a share in cash, while the remainder will be paid in GVC shares.
The company is expected to announce as early as Friday that it has accepted a £485m takeover approach from rival William Hill and GVC Holdings.
However, Andrew McIver Sportingbet’s chief executive, and its finance director, Jim Wilkinson, will not have a bad Christmas if the company does accept as they walk away from the group with two years’ worth of salary, bonuses, pension payments and other benefits if they leave as expected following the acquisition.
The bumper two-year pay-offs contravene the UK corporate governance code and attracted the ire of one of the major shareholders, group Pirc.
At Sportingbet’s annual meeting on Wednesday, more than 20% of votes were cast against the company’s remuneration report. It was the second time Sportingbet has received controversy over executive pay and almost 14% of investors voted against its remuneration report at 2011’s annual meeting.
Mr McIver, 49, who has been chief executive of Sportingbet since 2006, could walk away with a severance package worth up to £2.4m if a maximum bonus is approved.
The betting boss also holds more than 3m Sportingbet shares, meaning he stands to bank more than £1.7m in cash and shares if William Hill’s latest offer is accepted.
The three parties have until Friday to agree a deal.
William Hill and GVC recently reduced their offer to 56.1p from 61.1p a share following weaker than expected quarterly results from Sportingbet. The majority of Sportingbet shareholders are expected to receive about 50.4p a share in cash, while the remainder will be paid in GVC shares.
November 14, 2012
Greece gives online operators until Dec. 6 to get lost or face blacklist, prison
Truly, this week is only a couple days old but the board of directors at Bwin.party digital entertainment likely already wishes it was over. As co-CEO Norbert Teufelberger beats an inglorious retreat to the UK following his detention by Belgian police, Greece is now telling Bwin.party and other unlicensed operators serving Greek punters to get the hell out of Dodge (and Athens) by Dec. 6 or face a decade in prison, up to €500k in fines and ‘severe administration penalties,’ which we assume means being forced to untangle the country’s messy finances using only a slide rule and a No. 2 pencil.
The Hellenic Gaming Commission issued warning notices on Nov. 5 to all operators currently serving the Greek market without the government’s say-so. These operators are being given a one-month grace period in which to wind down their affairs, after which any operators still serving the market will be put on a blacklist (much as in Belgium). Banks will be forbidden to process transactions for any company on the blacklist and IP-blocking will cut off punter access. The Commission’s notice said it was asking for support from other EU regulators “and will appreciate proactivity” by same “to inform and strongly advise” operators they regulate to comply with Greek wishes.
Greece passed a new gaming law in August 2011, which was supposed to be followed by a public tender for online gaming licenses. While that has yet to occur, Greece issued temporary permits to 24 operators – including Sportingbet and Paddy Power – on the condition that they ante up two years of back taxes (similar to what transpired in Spain). Other major European operators, including Betfair, Bet365 and William Hill, chose instead to file a grievance (via the Remote Gambling Association) with the European Commission over what they viewed as the Greek gaming law’s discriminatory provisions.
Bwin.party, reportedly Greece’s online gambling market leader, also chose not to apply for a license and filed its own EC complaint in November via its European Gaming and Betting Association (EGBA) mouthpiece. Unless Bwin.party has learned a lesson from Tuesday’s strong-arm tactics in Belgium, a business-as-usual approach in Greece would result in its name appearing on yet another blacklist and creating another no-fly zone for Bwin.party execs.
With Bwin.party’s Nevada online poker tech provider license application hearing expected sometime early in the new year, shareholders are likely starting to wonder if Bwin.party execs are treating the hearing as a foregone conclusion. If continued nose-thumbing at European regulators ultimately proves too blatant for US regulators to ignore and eliminates the possibility of Bwin.party adding a US revenue stream, could the next Bwin.party AGM be a bring-your-own-pitchfork-and-torch affair? (Entirely uncorroborated scuttlebutt has Teufelberger’s arrest the result of a tipoff Belgian authorities received from co-CEO Jim Ryan, who is presumably itching to ditch the ‘co-’ from his business card.)
Of course, the public companies currently doing business in Greece will eventually ‘choose’ to leave, much in the way one ‘chooses’ to keep breathing. Their shareholders have no appetite for risk and video clips of senior management being frog-marched away in handcuffs tend to have a depressing effect on share prices. Public protestations about ‘illegal’ laws don’t mean much in practical terms; it’s been seven years since the World Trade Organization declared the US anti-online gambling stance to be a breach of international trade rules yet Antigua still hasn’t received its rightful redress.
It will be interesting to see how the Greeks treat Playtech, which, via its partnership with German outfit Gauselmann, is one of eight prospective bidders for the Greek government’s one-third stake in lottery/betting monopoly OPAP. Playtech also supplies technology to a number of Greek-facing operators, including (for the moment) William Hill Online. If Playtech licensees choose to ignore the Greek blacklist, would Playtech escape criticism and/or legal action?
In the past, Playtech has taken an “it’s our clients that are breaking the law, not us” stance regarding its revenue streams from licensees operating in China, Malaysia and Germany, but much will depend on how broadly Greece chooses to define ‘operator.’ As with Bwin.party’s Belgian brouhaha, the fallout from the Greek clampdown may extend well beyond its borders. The fact that Playtech founder Teddy Sagi did time in an Israeli prison in the 1990s for stock manipulation was noted by Nevada regulators when William Hill’s sports betting license was being considered and further European controversy might eliminate any possibility of Playtech participating in a regulated US online poker market.
The Hellenic Gaming Commission issued warning notices on Nov. 5 to all operators currently serving the Greek market without the government’s say-so. These operators are being given a one-month grace period in which to wind down their affairs, after which any operators still serving the market will be put on a blacklist (much as in Belgium). Banks will be forbidden to process transactions for any company on the blacklist and IP-blocking will cut off punter access. The Commission’s notice said it was asking for support from other EU regulators “and will appreciate proactivity” by same “to inform and strongly advise” operators they regulate to comply with Greek wishes.
Greece passed a new gaming law in August 2011, which was supposed to be followed by a public tender for online gaming licenses. While that has yet to occur, Greece issued temporary permits to 24 operators – including Sportingbet and Paddy Power – on the condition that they ante up two years of back taxes (similar to what transpired in Spain). Other major European operators, including Betfair, Bet365 and William Hill, chose instead to file a grievance (via the Remote Gambling Association) with the European Commission over what they viewed as the Greek gaming law’s discriminatory provisions.
Bwin.party, reportedly Greece’s online gambling market leader, also chose not to apply for a license and filed its own EC complaint in November via its European Gaming and Betting Association (EGBA) mouthpiece. Unless Bwin.party has learned a lesson from Tuesday’s strong-arm tactics in Belgium, a business-as-usual approach in Greece would result in its name appearing on yet another blacklist and creating another no-fly zone for Bwin.party execs.
With Bwin.party’s Nevada online poker tech provider license application hearing expected sometime early in the new year, shareholders are likely starting to wonder if Bwin.party execs are treating the hearing as a foregone conclusion. If continued nose-thumbing at European regulators ultimately proves too blatant for US regulators to ignore and eliminates the possibility of Bwin.party adding a US revenue stream, could the next Bwin.party AGM be a bring-your-own-pitchfork-and-torch affair? (Entirely uncorroborated scuttlebutt has Teufelberger’s arrest the result of a tipoff Belgian authorities received from co-CEO Jim Ryan, who is presumably itching to ditch the ‘co-’ from his business card.)
Of course, the public companies currently doing business in Greece will eventually ‘choose’ to leave, much in the way one ‘chooses’ to keep breathing. Their shareholders have no appetite for risk and video clips of senior management being frog-marched away in handcuffs tend to have a depressing effect on share prices. Public protestations about ‘illegal’ laws don’t mean much in practical terms; it’s been seven years since the World Trade Organization declared the US anti-online gambling stance to be a breach of international trade rules yet Antigua still hasn’t received its rightful redress.
It will be interesting to see how the Greeks treat Playtech, which, via its partnership with German outfit Gauselmann, is one of eight prospective bidders for the Greek government’s one-third stake in lottery/betting monopoly OPAP. Playtech also supplies technology to a number of Greek-facing operators, including (for the moment) William Hill Online. If Playtech licensees choose to ignore the Greek blacklist, would Playtech escape criticism and/or legal action?
In the past, Playtech has taken an “it’s our clients that are breaking the law, not us” stance regarding its revenue streams from licensees operating in China, Malaysia and Germany, but much will depend on how broadly Greece chooses to define ‘operator.’ As with Bwin.party’s Belgian brouhaha, the fallout from the Greek clampdown may extend well beyond its borders. The fact that Playtech founder Teddy Sagi did time in an Israeli prison in the 1990s for stock manipulation was noted by Nevada regulators when William Hill’s sports betting license was being considered and further European controversy might eliminate any possibility of Playtech participating in a regulated US online poker market.
October 18, 2012
Sportingbet set to agree takeover for £530 million
William Hill has increased its proposed offer for Sportingbet, valuing the online gaming company at £530m.
The offer from the British bookmaker and GVC Holdings includes the recently announced 48.9p a share in cash from William Hill, and 0.0475 new GVC shares per Sportingbet share.
William Hill submitted a £350m proposalwith GVC in September but it was rejected by Sportingbet’s board as undervaluing the company.
In a statement on Tuesday, Sportingbet said it had agreed to work with William Hill and GVC toward a firm offer, which if made, the board would unanimously recommend it to shareholders.
William Hill had been required to announce a firm offer for the online gaming company by 5pm today, but the Takeover Panel has extended this deadline to 5pm on November 13.
William Hill is after Sportingbet’s Australian business, which accounts for 90pc of its profits.
GVC, which last year bought Sportingbet’s Turkish business for £113m, would take on the more politically sensitive, unregulated operations.
The offer from the British bookmaker and GVC Holdings includes the recently announced 48.9p a share in cash from William Hill, and 0.0475 new GVC shares per Sportingbet share.
William Hill submitted a £350m proposalwith GVC in September but it was rejected by Sportingbet’s board as undervaluing the company.
In a statement on Tuesday, Sportingbet said it had agreed to work with William Hill and GVC toward a firm offer, which if made, the board would unanimously recommend it to shareholders.
William Hill had been required to announce a firm offer for the online gaming company by 5pm today, but the Takeover Panel has extended this deadline to 5pm on November 13.
William Hill is after Sportingbet’s Australian business, which accounts for 90pc of its profits.
GVC, which last year bought Sportingbet’s Turkish business for £113m, would take on the more politically sensitive, unregulated operations.
October 03, 2012
Sportingbet Slips to Loss in FY on One-Time Charges
London-based Sportingbet Plc, an online sports betting and gaming company, on Friday fell steeply into loss for the full year in contrast to a profit last year. The outcome reflected one-time items like Spanish tax settlements, property, plant impairment costs and costs pertaining to its Turkey market exit, among others.
For the full year, the company reported a pre-tax loss of 45.4 million pounds compared with a profit of 20.7 million pounds last year, while revealing a total loss of 52.3 million pounds from a profit of 21 million pounds in 2011. The company witnessed a sharp rise in charges pertaining to exceptional items that rose to 71.6 million pounds from 10.8 million pounds last year.
On a per share basis, the company reported a loss of 6.8 pence in 2012 compared with profit of 3.9 pence in 2011. However, on an adjusted basis, the company reported a profit of 5.3 pence per share in 2012.
Total revenue for the year also declined to 195.9 million pounds from 206.3 million pounds last year, with net gaming revenue slumping to 185.7 million pounds from 204 million pounds in the prior year.
Further, the company said its Board had proposed a final dividend of 1.1 pence, totaling a full year figure of 1.7 pence. The dividend may be paid on January 17, 2013 to ordinary shareholders on the record as of December 21, 2012.
"We are confident that the increased advertising opportunities, improved payment processing and stable business platform provided by our regulated market presence will drive profitable growth in the medium term. Whilst the economic outlook remains challenging, our robust position across a variety of attractive territories gives us confidence in the outlook for the current financial year," stated Andrew McIver, Group, Chief Executive.
The shares are currently trading at 51.45 pence, down 1.55 pence or 2.92 percent on the London Stock Exchange.
For the full year, the company reported a pre-tax loss of 45.4 million pounds compared with a profit of 20.7 million pounds last year, while revealing a total loss of 52.3 million pounds from a profit of 21 million pounds in 2011. The company witnessed a sharp rise in charges pertaining to exceptional items that rose to 71.6 million pounds from 10.8 million pounds last year.
On a per share basis, the company reported a loss of 6.8 pence in 2012 compared with profit of 3.9 pence in 2011. However, on an adjusted basis, the company reported a profit of 5.3 pence per share in 2012.
Total revenue for the year also declined to 195.9 million pounds from 206.3 million pounds last year, with net gaming revenue slumping to 185.7 million pounds from 204 million pounds in the prior year.
Further, the company said its Board had proposed a final dividend of 1.1 pence, totaling a full year figure of 1.7 pence. The dividend may be paid on January 17, 2013 to ordinary shareholders on the record as of December 21, 2012.
"We are confident that the increased advertising opportunities, improved payment processing and stable business platform provided by our regulated market presence will drive profitable growth in the medium term. Whilst the economic outlook remains challenging, our robust position across a variety of attractive territories gives us confidence in the outlook for the current financial year," stated Andrew McIver, Group, Chief Executive.
The shares are currently trading at 51.45 pence, down 1.55 pence or 2.92 percent on the London Stock Exchange.
October 02, 2012
Sportingbet pressures William Hill to up bid
Online gambling firm Sportingbet Plc said a 350 million pound offer approach by bookmaker William Hill and GVC Holdings "significantly undervalues" it, but left the door open for a higher bid.
It had received a takeover approach at 52.5 pence per share, consisting of 45 pence in cash from William Hill and 7.5 pence in shares in smaller online betting firm GVC, Sportingbet said on Monday.
"The board of Sportingbet has responded that this indicative offer significantly undervalues the business and its future prospects," it said.
However, it did not say it was rejecting the offer outright.
The statement followed speculation in the weekend press that the board had received a letter containing the joint bid approach, which it had unanimously turned down.
Analysts expect the bidders to come back with a higher offer.
"We believe Sportingbet is worth over 60 pence per share, excluding any bid speculation, and expect Wednesday's full year results to show the business continues to make strong underlying progress," said Panmure Gordon analysts on Monday.
Sportingbet is forecast to report pre-tax profits of around 30 million pounds on sales of 200 million on Wednesday, according to Thomson Reuters I/B/E/S estimates.
Sportingbet has seen its European operations struggle with the economic downturn and a changing regulatory map, but has a strong core Australian business that is attractive to traditional bookmaker William Hill as it expands overseas.
Numis said shareholders should hold out for 90 pence per share, citing the business growth potential and saying it was a chance for the bidder to snap up a bargain while trading was at a low point.
Shares have risen from a low of 26 pence in May to 44 pence just before the approach was announced last month, and have been trading at around the offer level since then.
The bidders have until October 16 to make a firm bid or walk away under UK takeover rules, although this deadline can be extended.
Sportingbet and William Hill both declined to comment further.
It had received a takeover approach at 52.5 pence per share, consisting of 45 pence in cash from William Hill and 7.5 pence in shares in smaller online betting firm GVC, Sportingbet said on Monday.
"The board of Sportingbet has responded that this indicative offer significantly undervalues the business and its future prospects," it said.
However, it did not say it was rejecting the offer outright.
The statement followed speculation in the weekend press that the board had received a letter containing the joint bid approach, which it had unanimously turned down.
Analysts expect the bidders to come back with a higher offer.
"We believe Sportingbet is worth over 60 pence per share, excluding any bid speculation, and expect Wednesday's full year results to show the business continues to make strong underlying progress," said Panmure Gordon analysts on Monday.
Sportingbet is forecast to report pre-tax profits of around 30 million pounds on sales of 200 million on Wednesday, according to Thomson Reuters I/B/E/S estimates.
Sportingbet has seen its European operations struggle with the economic downturn and a changing regulatory map, but has a strong core Australian business that is attractive to traditional bookmaker William Hill as it expands overseas.
Numis said shareholders should hold out for 90 pence per share, citing the business growth potential and saying it was a chance for the bidder to snap up a bargain while trading was at a low point.
Shares have risen from a low of 26 pence in May to 44 pence just before the approach was announced last month, and have been trading at around the offer level since then.
The bidders have until October 16 to make a firm bid or walk away under UK takeover rules, although this deadline can be extended.
Sportingbet and William Hill both declined to comment further.
October 01, 2012
William Hill consider raising offer for Sportingbet
William Hill & GVC Holdings, is expected to raise its price after we reported earlier that Sportingbet had rejected a £350m approach. (see previous report)
The joint venture offerer a 52.5p a share bid to Sportingbet by letter, which was unanimously rejected by the Sportingbet board.
The £350m bid would have seen William Hill put up 45p a share in cash while Sportingbet investors would have received the remainder in GVC paper.
William Hill would not comment on the reports, but it is believed that Ralph Topping, William Hill’s CEO, and GVC boss Kenny Alexander will agree to raise the stakes before a Takeover Panel deadline on October 16.
Analysts expect the two joint bidders will have to offer more than 60p a share, even though the online bookie’s share price has not gone north of 52.25p since William Hill and GVC announced on September 19 that they were in exclusive talks about making a joint approach. A 60p a share bid would value Sportingbet at £400m.
William Hill is after Sportingbet’s Australian business, which accounts for 90pc of its profits.
GVC, which last year bought Sportingbet’s Turkish business for €142.5m (£113m), would take on the more politically sensitive, unregulated operations.
Sportingbet’s advisers at Lazard are trying to drum up interest among other operators in the sector, such as Ladbrokes, to spark off a bidding war.
But many analysts believe a rival approach is unlikely given that few others will want to take on Sportingbet’s unregulated assets.
The joint venture offerer a 52.5p a share bid to Sportingbet by letter, which was unanimously rejected by the Sportingbet board.
The £350m bid would have seen William Hill put up 45p a share in cash while Sportingbet investors would have received the remainder in GVC paper.
William Hill would not comment on the reports, but it is believed that Ralph Topping, William Hill’s CEO, and GVC boss Kenny Alexander will agree to raise the stakes before a Takeover Panel deadline on October 16.
Analysts expect the two joint bidders will have to offer more than 60p a share, even though the online bookie’s share price has not gone north of 52.25p since William Hill and GVC announced on September 19 that they were in exclusive talks about making a joint approach. A 60p a share bid would value Sportingbet at £400m.
William Hill is after Sportingbet’s Australian business, which accounts for 90pc of its profits.
GVC, which last year bought Sportingbet’s Turkish business for €142.5m (£113m), would take on the more politically sensitive, unregulated operations.
Sportingbet’s advisers at Lazard are trying to drum up interest among other operators in the sector, such as Ladbrokes, to spark off a bidding war.
But many analysts believe a rival approach is unlikely given that few others will want to take on Sportingbet’s unregulated assets.
September 27, 2012
Greece offers more OPAP to get privatizations on track
Greece will sell almost all of its stake in gambling monopoly OPAP, the government said on Thursday, increasing the amount that is for sale in an attempt to convince foreign lenders that it is serious about selling off state assets.
Athens, which owns 34 percent of one of Europe's biggest gaming companies, has launched a tender to sell a 33 percent stake in the company, the privatization agency HRADF said. Previously Greece had planned to sell 29 percent of OPAP, currently worth about 450 million euros on the Athens bourse.
OPAP is central to Greece's plan to raise 19 billion euros from privatizations by 2015 - a key condition of its 130-billion euro bailout agreed earlier this year. It is the country's most profitable state firm with a sports betting monopoly stretching, for some games, as far as 2030.
Greece is badly behind on privatization targets and the three-month-old, conservative-led government has pledged to do better as it struggles to convince the EU and the IMF to resume the bailout payments that keep the country afloat.
"The fact that OPAP is being completely sold off shows the government's will to privatize," said Dimitris Mardas, an economics professor at Thessaloniki's Aristotle University.
HRADF set an October 19 deadline for expressions of interest and said the tender would be carried out in two phases. After an initial declaration of interest, bidders will be called to submit binding offers, HRADF said. The agency has the right to introduce an intermediary phase of non-binding bids in order to evaluate bidders' business plans.
"The complete privatization of OPAP will be carried out transparently, rapidly and with efficiency," HRADF's chief executive Yiannis Emiris said in the statement.
A senior government official told Reuters earlier this month that Athens aimed to find a buyer for OPAP by January and that four consortia of Greek and foreign companies were interested in the company.
Turkish conglomerate Dogan Holding said on Monday it would consider taking part in a sale tender for OPAP. Investment funds Fidelity and Silchester Inv. already hold 5 percent each in the company.
Greece has picked Deutsche Bank and National Bank of Greece as financial advisers, it added.
Athens has already moved to clear issues that might block the company's sale. Earlier this month, it settled a row with European Union competition authorities over how the company should be taxed and set a new 30 percent levy on gross earnings from next year.
But investors' appetites might be dampened by an ongoing court challenge against the Greek company's monopoly brought by Britain's biggest bookmaker William Hill and online gaming companies Sportingbet and Stanleybet after they were denied gambling licenses in the country.
A senior EU legal adviser raised questions about OPAP's right to control all betting in the country last week. Greece's highest administrative court is expected to issue a final ruling on the case in the coming months.
September 19, 2012
William Hill & GVC to bid for Sportingbet
William Hill and GVC Holdings have confirmed they are in the preliminary stages of considering a possible joint offer for Sportingbet.
A statement – issued after the recent movement in Sportingbet’s share price – said it was currently envisaged that William Hill would acquire the Australian and certain other locally licensed businesses with GVC acquiring the remaining parts.
Any offer would be substantially in cash with an element of GVC paper.
The boards of William Hill and GVC believe that by acting in combination they represent a highly credible possible offeror for the entire Sportingbet business, substantially in cash. The statement added that no formal approach has been made to the board of Sportingbet yet.
A statement – issued after the recent movement in Sportingbet’s share price – said it was currently envisaged that William Hill would acquire the Australian and certain other locally licensed businesses with GVC acquiring the remaining parts.
Any offer would be substantially in cash with an element of GVC paper.
The boards of William Hill and GVC believe that by acting in combination they represent a highly credible possible offeror for the entire Sportingbet business, substantially in cash. The statement added that no formal approach has been made to the board of Sportingbet yet.
August 08, 2012
Australia saves Sportingbet’s bacon
Sportingbet’s Australian operations are helping to remedy poor economic conditions in the European market. Things are very much as-you-were at the sports betting specialists with Australia continuing to save their bacon – or should we say shrimp? In the final quarter of the year to July 31, net gaming revenue in the country increased 93 percent compared with the previous year. The company said that synergies following the integration of Centrebet were ahead of schedule and that the country still represents a “substantial majority” of the entire group’s EBITDA. If only the same could be said in Europe.
Spain, the firm’s largest European market, was shut for the first 35 days of the quarter and that had a significant impact as European NGR dropped 41 percent. Even once the Spanish market was back open, the press release blamed “challenging economic conditions” and a combination of new regulation and the subsequent taxation for a slow down in Europe.
This is nothing that we haven’t heard before as far as Sportingbet are concerned with Andrew McIver, CEO of the group, telling our own Rebecca Liggero almost a carbon copy back in March. Sportingbet are still likely to “ride out” the downturn with the hope that their product will carry them through the economic strife that is Europe. A lot will depend on how long the economy takes to recover and the future of the firm could very much being in the Southern Hemisphere.
South America has long been an attractive part of the world for the firm that McIver heads and it’s not all because of the chance to snare a bikini-clad Brazilian beauty. The region is growing at a rate that will soon challenge Europe with Brazil and Chile the places to watch.
The other American continent to the North is where you’d imagine they’d love a licence at some point. They won’t be too hasty though as a $33m funding transfer to the DOJ will mean they’re a lot more cautious than some. What’s clear is that Australia is their shining light and if they continue to perform well Down Under any exacerbation of the European woes won’t be as disastrous as it could be.
Spain, the firm’s largest European market, was shut for the first 35 days of the quarter and that had a significant impact as European NGR dropped 41 percent. Even once the Spanish market was back open, the press release blamed “challenging economic conditions” and a combination of new regulation and the subsequent taxation for a slow down in Europe.
This is nothing that we haven’t heard before as far as Sportingbet are concerned with Andrew McIver, CEO of the group, telling our own Rebecca Liggero almost a carbon copy back in March. Sportingbet are still likely to “ride out” the downturn with the hope that their product will carry them through the economic strife that is Europe. A lot will depend on how long the economy takes to recover and the future of the firm could very much being in the Southern Hemisphere.
South America has long been an attractive part of the world for the firm that McIver heads and it’s not all because of the chance to snare a bikini-clad Brazilian beauty. The region is growing at a rate that will soon challenge Europe with Brazil and Chile the places to watch.
The other American continent to the North is where you’d imagine they’d love a licence at some point. They won’t be too hasty though as a $33m funding transfer to the DOJ will mean they’re a lot more cautious than some. What’s clear is that Australia is their shining light and if they continue to perform well Down Under any exacerbation of the European woes won’t be as disastrous as it could be.
July 31, 2012
Mark Blandford sets up new investment company
Mark Blandford the well known founder of Sportingbet has set up a new venture capital company with some £100 million war chest named Burlywood Capital.
Neil Goulden, the former Gala Coral Group chief executive officer & Panmure Gordon investment banker Andrew Burnett are understood also to be involved in the private equity venture, that will be chaired by Sir David Michels who was the former Hilton Group executive.
The fund is looking to invest in a multiple range of businesses that includes online poker, social gaming and pay-to-play entertainment, the venutre will start the launch at the end of August with an initial £50 million, then raising to the full £100 million early in 2013.
Neil Goulden, the former Gala Coral Group chief executive officer & Panmure Gordon investment banker Andrew Burnett are understood also to be involved in the private equity venture, that will be chaired by Sir David Michels who was the former Hilton Group executive.
The fund is looking to invest in a multiple range of businesses that includes online poker, social gaming and pay-to-play entertainment, the venutre will start the launch at the end of August with an initial £50 million, then raising to the full £100 million early in 2013.
May 22, 2012
Sportingbet to pay up to €17.2m to settle Spanish tax
Following yesterday’s slump in the value its share price caused by the company’s announcement concerning discussions with the Spanish tax authorities, Sportingbet has confirmed that it is making a €17.2m (US$22m) payment in settlement of past tax liabilities.
The company said Tuesday that it has completed self-assessment tax returns and will make a payment of €14m plus surcharges and interest of up to €3.2m for its previous activities in the Spanish market.
Shares in Sportingbet fell by more than 7 per cent on Monday after the company disclosed that it was in talks with the Spanish tax authorities, but failed to give details of its potential tax liability.
The company, along with all other major operators in the Spanish market, has recently learnt that its previous activities in the market are liable to taxation under laws dating from 1966 and 1977, although the laws have previously not been applied to offshore online gaming operators.
In order to meet the tax liability, Sportingbet has completed the sale of 7 per cent convertible bonds due in 2016 totalling £15m. The bonds will be issued on May 25th and will be convertible into ordinary shares at a conversion price of £0.4775.
Sportingbet said that payment of its tax liability “maximises the likelihood of securing a Spanish eGaming licence”, with the issuance of licences scheduled to begin on June 1st. The company added that upon receipt of licence, it would immediately apply to Commercial Court no.10 in Madrid to cancel the current injunction over its Spanish facing business.
The company said Tuesday that it has completed self-assessment tax returns and will make a payment of €14m plus surcharges and interest of up to €3.2m for its previous activities in the Spanish market.
Shares in Sportingbet fell by more than 7 per cent on Monday after the company disclosed that it was in talks with the Spanish tax authorities, but failed to give details of its potential tax liability.
The company, along with all other major operators in the Spanish market, has recently learnt that its previous activities in the market are liable to taxation under laws dating from 1966 and 1977, although the laws have previously not been applied to offshore online gaming operators.
In order to meet the tax liability, Sportingbet has completed the sale of 7 per cent convertible bonds due in 2016 totalling £15m. The bonds will be issued on May 25th and will be convertible into ordinary shares at a conversion price of £0.4775.
Sportingbet said that payment of its tax liability “maximises the likelihood of securing a Spanish eGaming licence”, with the issuance of licences scheduled to begin on June 1st. The company added that upon receipt of licence, it would immediately apply to Commercial Court no.10 in Madrid to cancel the current injunction over its Spanish facing business.
April 23, 2012
Centrebet embarks on post-acquisition IT consolidation
Online wagering operator, Centrebet, is consolidating its IT infrastructure to reduce costs and remove system duplication following its $183 million takeover by UK-based rival, Sportingbet, in September last year.
A migration of Centrebet’s Web infrastructure over to Sportingbet’s internal platform is underway as well as consolidation of the two companies’ wide area networks (WAN) and call centres.
According to Centrebet network operations manager, Shane Paterson, the company - which has an annual turnover of $1 billion a year and offers 6000 international sports and horseracing wagering events on its website - migrated Sportingbet’s Darwin call centre operations into its own call centre in Alice Springs late last year.
Sportingbet’s Darwin hosting services were also migrated to Sydney, where Centrebet keeps its hosting services. The migration and consolidation will be complete in June 2012.
“The outcomes [of the project] will be significant cost reduction, simplified management and not having to worry about multiple WAN links,” Paterson said of the consolidation program.
Prior to its acquisition, Centrebet implemented a Microsoft Windows Azure platform for the Spring Racing carnival which takes place in October every year.
He said the company had considered buying hardware which would have cost $50,000 and hosting the platform internally.
“The return on investment for us was that we didn’t have to invest in any capital expenditure outlays,” he said of the decision to opt for Azure.
“The network also performed well because data was distributed over a large number of machines rather than a single database. We have access to sufficient bandwidth and processing power when punter numbers and transactions spike.”
Paterson said the company selected Azure also because of a long standing partnership with Microsoft. There are now plans to build microsites for other sporting events such as Australian Football League (AFL) and National Rugby League (NRL) grand finals.
Because of the amount of transactions going through the Centrebet website, security issues such as denial of service (DDoS) attacks are never far from Paterson’s mind.
“We got hit with a nasty DDoS attack back in 2004 which lasted a week and since then we get a serious attempt once a year,” he said.
The company was also a victim of cyber squatting in 2009. Attempts to expand to Greece ahead of the 2010 FIFA World Cup were hampered by cyber squatting on both the centrebet.gr and centerbet.gr domains. The company, through Melbourne IT, ultimately resorted to using dispute resolution laws in Greece to get back the domain names in time for the World Cup, through the ELTA, the Hellenic Post Office.
“We’ve used Melbourne IT brand protection services and that has helped stop further cyber squatting attempts,” he said.
While the company does not operate pokie machines, which are subject to a $1 maximum bet in Australia, Paterson said it is required by legislation to impose weekly and monthly wagering limits for its online customers to crack down on problem betting.
In November last year, the Internet Industry Association made a submission to the federal Interactive Gambling Act 2001 in which it said prohibition of online gambling sites and applications was ineffective given the availability of offshore services.
Instead, the IIA called for problem gambling to be regulated at the PC and smartphone-level.
A migration of Centrebet’s Web infrastructure over to Sportingbet’s internal platform is underway as well as consolidation of the two companies’ wide area networks (WAN) and call centres.
According to Centrebet network operations manager, Shane Paterson, the company - which has an annual turnover of $1 billion a year and offers 6000 international sports and horseracing wagering events on its website - migrated Sportingbet’s Darwin call centre operations into its own call centre in Alice Springs late last year.
Sportingbet’s Darwin hosting services were also migrated to Sydney, where Centrebet keeps its hosting services. The migration and consolidation will be complete in June 2012.
“The outcomes [of the project] will be significant cost reduction, simplified management and not having to worry about multiple WAN links,” Paterson said of the consolidation program.
Prior to its acquisition, Centrebet implemented a Microsoft Windows Azure platform for the Spring Racing carnival which takes place in October every year.
He said the company had considered buying hardware which would have cost $50,000 and hosting the platform internally.
“The return on investment for us was that we didn’t have to invest in any capital expenditure outlays,” he said of the decision to opt for Azure.
“The network also performed well because data was distributed over a large number of machines rather than a single database. We have access to sufficient bandwidth and processing power when punter numbers and transactions spike.”
Paterson said the company selected Azure also because of a long standing partnership with Microsoft. There are now plans to build microsites for other sporting events such as Australian Football League (AFL) and National Rugby League (NRL) grand finals.
Because of the amount of transactions going through the Centrebet website, security issues such as denial of service (DDoS) attacks are never far from Paterson’s mind.
“We got hit with a nasty DDoS attack back in 2004 which lasted a week and since then we get a serious attempt once a year,” he said.
The company was also a victim of cyber squatting in 2009. Attempts to expand to Greece ahead of the 2010 FIFA World Cup were hampered by cyber squatting on both the centrebet.gr and centerbet.gr domains. The company, through Melbourne IT, ultimately resorted to using dispute resolution laws in Greece to get back the domain names in time for the World Cup, through the ELTA, the Hellenic Post Office.
“We’ve used Melbourne IT brand protection services and that has helped stop further cyber squatting attempts,” he said.
While the company does not operate pokie machines, which are subject to a $1 maximum bet in Australia, Paterson said it is required by legislation to impose weekly and monthly wagering limits for its online customers to crack down on problem betting.
In November last year, the Internet Industry Association made a submission to the federal Interactive Gambling Act 2001 in which it said prohibition of online gambling sites and applications was ineffective given the availability of offshore services.
Instead, the IIA called for problem gambling to be regulated at the PC and smartphone-level.
March 28, 2012
No legal basis for Spanish injunction, claims Sportingbet
Sportingbet will file an appeal against an injunction issued by a Madrid court against the company’s Spanish facing sites which comes into effect today, having received advice that there is no legal basis for the action.
Last December, Codere sought a number of injunctions against companies operating in the Spanish online betting and gaming industry, including Sportingbet. Codere claims that overseas operators have gained an unfair competitive advantage by operating in Spain without a licence, while Codere has been subject to local regulation and taxation.
Sportingbet says however that Codere’s actions are part of a campaign to “restrict the online industry prior to the granting of licences under new Spanish legislation.”
In a statement released this afternoon, Sportingbet said that it was not notified of the application against it and was given no opportunity to defend itself.
All of Codere's applications were rejected by various Spanish courts, with the exception of one made against Sportingbet in the Commercial Court in Madrid, where the court found against Sportingbet and issued an injunction against the company’s Spanish facing sites Miapuesta.es and Miapuesta.com.
Sportingbet subsequently attended a hearing at the court in Madrid on February 16th at which it defended its legally compliant position. Despite this, the court granted the injunction stating that “any offering of gaming or betting activity that has not been granted a prior administrative authorisation is, indisputably, prohibited”.
“Sportingbet firmly believes that Codere's injunction application was based on erroneous information presented to the Court and is a blatant attempt to disrupt the market in the run up to the issue of licences,” said Sportingbet in a statement Tuesday.
Sportingbet is filing an appeal against Codere's claim having received advice that there is no legal basis for the action. The company says that this is supported by the decisions of other Spanish courts to reject Codere's applications for injunctions against other companies in the Spanish online gaming sector such as bwin and PokerStars.
The injunction comes into effect today, March 27th, although Miapuesta.es has already been closed down until the Spanish licensing process has been completed, while Miapuesta.com is still live at the time of going to press.
Sportingbet confirmed that it has applied for a licence under the 2011 Spanish Gambling Laws, and following regular meetings with the Spanish regulators, expects to be granted its licence on or before May 25th.
Shares in Sportingbet plc (Co. Data) (LSE:SBT) have dropped 2.56 per cent to 38.00 pence per share in London today, after the company announced earlier today that it has completed payment to the U.S Department of Justice in accordance with the terms of its non-prosecution agreement.
Last December, Codere sought a number of injunctions against companies operating in the Spanish online betting and gaming industry, including Sportingbet. Codere claims that overseas operators have gained an unfair competitive advantage by operating in Spain without a licence, while Codere has been subject to local regulation and taxation.
Sportingbet says however that Codere’s actions are part of a campaign to “restrict the online industry prior to the granting of licences under new Spanish legislation.”
In a statement released this afternoon, Sportingbet said that it was not notified of the application against it and was given no opportunity to defend itself.
All of Codere's applications were rejected by various Spanish courts, with the exception of one made against Sportingbet in the Commercial Court in Madrid, where the court found against Sportingbet and issued an injunction against the company’s Spanish facing sites Miapuesta.es and Miapuesta.com.
Sportingbet subsequently attended a hearing at the court in Madrid on February 16th at which it defended its legally compliant position. Despite this, the court granted the injunction stating that “any offering of gaming or betting activity that has not been granted a prior administrative authorisation is, indisputably, prohibited”.
“Sportingbet firmly believes that Codere's injunction application was based on erroneous information presented to the Court and is a blatant attempt to disrupt the market in the run up to the issue of licences,” said Sportingbet in a statement Tuesday.
Sportingbet is filing an appeal against Codere's claim having received advice that there is no legal basis for the action. The company says that this is supported by the decisions of other Spanish courts to reject Codere's applications for injunctions against other companies in the Spanish online gaming sector such as bwin and PokerStars.
The injunction comes into effect today, March 27th, although Miapuesta.es has already been closed down until the Spanish licensing process has been completed, while Miapuesta.com is still live at the time of going to press.
Sportingbet confirmed that it has applied for a licence under the 2011 Spanish Gambling Laws, and following regular meetings with the Spanish regulators, expects to be granted its licence on or before May 25th.
Shares in Sportingbet plc (Co. Data) (LSE:SBT) have dropped 2.56 per cent to 38.00 pence per share in London today, after the company announced earlier today that it has completed payment to the U.S Department of Justice in accordance with the terms of its non-prosecution agreement.
March 27, 2012
Sportingbet prepares for U.S return with final DoJ payment
Online gaming operator Sportingbet said Tuesday that it is reviewing various opportunities in the U.S market following the completion of its third and final payment to the United States Department of Justice in accordance with the terms of its non-prosecution agreement.
Sportingbet confirmed that it has paid $6m to the Office of the United States Attorney for the Southern District of New York, with a total sum of $33m now having been paid in accordance with the terms of the non-prosecution agreement which the company entered into on September 21st 2010.
“This final payment formally closes any risk which the company may have faced from its former activities in the US,” said Sportingbet chief executive Andrew McIver. “Given that the US market continues to show signs of regulating both by product, and by state in the near future, various opportunities exist to re-enter the US market and we are reviewing these.”
Sportingbet had previously admitted that it provided online gambling services in the United States between 1998 and 2006, and that it took steps to conceal the nature of credit card transactions.
The company said that beginning in 2001, it began using payment processing methods designed to misrepresent the nature of its customers’ gambling transactions to U.S credit card issuers that disallowed the use of their cards for internet gambling and that it also took steps to mask payments of winnings to U.S. customers.
The $33m settlement represented proceeds from the online gambling services that Sportingbet provided to U.S customers between 1998 and 2006.
Shares in Sportingbet plc (Co. Data) (LSE:SBT) have gained 1.28 per cent to 39.50 pence per share in early trading in London this morning.
Sportingbet confirmed that it has paid $6m to the Office of the United States Attorney for the Southern District of New York, with a total sum of $33m now having been paid in accordance with the terms of the non-prosecution agreement which the company entered into on September 21st 2010.
“This final payment formally closes any risk which the company may have faced from its former activities in the US,” said Sportingbet chief executive Andrew McIver. “Given that the US market continues to show signs of regulating both by product, and by state in the near future, various opportunities exist to re-enter the US market and we are reviewing these.”
Sportingbet had previously admitted that it provided online gambling services in the United States between 1998 and 2006, and that it took steps to conceal the nature of credit card transactions.
The company said that beginning in 2001, it began using payment processing methods designed to misrepresent the nature of its customers’ gambling transactions to U.S credit card issuers that disallowed the use of their cards for internet gambling and that it also took steps to mask payments of winnings to U.S. customers.
The $33m settlement represented proceeds from the online gambling services that Sportingbet provided to U.S customers between 1998 and 2006.
Shares in Sportingbet plc (Co. Data) (LSE:SBT) have gained 1.28 per cent to 39.50 pence per share in early trading in London this morning.
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