PokerHaeven and Poker Channel parent company Gaming Media Group (GMG) has acquired 49% of Bulgarian poker affiliate site Igrach.com, and also signed a distribution deal for the Poker Channel in that country.
The performance-related deal for Igrach.com, which according to GMG is the largest poker affiliate site in Bulgaria, values the business at between €1.5m and €1.9m, with an option to buy the remaining 51% at a later date.
GMG will fund the transaction using a combination of cash and services, including provision of infrastructure and marketing resources.
The Igrach.com affiliate business will be integrated with GMG’s existing online affiliate business, PokerChannelEurope.com. The managing director of the Poker Channel, Chris White, will manage the company’s new Bulgarian investment.
In conjunction with the deal, GMG announced that the Poker Channel had agreed terms with local cable operator Megalan to carry the Channel in its digital basic package, with other major operators in the pipeline for the first quarter of 2010.
GMG chief executive Crispin Nieboer said the acquisition a great first step in its strategy of expanding its online affiliate business by making acquisitions in high-growth markets. Nieboer said: “Igrach.com has succeeded in building a valuable share of the online poker community in a territory that is experiencing significant growth. Through our TV exposure in Bulgaria, and by providing investment and infrastructure, we will help drive Igrach.com’s further growth in Bulgaria and adjacent territories.”
November 06, 2009
Steve Begleiter, former Bear Stearns exec - WSOP winner?
Former Bear Stearns executive Steven Begleiter is set to compete in the final table at the Main Event at the World Series of Poker starting on Saturday in Las Vegas.
Begleiter qualified for the final round in the July preliminaries - since 2008, the final table has been delayed until November - where he finished among the top nine out of 6,494 entrants and took home $1.26 million in prize money. This month, he'll play for the top payout of $7.2 million.
Until 2008, Begleiter was head of corporate strategy at Bear Stearns, where executives were known more for their regard for bridge than poker. When Bear was sold to J.P. Morgan, Begleiter helped transition the firm before moving to the private equity group Flexpoint Ford. Begleiter told The New York Times that despite the "populist nonsense going on right now," he's still "very proud" of his time at Bear.
Time reports that, Begleiter will be up against several very skilled professional poker players - including Phil Ivey, who many consider to be the game's top professional - but it appears he appreciates the challenge: "It's not about the money, really, I just like to compete," he said.
Until 2008, Begleiter was head of corporate strategy at Bear Stearns, where executives were known more for their regard for bridge than poker. When Bear was sold to J.P. Morgan, Begleiter helped transition the firm before moving to the private equity group Flexpoint Ford. Begleiter told The New York Times that despite the "populist nonsense going on right now," he's still "very proud" of his time at Bear.
Time reports that, Begleiter will be up against several very skilled professional poker players - including Phil Ivey, who many consider to be the game's top professional - but it appears he appreciates the challenge: "It's not about the money, really, I just like to compete," he said.
November 05, 2009
Liverpool signed a deal with 188Bet
Online gambling operator 188Bet has signed a three-year sponsorship deal with English Liverpool Football Club.
The specific terms of the contract have not been revealed, however, it will boost the club’s reputation among Asian markets, according to Ian Ayre, commercial director for Liverpool FC.
188Bet chief executive Andy Scott believes that the online betting industry has grow potential despite the economic downturn. He stated that ‘As a global company, being able to hook up with such a global product as Premier League football is perfect.’
This is the fifth deal the betting company has completed with English clubs, which include shirt sponsorships for the Bolton Wanderers and Wigan Athletic Football Club.
Liverpool has also recently announced a GBP 80 million deal with Standard Charted Bank as the club’s main sponsor. Currently the club is struggling to hold a position in the Champions League.
The specific terms of the contract have not been revealed, however, it will boost the club’s reputation among Asian markets, according to Ian Ayre, commercial director for Liverpool FC.
188Bet chief executive Andy Scott believes that the online betting industry has grow potential despite the economic downturn. He stated that ‘As a global company, being able to hook up with such a global product as Premier League football is perfect.’
This is the fifth deal the betting company has completed with English clubs, which include shirt sponsorships for the Bolton Wanderers and Wigan Athletic Football Club.
Liverpool has also recently announced a GBP 80 million deal with Standard Charted Bank as the club’s main sponsor. Currently the club is struggling to hold a position in the Champions League.
November 03, 2009
Pocket Kings defeats Kentucky in UK court
Online casino operator Pocket Kings Limited has foiled the American state of Kentucky’s attempt to seize 141 virtual gambling domain names by winning an action in the UK’s High Court.
Pocket Kings owns popular site FullTiltPoker.com and initiated court proceedings in October of last year after registrar SafeNames Limited was ordered by the American state to turn over the domain.
The highest court in the UK ruled late last month that it would not recognise or enforce current or future orders to turn over the domains because the Kentucky action was not enforceable in English law due to its penal and governmental nature.
“English courts have no jurisdiction to entertain an action (I) for the enforcement either directly or indirectly of a penal, revenue or other public law of a foreign state or (2) founded upon an act of state,” read the judgement of Queen’s Counsel Michael Furness.
”So far as I am aware, there is no authority on the question whether the forfeiture of assets used in the commission of a crime under local law is to be regarded as penal for the purpose of this rule. Regardless of the categorisation of this type of forfeiture as a civil remedy under US law, it seems to me to be a provision distinctly penal in nature, requiring as it does the confiscation without compensation of an asset, on the ground that the owner, or at least the user of it, has been guilty of a criminal offence.
”I, therefore, conclude that the Kentucky proceedings are not enforceable in English law as being penal or governmental in nature. It is not, therefore, necessary for me to consider whether the Kentucky proceedings breached the principles of natural justice.'
As a result of this ruling, domains registered with SafeNames will not be turned over to Kentucky but those with US-based registrars may still be subject to seizure. This is dependent on the Kentucky Supreme Court, which is currently in the process of considering the matter with a ruling expected before the beginning of March.
Pocket Kings owns popular site FullTiltPoker.com and initiated court proceedings in October of last year after registrar SafeNames Limited was ordered by the American state to turn over the domain.
The highest court in the UK ruled late last month that it would not recognise or enforce current or future orders to turn over the domains because the Kentucky action was not enforceable in English law due to its penal and governmental nature.
“English courts have no jurisdiction to entertain an action (I) for the enforcement either directly or indirectly of a penal, revenue or other public law of a foreign state or (2) founded upon an act of state,” read the judgement of Queen’s Counsel Michael Furness.
”So far as I am aware, there is no authority on the question whether the forfeiture of assets used in the commission of a crime under local law is to be regarded as penal for the purpose of this rule. Regardless of the categorisation of this type of forfeiture as a civil remedy under US law, it seems to me to be a provision distinctly penal in nature, requiring as it does the confiscation without compensation of an asset, on the ground that the owner, or at least the user of it, has been guilty of a criminal offence.
”I, therefore, conclude that the Kentucky proceedings are not enforceable in English law as being penal or governmental in nature. It is not, therefore, necessary for me to consider whether the Kentucky proceedings breached the principles of natural justice.'
As a result of this ruling, domains registered with SafeNames will not be turned over to Kentucky but those with US-based registrars may still be subject to seizure. This is dependent on the Kentucky Supreme Court, which is currently in the process of considering the matter with a ruling expected before the beginning of March.
Betfair to stream Breeders
The 'wagering agreement' should swell 'common pool' betting on the Cup races from around the world, and in particular from Europe.
Over $17m was pumped into US pools from abroad at last year's Cup meeting, but with Betfair promoting the pool option to its 2.5 million clients, the Cup organisation will hope for a substantial increase this year.
Greg Avioli, the president and chief execitive of the Breeders' Cup, said that the wagering agreement was 'a gateway to the future'.
'It is our belief that the future of horse racing is international common-pooling,' Avioli said. 'More than $100bn is wagered on racing around the world each year, but less than $20bn is bet through countries that common-pool.
'As more and more international horses participate in our championships, interest levels and wagering handle [turn-over] from around the world continue to increase, allowing us to maintain the highest possible purse levels for the event.'
Betfair will hope that the 'simulcasting' deal will attract the interest of new clients as well as its existing base.
Although Betfair is currently unable to accept accounts from America, due to US gambling laws, it will be well placed to capitalise should the legislation change as the firm owns TVG, a channel dedicated to US racing and betting.
Over $17m was pumped into US pools from abroad at last year's Cup meeting, but with Betfair promoting the pool option to its 2.5 million clients, the Cup organisation will hope for a substantial increase this year.
Greg Avioli, the president and chief execitive of the Breeders' Cup, said that the wagering agreement was 'a gateway to the future'.
'It is our belief that the future of horse racing is international common-pooling,' Avioli said. 'More than $100bn is wagered on racing around the world each year, but less than $20bn is bet through countries that common-pool.
'As more and more international horses participate in our championships, interest levels and wagering handle [turn-over] from around the world continue to increase, allowing us to maintain the highest possible purse levels for the event.'
Betfair will hope that the 'simulcasting' deal will attract the interest of new clients as well as its existing base.
Although Betfair is currently unable to accept accounts from America, due to US gambling laws, it will be well placed to capitalise should the legislation change as the firm owns TVG, a channel dedicated to US racing and betting.
November 02, 2009
32Red issues 2009 profit warning
Despite recording the company's highest ever quarterly revenue figure in the third quarter, 32Red plc said that profits for the full year 2009 will be significantly below market expectations, with player yields during the second half of the year unlikely to overcome the challenging trading conditions experienced in the first half.
In a trading update released Friday, 32Red said that third quarter revenues were the "highest ever experienced" by the company, up 11% on last year and an increase of 24% quarter-on-quarter, reflecting the continued growth of the company's online casino which saw revenues gain 10% against last year and 21% on the previous quarter.
The company said that player activity levels were also strong during the third quarter, with active casino players up 16% on the corresponding period last year, although the growth in active players was partially offset however by reduced player yields.
Despite the growth in revenues and active players however, 32Red said that it is unlikely that the company will see sufficient growth in player yields during the second half of 2009 to be able to overcome the effect of the challenging trading conditions experienced in the first half the year, when revenues dropped 11% to £5.8 million and profit fell 70% to £233,777.
As a result of these factors and an unusually high level of customer wins in October, the company's Board now believes that profit for the full year will be significantly below market expectations.
32Red said that it has considered a reduction in marketing spend in order to maintain its short-term profitability, but has concluded that this would not be in the best interests of the company.
The Board added that it remains confident that the significant ongoing investment in marketing and in new technology during the year positions the company well for 2010 and beyond.
In a trading update released Friday, 32Red said that third quarter revenues were the "highest ever experienced" by the company, up 11% on last year and an increase of 24% quarter-on-quarter, reflecting the continued growth of the company's online casino which saw revenues gain 10% against last year and 21% on the previous quarter.
The company said that player activity levels were also strong during the third quarter, with active casino players up 16% on the corresponding period last year, although the growth in active players was partially offset however by reduced player yields.
Despite the growth in revenues and active players however, 32Red said that it is unlikely that the company will see sufficient growth in player yields during the second half of 2009 to be able to overcome the effect of the challenging trading conditions experienced in the first half the year, when revenues dropped 11% to £5.8 million and profit fell 70% to £233,777.
As a result of these factors and an unusually high level of customer wins in October, the company's Board now believes that profit for the full year will be significantly below market expectations.
32Red said that it has considered a reduction in marketing spend in order to maintain its short-term profitability, but has concluded that this would not be in the best interests of the company.
The Board added that it remains confident that the significant ongoing investment in marketing and in new technology during the year positions the company well for 2010 and beyond.
FirePay Agrees $19.2 million DoJ Online Gaming Settlement
Canada's Optimal Group Inc, the company behind former payment processor FirePay, has entered into a non-prosecution agreement with the United States Department of Justice over payments which it processed on behalf of online gambling operators in the U.S., agreeing to forfeit approximately $19.2 million in criminal proceeds under the terms of the settlement.
Brought by Preet Bharara, the United States Attorney for the Southern District of New York, and Joseph M Demarest Jr, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, Optimal Group accepted a Statement of Facts regarding its business activities prior to the enactment of the Unlawful Internet Gambling Enforcement Act on October 13th 2006.
In the statement, Optimal Group confirmed that from 2004 until October 2006, the company operated an electronic wallet called Firepay, processing more than $2 billion worth of illegal gambling transactions for U.S customers.
According to the Statement of Facts, the Internet gambling websites were located outside of the U.S but the substantial majority of their customers were however based in the country, including in the Southern District of New York.
As acknowledged by Optimal, these Internet gambling merchants violated federal criminal law by offering gambling in the U.S, including 18 U.S.C. § 1084 (the Wire Act) and 18 U.S.C. § 1955 (the Illegal Gambling Business Act).
Optimal had previously announced in May 2007 that it had initiated discussions with the U.S. Attorney’s Office and was in the process of responding to a voluntary request for information issued by that office.
The company subsequently received a copy of warrants of seizure against funds that were on deposit with two U.S. banks, which included $19.2 million on deposit to the credit of the company's affiliates.
Optimal and the U.S. Attorney’s Office have agreed that the $19.2 million previously seized, which is presented as restricted cash on the company’s consolidated balance sheets, shall be applied to satisfy the forfeiture obligation.
The agreement also provides that the DoJ will not criminally prosecute Optimal Group or any of its subsidiaries for any crimes related to the former processing of Internet gambling transactions originating from customers in the United States through and including 2006.
Optimal has since disposed of substantially all of its payment processing business and is today principally a toy and consumer electronics company.
Brought by Preet Bharara, the United States Attorney for the Southern District of New York, and Joseph M Demarest Jr, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, Optimal Group accepted a Statement of Facts regarding its business activities prior to the enactment of the Unlawful Internet Gambling Enforcement Act on October 13th 2006.
In the statement, Optimal Group confirmed that from 2004 until October 2006, the company operated an electronic wallet called Firepay, processing more than $2 billion worth of illegal gambling transactions for U.S customers.
According to the Statement of Facts, the Internet gambling websites were located outside of the U.S but the substantial majority of their customers were however based in the country, including in the Southern District of New York.
As acknowledged by Optimal, these Internet gambling merchants violated federal criminal law by offering gambling in the U.S, including 18 U.S.C. § 1084 (the Wire Act) and 18 U.S.C. § 1955 (the Illegal Gambling Business Act).
Optimal had previously announced in May 2007 that it had initiated discussions with the U.S. Attorney’s Office and was in the process of responding to a voluntary request for information issued by that office.
The company subsequently received a copy of warrants of seizure against funds that were on deposit with two U.S. banks, which included $19.2 million on deposit to the credit of the company's affiliates.
Optimal and the U.S. Attorney’s Office have agreed that the $19.2 million previously seized, which is presented as restricted cash on the company’s consolidated balance sheets, shall be applied to satisfy the forfeiture obligation.
The agreement also provides that the DoJ will not criminally prosecute Optimal Group or any of its subsidiaries for any crimes related to the former processing of Internet gambling transactions originating from customers in the United States through and including 2006.
Optimal has since disposed of substantially all of its payment processing business and is today principally a toy and consumer electronics company.
Football bad breaks hit Unibet third quarter
Unibet has not excaped the run of unfavourable football results that has hit competitors, revealing a 22% year-on-year fall in third-quarter pre-tax profit to £3.5m, from £4.5m for the same period last year.
The first 66 Premier League matches saw just four draws, compared with a five-year season average of 25% of games being drawn, which also hit third-quarter profit at sportsbooks Ladbrokes and William Hill Online.
The dip contrast sharply with Unibet’s half-year results, when pre-tax profit rose to £16.6m on a half yearly basis, from £6.9m in 2008.
However a strong live betting performance helped the Swedish operator turn in a better top-line performance than WHO and Ladbrokes during the period.
Chief executive Petter Nylander cited the company’s in-play offering as a “driving force” behind Unibet achieving record sportsbook turnover and a 3% year-on-year rise in quarterly gross winnings revenue to £30.1m for the three months to the end of September 2009, from £29.3m for the same period last year.
Ladbrokes and William Hill Online recorded revenue falls over the same period, of 15% and 3% respectively.
Unibet’s active customers also rose 25% over the course of the quarter to stand at 330,000 compared to 264,000 at the end of June 2009, which Nylander said reflected the success of the company’s marketing initiatives.
The company added that the poor gross winnings margin resulting from the run of unfavourable football results in August and September had since recovered to exceed historical norms.
Nylander said: “During October, the gross winnings margin has been higher than the long-term average, highlighting the short-term volatility of sports betting margins and that it is important to look at margins over at least one-year periods.”
The first 66 Premier League matches saw just four draws, compared with a five-year season average of 25% of games being drawn, which also hit third-quarter profit at sportsbooks Ladbrokes and William Hill Online.
The dip contrast sharply with Unibet’s half-year results, when pre-tax profit rose to £16.6m on a half yearly basis, from £6.9m in 2008.
However a strong live betting performance helped the Swedish operator turn in a better top-line performance than WHO and Ladbrokes during the period.
Chief executive Petter Nylander cited the company’s in-play offering as a “driving force” behind Unibet achieving record sportsbook turnover and a 3% year-on-year rise in quarterly gross winnings revenue to £30.1m for the three months to the end of September 2009, from £29.3m for the same period last year.
Ladbrokes and William Hill Online recorded revenue falls over the same period, of 15% and 3% respectively.
Unibet’s active customers also rose 25% over the course of the quarter to stand at 330,000 compared to 264,000 at the end of June 2009, which Nylander said reflected the success of the company’s marketing initiatives.
The company added that the poor gross winnings margin resulting from the run of unfavourable football results in August and September had since recovered to exceed historical norms.
Nylander said: “During October, the gross winnings margin has been higher than the long-term average, highlighting the short-term volatility of sports betting margins and that it is important to look at margins over at least one-year periods.”
October 28, 2009
Offsidebet targets Spain bingo via Virtue Fusion network
Romanian operator Offsidebet has launched a Spain-facing bingo site using the Virtue Fusion Alderney network.
The new site will initially target the Spanish market, but Offsidebet also plans to offer bingo products to its core eastern European markets in future.
Offsidebet is headed by chief executive Matt Jellicoe, former marketing director for Sportingbet, and chief operating officer Leonid Ponktrantenko, who has previously worked at at Sportingbet and PartyGaming.
Its product suite already includes Playtech for poker and Net Entertainment for casino.
The new site will initially target the Spanish market, but Offsidebet also plans to offer bingo products to its core eastern European markets in future.
Offsidebet is headed by chief executive Matt Jellicoe, former marketing director for Sportingbet, and chief operating officer Leonid Ponktrantenko, who has previously worked at at Sportingbet and PartyGaming.
Its product suite already includes Playtech for poker and Net Entertainment for casino.
October 27, 2009
Lifting of Oz egaming ban set to spur further growth
The Australian market looks set for significant expansion after the government’s independent advisory body on gambling policy recommended lifting the country’s eight-year-old online gaming ban.
The Productivity Commission last week recommended the Australian government repeal the 2001 Interactive Gambling Act (IGA) to allow operators to offer poker and casino products to Australian residents, subject to a strict regime of consumer protection.
The report reached its recommendation after concluding of the current ban under the IGA: “The long-run consequence of prohibition may be higher problem gambling risks and a loss of commercial opportunities and tax revenue in Australia.”
The IGA made it an offence to provide poker and casino to Australian residents, leading to an estimated total of AU$790m being spent on offshore sites last year.
Australian corporate bookmaker Centrebet’s deputy managing director, Michael McRitchie, said the proposed switch from unregulated online gaming to regulated gaming represented “a win-win” for stakeholders in the Australian market.
“The draft report demonstrates that prohibition doesn’t work, and isn’t working. Its proposals, if adopted, would increase customer protection and harm minimisation procedures, allowing the government to generate funding to assist with problem gaming,” McRitchie told EGRMagazine.com.
As well as allowing Australian wagering operators to increase revenues through cross-selling existing customer bases into gaming, the lifting of the IGA would also operators to increase in-running betting volumes, as the Act currently only allows in-play bets to be placed by telephone.
The Productivity Commission arrived at its draft conclusions after receiving detailed submissions from 264 organisations, including corporate bookmakers, sporting clubs, sports representative bodies and totaliser monopolies.
The Productivity Commission last week recommended the Australian government repeal the 2001 Interactive Gambling Act (IGA) to allow operators to offer poker and casino products to Australian residents, subject to a strict regime of consumer protection.
The report reached its recommendation after concluding of the current ban under the IGA: “The long-run consequence of prohibition may be higher problem gambling risks and a loss of commercial opportunities and tax revenue in Australia.”
The IGA made it an offence to provide poker and casino to Australian residents, leading to an estimated total of AU$790m being spent on offshore sites last year.
Australian corporate bookmaker Centrebet’s deputy managing director, Michael McRitchie, said the proposed switch from unregulated online gaming to regulated gaming represented “a win-win” for stakeholders in the Australian market.
“The draft report demonstrates that prohibition doesn’t work, and isn’t working. Its proposals, if adopted, would increase customer protection and harm minimisation procedures, allowing the government to generate funding to assist with problem gaming,” McRitchie told EGRMagazine.com.
As well as allowing Australian wagering operators to increase revenues through cross-selling existing customer bases into gaming, the lifting of the IGA would also operators to increase in-running betting volumes, as the Act currently only allows in-play bets to be placed by telephone.
The Productivity Commission arrived at its draft conclusions after receiving detailed submissions from 264 organisations, including corporate bookmakers, sporting clubs, sports representative bodies and totaliser monopolies.
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