Sky Betting and Gaming is changing its focus to online gambling rather than interactive TV gambling until TV technology improves, managing director Richard Flint has said.
Weekly unique users of Sky Betting and Gaming’s four egaming sites - SkyPoker, SkyBingo, SkyBet (sports betting) and SkyVegas (casino) – increased by roughly a third to roughly 80,000 a week in 2009, from roughly 60,000 a week in 2008, he said, while interactive TV users fell by the same proportion to 5,000, from 7,500 a week in 2008.
Flint said: “Looking back our focus was on interactive TV, but as technology hasn’t moved as quickly as we would have liked, we have changed our focus to be an online company instead of a TV company.”
Broadcasting giant and parent company BSkyB is to roll out broadband connected set-top TV boxes over the next two years that will improve the availability of quality interactive TV technology, he added, “but in the short term our focus will be on internet and mobile.” Sky’s mobile sports betting service is provided by Mkodo, and mobile gaming by Million-2-1.
The news coincided with the division’s own half-year results, which showed gross margin of £30m, up more than a fifth on the £24.7m it recorded the year before.
This beat the average recorded by BSkyB, as whole, which reported a 4% rise in profit for the period boosted by the popularity of its high-definition packages. Division turnover rose 19%, but did not disclose the exact figure.
In an unrelated development, Sky Betting and Gaming signed a deal with online payments business Neovia for the supply of Neovia's Neteller wallet solution yesterday.
January 28, 2010
January 27, 2010
UK bingo industry going up in smoke?
Bingo is a UK cultural institution. There was a time when bingo was played casually at church fundraisers or by school children as a fun way to learn, but recent years saw an explosion in the popularity of the game as it became commercialized, televised, and most importantly, monetized.
The last two years, however, have been hard on the UK bingo industry. The main culprit is 2007’s smoking ban, which forbade smoking in public places. This drove people out of the country’s bingo halls, which suddenly were not as appealing as they once were. Other contributing factors include increased government taxation and the recent economic downturn. At the same time, however, internet bingo in the UK has seen a significant boom as players stay home to enjoy the pastime.
Gala Coral Group Ltd., one of the UK’s largest land-based bingo companies, is feeling this pressure as its creditors consider selling £189 million ($308 million) of the debt they hold in the company, effectively transforming the debt into equity. This is only a small portion of the money Gala owes – their total debit hovers somewhere around £2.5 billion.
“The U.K.’s bingo business has gone through a difficult period and Gala’s problem is compounded by its significant level of debt,” says London gaming analyst James Hollins. Gala recently got lender approval to waive restrictions on their debt until the end of February, giving them time to restructure their finances and to plan their next move.
Meanwhile, online bingo games in the UK continue to flourish. UK internet bingo operators have seen revenues rise 20% annually for the past two years. The UK recently re-worked their gambling laws, requiring tighter regulation and taxation of offshore gambling companies, but since many UK online bingo sites are locally operated, they will remain unaffected.
The last two years, however, have been hard on the UK bingo industry. The main culprit is 2007’s smoking ban, which forbade smoking in public places. This drove people out of the country’s bingo halls, which suddenly were not as appealing as they once were. Other contributing factors include increased government taxation and the recent economic downturn. At the same time, however, internet bingo in the UK has seen a significant boom as players stay home to enjoy the pastime.
Gala Coral Group Ltd., one of the UK’s largest land-based bingo companies, is feeling this pressure as its creditors consider selling £189 million ($308 million) of the debt they hold in the company, effectively transforming the debt into equity. This is only a small portion of the money Gala owes – their total debit hovers somewhere around £2.5 billion.
“The U.K.’s bingo business has gone through a difficult period and Gala’s problem is compounded by its significant level of debt,” says London gaming analyst James Hollins. Gala recently got lender approval to waive restrictions on their debt until the end of February, giving them time to restructure their finances and to plan their next move.
Meanwhile, online bingo games in the UK continue to flourish. UK internet bingo operators have seen revenues rise 20% annually for the past two years. The UK recently re-worked their gambling laws, requiring tighter regulation and taxation of offshore gambling companies, but since many UK online bingo sites are locally operated, they will remain unaffected.
Sportech buys US racing business SGR
Sportech, the UK football pools owner, is to buy racing and venue management business Scientifc Games Racing (SGR) from Scientific Games, the US lottery specialist with which Playtech formed the Sciplay joint venture last week, for up to $83m (€58.9m, £51.2m) in cash and shares.
The deal is intended to expand Sportech’s strength in pari-mutuel betting on football markets into horseracing, and will allow the British company access to SGR’s client base in North America, central and South America, as well as Denmark, Germany, Finland, Ireland, The Netherlands and Turkey.
It follows Sportech having formed an joint venture with Indian gaming group Playwin this month as part of an acquisition campaign of pools betting companies pledged by chief executive Ian Penrose this year after the company negotiated new banking facilities.
Penrose: “We have been focusing on strengthening our core market better.”
The acquisition has been funded in part by Playtech having taken a 10% stake in Sportech today worth £10m ($16.2m, €11.5m). This is ahead of a third deal in which SGR-seller Scientific will take a 20% stake in Sportech, interlocking the three companies.
Sportech issued the shares to Playtech as part of an open offer of 58.4 million shares priced at 50p each, of which Playtech took 19.88 million, which combined with a placing is intended to raise £29.2m ($47m).
The pools business will pay an initial $65m (€46.1m, £40m) for SGR, followed by $10m on 30 September 2013, plus further payments of up to $8m if SGR meets certain targets over the next three years.
SGR management will join the Sportech board, Penrose said.
The deal is intended to expand Sportech’s strength in pari-mutuel betting on football markets into horseracing, and will allow the British company access to SGR’s client base in North America, central and South America, as well as Denmark, Germany, Finland, Ireland, The Netherlands and Turkey.
It follows Sportech having formed an joint venture with Indian gaming group Playwin this month as part of an acquisition campaign of pools betting companies pledged by chief executive Ian Penrose this year after the company negotiated new banking facilities.
Penrose: “We have been focusing on strengthening our core market better.”
The acquisition has been funded in part by Playtech having taken a 10% stake in Sportech today worth £10m ($16.2m, €11.5m). This is ahead of a third deal in which SGR-seller Scientific will take a 20% stake in Sportech, interlocking the three companies.
Sportech issued the shares to Playtech as part of an open offer of 58.4 million shares priced at 50p each, of which Playtech took 19.88 million, which combined with a placing is intended to raise £29.2m ($47m).
The pools business will pay an initial $65m (€46.1m, £40m) for SGR, followed by $10m on 30 September 2013, plus further payments of up to $8m if SGR meets certain targets over the next three years.
SGR management will join the Sportech board, Penrose said.
January 25, 2010
Irish Labour Party pushes online gambling tax reform
Just days after the UK announced stricter regulation for offshore sports betting firms that cater to local punters, now Ireland is following suite – but this time, the issue is tax. Current levies in betting shops across Ireland sit at a standard 1%, a rate which also applies to internet bookies. Under the new reform, the tax on all sports betting operations, including online sportsbooks in Ireland, is to be raised to 1.5%.
This seemingly small increase is expected to generate revenues of around €90m for the Horse and Greyhound Racing Fund. This Fund has seen a 13% reduction in government funding since October 2008, and more cuts have been promised for 2010. This recent chain of budget cuts has already started to drive betting shops out of business across the country, with more than 100 closing in the last 12 months.
Taxing foreign-based internet bookmakers, it seems, is a way to get some money back into the Fund, without the Irish government having to dip into their own pockets (the government funds half of the greyhound industry in Ireland already).
The Irish Bookmakers Association, on the other hand, believes that the 1.5% levy will only have a negative effect on local betting shops, and could lead to further closures and job losses.
Regardless, Labour is serious about the changes. Spokesperson Mary Upton states, “Online operators who are not based in Ireland but who are providing a service to Irish customers and who refuse to register and pay the betting levy will be blocked by Irish internet service providers, upon the direction of the Government.”
Upton was quick to point out that the new levy does not affect online casinos in Ireland. Foreign companies offering online gambling services in Ireland will pay the levy on sports bets only, not on other forms of internet gambling.
This seemingly small increase is expected to generate revenues of around €90m for the Horse and Greyhound Racing Fund. This Fund has seen a 13% reduction in government funding since October 2008, and more cuts have been promised for 2010. This recent chain of budget cuts has already started to drive betting shops out of business across the country, with more than 100 closing in the last 12 months.
Taxing foreign-based internet bookmakers, it seems, is a way to get some money back into the Fund, without the Irish government having to dip into their own pockets (the government funds half of the greyhound industry in Ireland already).
The Irish Bookmakers Association, on the other hand, believes that the 1.5% levy will only have a negative effect on local betting shops, and could lead to further closures and job losses.
Regardless, Labour is serious about the changes. Spokesperson Mary Upton states, “Online operators who are not based in Ireland but who are providing a service to Irish customers and who refuse to register and pay the betting levy will be blocked by Irish internet service providers, upon the direction of the Government.”
Upton was quick to point out that the new levy does not affect online casinos in Ireland. Foreign companies offering online gambling services in Ireland will pay the levy on sports bets only, not on other forms of internet gambling.
Florida looking into regulating online poker
Lawmakers in the state of Florida are looking into the possibility of legalizing and regulating online poker for local residents. Analysts in the Office of Program Policy Analysis and Government Accountability (basically the state government’s research branch) have decided that it’s time to make a decision, and they are considering three possibilities: allow online poker, ban online poker, or wait to see what the US government decides to do about online poker sites in the United States.
One of the primary arguments for regulating online poker is that it would be too difficult to try to implement any sort of ban. This has been demonstrated by the US government’s inability to prevent players from gambling on websites that are hosted in other countries. In fact, the current “ban” on internet gambling in the United States does not actually aim to prevent players from gambling online; instead, it only goes after banks in an attempt keep players from funding their accounts, because that is one small portion of the picture that the government can actually control.
Alex Regalado, one of the analysts looking into the possibility of legalizing online poker in Florida, talks of difficulty they would face trying to ban online poker sites. "Because they’re in other countries,” he says, “the law enforcement doesn't reach there."
In a recent report presented to the Senate Regulated Industries Committee, Regalado continues: "A law to prohibit Internet gambling could be difficult to enforce as anyone with the appropriate equipment and Internet connections can play online poker in the privacy of his or her own home."
Further arguments suggest that by allowing and regulating online poker in Florida, legislators could cut down on the use of unregulated sites that some players frequent. Regulation is important in the online poker industry because it ensures fair play, secure software, and safe financial transactions.
Meanwhile, the US government is facing similar questions in its debates over American online gambling laws. It is too early to say who will decide on the issue first.
One of the primary arguments for regulating online poker is that it would be too difficult to try to implement any sort of ban. This has been demonstrated by the US government’s inability to prevent players from gambling on websites that are hosted in other countries. In fact, the current “ban” on internet gambling in the United States does not actually aim to prevent players from gambling online; instead, it only goes after banks in an attempt keep players from funding their accounts, because that is one small portion of the picture that the government can actually control.
Alex Regalado, one of the analysts looking into the possibility of legalizing online poker in Florida, talks of difficulty they would face trying to ban online poker sites. "Because they’re in other countries,” he says, “the law enforcement doesn't reach there."
In a recent report presented to the Senate Regulated Industries Committee, Regalado continues: "A law to prohibit Internet gambling could be difficult to enforce as anyone with the appropriate equipment and Internet connections can play online poker in the privacy of his or her own home."
Further arguments suggest that by allowing and regulating online poker in Florida, legislators could cut down on the use of unregulated sites that some players frequent. Regulation is important in the online poker industry because it ensures fair play, secure software, and safe financial transactions.
Meanwhile, the US government is facing similar questions in its debates over American online gambling laws. It is too early to say who will decide on the issue first.
Match fixing scandals plague China’s domestic league
In the latest blow to the world of Chinese football, three high-ranking officials in the Chinese Football Association (CFA) have been detained under suspicion of being involved in match-fixing. The arrests represent a goal on the part of a recent high-profile campaign to clean up the nation’s football leagues and to stop recent trends of match fixing and illegal sports gambling.
Chinese gambling laws have not changed much since 1949, when most forms of gambling in the country were made illegal. Today, a limited sports lottery represents the extent of ‘official’ sports betting in the country. Even though this lottery sees annual profits in excess of $1 billion, this pales in comparison to the amount of money exchanged through underground sports betting operations, and through online sportsbooks in China.
The officials who were detained are Nan Yong and Yang Yimin, both vice-presidents of the Chinese Football Association (CFA), and Zhang Jianqiang, who was in charge of referee assignments. These detentions occurred on the tail of two others last week: Jia Xiuquan, former head coach of the national Olympic team, and Shanghai Shenhua of the Chinese Super League (CSL) are also being questioned by police.
Unfortunately, the problems with Chinese football go beyond match fixing. Nan, one of the men detained, is also accused of using his connections to pick host cities for international matches that offer good “connections” for him and his associates. Nan is also thought to be involved in some kind of deal with former sponsor Iphox, a British company that pledged 50 million yuan ($7.3 million). Iphox has yet to pay, and Nan, though responsible for the contract, has yet to go after the money.
Some believe that nothing short of a complete restructuring of CFA management can save Chinese football. This might be just what is happening here. While this kind of “house cleaning” won’t necessarily end the problems with internet betting in China, it seems like a good enough place to start.
The officials who were detained are Nan Yong and Yang Yimin, both vice-presidents of the Chinese Football Association (CFA), and Zhang Jianqiang, who was in charge of referee assignments. These detentions occurred on the tail of two others last week: Jia Xiuquan, former head coach of the national Olympic team, and Shanghai Shenhua of the Chinese Super League (CSL) are also being questioned by police.
Unfortunately, the problems with Chinese football go beyond match fixing. Nan, one of the men detained, is also accused of using his connections to pick host cities for international matches that offer good “connections” for him and his associates. Nan is also thought to be involved in some kind of deal with former sponsor Iphox, a British company that pledged 50 million yuan ($7.3 million). Iphox has yet to pay, and Nan, though responsible for the contract, has yet to go after the money.
Some believe that nothing short of a complete restructuring of CFA management can save Chinese football. This might be just what is happening here. While this kind of “house cleaning” won’t necessarily end the problems with internet betting in China, it seems like a good enough place to start.
January 21, 2010
Francais des Jeux joins Barrière for online poker move
With the regulation of the French online gambling market on the cards for this year, Francaise des Jeux (FDJ), the French lottery and sports betting monopoly, has joined forces with the Barrière casino group to offer an online poker room which will compete with the many others anticipated to flood the market when it opens.
According to French newspaper, Le Figaro, the FDJ had a very good year in 2009, and intends on moving from number three to number two on the worldwide lottery scale, so that it would be in front of Spain and behind Italy. Before a controlled opening of the market even occurs, Le Figaro state that 750,000 French people play online poker, and in the face of future competition, the French intend on preserving their monopoly on online gambling.
Currently all gambling in France is controlled by state agencies Francaise des Jeux and PMU but the new law will see private companies regulated and licensed.
The move will be subject to the agreement of the Arjel, the Authority of regulation of online games in France.
A similar move was made in Denmark after the Danish government drafted up legislation for a partially liberalised market set to come about in 2011. This would mean open competition for poker and casino, therefore Danske Spil, like FDJ, was on the lookout for an online gaming company which would ensure its success when this happens. It recently found this partnership in PartyGaming.
According to French newspaper, Le Figaro, the FDJ had a very good year in 2009, and intends on moving from number three to number two on the worldwide lottery scale, so that it would be in front of Spain and behind Italy. Before a controlled opening of the market even occurs, Le Figaro state that 750,000 French people play online poker, and in the face of future competition, the French intend on preserving their monopoly on online gambling.
Currently all gambling in France is controlled by state agencies Francaise des Jeux and PMU but the new law will see private companies regulated and licensed.
The move will be subject to the agreement of the Arjel, the Authority of regulation of online games in France.
A similar move was made in Denmark after the Danish government drafted up legislation for a partially liberalised market set to come about in 2011. This would mean open competition for poker and casino, therefore Danske Spil, like FDJ, was on the lookout for an online gaming company which would ensure its success when this happens. It recently found this partnership in PartyGaming.
January 20, 2010
Mexico’s transformation in the world of gambling
he gambling industry that can be found in today’s Mexico can be taken as no indicator of how the industry developed in the South American country. The history of gambling in Mexico has seen many ups and downs.
In 1935 when the country’s president, Lazaro Cardenas, came into power, the gambling industry came to a screeching halt. Mexican gambling law continued to tighten until the industry was almost completely killed off. In recent history, laws began to slacken once again, letting the nation’s citizen once again enjoy one of their favorite pastimes.
After years of oppression over gambling, it was obvious that new liberality in the industry would lead to an economic boom. Such was the case and Mexicans today can gamble in any way that they wish including casino gambling, poker, bingo, and sportsbetting.
Much of the Mexican gambling industry is supported by foreigners and tourist in the country. Casinos are common in popular tourist destinations and around the United States border. This foreign play is also common when it comes to internet gambling in Mexico.
As of 2002, the government has issued several licenses for online casinos in Mexico. The interesting thing about these Mexican online casinos is that they cannot be accessed by the Mexicans. These casinos exist purely for the satisfaction of foreign nationals, while the government makes a solid revenue through licensing fees and taxes.
Mexicans who would like to gamble from home must play from foreign sites, many of which are available even in Spanish. As punters can see, the evolution of the gambling industry has been tempestuous, but at this point nationals can gamble however they wish. Taxes provide the government with a constant source of revenue and everyone is happy.
In 1935 when the country’s president, Lazaro Cardenas, came into power, the gambling industry came to a screeching halt. Mexican gambling law continued to tighten until the industry was almost completely killed off. In recent history, laws began to slacken once again, letting the nation’s citizen once again enjoy one of their favorite pastimes.
After years of oppression over gambling, it was obvious that new liberality in the industry would lead to an economic boom. Such was the case and Mexicans today can gamble in any way that they wish including casino gambling, poker, bingo, and sportsbetting.
Much of the Mexican gambling industry is supported by foreigners and tourist in the country. Casinos are common in popular tourist destinations and around the United States border. This foreign play is also common when it comes to internet gambling in Mexico.
As of 2002, the government has issued several licenses for online casinos in Mexico. The interesting thing about these Mexican online casinos is that they cannot be accessed by the Mexicans. These casinos exist purely for the satisfaction of foreign nationals, while the government makes a solid revenue through licensing fees and taxes.
Mexicans who would like to gamble from home must play from foreign sites, many of which are available even in Spanish. As punters can see, the evolution of the gambling industry has been tempestuous, but at this point nationals can gamble however they wish. Taxes provide the government with a constant source of revenue and everyone is happy.
Italy braces for 2010 online gambling explosion
It looks like 2010 is going to be a big year for internet gambling in Italy. Back in June of 2009, the Italian government passed Law No. 77 which legalized online fixed-odds games of chance, along with online poker and ring games. The law was the end result of a three-year project to liberalize the domestic gambling market.
Now, time has come for Italy to opens its doors to the rest of the world. The Italian regulatory body, called AAMS, is still working on sorting out the details of how offshore online gambling sites will be regulated, but they are coming very close to the end, and everything is expected to launch this year.
The regulation is going to be extremely tight. First off, a flat 20% tax is going to be levied on the gross profits of all offshore operators. Licenses will cost a whopping €360.000, and will automatically expire at the end of June, 2016. Operators who wish to offer online bingo games in Italy will have to pay an extra €50,000.
The real issue, however, is Italy’s demand for centralization. All online gambling services that offshore companies provide to Italian players must be served through a dedicated platform, and must be linked to a central computer system operated by the AAMS. This system will monitor every wager placed by Italian players, and these wagers will be taxed in real time. Additionally, all games must be tested and approved by AAMS officials before they can go live.
Despite these strict rules, more than 60 operators already have licenses to operate in Italy. Later in 2010 the AAMS intends to re-open the licensing process to allow more companies to buy their way in to the Italian internet gambling market, though this could be delayed because the European Commission intends to scrutinize Italy’s new regulatory and operational schemes before they go into action. The market, however, remains hot, and Italians are anxious to see the selection of online gambling sites available to them expand.
Now, time has come for Italy to opens its doors to the rest of the world. The Italian regulatory body, called AAMS, is still working on sorting out the details of how offshore online gambling sites will be regulated, but they are coming very close to the end, and everything is expected to launch this year.
The real issue, however, is Italy’s demand for centralization. All online gambling services that offshore companies provide to Italian players must be served through a dedicated platform, and must be linked to a central computer system operated by the AAMS. This system will monitor every wager placed by Italian players, and these wagers will be taxed in real time. Additionally, all games must be tested and approved by AAMS officials before they can go live.
Despite these strict rules, more than 60 operators already have licenses to operate in Italy. Later in 2010 the AAMS intends to re-open the licensing process to allow more companies to buy their way in to the Italian internet gambling market, though this could be delayed because the European Commission intends to scrutinize Italy’s new regulatory and operational schemes before they go into action. The market, however, remains hot, and Italians are anxious to see the selection of online gambling sites available to them expand.
Online casino to send winners to India for charity
An online casino called Slots Galore is running an online competition which will send the winner flying off to India to participate in a massive charity event, working to help improve the quality rural schools across the country. The Rickshaw Slots Contest is being held in conjunction with Gaming Zion. The event will run from February 01 to April 30. Participation is free, and no purchase is required to win.
The tournament winner will be awarded with two round-trip tickets to Chennai, India, along with two tickets to enter the 2010 Mumbai Xpress Rickshaw Challenge. The Rickshaw Challenge is a motor rally which sees participants tour around the Indian subcontinent in autorickshaws, which are small three-wheeled motorized vehicles. The event takes place over two weeks, and winners of the Rickshaw Slots Contest will be provided with hotel accommodation during the whole rally.
Charity is a major focus of this event. The organizers of the Rickshaw Challenge have teamed up with Round Table India, a charity organization which has been operating in India since 1927. One of the primary goals of the organization is to encourage “Freedom through Education”, and to accomplish this, they organize the building of new schools in areas where they are needed most. They also work to provide of infrastructure and educational materials to existing schools in rural areas across India.
Participants in the Mumbai Xpress Rickshaw Challenge are encouraged to take part in local Round Table India projects by making donations to help build new schools and recruit quality teachers. Teams can also help by distributing supplies to existing schools.
The tournament winner will be awarded with two round-trip tickets to Chennai, India, along with two tickets to enter the 2010 Mumbai Xpress Rickshaw Challenge. The Rickshaw Challenge is a motor rally which sees participants tour around the Indian subcontinent in autorickshaws, which are small three-wheeled motorized vehicles. The event takes place over two weeks, and winners of the Rickshaw Slots Contest will be provided with hotel accommodation during the whole rally.
Charity is a major focus of this event. The organizers of the Rickshaw Challenge have teamed up with Round Table India, a charity organization which has been operating in India since 1927. One of the primary goals of the organization is to encourage “Freedom through Education”, and to accomplish this, they organize the building of new schools in areas where they are needed most. They also work to provide of infrastructure and educational materials to existing schools in rural areas across India.
Participants in the Mumbai Xpress Rickshaw Challenge are encouraged to take part in local Round Table India projects by making donations to help build new schools and recruit quality teachers. Teams can also help by distributing supplies to existing schools.
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