Recent news
(Update 21-December-2006)
NO MORE ONLINE GAMBLING FOR RUSSIA
Duma bill outlawing online poker and gambling passed
The burgeoning online gambling market could be slowed down by a bill
passed this week in the State Duma , the lower parliament of Russia.
If the Federation Council and President Vladimir Putin sign it off, a
highly likely outcome as the latter proposed it, the bill will become
law.
The Bill creates four gambling zones in the country, outlaws online
gambling and online poker, and sets the minimum gambling age at 18 years.
Its purpose is to restrict the uncontrolled spread of gambling outlets
throughout Russia.
After July 1 2009, any gaming facility operating outside of the four
approved gambling zones will be banned. The State began the crackdown
on gambling when President Vladimir Putin ordered lawmakers and the Cabinet
to put an end to it, especially in large urban centres, last year.
On October 6 this year the president asked the Duma for four gaming
zones. The Duma approved the bill in its first reading, but the did not
specify the location of the zones. Following intense debate and not a
little controversy, the Duma's Economic Policy, Entrepreneurship and
Tourism Committee defined the location of the zones when the bill was
formally presented and approved on December 15 for its second reading.
The zones are well away from the main urban centres of Russia: the Altai
Territory (southwest Siberia), Primorye (Far East), the Kaliningrad Region
(Russia"s exclave on the Baltic Sea), and on the border of the Rostov
Region and the Krasnodar Territory in the south of the country.
Duma Deputy Alexander Lebedev explained that the committee took into
account which regions would attract the most foreign tourists, and the
distance of regions from Moscow to take the pastime away from this area. No
gambling in Moscow could wreak dramatic change, closing high-profile
nightspots like the Golden Palace and the numerous slot machine parlors
that have proliferated everywhere in the city, including metro stations,
beneath underpasses and ground floors of many apartment buildings.
Contrary opinions on the choice of the four gaming zones continue to
surface, with Primorsk the most understood.
"The Chinese will gamble in the Primorsk region, where the casinos
are already living off the Chinese," said Samoil Binder , deputy
managing director of the Association for the Development of the Gaming
Business. "But you've got to be kidding yourself if you think you'll
find someone to sink US$ 100 million to US$ 1 billion in some hypothetical
hope that some day people would want to come gamble there."
Yevgeny Kovtun , a spokesman for the Gaming Business Association, more
or less agreed with Binder. "With the exception of the Primorsk
region, the locations of the other zones don't make any economic sense." Muscovite
gamblers were more likely to fly to Riga or Kiev, capital cities where
casinos are established, Binder said.
Another contentious point in the gambling bill is the high asset levels
that casino owners must prove. Gambling companies have to be Russian,
and must have not less than 600 million rubles in assets (about US$22.4
million or GBP 11 million) as of June 1, 2007.
The bill also bans any gambling establishments from locating in apartment
buildings, street kiosks, childcare centers, educational or healthcare
institutions, railway terminals, airports, seaports, public transport,
passenger lounges and waiting areas, sports facilities, state and government
agencies, or religious organizations.
All gambling businesses that fail to meet the requirements proposed in
the bill will be shut down after July 1, 2007. Any that meet the requirements
will be allowed to operate without special permits until January 1, 2009,
when the new law comes into effect.
COACHED BY THE BEST
World Series of Poker champs to teach at the inaugural Academy
Some of the top names in poker, and former World Series of Poker champs
will be passing on their expertise and knowledge at the first WSOP Academy
in Tunica next January 27 - 28; on the tuition staff roll call are Greg
Raymer, Joe Navarro, Scott Fischman and Alex Outhred.
Post Oak Productions , a Toronto-based live events company is organising
the tuition after collaborating with Phil Hellmuth on a series of successful
camps at Caesars Palace in Las Vegas before connecting with Harrah's
Entertainment to bring the WSOP Academy to Harrah's properties in America.
The two-day camp will focus on poker education and interaction with
the pros and is comprised of poker seminars; interactive workshops and
the opportunity to apply the knowledge learned in a No Limit Texas Hold
'em tournament with the pros.
"We have designed a curriculum that has been written and endorsed
by our team of pro instructors," a Post Oak spokesman said. "It
provides players with the tools that will take their game to the next
level."
There are three teaching methods used during the camp: live demonstrations,
seminars including Q&A, and tournaments. Areas to be covered include
skills, tournament strategies and applications, the tells of pokers,
Internet poker, cash games and sit-n-go's. Although the two-day session
is pricey at $1 699, many of those who attended past camps feel
it is a worthwhile investment that will have a payback when they use
their new skills to win their share of pots.
For more information on the academy and the sessions, or to sign up,
visit WSOP Academy.com .
DOBROSOFT SOLD TO D.G.N.
Surprise acquisition by newcomer
The Gibraltar-based poker software firm and network Dobrosoft was sold
this week in a surprise move following a deal concluded with Digital
Gaming Network , a newbie private company operated by a team of industry
veterans that specialises in multi-player gaming software development
and is based in Costa Rica, with development divisions in Eastern Europe
and Asia.
The jobs of existing Dobrosoft employees appear safe, as according to
a DGN spokesperson the buyer intends to retain all staff in order to
meet expansion targets in the online poker and multi-player gaming space.
The spokesperson revealed that DGN is installing a new team of experienced
industry professionals to take over the Dobrosoft operations. "We
are adding many features to the product and are focused on providing
the ultimate poker platform to gaming companies so that they may take
advantage of the unprecedented opportunities in the online poker and
peer to peer gaming space," said company spokesperson Nicole Sims
.
"We are pleased that the core Dobrosoft platform gives us a springboard
into the marketplace and gives us a solid base," she added. The
financial terms of the deal were not disclosed.
Dobrosoft has already contractually secured some major network partners
that will be announced shortly, adding significantly to the new network's
player liquidity over the next six to eight weeks, and announcements
can be expected as additional network partners make public their moves
to the DGN platform.
Dobrosoft has been in operation since 2000 and was one of the first
companies to bring multi-player poker software to the industry. Dobrosoft's
owners will be working with DGN's new management team to transition the
operation over the next 90 days. Dobrosoft's software team of 60+ individuals,
most with 6 or more years of online gaming software experience will be
retained by the new company and will be expanded by the addition of several
industry savvy IT professionals and management staff.
Digital Gaming Network has already invested heavily in the new venture
and increased its staff by 50 percent with a hand-picked team of experienced
industry executives, software engineers, managers and operational staff
members. "In preparation for the take over, the company has already
made significant investments in human resources, hardware upgrades and
in the increased scalability of the product," sais Sims.
NEW JERSEY ROOFING CONTRACTOR TAKES MAJOR POKER POT
$368 096 WSOP paycheck and a $10 000 WSOP seat the prize
37 year old New Jersey roofing contractor Rick Rosetti took home the
big money - all $368 096 of it and a $10 000 WSOP sponsorship to boot -
this week when he won the Harrah's World Series of Poker Circuit (WSOPC)
main event in Atlantic City.
In an exciting heads up with management consultant Alex Gomez , who
had a dominating lead in chips Rosetti played a blinder of a game for
75 hands to truimph, winning the cash, the sponsored 2007 WSOP seat and
a champion's ring.
Gomez, a management consultant from Brooklyn, N.Y., took home a sizeable
consolation second prize of $202 453 for his trouble.
HACHEM TRUIMPHS AGAIN
WSOP champ takes the WPT crown, too
Melbourne, Australia poker ace Joseph Hachem added a World Poker Tour
Doyle Brunson North American Poker Championship win to his c.v. this
week and in the process pocketed a winner's check for almost $US2.2 million
at the Bellagio Hotel Casino in Las Vegas. His winnings include a $25
000 seat sponsorship in the WPT World Championship .
The event is the biggest tournament on the World Poker Tour circuit,
the rival code to the World Series of Poker, in which the former chiropractor
pocketed $10 million when he achieved final victory in July last year.
"He's very emotional, very humble and over the moon," Hachem's
brother Tony said last night. "But he's beaten the best players
in America, some of whom have been playing the game for 40 years."
The respected poker website Cardplayers.com estimated that up to two
million Australians followed 39-year-old Hachem's progress online. The
next stop on the Aussie's tour will be to play in the $10 million Poker
Stars Caribbean Adventure in the Bahamas next week, before returning
to his homeland for the Australian World Series at Melbourne's Crown
casino.
"I'm more excited than I was when I won the World Series," a
jubilant Hachem told PokerListings.com after taking down runner-up Jim
Hanna in heads-up play at the Bellagio in Las Vegas.
Second-placed Hanna won big, too - a $1 099 430 prize.
Joe Hachem is now one of only four men - Doyle Brunson, Juan Carlos
Mortensen and Scotty Nguyen - who hold World Series of Poker Main Event
and World Poker Tour titles.
IRISH POKER OPEN 2007 VENUES REVEALED
First Irish Poker Open Live Satellite Venues
Card rooms across Ireland and the UK are gearing up for live satellites
for Euro 2 million guaranteed Paddy Power Poker.com Irish Poker Open
2007 , with the betting company announcing the first wave of venues holding
live satellites for the big event.
Dozens of Europe's leading card rooms are hosting satellites from January
right up until the start of the Irish Open main event from April 6-9,
2007 in the landmark Burlington Hotel, Dublin.
Dublin's Jackpot Club, the official card room for the Irish Open 2007
has satellites each Thursday from January onwards with a minimum guaranteed
one ticket worth Euro 3 500.
Card rooms and casinos currently confirmed to run regular Irish Open
satellites include:
Dublin
The Jackpot
20 Montague Street, Dublin 2
The Sporting Emporium
Anne's Lane, South Anne's Street, Dublin 2
Cork
The Macau Sporting Club
16 Patrick's Quay, Cork City
Galway
4 Aces
18 Dominic Street, Galway
Kerry
The Cue Club
Hilliards Lane, Killarney, Co Kerry
Carlow
Big Slick Poker
Charlotte Street, Carlow
Banbridge
The Bridge Club
28B Scarva St, Banbridge, BT32 3DA
Bangor
The Fortune Rooms
1A Valentine Rd, Bangor BT204JH
Belfast
The Winners Club
Yorkgate Leisure Complex, Belfast, Co Antrim, BT15 1WA
Derry
Lucky's Bingo
Edinburgh
Gala Maybury Casino
5 South Maybury, Edinburgh, EH12 8NE
Players can also qualify online at the Paddy Poker.com website.
This year's event, which will be filmed for TV, has been claimed to
be the biggest in Europe with a Euro 2 million guaranteed prize pool
and a capacity for 700 players paying Euro 3 300 (+ Euro 200 registration)
to play over Easter Weekend 2007 against the best players in the world.
What sets the Irish Open apart from other poker tournaments is its historic
legacy, unique atmosphere, famous Irish hospitality, and legendary reputation
for camaraderie and 'craic' or spirit.
Last year, Dubliner Vincent Melinn won the Euro 350 000 first prize
in only his second ever live tournament and the final table was broadcast
live across Europe -- a world's first. This year the event doubles in
size.
Unfortunately PaddyPower.com does not accept bets from US residents.
GERMAN POKER FROM POKER STARS
New series 3 EPT event will take place in Dortmund, Germany
The growth of the European Poker Tour has been further strengthened
with the announcement of a new Series 3 event to be staged in Dortmund,
Germany from 8-11 March, 2007.
Capped at 400 players, the four-day, the Euro 5 000 buy-in no-limit Texas Holdem
tournament at Hohensyburg Casino in Dortmund will be part of the PokerStars.com
-sponsored, televised EPT TV series.
EPT director John Duthie has been planning an EPT event in Germany for several
months.
"There are not that many venues in Germany with the space and facilities
required to host an EPT tournament, but Casino Hohensyberg in Dortmund
is an outstanding casino and comfortably meets the high standards required," says
Duthie. "Poker players will be pleased to hear that there will be
a full schedule of tournament activities alongside the main event, and
cash games will also be available."
Players can qualify for the Dortmund EPT on PokerStars.com from January 1st
next year.
DID DoJ CANADIAN RAID CLOSE DOWN VANCOUVER ONLINE MARKETING FIRM?
"Silence is golden" appears to be the official line....
Over the past few weeks industry personnel and players alike have been
trying to work out what really happened in a United States Department
of Justice and apparently RCMP -sanctioned "visit" to a Canadian
marketing company in a Vancouver, British Columbia suburb in November.
Much of the interest has centred on the apparently unlimited reach of
the DoJ's enforcement arm across the international US-Canadian border,
and whether it was an online gambling-related incident.
It has been alleged, at this stage on hearsay and reports from persons
at two removes from the still un-named company involved, that the DoJ
accompanied by Royal Canadian Mounted Police officials, pitched up at
the marketing company, which apparently carried out straightforward promotional
work for or was connected with the Absolute Poker online poker provider.
Staff at the company were allegedly questioned, although the content
of the questions is not known. Despite this, speculation is running rife
that the "raid" was designed more to intimidate than prosecute,
because as far as is known no arrests were made and no subsequent criminal
action undertaken.
If the goal was to intimidate, it certainly worked according to some
reports, which now indicate that the company is closed to all intents
and purposes with employees carrying out their duties from their
homes. Sources within the company have been quoted as saying that "vital" employees
have been given 3 months to accept transfers to Costa Rica, implying
that the marketing company is re-locating following the not-so-friendly
official visit.
More recently, other company insiders are alleged to have claimed that
the long arm of the U.S. law reached into Canada as a result of a routine
domain check that unearthed the B.C. location of the marketing company.
This domain has now been edited to reflect a Belize address, lending
credence to the report.
In an attempt to get some first hand confirmation on the largely hearsay-based
story, InfoPowa on several occasions contacted Absolute Poker , a webmaster
who ran with the story on a YouTube video insert and a former Absolute employee
called Gian Perroni who was the original source of the story.
Despite repeated attempts the search for more information was ignored
and the visited company remained unidentified, making it difficult to
engage directly with the staff who had been questioned by the DoJ officials.
The wall of silence grew higher when an official request for a media
comment was lodged with the RCMP officer who was apparently involved
in the case, S/Sgt. Fred Pinnock who is the NCO in charge of the Integrated
Illegal Gaming Enforcement Team (IIGET) "E" Division in Burnaby,
B.C.
We asked for the name of the company approached, who was questioned
and in what connection and whether the presence of United States officials "visiting" Canadian
citizens on Canadian soil was sanctioned or supported by court order,
warrant or treaty. We also drew attention to the widespread speculation
that the visit may have had an intimidatory objective.
S/Sgt. Pinnock's reply gave an indication of the nature of the DoJ visit,
but no detail. In a courteous but firm "no comment" the officer
said: "I apologize. I'm not at liberty to provide you information
beyond the fact that attendance was made at the request of US officials.
They were not participants in the conversation."
S/Sgt. Pinnock did, however, say that he had referred our enquiry to
the U.S. Department of Justice, but nothing has been heard from that
organisation and the RCMP did not give any detail on a follow-up contact
in the States. We're not holding our breath pending a comment from the
US officials.
All that is known at first hand and for certain therefore is that US
officials were present and instigated the visit, escorted by Canadian
national police from an illegal gambling team. And the nature of the
visit and the questions asked (the RCMP claims the American officials
were silent) will not be disclosed.
Quite apart from the mysterious silence of everyone directly involved
in the incident, and the intriguing identity of the company concerned
it is a strange and worrying sequence of events, especially if the speculation
is true that the company shut down as a consequence of this visit.
Regrettably, the situation remains unclarified by official statements
as to exactly what the objective was in November, when an apparently
official enforcement "visit" by US and RCMP officers was sufficient
to at least temporarily shut down a thriving business.
GOOD NEW YEAR POKER VIEWING FOR AMERICANS
"Poker After Dark" action poker TV debuts on January
2
American poker fans can look forward to some entertaining and perhaps
educational television on their pastime of choice early in the new year,
when NBC debuts "Poker After Dark."
The show is an exclusive visit to the Las Vegas poker scene that debuts
on January 2 at 2:05 a.m. ET/PT. The nightly hour-long show, hosted by
Shana Hiatt , one of poker's most recognisable faces, will air Monday
through Saturday and features six poker professionals vying for a winner-take-all
$120 000 first place prize.
Hosted by former World Poker Tour host Hiatt, each night of original
programming will feature an intimate look at one table as it develops
over the week, culminating with a winner on Friday night. Saturday night's
show the "director's cut" will recap the week's
events with Hiatt and that week's winner offering commentary and insight
into their winning strategy.
Set in the back room of various casinos on the Vegas strip, "Poker
After Dark" gives viewers an intimate look inside a poker game usually
reserved for the eyes of the professional poker players themselves. The
show will feature the world's top pros, all miked during the weekly battles
for the $120 000 pot and including Phil Ivey, Daniel Negreanu, Doyle
Brunson, Howard Lederer, Chris Ferguson, Erick Lindgren, Jennifer Harman
and Gus Hansen.
"There's a vibrant late night audience looking for original programming," said
Marc Graboff , President, NBC Universal Television , West Coast. "We
felt this inside look at the professional poker scene is perfect for
late night television and those viewers seeking an unique and original
broadcast."
MILLION DOLLAR WIN FOR LADBROKES POKER ACE
London nuclear physicist takes the Ladbrokes Poker
Million
Rajesh Modha , a middle aged London nuclear physicist and father of
three was celebrating a million dollar poker achievement this week as
he banked a $1.2 million check from the Ladbrokes Poker Million having
started the tournament as an outsider in a field of 25 000 players.
After nine months of intense competition, the starting crowd of 25 000
was reduced to just one as Modha capped a sensational fight back to scoop
the richest prize in European poker history - the Ladbrokes Poker Million despite
entering the competition through a $9 satellite qualifier and going into
the final a 22-1 outsider.
The 44 year old fought off a Scandinavian invasion after a tense four
hours of poker play to scoop the bumper $1.2 million payout and make
him the newest poker millionaire.
The victory of Northampton resident Modha was broadcast live from Skys
studio to over 100 million viewers around the world, with the families
of the finalists watching from Ladbrokespoker.coms celebrity poker
party at The Marriott Hotel, Grosvenor Square. The big guns table included
an eclectic mix of personalities including infamous poker player Mel
Judah and Belfast born Marty Smith who both played a risky game to get
their hands on the first prize and the coveted trophy.
Foggy71 as hes known on Ladbrokespoker.com, qualified
for Poker Million back in April and was one of 72 poker enthusiasts who
made it through to the televised stages of the competition. He has been
playing poker now for just over a year and practices regularly on Ladbrokespoker.com.
Rajesh Modha the Ladbrokespoker.com Poker Million V winner said, I
cant believe Ive won! I always knew it was going to be a
tough game and I was playing against some strong characters at the table
but I just played the only way I know how and it worked for me tonight!
Claus and the other players played some great poker and Im just
overwhelmed that Ive won. It couldnt have come at a better
time and Im looking forward to a great Christmas!
Danish ace Claus Markessen took second place after playing a strong
game from the start and looked set to steal the glory on a few occasions.
Hell be heading back to Denmark a happy man with a win of $500
000. In third place came Norwegian Andreas Hoivold (winner of the Ladbrokes
Tallinn Challenge where he won his seat) who scooped $250 000.
Celebrities who entered Ladbrokes Poker Million but did not make the
final table included Austin Healey, Leilani Dowding, Helen Chamberlain,
Tim Lovejoy, Steve Davis and Jimmy White.
Ladbrokes eGaming Managing Director David Briggs commented: What
a tense evening of poker! The result just shows that what a great player
Raj is as he entered the competition as the underdog and has come through
to be crowned the Ladbrokes Poker Million V Champion were
delighted for him and his family. The atmosphere this evening was absolutely
amazing and when it got down to the final two, it was anyones to
win. This years tournament has been the biggest ever, more money
has been won and more people have watched it on television than ever before.
The rise and popularity of poker seems to be increasing unabated.
(Update 20-December-2006)
LANDMARK CHINESE ONLINE GAMBLING DEAL FOR PLAYTECH
Playtech and SSI will be the first major distributor and promoter
of Texas Hold'em Poker in the Chinese market.
Online gambling software provider Playtech earned itself a Christmas
bonus this week when it clinched a landmark five year software licensing
agreement with China's leading gaming group, Sino Strategic International
. Certainly the investors were cheered by the deal, news of which pushed
Playtech stock up 5 percent.
SSI is listed on the Australian Stock Exchange and is a diversified
investment holding company. Its primary operations are in the large and
fast growing Chinese gaming, internet and mobile media markets that are
currently the focus of online gambling companies seeking new business
to replace American opportunities impacted by the UIGEA.
SSI's subsidiary, Shanghai Kelo , operates the largest corporate retail
gaming network in China, distributing the legalised keno, lotto, and
Video Lottery Terminal (VLT) games. Shanghai Kelo currently runs more
than 460 Point of Sale ("POS") gaming outlets in Shanghai under
license from the Shanghai Welfare Lottery Centre . In October 2006, the
license agreement was extended, allowing Shanghai Kelo to operate up
to 600 outlets distributing keno and other welfare games for the next
five years.
Playtech and SSI will be the first major distributor and promoter of
Texas Hold'em Poker in the Chinese market. Following the launch of the
poker product in the coming months, SSI expects to launch a selection
of Playtech powered P2P Chinese tournament games through selected SSI
outlets in China in the first half of 2007 after a testing, approval
and implementation period.
Initially, a selection of P2P poker games will be offered, followed
by games played more commonly in China such as mahjong, Do Di Zhu, Cho
Da Di and To La Ji.
Avigur Zmora , Chief Executive Officer of Playtech, comments: "This
is a major development for both Playtech and SSI bringing the Play for
Real P2P tournament gaming experience to China at appropriately licensed
gaming outlets for the first time. The Chinese market is a vast and incredibly
exciting marketplace and Playtech is extremely well positioned to assist
operators such as SSI in rolling out new gaming products in a phased
manner in accordance with Chinese regulations. This license agreement
will further establish Playtech's presence in Asia and is in line with
the company's ongoing strategy. Playtech is increasingly Asian-facing
and this transaction is another milestone in further diversifying the
geographical reach of the business and its customer base."
Richard Li, Chief Operating Officer, Australia, of Sino Strategic International
states: "In Playtech, we have found a software provider that has
a clear understanding of the Asian gaming marketplace and who understands
the intricacies of gaming in
China. The private gaming network, consisting of up to 5,000 terminals to be
implemented by Playtech, will upon completion, expand the SSI gaming terminal
network significantly. SSI also intends to further expand this network via
franchising to other parts of China over the next five years."
CHARTWELL TECH 32 CARD POKER NOW AVAILABLE IN FLASH, TOO
Mac users can play on new non-download software
The Calgary-based Canadian online gambling turnkey provider Chartwell
Technology Inc . has announced the completion and release of its popular
European-style 32 Card Poker product in Flash technology, opening the
way for more players to enjoy the game.
This new non-downloadable poker client offers immediate benefits
to Chartwell customers and their player base and enhances the marketability
of Chartwells poker community said a company spokesman this week.
For the player, the Flash product has all the full features that the
C++ client offers and more. Quick access to player accounts and game
play from within any internet browser that is available is a major selling
point for the product. Flash also gives the Mac players the opportunity
to participate.
For the operator, the new Flash product allows a broadening of marketing
appeal and reach, helping to add players to the database and poker room
and opening up a larger percentage of what can be considered a browser-based
market.
Chartwells Flash based Texas Holdem product is due to be
released Q1, 2007 with some additional and innovative new European-style
poker products that will also be part of this release, the spokesman
said.
Alongside the product release, Chartwell also revealed that one of its
long-standing customers, Coral Eurobet , has agreed to license the Flash,
32 Card Poker product and join Chartwells growing poker community
on the Pokernexus network. This will add to the overall player
liquidity numbers and bring the total number of participants in the community
to 21.
"Having partnered with Chartwell for almost 5 years it was an easy
decision to add their latest offering '32 Card Poker' to our portfolio.
The game has added an extra dimension to our suite of games and has proven
popular with a wide section of our player base. commented Dan Phillips
, Head of E-Commerce Gaming, Gala Coral Group.
PENNSYLVANIAN SEQUEL
McNaughton re-submits ethical documents....and further revelations
on gambling comps surface
The InfoPowa story earlier this week on the non-disclosure of gambling
winnings by a Pennsylvanian Gaming Control Board appointee had an interesting
sequel in the Philadelphia Enquirer (which has been scrutinising the
appointee) this week.
Former State Rep. Mark McNaughton , amended his ethics statements to
show that he won thousands of dollars at casinos in recent years.
The disclosure came two days after The Inquirer reported that McNaughton,
a vocal critic of gambling, won nearly $15 500 between 2003 and 2005
in Las Vegas and Atlantic City.
He reported the winnings on his federal tax returns, but not on his
Pennsylvania statement of financial interest, which state legislators
and many other officials must file annually as a way of informing the
public about their sources of income.
On Friday, McNaughton said he had not believed that disclosing the winnings
was required. Like the IRS, however, the state Ethics Commission considers
gambling winnings income, and they must be reported each year if they
exceed $1 300.
McNaughton's amended ethics statements reflect winnings at the Flamingo
Las Vegas in 2003 and at the Borgata Hotel Casino & Spa in Atlantic
City in 2005.
McNaughton, who retired November 30 after 10 years in the House, was
nominated to the seven-seat gaming board that same day by House Speaker
John M. Perzel (R., Phila.). McNaughton would replace Joseph W. "Chip" Marshall
III when Marshall leaves the board sometime before January 16. A substantial
salary is part of the appointment.
During his five terms in the House, McNaughton, a conservative Republican
from Dauphin County, voted against nearly all efforts to expand gambling,
including the 2004 law that legalised slots.
McNaughton could not be reached for comment when the newspaper attempted
to speak to him this week.
Al Bowman , Perzel's press secretary, said legislators commonly had
to amend ethics forms after filing them.
"Almost every person who has had to fill out those forms has had
to correct them at some point," he said.
Perzel, who had said he was unaware of McNaughton's winnings, has not
rethought the nomination, Bowman said. "His status has not changed," he
said.
Perzel that he had appointed McNaughton because of McNaughton's strong
opposition to gambling. "He would be an asset to the board as they
take on the new role of ensuring the law is followed and enforced," Perzel
said in a statement last week.
The Inquirer also reported Sunday that McNaughton had taken several
trips to the Borgata with a lobbyist who represents the casino's owner,
Boyd Gaming Inc. McNaughton last year had given a court deposition in
a nasty divorce case in which he said his hotel stay was comped because
he was traveling with a corporate lobbyist.
The lobbyist, Tom Blikle , said that was not the case. The Borgata,
he said, gave McNaughton free rooms because he held a player's card,
which provides accommodations to some gamblers.
BETTER CASINO LAUNCHED
Another Chartwell Tech European sign-up
Among the online casinos deploying the new Chartwell Technology 32 Card
Poker product this week was Better Casino.com , a recently launched online
casino, poker room and sportsbook owned by the UK retail bookmaking start-up
Betting Shop Services Limited.
The casino also features blackjack, roulette, slots and baccarat, but
Better chief executive Ian Hogg believes the 32-card game makes for more
exciting and quicker hand-to-hand action.
BBS was launched in 2005 and offers players single account convenience
for horse racing, playing poker or visiting the casino. 24 hour live
customer support is included in the infrastructure, together with a loyalty
program, poker school and sign-up bonuses.
Better Casino and Poker is powered by Chartwell Technology and the operation
is licensed in the Netherlands Antilles. The operation is managed by
the UK consultants Inside Gaming .
CONFERENCE CORNER
African Gambling Roundtable 2007
Tropical Durban on the east coast of South Africa will be the place
for affiliates to be around the middle of 2007, when the big guns of
South African online gambling put together a major, 300 delegate conference
of global interest.
During the past year the international online gambling industry has gone through
many changes that have required co-operation between operators, affiliate marketers
and service providers in the industry. With the enactment of controversial
anti-online gambling legislation in the US it has become even more important
to educate and inform the public about their choices and the importance of
fighting for their democratic right of choice.
The already tough industry is now even tougher. Marketing strategies
that are in large part shared between all parties involved in the industry
have become increasingly competitive and more complex. Search Engine
updates have changed the importance of some of the online marketing strategies
even more.
Linking partnerships have become crucial and viral campaigns have sub-divided
even further into more specialised forms of viral marketing. Keeping
track of this amazing growth has become complicated.
South Africa is home to many in the industry and is to a large degree
a seminal location for the business. This fascinating country is therefore
a logical venue for the industry to come together and team up for the
future. With the South African government following the wise path of
legalising online gaming, its involvement with such an event is crucial.
Pulling all of this together and providing a great networking environment
is the planned Gambling Roundtable . An event where new friendships will
be formed and leaders in the industry will share their expertise and
insights.
Krevents.com in cooperation with the South African National Gambling
Board , the Department of Trade and Industry , Durban City Council ,
the Local Government of Kwazulu Natal and the Gambling Industry Association
will bring this event to Durban in Mid 2007.
Krevents will cover the accommodation and local travel requirements
for 300 affiliates and speakers to ensure that affiliates can have a
productive and a fun time.
The event promises to be a unique opportunity for affiliates, held in
a uniquely African vibrant environment that will offer quality relevant
topics. Over a period of 3 days an exhibition centre and 2 seminar rooms
will be made available.
For more information as this major project develops, readers can contact
the Krevents team at krevents.com or gamblingroundtable.com
B.C. OMBUDSMAN BEGINS LOTTERY INVESTIGATION
Another Candian provincial lottery falls under the spotlight
Further developments have occurred in our recent story regarding the
high proportion of ticket retailer jackpot wins in the British Columbia
lottery (see previous InfoPowa reports)
The Vancouver Province newspaper reported this week that the ombudsman
for British Columbia has begun an investigation into how the B.C. Lottery
Corporation ensures its lotteries are fair.
The newspaper reports that revelations that lottery retailers in B.C.
win major prizes six times more often than the public have raised concerns
that some retailers may be stealing customers' winning tickets, and claims
that the lottery corporation's security records show at least four cases
where retailers inappropriately claimed customers' winnings.
The investigation follows similar alleged anomalies in the high ratio
of ticket retailer wins discovered in October by Toronto University statisticians,
which led to the Ombudsman in Ontario declaring an investigation in the
public interest.
FANTASY SPORTS SITE ACQUIRED BY IGC ENTERTAINMENT
Sector growth of 7 to 10 percent claimed
iGaming Corporation announced this week that its wholly-owned subsidiary,
IGC Entertainment Corporation , has completed the purchase of the fantasy
sports website Rotoplay.com from RotoPlay, Inc., a Pennsylvania-based
corporation specialising in the online fantasy sports industry.
Fantasy sports operators have been claiming a carve-out for the genre
in terms of the UIGEA recently.
The effective date of the deal was December 11, 2006, and IGC says the
purchase of the RotoPlay assets offers a wide variety of unique and innovative
fantasy sports contests based on football, baseball, basketball, golf,
and auto racing, providing iGaming with significant exposure to the increasingly
popular fantasy sports industry.
"The RotoPlay purchase represents an opportunity to broaden our
product offerings to our core group of sports enthusiast customers. With
a very significant database of such consumers, we are well-positioned
to facilitate exciting growth for the RotoPlay asset," says Christopher
Kape , iGaming's President and CEO.
"RotoPlay offers shorter-term and tailor-made fantasy sports contests
that have demonstrated market acceptance. The challenge now is to use
our existing resources to increase the RotoPlay market share," he
added.
In March this year the Fantasy Sports Industry claimed that the fantasy
sports industry is growing at a rate of 7-10 percent annually and has
approximately 15 to 18 million participants generating more than $1.5
billion per year in North America alone.
Korey Gardner , one of the founders of RotoPlay, has been engaged as
a consultant to IGC to assist with the integration and continued operation
of RotoPlay as iGaming seeks to become a significant player in the fantasy
sports area.
"The addition of a fantasy sports product will compliment iGaming's
existing portfolio of assets and I am very confident that we can deliver
impressive results", Gardner said.
The aggregate purchase price of the new acquisition is a maximum of
US$300 000, of which a portion was paid upon closing and the remainder
is subject to the purchased assets attaining pre-determined revenue targets
for the iGaming's fiscal quarters which end between February, 2007 and
November, 2007.
Kape said his company plans to vigorously market the new acquisition
and cross-sell it to iGaming's portfolio of sports-related properties. "We
believe that we can realise the benefits of increasing revenues while
reducing overhead through existing synergies," he concluded.
The transaction is subject to Toronto Stock Exchange Venture Exchange
approval.
POKER STARS IS TOPS, SAYS READERS' SURVEY
Close result for best poker room award
Piquing interest in its January issue now on sale, the popular poker
magazine Bluff announced the top poker room award from its Readers' Choice
Awards this week.
Poker Stars.com pipped Full Tilt Poker.com as most popular site,
according to the magazine, which runs the awards in which readers vote
for their faves in various categories.
Bluff reports that the award competition was intense and a close-run
contest between Pokerstars and Full Tilt Poker. The full list of the
Annual Readers Choice Award categories and winners is published
in the magazine's January issue.
In addition to the Best Poker Room category, poker enthusiasts worldwide
had the chance to cast their ballot on a variety of categories including:
Most Entertaining Poker Player to Watch, Best Brick-and-Mortar Poker
Room and Best Poker Analyst.
The Bluff Readers Choice Awards are a true testament to the
companies and players who receive the various accolades as the best
of the best in more than 20 different poker categories. said
Eric Morris , Co-President of Bluff magazine.
(Update 19-December-2006)
ANOTHER MALAYSIAN CYBERCAFE BUSTED
And police discover a new counter-raid measure
Malaysian police raiding a cybercafe in Seri Kembangan for suspected
illegal online gambling uncovered an ingenious new way to avoid
detection by officials - a one-touch button that erases or changes
computer screens whenever authorities hove into sight.
The button is located at the reception counter where the cybercafe
operator or the outlet worker sits, and activates software installed
on the machines, reports New Straits Times.
Regular patrons who are gambling would be informed about the raid
counter-measure to ensure that they remain calm when their online
gambling website suddenly changes into something else, such as
the homepage of a search engine.
The device did not save the owner of the cybercafe raided over
the weekend, however. The bust was conducted by the anti-vice,
gaming and secret societies division of the local police, led by
its deputy chief, Assistant Superintendent Nik Roshdi Nik Yahya
.
The raiding party seized 15 sets of computer equipment worth about
RM40 000, and subsequent inspection showed that the new screen-changing
program was installed.
A police source told the New Straits Times that a female employee
in her thirties was arrested and is under police remand whilst
she "helps Police with their enquiries."
Six patrons were also detained for questioning during the raid
but were later released.
Investigation revealed that the cybercafe had been operating for
a week before the bust, and police are currently tracking down
the owner. A case has been opened under the Open Gaming House Act,
alleging the conduct of illegal betting activities.
WIDESPREAD DDOS ATTACKS ALLEGED IN ASIA
Extortion of up to $50 000 attempted
Several sources have made as yet unconfirmed reports that widespread
Distributed Denial of Services attacks took place over the past
week, mainly in the Asian markets.
Apparently sites which went down in the attacks included Bet365,
Veesports, Yishengbo, Playit365, 777ball, Hooball and Macauslot
, but this had not been confirmed when InfoPowa went to press.
Initial reports indicate that Bet365 has recovered from the attack,
but others are still battling with the criminal activity. The total
losses have been estimated in the millions. Several of the sites
had notices up advising clients of the attacks, and Support staff
confirmed to several players that an attack was in progress.
According to some reports, the raiders followed known DDoS modus
operandi by first paralysing the sites to illustrate their capability,
and then demanding amounts ranging from $5 000 to as much as $50
000. It is not known if any of the sites paid up, or what
DDoS protective measures were in place.
DDoS attacks are usually carried out by criminals controlling
tens of thousands of PCs (usually without their owners being aware
of it) and commanding the machines to bombard the target site with
millions of messages, overwhelming the servers and crashing the
site. Counter measures have become increasingly sophisticated,
because companies can lose substantial amounts of money by being
offline, especially during key sporting events when betting is
heavy.
BACK TO SCHOOL AT PACIFIC POKER
888.com's online poker site unveils school in three more
languages
Pacific Poker speaks your language. Or at least it's more likely
they do at their online poker school now that it's being offered
in French, German and Spanish as well as English.
"We now provide our valued foreign language speaking players a unique opportunity
to get the best start in the world of poker," said Alex Reign , promotions
department manager.
Reign said the school will help players to improve their game and become more
competitive.
The poker school at the site offers players a user-friendly comprehensive guide
to the game of poker, where they can learn the ins and outs of the currently
popular Texas Hold'em. There are also step-by-step tutorials for Omaha Hi,
Omaha Hi-Lo and Seven-Card Stud.
GOLD'S W.S.O.P. DISPUTE IS GETTING MESSY
Second petition in $12 million lawsuit disputes Gold's
version of events
When Jamie Gold won the World Series of Poker's gigantic first
prize of $12 million this year it triggered a nasty dispute which
has taken some of the gilt off a great honour.
It has been alleged by British television producer Crispin Leyser
that he had a prior agreement with Gold to share in half the proceeds
if he won in return for lining up celebrities at the event (see
previous InfoPowa reports).
Because of the dispute Gold has only been allowed to access half
his massive winnings whilst a Court battle is fought over the legitimacy
of Leyser's argument that he is entitled to the remaining $6 million.
Late last week Leyser filed a petition in federal court, stating
that the deal made between himself and Gold was a business deal,
not a discretionary goodwill gesture as Gold has claimed.
Gold, however, contends that he offered Leyser a portion of his potential winning
because he felt bad that Leyser didn't have sponsorship to play in the WSOP
Main Event.
Now with half of his winnings on hold until the legal battle is cleared up,
Gold is fighting to keep the full amount.
The agreement came about prior to the 2006 WSOP, when Bodog.com agreed to sponsor
Gold if he could find celebrities to compete in the tournament wearing the
poker room's logo.
Leyser claims that Gold promised him half the pot if he could find celebrities
to wear the Bodog.com brand. He found two celebrities - actor Matthew Lillard
and MTV personality Dax Shepard - who agreed to wear the clothes.
On the final day of the tournament, it is claimed that Gold left a cell phone
message for Leyser acknowledging their agreement.
U.S. District Judge Roger Hunt is to consider the case.
ONLINE GAMBLING JURISDICTION FOR JERSEY
Experienced gambling inspector appointed
The Channel Island of Jersey moved closer to its goal of becoming
an online gambling licensing and regulating jurisdiction last week
with the appointment of what it terms a Shadow Gambling Commission,
extending the reach of its hitherto mainly betting offices licensing
body.
The new Commission opened its doors last Friday, paving the way
for a new structure that will regulate and license online gambling
operators prepared to register on the island, submit to its regulation
and pay the licensing fee.
The three-member Commission is led by Graham White , formerly
the chief inspector for the UK Gambling Commission.
WEEKEND POKER NUMBERS REMAIN BUOYANT
Good attendances and big prizes continue to attract poker
players
The main regular weekend tournaments continued to attract thousands
of players this week, with Poker Stars again leading the pack.
The Sunday Million tourney at Poker Stars.com brought 6 628 players
to the virtual tables, competing for a prize pool of $1 325 600
which put almost a thousand players "in the money." That
gave the final heads-up pair take home checks of over a $100 000
each following a fourway chop agreement that preceded the heads
up.
A field of 1 237 players entered the Full Tilt $500 000 Guaranteed for December,
generating a $618,500 prize pool from which 180 players benefitted. The first
prize check was worth $117 515.
Ultimate Bet's $200 000 Guaranteed generated a starter field of 957 players,
vying for a first prize that was worth $45 000. 100 players cashed in thjis
popular event.
Proving that the recent media reports that it has stabilised following
its withdrawal from the U.S. market are true, Party Poker.com recorded
1 059 players for its $200 000 Guaranteed tournament. 150 players
shared in a prize pool of $211 800, with the winner boosting his
Christmas fund by a welcome $44 478.
ITALY'S THE PLACE TO BE
With a new and more enlightened approach to online gambling,
the industry's biggies are piling in.
Italy's astonishing but very welcome about-face on Internet gambling
has caught the attention of major industry companies, with reports
of household names in the business all vying for a slice of the
Italian action by applying for some of the estimated 17 000 licenses
the Italian government is to issue.
Turning its face away from an aggressive prohibitionist approach
as recently as October this year to a policy of regulation and
taxation, Italy provided a new direction for companies looking
to fill the vacuum created by the banning of US online gaming financial
transactions created by the UIEGA.
The Italian government has announced that it will auction off
17 000 licences for betting shops, kiosks, casinos and online casinos
and sportbooks. Initial reports indicate that Betfair, William
Hill and Ladbrokes are all among the first to seize the opportunity.
The potential for the new market is still a matter for research
and estimation. Nilay Patel , corporate finance manager for William
Hill group told Jackpot UK that the Italian decision
was essentially about creating a new market or converting an illegal
market into a legal market. "We don't have the facts, figures
and information on which to make sensible estimates of the potential
size of the opportunity," he said.
"Until we actually have a couple years of operating experience
in these markets, we really don't know how they're going to develop," he
added.
Some of the U.Ks largest operators already appear well placed
to take advantage of the new laws across Europe. Gala Coral already
operate an Italian-language site and a betting shop in Genoa, William
Hill have entered into a venture with Spanish firm Codere and Ladbrokes
completed a deal with Italian firm Pianeta Scommesse back in August,
as well as buying three betting shops in Turin last month.
Many other countries, such as Greece, Ireland and the Czech Republic
have open minds and will undoubtedly watch the effects of the law
changes, basing their own decisions on its implications. Spain
is also set to follow Italy, with the various Spanish regions authorised
to set up their own regulatory structures as they see necessary.
In essence, Spain will allow gambling in regulated locations, including
online casinos, and will grant licences for up to five years.
Overlooking all of this is the European Commission , who face
the tough job of ensuring the changes in gambling laws, however
flexible or stringent, do not interfere with healthy competition.
According to a ruling by the EUs highest courts, member states
may place controls on private gambling operations, but they must
be "non-discriminatory, proportionate and consistent".
(Update 17-December-2006)
365 MEDIA CHIEF SCORES WITH BSKYB DEAL
Take the risk, earn the reward....
The news this week that BSkyB had paid GBP96 million for the 365 Media
gambling and sports group reaped rewards not only for investors, but
for the man who took the risk of building the group from a low base into
an enterprise that has over 9 million regular visitors.
The UK newspaper The Daily Telegraph reports that web entrepreneur Peter Dubens
is set for a GBP10 million windfall after agreeing to sell his online sports
information and gaming company to the television broadcaster.
Dubens founded the group, which was previously called UKbetting, in 2001 and
spent GBP1.5 million of his own money buying 14 loss-making companies whose
valuations had plunged after the dotcom crash. Hard work and business expertise
were needed to turn the companies around and weld them into a profitable and
popular business.
365 runs gambling and sports websites including Football365 and sportlinglife.com,
together with the online gambling site UKbetting.com. The latter does not take
bets from US residents and has therefore been sheltered from that country's
crackdown on internet gambling, unlike many of its rivals.
On announcing the agreement, Sky chief financial officer Jeremy Darroch said: "Bringing
together 365 Media's extensive network of sports and gaming websites with our
own Sky Sports and SkyBet businesses will allow us to reach a broader audience."
ONLINE GAMBLING AD RESTRICTIONS PASSED IN ONTARIO
New advertising restrictions inserted in Canadian provincial
consumer protection bill
Would-be online gambling advertisers in the Ontario province of Canada
will need to update their knowledge on what is and is not permitted following
the passage of a consumer protection bill containing advertising restrictions,
which was passed by the provincial legislature this week.
According to an assessment in p2pnet.net News by Michael Geist , who
holds the Canada Research Chair in Internet and E-commerce Law at the
University of Ottawa, the new legislation contains provisions prohibiting
the advertising of Internet gambling sites.
The provisions underwent important changes at committee level, however,
so that the final bill looks somewhat different from the one that was
introduced in the fall (see previous InfoPowa reports).
Geist writes that when first introduced, the bill contained a blanket prohibition
on advertising an "an Internet site that operates an internet gaming business
contrary to the Criminal Code." The bill defined advertising as:
(a) the promotion by print, publication, broadcast, telecommunication or distribution
by any means, of information intended to promote the use of an internet gaming
business,
(b) self-promotion and a contract under which one person obtains the
services of another to develop or distribute the advertisement,
(c) a link in a website intended to promote the use of an internet gaming
business.
However, after the committee stage, the bill contained some important changes.
While the blanket prohibition remains unchanged, the definition of advertising
has been narrowed to instances where the advertising originates in Ontario
or is primarily intended for Ontario residents.
In Geist's opinion, the positive effect of this change will be to exclude
the vast majority of Internet gambling advertising, which neither originates
in Ontario nor is primarily targeted at residents of the province.
The prohibition against linking has also been narrowed by excluding
links "generated as the result of a search carried out by means
of an internet search engine." In other words, Google and other
search engines won't be liable for links to gambling sites generated
through search queries.
Geist concludes that most Internet gambling sites are therefore unaffected,
unless they specifically target Ontario with their advertising. Instead, there
are two obvious effects.
Offline, it seems likely that Internet gambling newspaper and radio promotion,
common in some newspapers and on sports radio stations, will disappear.
Online, Internet search companies and websites will likely refuse advertisements
that specifically target Ontario. Such targeting may occur either by way of
the promotion itself or by using geo-identifying technologies.
This law may also capture Ontario bloggers and websites that focus on Internet
gambling. Those sites won't be able to feature Internet gambling advertising
and may even face liability for posting links to various gambling sites.
GARBER SPEAKS ON PARTY GAMING PROGRESS
As the group stabilises post-UIGEA, there are new irons in
the fire
During press interviews surrounding the welcome news that Party Gaming
is stabilising following the impact of its withdrawal from the US market,
CEO Mitch Garber gave some interesting insights into the way forward
for the group, which generated over $25 million in revenues over the
past four weeks.
Describing the Unlawful Internet Gambling Enforcement Act in the United
States as "....a blow to our business for sure, but one thing that
I am very pleased to say is that our group has absorbed and now recovered
from this incident," Garber told a conference call: "PartyGaming
is no longer a poker-led, U.S.-dependent and one language gaming operator.
We are rapidly becoming a multi-lingual and multi-currency non-U.S. company."
Earlier, a Party Gaming communication revealed that the impact of the
US departure on revenues had been substantial, with poker income reaching
a low of $637 000 a day, but these had recovered to an average of $721
000 per day (see previous InfoPowa reports).
However, over the last four weeks, an average of approximately 52 000 non-US
players per day had contributed an average gross daily revenue of approximately
$921 000 across all gaming operations but excluding those of the company's
new sports betting interests following the acquisition of Gamebookers earlier
in the year.
If U.S.player action is incorporated into the Q3 results, the period
reflects 159 711 average daily players who contributed an average of
$3.6 million per day. In Q4 there should be no US participation following
the groups exit from the US market in early October.
However, Garber would not speculate on fourth quarter potential, saying the
group can not reveal fourth quarter key performance indicators but will issue
further results information in March 2007.
Looking ahead, the Party Gaming CEO said that the group continues to
look for merger and acquisition opportunities: "We will continue
to pursue deals that are accretive and can add either management or product
expertise to any of our operational lines, and we will be pushing further
into new territories as a main and key objective of M & A and in
our organic business plan," he said.
Certainly Party Gaming has not been sitting on its corporate hands, having
pushed ahead with its Gamebookers brand conversion to PartyBets.com in late
November and cross marketing the new addition to the casino and poker client
base. Virtual Racing was added to the group offerings around the same time,
together with PartyBingo.com's UK launch early in December. The appeal of the
flagship brand of the group, Party Poker.com was extended with the introduction
of the first multi-lingual version - in German - and further language and currency
versions will be launched next year, says Garber.
On the marketing front, Garber hinted at new creative approaches, saying: "We're
looking at viral marketing. We see that the Youtube's of the world are
creating an incredible amount of views and we're looking at ways to capitalise
on that new phenomenon. We're also developing some of our own content
to be broadcast on our website as part of a new community that we're
building inside Party."
Adding that PG advertising is likely to become very geography-specific,
Garber explained: "Some geographies don't allow television commercials,
some geographies don't allow gaming advertising, some geographies only
allow online advertising, so broadly speaking we have new creative, we
have product specific creative. I think we have some very good affiliate
programs that we're rolling out in the New Year, and that's our strategy
for 2007."
The imminent entry of the giant US land gambling group Las Vegas Sands
into the European online casino market is viewed by Garber as a positive
sign, but he is clearly prepared to compete vigorously for the business,
commenting: "They are setting themselves up for a large online presence
in the future, and if I had to guess, I would guess that they also see
their presence in Macau and soon in Singapore as a launching pad to have
a strong Asian Internet presence as well.
"Clearly there are opportunities in markets that have yet to be
tapped, and I think Las Vegas Sands is probably thinking about that,
and I think that quite frankly we'll get there first."
PURPLE LOUNGE POKER TURNED DOWN GBP 15 MILLION ACQUISITION OFFER
Scots owner's plan to open large online casino soon
The Sunday Herald carried an interesting story this weekend that revealed
more detail on the people and planning behind established poker site
Purple Lounge.com .
The story included revelations that the West Scotland-based owner Chris
Gorman is a regular Texas Hold 'Em player, has recently turned down a
GBP 15 million acquisition offer for half of Purple Lounge and that his
company plans a major online casino operation in the near future.
Gorman's Purple Lounge has managed to avoid the UIGEA fallout by solely
targeting Europe's high-level card players, the newspaper claims, quoting
Gorman: "I'm certainly happy we've not done business in the US.
I still want to travel there. I don't want to get off a plane in an American
airport and suddenly get arrested."
After just one year in business, the owners of London-based Purple Lounge
have turned down a GBP 15 million offer from a rival casino and poker
company that Gorman did not name. The deal was to buy half of Purple
Lounge, with the other 50 percent remaining with the existing shareholders.
It would have made a tidy profit for chairman Gorman, who owns a 20 percent
stake, along with founding CEO Matt Larter and their silent partners.
"I had no faith in that company going forward," Gorman explains. "We're
still in discussions with other people. Everything is always for sale
at the right price. But I don't think we'll do a deal at the moment.
We're growing so fast now. We will maximise that value next year and
look at selling it towards the end of next year."
In February, Purple Lounge will launch an online casino arm with more
than 300 games. That business will add to its burgeoning poker room,
where players wagered $90 million (GBP 46 million) last month, expected
to rise to more than $100 million this month. In December, the company
will bring in $1million in revenues from its rake on players' bets and
$250 000 profit. In the first financial year to April 2007, it expects
to generate a $2 million profit.
Gorman claims that Purple Lounge is now one of the top three operators
in the Microgaming Poker Network . Microgaming software runs the world's
largest poker network in te rms of sites, with over 50 poker rooms.
Gorman, who made his fortune from selling retail mobile phone business
DX Communications to BT Cellnet for GBP42 million, says Purple Lounge's
success has come from focusing on a niche. The company has sought to
differentiate itself by targeting high-value, serious players.
"Most of our poker players are in their 20s and play professionally," says
Gorman. "We've taken the offline model where the big casinos know
who the big players are and target them with special services and incentives.
We do the same thing, but do it online."
Incentives could involve offering tickets to the World Cup or to the
Casino Royale premiere. Gorman has also everaged his connections at the
luxury concierge service Quintessentially , where he is a non-executive
director and 5 percent shareholder.
Frequent Purple Lounge players are offered Quintessentially memberships, a
service that aims to satisfy last-minute requests - from front-row seats at
fashion shows to spur-of-the-moment chartered yachts. The London company's
30 000-strong membership also receives privileges at gyms, spas, hotels, restaurants
and nightclubs.
At the moment, between 60 and 70 percent of Purple Lounge players are
Scandinavian. But the company is building up its customer base in the
UK and Spain.
Gorman has been keeping a relatively low profile in his Purple Lounge
role, and with his other recent investments. During the last 18 months,
he has invested a "seven-figure" total and taken non-executive
directorships in a portfolio of technology-related companies. "I
love technology. I understand it. I've got great connections in the industry
and I know how to make money from it," he says.
Some observers might surmise that Gorman has become more media shy following
the messy court drama involving former partners that enfolded out of the
failure of the Gadget Shop retail chain. In the end, Gorman and fellow
entrepreneur Tom Hunter won the case.
(Update 15-December-2006)
365 MEDIA GROUP ACQUIRED BY SKY TV
TV broadcaster says deal will improve exposure to promote gaming
and betting activities
The British television broadcaster BskyB has confirmed the conclusion
of a deal through which it will acquire the 365 Media Group , until recently
known as UKbetting , for a total consideration of GBP 96 million.
365 Media runs gambling and sports Web sites including Football365 and
Sportlinglife.com which reach over 9 million users each month. BSkyB
launched its broadband service in July and a deal to buy 365 Media is
a good fit with its expansion of online content.
In a statement on the agreement, Sky said the acquisition would bring
it improved exposure to the fastest growing segment of the UKs
advertising market and a broader platform to promote Skys gaming
and betting activities. BSkyB is 39 percent owned by Rupert Murdoch's
News Corp .
365 Media recorded a 16 percent rise in gross profits for the six months
to the end of June 2006 and a positive cash balance of GBP12 million
for the same period.
Peter Dubens , chairman of 365 Media, said: Since the admission
of 365 Media to AIM in August 2001, we have created a significant player
in sports websites and online gaming. We acquired extremely good
online brands in the aftermath of the dotcom crash, including websites
such as Football365.com, SportingLife.com and Cricket365.com and an odds
comparison website (Oddschecker.com).
"We are now one of the largest online sports networks in Europe,
attracting over 9 million discerning and dedicated sports fans per month
to our network of websites.
BESTPOKER.COM JOINS ONGAME
Swedish poker operator joins European-focused poker network
Players on theScandinavian Internet poker site Best Poker.com will this
week become part of the expanding Ongame network, joining millions of
players on other websites pooled under the Ongame system.
Best Poker's switch to Ongame takes place this week, when the site departs
the B2B - 24H network.
Henrik Persson , chief executive of Best Poker, said: We chose Ongame
due to its technologically superior software, large number of players
and the fact that they also offer a Java version which enables our customers
to play directly from the website without having to download any software.
In addition, Ongame Network allows us to customise our interface to a
great extent.
Ongame, which is a subsidiary of the Austrian public company Bwin, is
member of eCOGRA, the player protection and standards body which monitors
all software and operational activity on its member sites to ensure fair
play and efficiency.
Martin Lerby , head of Ongame, complimented Best Poker on becoming such
a strong force in the Scandinavian market in a relatively short timespan,
and revealed that the company would be launching the first online VIP
Shop on the network.
CHRISTMAS BONANZA IN NEW GAMES FROM MICROGAMING
Six new games in final festive season releases
Festive games feature in Microgamings final batch of
releases for the year, with sufficient diversity to appeal to players
at every level. The latest games bring the total of new releases for
2006 to over 60 titles from the Isle of Man based turnkey provider and
software developer.
Video slot Santa Paws extends Microgamings selection of big, seasonally-themed
fun games with a 5 reel, 20 pay-line game in the highly entertaining
Australian style, with free spins, major mystery multipliers, Scatter
and two Wild opportunities and a Gamble feature where the intrepid can
double or quadruple their wins. Santa Paws offers jackpots of 20
000.00 in the base game, and the chance to send that Christmas present
rocketing up to 140 000.00.
Jingle Bells is the latest Microgaming Reel slot and has a high roller
jackpot of 30 000 on the maximum bet of 25.00. This straight-shooting
3 reel, 5 pay-line Christmas-sackful of entertainment and reward evokes
the spirit of the season the moment players open it up, with the glossy
green of holly contrasting with the golden bells and red berries from
your earliest festive season memories.
This is the sort of no-frills slots much favoured by fast-playing, hard
action gaming fans. The holly-clad bells are the Wild symbols that
substitute for all icons and can help players complete a winning combination
to reach the 30 000.00 jackpot and a truly Merry Christmas.
For those not yet ready for Christmas, take a trip back in time to an
era when socks were neon and hair was big; a time when Depeche Mode,
Duran Duran and the guys from Oz called Men At Work held sway. It's
the 'Eighties and the Crazy 80's 5-reel, 9 pay-line video slot recalls
those great times. With generous Wild and Scatter symbols to increase
player chances of winning and multiply that bottom line, this offering
comes on the outstanding Viper software platform - it's state-of-the-art,
high-tech slots wizardry showcased by vibrantly colourful artwork to
set that 'Eighties scene.
Vegas Single Deck Blackjack is presented in the high action Las Vegas
tradition that has proved immensely popular. Microgamings
games development team has used a robust and well proved blackjack gaming
engine to ensure the smoothest and fastest action yet which plays with
only one deck of cards. It is an American Hole Card game (the Dealer
peeks on 10 value cards and aces) which does not offer the option for
Surrender and only allows a player to split once per hand. The Dealer
is forced to hit on Soft 17. Blackjack pays 3:2, while Insurance pays
2:1. The game caters for a wide range of playing styles and bankrolls,
and players can gamble from denominations as small as 1.00 a hand right
up to 200.00. The chip pile resizes to make up the current bet with the
least possible number of chips.
A major video slot release with a sumptuous Asian theme, Lady of the
Orient sparks images of those exotic far away places with strange sounding
names in a happy celebration of Eastern culture and beauty. This new
5 reel 20 pay-line game delivers several opportunities for reward that
players will find thrilling and attractive, all combined in an engaging
mix for maximum entertainment.
There's the stunning Lady herself, for example. When she appears on
reels 2, 3 or 4 she not only provides substitution opportunities to make
up winning combinations, but she can trigger 3 bonus rounds where the
player faces an exotic lacquered cabinet in which tranquil gold, silver,
ruby and jade idols rest. The player has six chances to match 3 of the
idols by colour to win a generous prize multiplied by the triggering
bet.
Players can explore the winning possibilities of this treasure trove
of the Orient for as little as a cent or as much as 200.00 on a maximum
bet. By way of returns, it is possible to generate a big win of 50 000.00
in the base game, up to 150 000.00 on the Free Spins and 10 000.00 in
bonuses - that sort of payday challenges even those achievable on most
progressive jackpots.
From the Oriental lady to Inca Gold , where the golden Inca amulet is
one of the keys to success in an outstanding 5 reel, 20 pay-line video
slot. 3 of these symbols will reward the player with 5 Free Spins where
all free spin prizes are doubled. More importantly it brings forward
the first of 4 levels that enable the player to climb an Incan stone
pyramid to the riches hidden at the top. Select the right stone blocks
and the climb begins, with the prizes becoming richer or the additional
free spins more generous as each level is reached. Up to 35 spins, and
the rich returns associated with these can be won.
When the player reaches the summit, there's the final mystery blocking
the way to wealth - open the door, and if the centuries-old treasure
is available it's worth a mouth-watering 150 x the triggering bet! This
game also offers unsuccessful players a consolation prize of twice the
triggering bet and they get to keep any prizes accumulated on the way
up. For as little as a cent, or as much as 100.00 on the maximum
bet, a player can enjoy hours of entertainment laced with the exciting
potential of wins in the base game up to 50 000.00, on the Free Spins
double that and on the bonus possibilities up to 18 000.00. It
is a treasure of Inca Gold delivered on the top slot gaming technology
on the Internet.
There's another icon to look for in this enthralling game: the rather
fierce looking high priest who substitutes for all symbols except the
magic golden amulet. The priest's flexibility in the substitution role
enables players to build winning combinations where the prize is doubled.
The new games package has the potential to keep online gamblers entertained
for hours over the holidays.
DISPLAYING THE DISPUTES
Transparency important for disputes mediator Bailey
Bryan Bailey , the owner and webmaster of online gambling portal Casinomeister.com
has introduced a new feature to his site that enables players and operators
alike to see for themselves the disputes that he has under mediation,
who is involved and how they were resolved or otherwise concluded.
Since 2001 Bailey has made dispute resolution an integral part of his
offering, becoming involved free-of-charge on behalf of players who were
being ignored when they had legitimate complaints. By using his wide
range of industry contacts the webmaster was able to sort out misunderstandings
and put questionable operators - and players - on the right track to
resolution and more responsible behaviour.
The disputes load grew with the industry, and Casinomeister soon introduced
a special "Pitch A Bitch" page to handle the volume.
"Casinomeisters mission is to provide information and post
complaints to help eradicate fraud," says Bailey, who advocates
a balanced and fair approach for both casinos and players. "Our "Pitch
a Bitch" section was developed so that the free flow of information,
both good and bad, would protect the consumer in legitimate cases."
The webmaster gives both sides the opportunity to present their perspective
on disputes, but is scathing in his criticism if the complaint proves
to be false of fraudulent, or if the operator does not communicate or
have a fair justification for decisions against players.
Because the Casinomeister site has a significant readership, his independent
mediations and 10 years experience in the industry ensure that negotiations
have clout and are mostly successful.
This week, Bailey took the "PAB" information to another level
by publishing the disputes he has dealt with in recent months so that
these can be studied by both industry people and players. It immediately
showed that Bailey, who is a one-man-band in this area, has plenty of
action on the go.
In November he handled 62 issues, and December has already produced
a crop of 15. He will shortly be publishing October's disputes, too.
Writing in his newsletter, the webmaster says that his perception is
that disputes are increasing.
"It's alarming," he writes. "Some people consider Casinomeister
to be a good place to get the "pulse" of the industry - if
this is the case, then we need a paramedic! I used to have casinos lining
up wanting to get on board as Casinomeister "Accredited Casinos",
now they seem to be lining up to get into the "rogue section".
"Please don't get me wrong, I absolutely hate roguing casinos.
It sucks - but I feel obligated to my visitors and Casinomeister members
to let them know what's up in online casinoland.
"What is really bothering me is that we are seeing more instances
of confiscated winnings, locked accounts, and accusations of bonus abuse.
What ever happened to "pay the player - then lock the accounts" of
unwanted "bonus players"? This was a mantra for respectable
casinos, but it seems to be thrown to the wayside post UIGEA.
"I really hope that operators consider their role in this industry
as a long term commitment to respectability. And I hope that they
stay on a firm path of treating players with respect and fairness. To treat
players with contempt will undoubtedly have negative consequences in the
future."
BRITISH COLUMBIA LOTTERY UNDER THE SPOTLIGHT
Doubts about another Canadian provincial lottery
In a worrying sequel to last month's reports that the Ontario
provincial lottery was the subject of an investigation by the regional
Ombudsman (see previous InfoPowa reports) the Metro Vancouver this
week revealed that similar concerns have been raised about the
British Columbia lotto, too.
The publication reported that local lottery fans are
worried by the news that BC retailers selling lottery tickets are
an unlikely average of six times more likely to win a jackpot than
the general public, according to internal B.C. Lottery Corporation
documents obtained by the Vancouver Sun.
The article goes on to interview members of the public unhappy
with the situation, and quotes BCLC spokesman Paul Smith , who
revealed that the corporation is considering turning 70 percent
of its retail distribution sites into self-serve ticket machines
next year.
When asked about the alleged discrepancies between lotto retailer
wins and the general population, Smith said winners of prizes over
$10 000 are carefully screened, and the BCLC is currently conducting
a review of its lottery system.
The report follows similar alleged anomalies in the high ratio
of ticket retailer wins discovered last month by Toronto University
statisticians, which led to the Ombudsman in Ontario declaring
an investigation in the public interest.
CONFERENCE CORNER
Legal and regulatory gathering in Brussels
Clarion ATE has announced the dates for the third annual European
Gambling Briefing (EGB), the gathering of leading gambling regulators,
lawyers and operators from across Europe.
The two day briefing will be held at Le Meridien in Brussels on May 8 and 9
2007, and will tackle both sides of the debate on how gambling should be controlled
across Europe in both an on and offline capacity, and looks beyond to developments
in Asia, South Africa and other emerging markets.
All key regulatory and legal developments will be studied, with a practical
focus on what these actually mean for the operators; the pitfalls, the opportunities,
and the threats.
NOT A FIRE SALE AS e-CASH PROCESSOR SELLS REMAINING
25 PERCENT TO OPTIMAL
FireOne to become a wholly owned subsidiary for GBP 32.4
million
The Montreal-based payment processing provider Optimal Group Inc
., has bought the remaining 25 percent of FireOne Group plc that
it didn't yet own, reports Bloombergs.
Optimal agreed to buy the remaining quarter of FireOne Group Plc
18 months after it sold shares in the subsidiary. The 60 pence-a-share
offer, which values FireOne at about GBP 32.4 million ($63.5 million),
is 12 percent more than FireOne's closing price yesterday, Dublin-based
FireOne revealed in statement.
Bloombergs reports that FireOne shares lost a quarter of their
value on October 10 after the company said it would stop processing
U.S. transactions following a new law aimed at banning Internet
gambling financial transactions in the U.S.
The independent directors at Optimal said in a statement that
they believe that FireOne's future as an independently listed entity
is uncertain. On news of the purchase FireOne's stock price escalated
almost 10 percent, a welcome change for investors who saw their
shares slump almost 80 percent since the initial share sale in
June 2005.
Optimal, which owns 74.2 percent of FireOne, said the "synergies
and benefits of scale'' of an acquisition would help improve the
company's performance.
The acquisition is subject to approval by FireOne shareholders
SUPERIOR POKER RE-ENTERS THE U.S. MARKET
No explalantions for their exit, but it's nice to have
them back anyway
The Action Poker Network site Superior Poker.com has announced
that it has re-entered the U.S. market with effect from December
1 and will be offering a full range of poker services and tournaments
to US players going forward.
American poker players are now able to deposit real money through
a good choice of methods and play real-money poker games at this
poker room, which initially opened for business in 2003 and is
licensed by the Kahnawake Gaming Commission, and owned and operated
by Sonsorol NV in Curacao, Netherland Antilles.
"We're serious about all players, and we continue to believe
that online poker is a skill game and is not affected by the recent
legislation passed in the United States," commented Superior
Poker.com's Manager, Charles J. Burton , referring to the Unlawful
Internet Gambling Enforcement Act (UIGEA).
No reason was given for the change of company strategy.
SuperiorPoker.com offers a selection of poker games, including
Texas Hold'em, Omaha and Omaha Hi/Lo, Guts, Chinese Poker, Big
2, and is one of the few poker rooms offering Panguingue (Pan).
SPORTINGBET WILL MEET ANAYLST'S EXPECTATIONS
It's been a tough phase, but the Brit business group
is enjoying a successful fight-back.
Sportingbet plc was one of the UK publicly listed companies hardest
hit by the advent of the UIGEA, which forced the group to withdraw
from a US market that provided most of its profit, and sell off
US-facing interests only months ago.
Since then it has been changing market focus and pace, and this
week a spokesman revealed that it expects to meet analysts' full-year
earnings forecasts even after disposing of its U.S. operations.
"Sportingbet is trading in line with market expectations," the
spokesman said.
Sportingbet had to exit the lucrative U.S. market, selling its
sports-betting, casino business and poker operations in October
to Antigua-based Jazette Enterprises Ltd. on the day that U.S.
President George W. Bush signed a law that criminalises online
gambling fund transfers.
Associated Press reports that currently 8 U.S. states have laws
specifically prohibiting Internet gambling: Washington, Nevada,
Illinois, Indiana, Louisiana, South Dakota, Michigan and Oregon.
VIRGINIA COPS POOL TECH RESOURCES
Computer crime on the rise
Computer crime is on the rise everywhere. Few police departments
have the resources to do much about it, but that may soon change
in central Virginia.
It used to be a police or sheriff's department would get just a few computer
related crime complaints a month. Now one comes in just about every day. Most
agencies can't deal with them on their own.
Eight agencies in central Virginia have decided to join forces. Each member
agency is providing a part-time investigator to help combat Internet related
crimes. They have already nabbed a woman who ran an adoption scam in Campbell
County. They also nabbed a man who used a fake identity to run up online gambling
debts.
The investigators are working out of offices in Rustburg, where they can forensically
analyse a seized computer, do online research, or pose as potential cyber victims.
They gain more knowledge and expertise with every case.
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