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WAGERWORKS TAKEOVER
US$ 90 million deal clinched on San Francisco company
The big story this week started with whispers that the major land casino slots manufacturer IGT was in discussions with gambling software developer WagerWorks on a US $90 million cash purchase merger.
Within days the speculation was confirmed, with the deal scheduled for completion before the end of August 2005.
WagerWorks recently opened a London office, staffing it with some senior people in what was believed to be part of a strategy to float on the London Stock Exchange, and it is unknown how this will be affected. The company has pursued a policy of not accepting bets from US players, which leaves it with clean hands from a US legal standpoint.
The company has a good working relationship with IGT, having provided software for some of the latter's slot machines despite its more usual business line of software and support for online casino and poker operators outside the USA.
Analysts said WagerWorks' policy of working exclusively in jurisdictions that permit Internet gambling and avoiding companies that offer play in the United States should enable IGT to dodge any regulatory problems.
"This acquisition gives IGT a foothold in Internet gaming without worry about jeopardizing its gaming licenses, since WagerWorks does work for only licensed and regulated sites," said Eric Hausler, a gaming analyst for Susquehanna Financial Group, in a note to investors.
"Internet gambling continues to explode in popularity driven by the proliferation of poker," Hausler said. "We see it more as a vertical play with longer-term accretive implications, although we see IGT more as a back-end supplier and content provider than interested in going into competition against brick-and-mortar customers. We see the acquisition as strategic, not transformational, given a myriad of regulatory issues surrounding mobile or Internet gaming, which may or may not get solved over time."
WagerWorks products power major online casino and poker operations in the UK like Virgin Games and Get Minted, together with Blue Square, Skybet and Paddy Power. It was also recently selected to power up the WPT poker site.
IGT has deep pockets, being a leading company in the US gaming industry - it recently reported results for the quarter ended June 2005 that showed a net income of US$ 114.7 million.
BILLIONAIRES, MUNCHKINS AND A GOOSE WITH GOLDEN BONUSES IN LATEST MICROGAMING RELEASES.
Players can choose bonus benefactors with the innovative Cashville
Online gambling software provider Microgaming’s July 2005 new game releases include a 50 Power Play Poker VP, and three feature-rich video slots with widely diverse themes.
This month’s flagship is a unique and highly entertaining 5 reel, 20 payline video slot that oozes wealth and the high life. Cashville has it all and then some. Wild and Scatter symbols, Free Spins, a double your money Gamble feature and for the first time a choice of 4 entertaining and rewarding bonus benefactors. The result is an impressive range of thrills and excitement packed into a major game with serious and varied reward potential.
Using a rich colour palette and the latest graphic design techniques and gaming technology, the theme introduces a variety of amusing bonus symbols and personalities, including oil baron Bill Bullion and a choice of oil rigs, the blue rinsed Dame Von Deeds with her tempting property portfolio, a suave Sir Sterling with his many bulging bank vaults and the extraordinary art collection of blonde widow Betty Boodle. Enhancing the monetary theme further are gilt-edged share certificates, Havana cigars, priceless jewelry and lots of lovely greenbacks.
In keeping with the overall ambience of wealth and success, the maximum jackpot on this game is a tempting 500 000 coins or 100 000 in currency, and lucky players could add another 9 000 in currency to that through the bonus feature.
In last month’s releases Microgaming introduced the Golden Goose bonusing program with 2 of an intended 4 new slots using the innovative concept. In a remarkably short time the Golden Goose Bonus seems to have enjoyed a positive reception from the player community, encouraging the company to launch the third game in the series called Genie’s Gems. With magic lamps and a generous genie this entertaining 5 reel, 20 payline, 10 coin game, with Wild and Scatter symbols, a Free Spin Bonus Feature, and a Gamble feature will have wide appeal delivering plenty of entertainment.
For an additional wager of five coins per spin, players have the option to activate the Golden Goose bonuses...creating more chances to win significant rewards.
Mythical household critters have nibbled their way through the graphics in the fun third slot in the July releases, branded Munchkins, a 5 reel, 15 payline video slot that boasts win-boosting Wild and Scatter symbols, a very generous x20 Free Spin Bonus Feature....and a chance for player to double their money on the popular Gamble screen.
The new game takes a light-hearted look at the folklore surrounding the tiny gluttons, which are mythical creatures of the night who eat everything from missing car keys and lost socks to mysteriously disappearing homework books.
Final game in the latest tranche is 50 Play Power Poker Deuces and Jokers, the latest in a series of 6 gamestyles that Microgaming is offering in this popular VP genre that offers fast action and big jackpots paying up to 120 000.
In Deuces and Joker every hand is dealt from a separate and independent deck of 53 cards instead of the normal 52 cards. The extra card is a Joker and is a wild card and substitutes for all cards to complete a winning hand. The Deuces in the deck are wild and substitute for any card to complete a winning hand. The Deuces are cards with a face value of 2.
When a Deuces or Joker card is dealt, a suit and denotation are automatically assigned to the card giving the player the highest possible payout for the hand.
Deuces and Joker 50 Play Power VP operates on the peerless Viper software platform, where in addition to autohold, the analyser tables give guidance on current odds and cover permutations to help gamblers make the right decision - a valuable player tool that enables faster and more accurate play
With razor sharp, clean and lean graphics allied to generous pay tables, it is likely that this new 50 Play game will feature high on the play lists of most VP fans.
NEW ENTRY TO ONLINE POKER AND CASINO SECTOR
ubet2win has British and Irish backing
British and Irish bookie group ubet2win could be moving into the online casino and poker sector once it has completed next week's debut on the London AIM stock market.
The company has raised around GBP 239 000 via a public offer at 3.5p a share, more than double the original GBP 100 000 expected, valuing the business at nearly GBP 5.5 million, thanks to the positive sentiment on gambling stocks following PartyGaming’s high profile big listing last month, with its shares up almost 40 percent in four weeks.
Discussions have reportedly taken place with online poker providers with a view to setting up a poker gaming site, with an online casino also anticipated in the future. ubet2win says that something like 6 percent of UK horse racing bets are now placed online.
REGULATORS ACT ON FOXWOOD'S "PLAYAWAY"
But the Indians say no way....
InfoPowa's recent report on the ingenious ploy by Foxwoods land casino to introduce interaction over the Internet with its customers had a sequel early this week when State regulators ordered it to shut down the "PlayAway" promotion saying it violated Internet gambling laws and illegally expanded gambling off the Indian reservation.
The casino, among the world's largest, markets its "PlayAway" promotion as a way to play slots and card games from home, although all financial and win-lose decisions take place within the reservation and on the Foxwood premises.
The Mashantucket Pequot Tribal Gaming Commission said that it was reviewing a letter from the state Division of Special Revenue.
Following a meeting with Attorney General Richard Blumenthal the tribe stood its ground, saying its activites were legal.
"Nothing the player does from his computer can in any way impact on the outcome of the game, the results of which have already been determined by a computerised drawing at Foxwoods," the tribe said in a statement released Wednesday.
PlayAway allows gamblers to put their money down at Foxwoods, then check results online. The casino argues that it isn't Internet gambling because all the betting is done at Foxwoods.
"We certainly understand the argument," Blumenthal said, "but it is clearly contradicted by their own marketing for the game."
Blumenthal said the game was a magnet for minors.
"This game has to stop," he said.
By midweek further grounds for banning the game had emerged, principally that it had not been submitted for approval by the regulators.
More state officials were commenting, as Foxwoods stood by its intention to launch the game and a confrontation seemed inevitable with both sides making strong statements.
Towards the end of the week a more conciliatory tone had set in, and Foxwoods had held discussions with the regulators, although as we went to press no firm outcome was apparent.
COOL CASINOS
Poker site
We've reported on the Full House Entertainment company out of Curacao previously as the company developed its exclusive poker software. This recently led to the launch of Poker Round.com, a fresh contender in the competitive online poker field and capable of hosting an unlimited number of tables and customers.
Pokeround delivers 24-hour non-stop and fully supported poker action against real players from all over the globe, with a selection of 5 games including Five Card Stud, Texas Hold’em, Omaha High/Low, Seven Card Stud High/Low and Five Card Draw.
The site was designed with the player experience front-of-mind and features easy to navigate lobby systems, crisp graphics and intuitive betting commands, all safely behind a 128 bit encryption regime and effective proprietary collusion detection software.
Management plans include hosting tournaments that have unique and significant prize winnings.
Sportsbook launch
Also from Curacao, Mercury Sports N.V., has launched Upunt.com, a new sportsbook operating on the Spherical Gaming platform.
With online sport-betting at an all time high, Upunt players have the opportunity to use the site to
bet on a wide variety of sports including Soccer, Horse Racing, Tennis, Golf, Cycling, Motor Racing, Rugby, Cricket, and Props.
The site promises fast and secure betting transactions along with a variety of deposit options, and manager Bill Thomas says that full player privacy confidentiality is guaranteed.
LAW ENFORCEMENT SUED BY POKER TOURNEY COMPANY
No cash money involved in North Carolina poker tournaments
Media advertising for online gambling companies in the USA is not the only sector that has come under attack from the authorities, it appears...and there's a company out there that, like online gambling portal Casino City is prepared to challenge the activities of law enforcement agencies.
Charlotte-based 5th Street Entertainment LLC has launched litigation against five North Carolina law enforcement agencies for declaring that land poker tournaments run with prizes but no cash money is illegal.
The company, which organises poker tournaments, said that law enforcement agencies have prejudiced its business by declaring the games illegal and warning that restaurants or bars that host them could lose their state liquor licenses. The tournaments have been forced to stop awarding prizes as a consequence.
Company attorney William Bunting claims that: " North Carolina's gambling statute requires that something of value be bet in order to be considered gambling. This is merely a game people get together and play."
TURKISH AUTHORITIES INVESTIGATE ONLINE GAMBLING
Opposition party politicians quiz government
The Turkish politicians were at loggerheads again this week over the question of enforcement of the law concerning online gambling.
Turkish media reports claim that the authorities are experiencing enforcement problems due to the offshore nature of some thirty Turkish language gambling websites...and the Justice and Development political opposition party is riding the government hard on the issue.
Last week opposition spokesman Ertugrul Yalcinbayir claimed that an increasing rate of virtual gambling existed in the country and submitted a list of questions to Interior Minister Abdulkadir Aksu.
The questions included "What means can prevent our people from gambling? What is the economic size of online and other kinds of gambling in Turkey? Does Turkey have the power to prevent online gambling? What kinds of precautions can be taken?"
Aksu said in his reply that online gambling and lotteries are illegal and therefore legal action will be taken where possible against these sites upon detection. The Ministry has issued directives to prevent online gambling and new investigations on the issue are on the way, he reported.
Aksu said that The Ministry cannot prevent online gambling sites as their roots are outside Turkey and in countries where online gambling is not illegal. However, Turkish officials would be contacting the hosting companies of these sites to demand that they are not be made available online in Turkey.
CASINO CITY VS DEPARTMENT OF JUSTICE : ROUND 2
The feds respond
Casino City's challenge to the U.S. Department of Justice entered the next phase this week as the latter responded to Casino Citys appeal against a district court decision preventing it from being heard.
Casino City had earlier challenged the activities of the DoJ, which had been advising US media that accepting advertising from online gambling companies was illegal. There have been no prosecutions, but this resulted in significant losses as media and search engines backed away from such a risk and denied advertising space.
Legal representatives for Casino City used the freedom of speech provisions of the US Constitution in arguments before a district court, asking for a declaratory judgement. The company lost this first round when the court found in favour of the federal authorities, who claimed that because it had not been one of those companies directly addressed with a warning, CC had no standing to contest the issue.
Casino City then appealed to a higher court, and this week the DoJ filed its response, using the same grounds and seeking to have the appeal dismissed by the US Court of Appeals for the Fifth Circuit.
As we went to press, Casino City remained determined to press its case, and was preparing a riposte to the DoJ brief.
MAJOR SKILL GAMING TOURNAMENT PLANNED
16 000 players to vie for GBP 10 000 grand prize
Starting last Friday, one of the top providers of skill gaming, GameAccount.com is offering a tournament of note to players across 130 countries.
Claimed as the world’s largest Solitaire tournament, with a grand prize of GBP10,000 attracting an estimated 16,000 players, the competition format is 14 rounds of the popular card game 'Pyramid Panic.'
With minimum outlay and a good chance of reward, the tournament has a GBP 1 for each entry. Players may enter as many times as they may wish to improve their chances. The tournament is structured to offer ever increasing prizes with each round, and players have to beat 14 opponents to win the grand prize.
Kevin O’Neal, Marketing Director at GameAccount, the tournament is just the beginning of a significant campaign to take the skill games market to new heights.
“We intend to make remote skill gaming the new poker,” said O’Neal. “By the end of the year we plan to launch the first GBP 100,000 skill gaming tournament, which will generate attention and boost the position of skill games in the online sector.”
Skill gaming has been rapidly maturing in player size, revenues and cash prizes over the last 3 years; GameAccount paid out over GBP 1 million in cash winnings in June this year alone. The pioneering skill gaming provider has reported that next generation games and knockout tournaments are increasing average stakes and lifetime customer value.
PROMO TRAILERS?
'Forthcoming attractions' via videostreaming
The movie industry has been doing it for years - publicising its new offerings by short "trailer" movies to boost interest and attendances...now the concept has been extended to online gambling.
The Stan James.com site has introduced a 90 second daily presentation advising users of the offers, markets and features available at the sportsbook and across the companys growing casino, poker and gamesroom channels.
Developed by Dublin-based media production company, SonicArt, the technique has been possibly by technology improvements in compression and streaming, says SonicArt director Neil Walsh.
“It’s a very digestible way for a company to get information across to their consumers,” he says. “The majority of websites have only textual content in place to inform their customers, but now a site user can sit back and get up to speed with audio visual presentations full of calls to action and corporate branding.”
Content can include visuals, voiceovers, background music and animated text, and the feature is accessible on dial up connections as well as broadband.
WORLD GAMING LICENSEES NAMED
And that upcoming acquisition could be a sportsbook...
In a recent InfoPowa bulletin we reported on World Gaming's rising share price and the companys intention to take on additional licensees and make acquisitions. It now transpires that the acquisition target is a medium sized sportsbook, and discussions are in progress with at least two potential candidates according to reliable industry sources.
The firm has revealed the identities of two new licensees in the form of Field Goal.com and Go Sportsbet.com. The announcement additionally advises that as part of one of these agreements it will license its rights to several of its proprietary domain names, including Gambling.net.
World Gaming has come through some tough times and hefty restructuring in recent years, largely inherited through the old Starnet group that it replaced. The turnaround strategy of head honcho Daniel Moran seems to be working admirably, with increasingly positive corporate reports emanating from the London-listed company.
ASIAN SPORTSBOOK FOR ALDERNEY JURISDICTION
Shell company now shows its hand
Sportswinbet listed earlier this year under a blanket objective of investing, acquiring, developing or agglomerating companies in the online gaming sector, and this week it showed its hand in revealing plans for an Asian-facing sportsbook based in the Channel Isles jurisdiction of Alderney.
After raising GBP 3 million on the exchange with a market capitalisation of GBP 28.5 million, the company established an egaming subsidiary and applied for an Alderney licence together with a hosting deal with Cable and Wireless. Hardware and software deals with undisclosed parties have also been clinched, laying the foundations for a sportsbook, probably Asian-facing as a result of meetings with several potential Asian partners.
If all comes to fruition, the resultant sportsbook would become the second Asian-focused operation of this nature to set up shop in Alderney. Asian-owned bookmaker SAMVO, which plans to operate an international football and basketball site, has an electronic betting licence from the island jurisdiction.
BET ON SPORTS BULLISH OUTLOOK
ex-Carmen Media men could make a difference
Despite a rather disquieting sell-off by one of its biggest shareholders, BetonSports remains bullish on its future, with a dynamic management partnership involving ex-Carmen Media men shaping up.
Based in Costa Rica, but with the US gambler clearly in its sights, BetonSports is predicting a rise in profits for the first half of this year, and there has been a noticeable change in corporate strategy evidenced by major investment in online marketing spend.
The advertising and marketing budget is set at a substantial $14.4 million, and over $10 million of this has already been committed. The company will publish its report in October 2005.
Making things happen with this marketing war chest is the recently recruited William Griffiths as marketing director. This experienced executive worked closely with the new BetonSports operations director Clive Archer during his time at the Carmen Media online casino group.
Another new arrival is Scott Waller as Chief Technical Officer. He will have his hands full with a reported complete software upgrade scheduled for early 2006. The company has also reiterated that it is in the market for acquisitions, although the going rate for worthwhile buys is inflated at present, fuelled by the successful flotation of Party Gaming in the sector.
The recent sell off of a major part of its shares by BetonSport's largest shareholder, Boulder Overseas Corporation had a disquieting effect. Boulder sold GBP 28.75 million worth of it's 43 percent holding, although it retains an interest of 15.46 percent of BetonSports.
NOT QUITE AN UNBIASED APPROACH
This journalist is looking for the negative....
Readers will be familiar with the mainstream media penchant for tragic gambling addiction stories, and it appears from an email sent out by a leading women's publication this week that this is a desirable element in a gambling story....for some.
A researcher or journalist called Laura at "Marie Claire Ideas @ IPC Media.com" sent the email, and this is what she had to say:
"My name is Lauren and I am writing on behalf of the women's magazine Marie Claire. Currently we are try to write a feature on women gambler winners.
"So far we have the potential for three pieces on poker, internet poker and the horses. We are now just trying to find an example of a winner from internet games such as Jackpot joy.
"Preferably, to make the story more interesting, we are also looking for this candidate to be a sufferer of gambling addiction.
"If you have any ideas or leads that might aid me in finding the right person could you please get in touch asap for the matter is quite urgent. I would really appreciate it!"
Well, here's one idea - an even handed approach that looks at the many positive things happening in online gambling.
PRIMA POKER MOVES
Belle Rock Gaming redirecting poker traffic to premier site
It looked like the end of the road this week for the Prima network site Lucky Nugget poker room.
Belle Rock Gaming was advising affiliates that traffic would be re-directed to their flagship poker room at The Gaming Club.com, another member of the network.
The advisory said that "Belle Rock Gaming is consolidating all its poker brands into one strong, phenomenal brand. One brand means more control, better customer service and improved player retention."
It went on to advise that the change will ensure that all players are carefully looked after, leading to increased play and extended player lifetimes.
All current Lucky Nugget poker room players will be able to continue their game play without disruption. If players click onto either text links or banners, they will be automatically redirected through to a new home page that will then prompt them to click through to The Gaming Club Online Poker Room.
The change will not effect affiliate commissions in any way and systems are in place to track players through to The Gaming Club.
In fact, says Belle Rock, this is good news for affiliates because they will only have one major poker brand on which to focus player retention efforts, giving them better control. And for the players, this is apparently an improvement too, as they will probably find the bigger online poker environment more attractive.
GETTING TOGETHER
A collective voice for poker players
With an estimated 50 million or more online and land poker players in the United States alone, and the phenomenal popularity of the game on a global scale, it is not surprising that the need for a unifying body for poker players is being discussed.
This week Poker News interviewed the latest manifestation of that need - the recently launched National Poker Association (myNPA.org)
Located in Franklin, Tennessee but with big ambitions to embrace all poker players, the NPA has apparently already been able to procure some excellent benefits for members and has growing appeal for players at a very reasonable cost ( a one year membership costs $25).
President Wes Parker said that the organisation may be moving to the more appropriate location of Las Vegas within the next year. The NPA, he told Poker News is designed for the everyday poker player and would like to become the lobbying group for poker players everywhere, expanding the game. By being "...a forceful lobby for the game of poker, we hope to have an impact in that area, among others, including legislation," he said.
Another key objective is to secure favourable discounts and other benefits for NPA members, and good progress has been made in partnering with many companies resulting in travel, hotel and car rental deals. The committee is also investigating insurance possibilities for players.
Parker says one of the difficulties faced by the NPA has been informing the massive poker playing public about their aims and organisation, although the NPA has been listed on Google.
"We are looking for the grassroots player, much like the USGA does with golf," he says. "We want to represent everyone who plays the game, not just the big names in the sport or the professional players.
"Poker is mainstream America now, not just in the backrooms and the shadows anymore. As our membership and the sport grows, we will have a more powerful voice to be able to have an effect on the matters that are affecting players in the sport today."
Another, and perhaps more structured, if parochial organisation is the United States Poker Association (Foruspa.org) which has more of a trade association flavour and has various programs designed to meet specific industry requirements:
Establish, in close conjunction with the tournament directors, a uniform set of rules for the competitive play of the game.
Develop grass-roots support for legalisation of poker rooms in those areas that currently prohibit them.
Facilitate discussions among parties interested in expanding competitive event revenues for all participants.
Establish policies and procedures for the endorsement of poker rooms and casino card rooms.
Establish uniform standards for internet poker rooms to assure consistent and fair play.
Conduct educational seminars for the general public to promote the expansion of competitive play.
ULTIMATE BET GOING PUBLIC?
Favourable sentiment makes this a good time.
Speculation is rife that Ultimate Bet is warming up for a GBP 200 million flotation in the near future, hoping to emulate the positive effects of a London listing experienced by Party Gaming and Empire Online.
Operator Excapsa has engaged Canadian brokerage experts Canaccord Capital to consult on a possible listing, hoping to raise at least GBP 30 million that would give it a market cap between GBP 145 million and GBP 200 million.
Launched five years ago, Ultimate Bet claims to be the seventh largest site in the booming online poker sector and has a gaming licence from the Kahnawake enclave near Montreal in Canada. It has recently launched in the UK under the Ultimate Poker brand.
CEO Jim Ryan will continue to head the company.
GAMBLING.COM CO-FOUNDER KILLED IN CRASH
Tragic end for a talented young man
Craig Levin (31), who founded Gambling.com with his father, Graeme died tragically in a car accident last Friday July 22nd.
Widely known and popular within the online gambling industry, he was at one time Chief Technology Officer of what became the best known and most frequented Internet gambling portal in the business, which his father headed until it was sold in a management buy-out.
The company was recently purchased by UK-based Gaming Corporation in a $20 million deal.
Following the first sale of Gambling.com 18 months ago, Craig continued his successful involvement in the management of the portal backend and was active in developing Bingo interests.
His funeral took place earlier this week in Johannesburg, South Africa.
The InfoPowa partners extend their sympathy and condolences to Graeme and the family on this sad loss of a talented and likeable young man.
FIXING CARIBBEAN 21
Real Time Gaming announces fix for flawed game, and is "researching" player compensation
The short paying of players on the RTG "Caribbean 21" game across a range of online casinos had a sequel this week when the turnkey provider issued an official statement on the issue.
Titled "RealTime release fix for blackjack 'bug', " the statement said that ythe provider had sorted out the problem and was now researching the extent of the prejudice to players and appropriate compensation.
Representatives from RealTime Gaming announced the delivery of a new patch for the blackjack game, designed to fix the short paying error discovered in the latest release of their online casino software.
Delivered to RTG-licensed operators on July 15, 2005, the patch rectifies a program "bug " that was discovered in the blackjack component of the online casino software.
The bug came into play when some blackjack players were in a bonus-balance play mode and then split aces. In these limited instances, wager values may not have been logged correctly, resulting in possible failure to reward some players correctly for winning plays.
RealTime Gaming personnel and RTG operators are currently researching and compiling each instance where the problem may have occurred, and promise full player restitution in cases of program error, with payouts coming as early as next week.
"We are committed to helping to set everything right with each and every RTG player, and are very thankful for their patience," said recently appointed RTG CEO Michael McMain. "Thus far, most of the players have been very understanding."
McMain went on to reassure players and operators that the bug was an isolated wager calculation fault and in no way had anything to do with the TST Certified Random Number Generator that powers the RTG platform. "Sooner or later, you are going to have a bug to deal with," says McMain, who was formerly the companys head technical executive. "Luckily, this is one we caught early, and we will be able to make things right for every player affected."
Players on leading fora viewed RTG's claim that the bug was confined to bonus play with sceptism, pointing out that there were instances where it had been encountered outside this area of play, too. The Caribbean 21 game was at the centre of a major furore last year when an RTG licensee refused to pay out a massive win on the game by a player. Eventually a settlement for an undisclosed amount was reached through mediation.
TOURNAMENT BUSINESS MODEL FOR ONLINE BACKGAMMON
With half a million players, can this ancient game emulate the success of online poker?
Earlier this year there were reports of new online backgammon sites launching, using the tournament marketing model that has worked so well for Internet poker properties. This week Curacao-licensed True Money Games.com entered the fray with some impressive claims.
The company said that online backgammon could be the next big thing to follow internet poker, with growing numbers of online gamblers now playing the game.
Pierre Egger of True Money, which sponsored the Backgammon World Championships held earlier this month in Monte Carlo says, "Backgammon is now a popular alternative to online poker. Since 2004 we have seen the number of registrations on our backgammon server double to almost 40,000, and there are more than 500,000 people now playing online backgammon globally."
On Monday this week, Dennis Carlston (USA) won the 2005 Backgammon World Championships taking home over US$ 100 000. Total prize money for the tournament amounted to more than US$ 320 000, and the pot is expected to rise sharply in 2006 as interest in the game escalates.
In a landmark first, the final match between Carlston and John O'Hagan (USA), was watched live on True Money Games.com by backgammon fans around the world.
The match was automatically analysed in real-time by Snowie, the world's most respected Backgammon software-based Artificial Intelligence, developed by Snowie Group.
Originating in Mesopotamia in Persian times, backgammon is one of the world's oldest and best known games, and in many parts of the world it is significantly more popular than poker. Backgammon has been played on the internet since 1993.
IGC COMMISSIONS E-COMMERCE SURVEY
And strengthens Code of Conduct
The Interactive Gaming Council this week seemed to be taking a wide interest in e-commerce matters generally by appealing to all members of the public who may have carried out any kind of financial transaction over the internet to participate in an online survey.
Prepared by Rohan Miller, a professor at the University of Sydney (Australia) School of Business, the survey seeks to draw significant conclusions about the confidence that consumers have, or the lack thereof, in e-commerce sites.
Described as a 5 to 15 minute undertaking, would be participants are asked to click through to http://asr3.com/sm/login.asp?anom=112x1x1. No individual participants will be identifiable, and the results will be published in the academic literature. Approved by the ethics committee of the University of Sydney, the survey went live on 11 July 2005 and will continue for a month.
The IGC has underwritten the cost of the survey with money from one of its members.
One series of questions in the survey deals with disputes between e-commerce sites and consumers. Respondents are asked, for example, to rate the importance of third-party dispute resolution. This is a crucial issue, Dr. Miller said, because Internet consumers often do not have ready nor affordable access to the legal system that protects them from much of the risk involved in traditional, real-world transactions.
IGC executive director Rick Smith said the survey results could assist in establishing a best practice for the resolution of player disputes. He and Miller said the knowledge gleaned from the survey could help any e-commerce business reduce the perceptions of risk entailed in conducting transactions at its site.
The IGC has also been strengthening its Code of Conduct, which all members are obligated to follow. At its meeting last month, the IGC board approved the first revisions to the code in five years.
The new code states that, to ensure fairness, operators of online games should have each game's performance "...analysed by an independent, qualified person on a regular basis."
It requires members to implement anti-money laundering procedures, and directs them to use age and identity verification services as part of their efforts to prevent access to their sites by minors. The code also states that members agree to the IGC performing checks on their compliance with the code.
ONLINE GAMBLING HAS LOWEST CHARGEBACK RATE IN E-COMMERCE SURVEY
Pago 2005 report has some startling revelations...
The Interactive Gaming Council might want to look at the latest Pago Report for 2005 in its efforts to research e-commerce payment issues (see earlier InfoPowa report)
Reuters reports that the eagerly awaited report highlights new and surprising insights into European e-commerce.
One of the key findings: consumer purchasing and payment behaviour patterns and non-payment risks vary widely in the e-commerce industry sectors analysed.
Pago Report 2005 is based on the analysis of around 20 million real-life purchase transactions processed through the Pago platform in 2004. Entitled "Success and risk factors in international E-payment" the Cologne based payment service provider has published its fourth comprehensive annual study of e-commerce, claiming it is the only investigation into online business practice that uses statistical analysis of real purchase transactions instead of relying on polls and surveys.
The range of payment methods includes Visa and MasterCard, American Express, Diners Club, JCB, Switch/Solo as well as locally used direct debit methods.
Five sectors now at the forefront of e-commerce dominate the Pago report:
* E-retailing (online sale of tangible goods)
* Online Gambling (casino and card games, sports and other betting, lotteries)
* Pharmacy / e-health (online sale of drugs, medicines and other healthcare products)
* Telecommunication services
* Travel
The analyses considered purchase transactions in European online shops by consumers from Germany, the UK, and the rest of Europe as well as from countries outside Europe. Although the credit card clearly remains the most important and most popular payment method in general, German consumers have increasingly turned to direct debit payment. 64 percent of German consumers selected this payment method, an increase of 5 percent points from 2003.
Trends in European online gambling were very surprising too. Until now most experts believed online gambling to be risky for consumers and that online gambling providers were often the victims of credit card fraud. The figures prove otherwise.
Online gambling had the lowest credit card chargebacks, which are often generated when fraudulent credit card data is used. Only 0.26 percent of online gambling transactions led to chargebacks whereas the overall average chargeback rate in e-commerce stood at 0.83 percent.
At first glance, this figure looks only slightly different from a year ago. But whereas the chargeback rate for German consumers has decreased by 50 percent, it has increased some 200 percent for customers from other European countries.
All in all, effective fraud prevention - especially in credit card payment - remains one of the key factors for successful e-commerce businesses.
"Despite the fact that there was only slight growth in European e-commerce last year," Pago boss Ruediger Trautmann explains, "the trend towards more reliability and trustworthiness in online trading will gather pace."
Pago was founded in 1999 and is a Deutsche Bank AG and Beisheim Holding Schweiz AG company, offering its services through a global partner network.
CROWN VEGAS POSTINGS "UNAUTHORISED"
And "Rick" rides off into the sunset (we hope)
Last week's fora furore over the behaviour of "Rick Scott" from Crown Vegas online casino in insulting players and trying to buy a probably illegal database for marketing spam had leading fora white hot this week, too.
Posting as "Tony @ Crown Vegas" an individual claiming to be one of the real owners of the online casino tried to cool the situation down by claiming that "Rick" had no authority to post as he was a dismissed junior employee who had somehow retained his casino emailing priveleges.
There was considerable doubt regarding this due to the energetic efforts "Rick" had put in to promote the interests of a company that claimed he had been let go, but in the absence of proof to the contrary the uproar finally died down, leaving Crown Vegas with a less than shiny image.
The important thing, however was that players had been warned about the attempted database purchase...and so had any would-be sellers of illegal player databases.
NEW EXEC FOR NETELLER
Plenty of software business experience here
Gord Herman, CEO of the Neteller plc online financial processing company named Ronald Martin the group's new Chief Operating Officer based on the Isle of Man this week.
Martin has worked in managerial positions for a number of software firms, including FirstService.com and JobAdvantage.com, and joins the Neteller executive team from GloboForce Ltd.
Herman said that Martin would be a welcome addition to the executive team, which is focused on global expansion and continued business growth.
He also announced that the internationally respected international auditors KPMG LLC had been contracted by Neteller for independent audit purposes.
DYNAMIC QUARTER FOR FUN
Another Crypto connection as Harvey Solursh is appointed a director
The skills gaming company originally started by Cryptologic founder Andrew Rifkin, London listed FUN Technologies Inc., enjoyed a dynamic second quarter ended June 30 this year, judging by results published this week.
Highlights included:
* Consolidated revenue up 55 percent from Q1 2005 to GBP 2.3 million
* Subsidiary SkillJam revenues up 29 percent from Q1 2005
* Don Best revenues up by 77percent over Q1 2005, with strong cash generation
* Positive EBITDA for FUN of GBP 62 000, a milestone in the company's progress
* SkillJam signed new licensees including Inspired Broadcast Networks, AirMedia and LodgeNet Entertainment Corporation, and its registered users passed the 8 million mark.
* Acquisition of Fanball Interactive, LLC ("Fanball") completed for GBP 6.7 million.
* Agreements with eBay, Virgin Games and a leading U.S. cable operator
Lorne Abony, FUN's CEO, commented, "Revenue at all of FUN's operating businesses continues to grow strongly. This was also a very significant quarter for us as it was the first quarter in the Company's short history in which we generated positive EBITDA.
We believe that revenue growth and EBITDA are appropriate indicators of the company's operating performance at this time. Accordingly, we intend to focus significantly on our performance in these areas."
Regarding Betbull.com, in which FUN was involved with the Austrian public company Bet & Win, Abony said that his goal was to focus the company's resources on those businesses which management believes have the greatest potential for long-term growth.
Consequently, FUN has decided to exit the operating portion of the exchange betting business. Management believes that the effect of this decision to discontinue exchange betting operations will positively impact the group's operating performance. At this time, FUN will maintain its 24.6 percent ownership position in Betbull.
SkillJam delivered a particularly good performance with a record total of nine distribution agreements signed during the second quarter. Many of these agreements will introduce skill games to new distribution channels, including free-standing gaming kiosks, interactive television and wireless applications.
The report included the news that Harvey Solursh, a longtime director at Cryptologic, has been appointed to the FUN Technology board.
FUN is a public company, incorporated in England and Wales, and is listed on both the Toronto Stock Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange.
VERIFICATION A GROWING BUSINESS
Online gambling creates additional interest
The U.K. company GB Group is experiencing a welcome boost to its verification business as online gambling companies look for reliable services, and identity theft causes growing concern.
The Chester - based firm's data-checking products provide postcode and house number information, and details gleaned from driving licences, the electoral roll, utility bills, BT registers and other sources to cross check and provide verification.
This helps companies verify customers' details over the phone or internet, without having to go through the time-consuming process of requesting documentary proof.
ID fraud is thought to affect one in 10 people and cost the economy more than GBP 1.3 billion a year, constituting a major growth area for GB Group.
Gaming website operators such as Betfair, 888.com and PartyGaming are also helping the group hit the jackpot. They use its software to guard against underage players and expose fraudsters.
Heading the group is Richard Law, an accountant who dipped his toe in the corporate finance world by advising PhoneLink, a business information company on a public listing that raised GBP 12 million. He subsequently joined the company in 1993 as financial controller, becoming finance director 2 years later.
The business, which was renamed Telme, had 275 staff and sales of GBP 5 million at its peak but by 1998 was losing money. It was, however, cash rich and made a GBP 9 million swoop in 1998 for GB Group, which in Richard's words was an "...uninteresting but good quality, profitable business" selling postcode and house number information to call centres.
When he became chief executive in December 2001, the group's share price had slid to a rock-bottom 4.5p in the wake of the dotcom debacle.
"We knew we had to find a new market to use our core technology to grow our business and give it an exciting future," Law says.
A big breakthrough came in Manchester. He said: "At the time, the trams in Manchester were suffering from fraud at the hands of passengers who did not buy tickets.
"When challenged, they were giving false details to inspectors and fines were not being paid.
"We provided postcode and other personal information which was loaded on to the inspectors' handheld computers and enabled them to verify details given to them. There was a big deterrent effect and fraud was dramatically reduced."
GB Group also started supplying the Criminal Record Bureau with data- verification facilities, as it grappled with a backlog of checks on school caretakers and teachers.
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