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CASINO CITY VS DEPARTMENT OF JUSTICE
Latest arguments in freedom of speech case
The legal battle between online gambling publishing house Casino City and the US Department of Justice continued to attract attention this week as the former submitted its argument against the DoJ's latest contentions (see recent InfoPowa reports).
The battle started when Casino City took the government to court for a declaratory judgement on the DoJ's *advisories* to US advertising media that accepting online gambling ads could be contrary to the law. Many companies backed away from such advertising in moves that resulted in the loss of millions of dollars.
Casino City lost that first appearance, which involved the First Amendment to the US Constitution regarding freedom of speech, on the grounds that it had not been among those warned or in danger of prosecution by the DoJ action and therefore had no grounds for presenting a case.
The publisher immediately launched an appeal in the US Court of Appeals for the Fifth Circuit, the DoJ answered that appeal using the same "no standing" arguments as before, and now Casino City has responded in a final statement.
The document is a succinct point by point rebuttal of the DoJ argument and now goes before the Appeal Court for a decision.
CC makes the important point that its challenge is based on whether the US statutes are being correctly interpreted by the DoJ (that online gambling and accepting online gambling advertisements is illegal) and whether the threats that these will be applied were carried out in an unconstitutional manner.
In answer to the DoJ contention that it has no standing, Casino City claims that it is not necessary to allege that it has violated a statute. It asks the court to determine whether the DoJ has unconstitutionally abused its authority to stifle protected speech, and claims it is not necessary for a company to allege that it has broken the law in order to issue such a challenge.
The DoJ contention that more than a year had passed between the time the threatening letters were sent to the date litigation was launched is countered by CC's riposte that it is of no constitutional importance in the freedom of speech context that CC had not been specifically addressed by the DoJ letter, and that not a single prosecution had been launched against any advertiser.
CC claims that its First Amendment rights are ongoing and it has not waived those rights because of the time necessary to file an action, and it in any case disputes the DoJ timeframe.
As CC's document says: "It is particularly troublesome from a constitutional standpoint if the DoJ does not intend to effectuate prosecutions. If successful with this posture, the DoJ would be able to effectively immunize itself from judicial review of a course of conduct designed to stifle free speech. Such a course of action goes to the very core of the chilling doctrine."
Another area of disagreement is the DoJ claim that Congress has the power to prohibit advertising for illegal gambling, which CC counters with the statement that whilst this may be so, Congress has in fact not - it has only prohibited certain forms of gambling.
CC emphasises throughout that it is not challenging statutes - it is seeking judgement on the manner in which the DoJ is interpreting and applying them.
CC also takes issue with the manner in which the DoJ worded its warning letters, pointing out that the DoJ made no distinction between legal and illegal online gambling and pronounced all forms of online gambling to be illegal:
"Such a blanket posture regarding the legality of online gambling is erroneous. This court has held that online casino gambling is not prohibited by [the Wire Act]. . . . And there is an absence of case law applying [the Illegal Gambling Business Act and the Travel Act] to online gambling. . . Thus, the conclusion by the DoJ and by the district court that online gambling is per se illegal is overreaching to say the least.
"Such a posture ignores principles set forth by the U.S. Supreme Court, which has ruled in multi-jurisdictional First Amendment advertisement cases that an advertiser may not be prohibited form disseminating truthful information about an activity that is legal in another jurisdiction."
The company's brief concludes:
"To the extent that the DoJ criticizes Casino City for not presenting lesser restrictive means as alternatives to the district court, Casino City points out that the record in this case is not yet developed. Moreover, if there is any pertinent omission pertaining to this point, it is that the DOJ has failed to show why it has chosen, contrary to United States Supreme Court precedent, to address the asserted harms by regulating speech rather than the underlying activity."
FORTUNE LOUNGE GROUP DOWN
Anonymous spam allegations shut online casino group down over the weekend
The dangers of unquestioned acceptance of anonymous "spam-police" complaints was illustrated last weekend when the large Fortune Lounge group of online casinos had to endure an expensive suspension offline by domain registrar GoDaddy, allegedly on complaints of spamming by the spam monitor SpamHaus, an anonymous organisation that is remarkably hard to contact.
Early reports suggest that GoDaddy acted without first contacting FL with the complaints, something which FL management were investigating as we went to press. FL outsources its email marketing, awarding the contract on warranties against spamming by the contractor.
The incident could have far-reaching consequences for all of the companies involved.
Affiliate sources told InfoPowa that they were surprised at the allegations levelled at the casino operator, explaining that the FL group went to some lengths to discourage affiliates from this practice, especially since the advent of the CanSpam Act.
GETTING TO KNOW YOU
New UK Gambling Commission will be at 2005 Betting Show
Britain's new controlling body for gambling the Gambling Commission is to be officially launched in October this year and is already planning to meet the industry at the next Betting Show, scheduled for 19 and 20 October at the Birmingham NEC Pavilion.
Its presence at the event will be close to home, as the new body will be located in the city of Birmingham.
In addition to a presence on the exhibition floor, the Gambling Commission will play an active role in the accompanying seminar.
Peter Dean, current chairman of the Gaming Board for Great Britain, will make one of his first public addresses as chairman of the Gambling Commission, describing the structure and objectives and explaining its new scope and regulatory approach in terms of licensing, codes of practice and the ongoing consultation process.
The transition team charged with managing the changeover from Gaming Board to Gambling Commission believe that this year’s Betting Show provides them with an ideal opportunity to widen the process of continuous dialogue with the betting industry, as decreed by Government when the Act was passed.
Spokesman Andrew Fraser explained: “The Commission will begin regulating the betting industry in 2007 and it is our remit to listen and learn, as well as helping industry professionals understand and act upon the changes taking place. Having attended the Betting Show as visitors last year, we decided that it is an excellent forum at which to meet formally and informally with operators, and service providers.”
Fraser added: “Peter Dean will speak about the key issues facing the gambling industry and the Commission when he addresses the seminar audience, and we will be on hand on the exhibition floor for the duration of the show to meet and greet the industry’s grass roots to offer our help and support on any regulatory issues they may have.”
BETFAIR CFO LEAVING
Some say to make way for a more experienced IPO-oriented manager
Owen O’Donnell, chief financial officer of Betfair is about to leave on 31 August according to a company announcement which is being interpreted as a move to strengthen Betfair's management team before a possible IPO in the first quarter of 2006.
The gambling company recently appointed Morgan Stanley and Goldmann Sachs to advise it on a possible flotation at the beginning of next year, with O'Donnell rumoured to be making way for a more high-profile finance director.
Stephen Hill, chief executive of Betfair, said O’Donnell had made "...a significant contribution to Betfair’s development during the past two years. In particular we owe our strong controls environment and efficient financial reporting system to his tenure. We are grateful to him and wish him well in his future career,"Hill added.
There was no indication as to what O'Donnell's future career will entail.
The company said it would announce O’Donnell's successor as it 'entered its next stage of development'.
Softening the pain of departure somewhat came the news that O'Donnell has 245 000 Betfair share options as part of his package on joining the betting exchange.
FOXWOODS LATEST
Re-start date for "PlayAway" now pushed out to August 15
Foxwoods representatives last Friday agreed to suspend the resort's controversial online "PlayAway" game until Aug. 15, following a meeting with state regulatory authorities.
This is 13 days later than the original Aug. 2 restart date promised by the resort management. A spokesman for the casino said the tribe will use the extra time to provide detailed information to the state.
Foxwoods, which is owned by the Mashantucket Pequot Tribal Nation, is the first casino in the country to try such a venture. If it succeeds, members of the National Indian Gaming Association expect the idea will attract other interested tribes.
Casino regulators in New Jersey are also watching. The Casino Control Commission is considering allowing Atlantic City casinos to use such software and spokesman Dan Heneghan said regulators will monitor the Connecticut dispute.
Foxwoods believes the issue is merely a matter of appearance. The PlayAway Web site never explained that the fancy blackjack and slot machine graphics were just a facade, a way to heighten the experience of checking for a winning keno ticket.
"Clearly the impression when you first went onto the Web site was that this was online gambling," said George Henningsen, chairman of the tribe's gaming commission. "It looks like you're playing. I know you're not, but I can't argue that it looks like it."
From a gambling standpoint, Henningsen said, it's the same game they've been running for years in which players try to guess series of random numbers. Visitors can buy keno tickets for future games, go home, miss the drawings, check the winning numbers and return to Foxwoods to cash in.
Henningsen said the tribe is tweaking its software to tell people that, despite the animations, they aren't actually playing games. They also plan to add a button to skip the graphics and just check the keno numbers.
Attorney General Richard Blumenthal says the software crosses the line into Internet gambling, which is illegal. If this promotion is approved, he said there's nothing to stop the tribe from coming back for another slight change later.
"The slope is so slippery," Blumenthal said. "Once Internet gambling is allowed, almost any form of Web site gaming will occur."
The Internet gambling market is expected to generate nearly $17 billion in yearly revenue by 2009, according to the American Gaming Association. But Foxwoods officials say that's not their market. They don't want people sitting at home. They want players driving to the casino, which is what a winning PlayAway game forces them to do.
Internet marketing is big in every industry, Henningsen said, and casinos must keep up with the times. "You're crazy not to be using the Internet," he said. "It's a personal link to someone who you know already has an inclination to gamble."
Steve Kane, CEO of GameLogic, the Massachusetts-based company that wrote the software, wouldn't discuss where else he's pitching his product but said it would be a good fit in any market. He said Connecticut's concerns are "imminently solvable."
Blumenthal said the tribe hasn't formally proposed any software changes but he said he can't foresee anything that would make the game acceptable as long as people are playing casino games online with a profit attached.
While the Mashantucket Pequots said they're eager to reach a compromise, they said they expect the game to be online soon.
"At this moment," Henningsen said, "I can't see any way this will be withdrawn."
ANOTHER INSTANT INTERNET MILLIONAIRE
Intercasino logs its first million dollar plus winner
Although there have been several players who have won million dollar and more progressive jackpots in recent years, it is still a rare enough occasion to shout about, and this week Intercasino was doing the shouting.
11h10 on the July 27th was the magic hour for new millionaire Richard R., the lucky winner of a golden bonanza in the shape of the $1,067,836.00 jackpot on the Millionaires Club slot game.
It was the first million dollar and more jackpot won at Cryptologic-powered Intercasino, and it will be paid out in one cash amount.
“All I can say is “Yeah Baby! I still can’t believe this is real,” said the grateful 49 year-old winner who has been an InterCasino.com regular for the past two years.
“I have watched this jackpot for a while and every time I logged in I would see if some lucky person won it. I can’t believe I turned out to be that person.”
When asked about his online gaming philosophy he was quick to reply, “Play, play, play! These are not just “dream” games. Someone is going to win and it might as well be you. It just takes that one lucky click of the mouse.”
The enormous jackpot comes on the heels of another major win. Intercasino regular, Ronald B, recently hit it big with the Rags to Riches Progressive Jackpot that delivered a $162,080.86 windfall.
“At first I didn’t believe it. I kept thinking it was going to stop,” said the lucky winner to Casino Manager Ryan Hartley. “All I can say is that it was very tough going into work on Monday morning.”
PROFIT AND REVENUES UP AT CRYPTOLOGIC
Performance better than analysts' predictions
Gambling software developer and turnkey provider CryptoLogic Inc. has reported higher profits and revenues for the latest quarter.
The company reported that it had earned US$4.7 million for the quarter ended June 30. That compared with a profit of $3.2 million for the same 2004 period. The results exceeded analysts' performance predictions.
Quarterly revenue grew 33 per cent to $19.9 million from $14.9 million, Cryptologic said. This was despite a traditionally softer seasonal period for online gaming, as it grew internally from existing customers in the company's primary Internet casino and Internet poker markets.
"CryptoLogic continues to benefit from both the right products and the right strategy," Lewis Rose, CryptoLogic's president and CEO, said. "That's why we're achieving positive returns through solid casino performance and 17 per cent sequential quarterly growth in poker, well ahead of the Internet poker industry."
Looking ahead, the company said it expects third quarter revenue to range between $19.4 million to $19.7 million, with earnings of between $4.5 million and $4.7 million.
POKER STARS MOVING TO ISLE OF MAN
And inevitably, rumours that a London listing is planned
Following UK media speculation this week, InfoPowa contacted the management at second ranked online poker site Poker Stars to ask for confirmation that the company was moving to the Isle of Man. We also asked whether speculation that a London listing was planned had any foundation, who the broker would be and what sort of listing price we might expect.
In a prompt and courteous response, the company confirmed that it has obtained a license in the Isle of Man and would be moving to that jurisdiction in the near future. However, the response emphasised that the company would not comment on speculation regarding a listing - a fairly standard response under these circumstances.
Poker Stars is owned by an Israeli family called Scheinberg and has been based in Costa Rica. It is understood that a new CEO who will operate from the Isle of Man is currently being sought.
It is believed that the IOM's action in removing bans on its licensees accepting US bets was an important incentive for Poker Stars to make the big move.
The company reportedly has an estimated 8 percent share of the market, compared with PartyGaming’s 54 percent, and Cassava Enterprises (Gibraltar) Ltd.’s 6 percent (through its PacificPoker brand). “The Times” says PartyGaming has obtained a license from the government of the Isle of Man and plans to move to the island later this year as well.
Founded in 1999, PokerStars is considered a pioneer of online poker, together with ParadisePoker, which currently has a 5 percent share of the market. Media sources claim that PokerStars’ rake (commission from players) is $400,000-500,000 a day, its annual turnover is $150 million, and its net profit margin verges on 50 percent.
If PokerStars holds an IPO, it will reportedly be at a company value in excess of $1 billion.
Analysts covering public online gaming companies believe a listing would enable Poker Stars to become one of the industry’s main consolidators. One analyst said, “There are more than 1,000 internet poker sites, but in three or four years I would expect there to be no more than 50 or 60. As growth slows, so consolidation will become the name of the game.”
INTERAGE TO HANDLE PARTY GAMING MARKETING
Aggressive new marketing strategy planned
What is likely to be a lucrative online marketing contract for the multi-billion dollar market leader Party Gaming was awarded to UK company InterAge Limited this week.
The CEO of InterAge, Kobi Freund says that his new client has made a decision to become significantly more aggressive in its marketing following detailed market research that shows substantial growth potential despite the already considerable success of the sector.
Following its recent successful listing in London, PartyGaming has a more than adequate war-chest for the new marketing thrust, which is likely to include additional effort in both the poker and online casino fields. The group currently own brands in all three major gaming areas: poker, casino, and bingo.
PartyPoker, is the world's largest online poker business based on ring game revenue and number of active players. The company's main casino property, Starluck Casino, was launched in 1997 but recent announcements by the CEO have indicated some exciting moves in that direction. PartyBingo, the newest addition to the company's family of gaming brands, launched in 2003, and is already one of the top five online bingo sites.
In 2004, casino and bingo games represented approximately 29 per cent of the online gaming market, and poker represented approximately 13 per cent.
"This is an exciting and challenging new market for InterAge," says Freund. "I believe that we are very well equipped to meet the challenge to help PartyGaming continue its significant growth pattern."
TOP NAMES FOR WPT 'S LONDON OPEN
Brunson, Pescatori among the contenders
The World Poker Exchange announced today the first round of professional poker players who will be joining celebrities Willie Garson, Nicholas Gonzalez, Mimi Rogers and Jennifer Tilly for the $2 million London Open Tournament 2005 this August 3-6.
World Poker Exchange-sponsored player Max "The Italian Pirate" Pescatori will be joined at the first-ever lifestyle poker event by international professional poker players Tony "The Lizard" Bloom, Doyle "Texas Dolly" Brunson, Harry Demetriou, Antonio "The Magician" Esfandiari, Scott Fischman, Chip Jett, Karina Jett and Robert Williamson. The event will be held at the 19th century landmark Old Billingsgate Market.
Born and raised in Milan, Italy, Max Pescatori is a professional tournament poker player who has won various titles and enjoyed 24 money finishes in 2004 alone. Pescatori, who wears his signature Italian flag bandana to every tournament, is often referred to as the "Italian Pirate." To date this year, he has placed second at the Mirage Poker Showdown $2,500 No Limit Hold'Em leaving the table with $75,000. Pescatori won several tournaments at the 2005 World Series of Poker. Pescatori is well-known for appearing a record eight times at the final table of the television show, Ultimate Poker Challenge.
Tony Bloom is a Hedge Fund manager and former sports bookmaker from London, England. Bloom has won numerous titles in his short career of professional poker playing and is known for his love of travel, making him a prolific international poker player. Currently, Bloom ranks 1,323 overall and has estimated total winnings of $38,465.
Doyle Brunson, 71, is the Babe Ruth of poker. He basically invented the game of Texas Hold 'em and was star of the infamous band of traveling poker sharks, the Texas Rounders. He was the first of the high stakes hotel poker players in Las Vegas. Brunson has won ten World Series of Poker events, including the two back-to-back world championships.
A retired clinical scientist from London, England, Harry Demetriou is a respected international poker player and formidable opponent. This professional from the UK had his first major win in July 2004, taking 250,000 Pounds Sterling and first place in the Victor Poker Cup. He has already won more than $1 million in his worldwide tournament play.
A current resident of San Francisco, Calif., Antonio Esfadiari was born in Tehran, Iran and with his win in the 2004 L.A. Poker Classic, he is the youngest player to ever pick up a World Poker Tour championship and win a prize exceeding $1 million in a tournament. Antonio first got into the world of professional poker when he was invited to a game of Texas Hold 'em while working as a professional magician. Since winning the World Series of Poker Pot Limit Hold 'em, and World Poker Tour L.A. Poker Classic No-Limit Hold 'em in 2004 among other tournaments, Esfadiari has become a popular player within the poker circuit and had winnings totaling more than $2 million.
Pennsylvania native and former poker dealer, Scott Fischman, is relatively new to the professional poker circuit but has already won two, back-to-back World Series of Poker bracelets. Fischman's first professional tournament was in January of 2004 at The Grand American Poker Classic in Tunica, MS where he placed 4th. Since then he has appeared at nine final tables, including those at the Orleans Open, the Mirage Poker Showdown and the coveted World Series of Poker Events. Additionally, Fischman is the spokesman for "I'm All In Wear," a clothing line inspired by the poker phenomenon, and a columnist for Card Player Magazine.
Former lifeguard Chip Jett began his poker career in 1992 when a friend took him to a casino in his native Arizona. That trip led to jobs as a poker dealer, floorman and shift boss before becoming a proposition player. After winning numerous games around Arizona, Chip Jett went on to win his first major tournament, Best All-Around Player award at the L.A. Poker Classic at Commerce Casino. Chip Jett has won numerous titles and tournaments since then, including Phil Hellmuth's Champion of the Year Award in 2003
Karina Jett first arrived on the Las Vegas poker scene at the age of 10. With both parents avid poker players, Karina Jett quickly followed in their footsteps, and, at the age of 18, played her first poker game in a casino. With her marriage to poker tournament player, Chip Jett, Karina Jett switched her focus to larger poker tournaments. Though Karina Jett's tournament career has been a short one, she has already won or made final table appearances at many prestigious events, including the World Series of Poker, Poker Royale, and the L.A. Poker Classic.
Robert Williamson III was born and raised in Dallas, Texas. Williamson has been practicing his poker playing skills since the age of 10 but did not start playing professionally until the early 2000s. After detours into restaurant management and real estate development, Williamson found his calling in professional poker and is now ranked the number one all-time tournament earner in Omaha. Williamson's earnings already total more than $1.5 million.
More professional poker players and celebrities are expected to join Pescatori and the other players and confirm their attendance at the London Open. "With the UK activities of late, a great number of players have expressed intent to play but are waiting to see if things quiet down a bit before committing. This makes the gauging the final number of pro players difficult to assess, and therefore the players that compete may have extremely favorable odds due to the guaranteed minimum pot," said World Poker Exchange Managing Director Haden Ware.
The high stakes gaming event to be staged in London on the banks of the River Thames features a $2 million guaranteed prize pool and distinctive cultural, entertainment and dining experiences. A pinnacle of the four-day style-heavy event will be a private concert, a separate charity tournament and VIP Reception featuring South London-based funky pop act Dirty Vegas, international chanteuse and "Queen of the Nightclub" Grace Jones, and celebrity club and party DJs Guy Preston and Jason Moore.
The London Open will be broadcast as a Bravo primetime TV special "World Poker Exchange London Open." Off-camera, the competitors will enjoy high-stakes fun as they partake in the private concert and VIP Reception, exclusive tours of Kensington Palace, gain backstage access to the hit show The Producers, and enjoy the most lavish of culinary experiences in London's finest restaurants.
NINE.COM MAKES AN IMPRESSION
Watch out for these guys on the poker scene, too
It was difficult to miss the visually prominent bright orange Nine.com brand this week as the sportsbook and casino group changed up a gear, putting the old Costa Rican-based GCS group identity (Betcom.com and MyBookie.com) under one easy to see banner.
The new site is intended to be the firm’s flagship brand, and will feature original entertainment content alongside the betting and gaming products. “By focusing on one super brand, we will provide our clients more exciting and valuable content,“ Robert Evans, president of Nine.com, said.
The group celebrated the event by signing an agreement for a poker site with software firm Las Vegas From Home. Nine.com will join LVFH’s Action Poker Network sometime in August.
POWERFUL COMBO - AOL AND BINGO
Bingos.co.uk has big ambitions
Any operator who can get into bed with America Online and its massive membership has a right to be hopeful for a bright business future, and that was the case for Bingo operator bingos.co.uk this week.
The company has signed a deal with AOL UK to provide bingo to users of AOL’s games channel. The service will only be available to players over 18 years, and will be accessible through the AOL keyword bingo.
Ambitious Jan Jensen, a spokesman for the company, said the agreement could position Bingos.co.uk to become the "...number one site in the UK."
There's some stiff competition - the Gibraltar licensed operator St. Miniver partnered with Yahoo to launch a bingo service earlier this year.
AND TALKING ABOUT ST MINIVER...
Parent could be looking at a major London listing (who isn't?)
The rumour mill was working overtime this week as IPO fever continued to dominate discussions in the Internet gambling business - the latest company tipped for a public listing is St. Miniver parent St. Enodoc.
It's a Gibraltar-based egaming white label firm, and the word is that a public listing worth around GBP 30 million is a possibility later this year. The company is playing a coy game, with spokesmen commenting that an IPO is among several options "....under consideration."
What is known, however is that St. Enodoc has retained stockbroker Panmure Gordon to advise on its "options."
St. Enodoc has been around for the last two years, originally under the St. Miniver banner, where its owners picked up the Gala Interactive business from UK bingo firm Gala.
The chairman is a highly experienced attorney and businessman called Tony Wollenberg and in addition to its casino and soft gaming products it operates the Boss poker network and certain mobile gaming services for m-gaming operator Probability Games.
The client list is impressive, and includes some of the UK’s biggest online names such as Yahoo!, FHM, ivillage and lastminute.
ANOTHER SPORTS LICENSEE FOR CHIMERA
Sportsbook, casino and maybe mobile, too
Chimera Technology's latest licensee is the Nevada-based 777 Sports Entertainment Corp, which has just soft launched its new sports betting and casino website 777betz.com.
One of Chimera's latest products - a mobile gaming platform - is also in the final stages of testing and is scheduled for a late August 2005 inclusion in 777's activities.
GBP 40 MILLION CORAL DEAL
Bet365 sells off its chain of UK betting shops to concentrate on the Internet
Following in the footsteps of the big High Street betting shop purchases earlier this year by William Hill and Ladbrokes, UK bookie Bet365 has sold its chain of betting shops to Coral Eurobet for an estimated GBP 40 million in a strategy to consolidate its online and tele-betting operations.
John Coates, Bet365’s chief executive, told the media that the sale would provide welcome capital for future expansion for his company. "Remote betting and gaming has become our core business, with over 90 percent of our expected GBP 700 million turnover this year coming from that area,” Coates said.
Bet365 has had a high street presence in the UK for more than twenty years, but in recent times has seen rapid growth following the introduction of an online business in 2001.
It is one of the few UK-based operations to accept bets from the US market, and has recently witnessed strong growth in turnover following the addition of poker and casino gaming facilities.
MORE DETAILS ON ULTIMATE BET DEAL
Listing could deliver GBP 200 million
Last week InfoPowa reported on speculation surrounding the possible listing of one of the largest online poker sites around - UltimateBet. This week further details of the moves came to light in the UK media, revealing that Canadian-based operator Excapsa hopes to raise GBP 30 million on the property, which is valued at GBP 200 million.
Our report that investment bank Canaccord Capital has been engaged to advise on the listing has been confirmed, and the word is that a London listing is likely to happen before the end of the year. Following a successful listing it is likely that Excapsa will seek to expand its operations by buying a large and viable online casino operation.
Excapsa has been managing UltimateBet for almost a year following its purchase of the site from the original software provider ieLogic. The firm is run by ex-CryptoLogic chief financial officer Jim Ryan, and recently launched a UK version of its site at Ultimate Poker.com.
PLAYERS EDGE MAGAZINE LAUNCHED
Not much information, but this looks good!
InfoPowa is trying to get more detail on a new magazine for the online gambling industry called "Player's Edge," the premiere issue of which is currently in circulation. We understand that the magazine is published by Cryptologic but this has not been confirmed.
This entertaining publication looks at the casino, poker and sports betting sectors, with advice, strategy, NFL picks, plus other great features, including Trivia Contests, Top 10 lists and Player's Edge Awards.
ANTE UP RADIO GAINING IN POPULARITY
US newcomer to the airwaves building a solid listenership
Ante Up Radio joined the manifold media broadcasting on poker two or three months back, but is already attracting a impressive listenership, mainly in the southern United States thanks to an interesting and varied line-up of interviews and news.
Hosted by Brady Goodman, the show has featured WPT commentator and expert player Mike Sexton, poker pro Thomas Keller, Fox Sportsnet poker reporter Michael Konik and the man from ESPN Poker, Norman Chad among its entertaining interviews.
The show airs every Monday evening to talk poker with professionals, novices, and poker business spokespersons, covering 5 different stations across the Tennessee area like WKVL AM 850, WGAP AM 1400, WMTY AM 670, WLOD AM 1140, and WATO AM 1290.
And if you can't tune in to the radio waves, try accessing the show at Ante Up Radio.com, where the archived series is available.
The show is dedicated to anything and everything to with poker, says host Goodman, "I want the show to be fun to listen to whether you are a novice or a pro, at this point I think we are doing that."
Ante Up hopes to reach more stations as its popularity and appeal grows. "At this point we are just a small radio show that is trying to build an audience," Goodman says. "Without a doubt going national is a long term goal. We are also looking at web casting the show live, too."
WHAT'S NEXT - AN IPO FOR CORAL EUROBET?
British bookie the latest centre of speculation
Online gambling people in the know and investment gurus alike were talking about the latest listing speculation this week - that Coral Eurobet is setting itself up for a GBP 800 million stock market flotation.
According to the Sunday Times, the British group operates 1260 betting shops in the UK, and has reportedly appointed London investment bankers Lehman Brothers to advise it on a public listing.
The newspaper speculates that the Coral executive team, which owns 16 percent of the stock could reap a golden harvest from such a listing if it is as successful as the recent Empire Online and PartyGaming initiatives.
The majority stock holder is private equity house Charterhouse.
A flotation is said to be its preferred option, although a trade sale has not been ruled out. However, the company’s GBP 1.2 billion debt means any prospective buyer would have to find GBP 2 billion to fund the deal.
Coral was founded in 1926. As well as its retail outlets, it has a telephone betting operation, an online betting arm and greyhound racing tracks. The company makes annual operating profits of around GBP 145 million on sales of GBP 5.4 billion.
ONLINE CASINO FOR POKER GIANT
Empire Online diversifies
In the build-up to its recent London listing, poker marketer Empire Online hinted that it may be in the market for an online casino, (see earlier InfoPowa reports) and that ambition became reality this week.
The company, which owns Empire Poker, disclosed that it has agreed to buy the Playtech-powered online casino site Club Dice.com and poker site Noble Poker.com for US$ 40 million. It is understood that Club Dice boasts a gambling base of some 70 000 active, real money players.
Noble Poker is the largest member of Playtech’s emerging iPoker network, and will be further marketed by Empire Online.
CEO Noam Lanir says he wants his company to be less reliant on any one technology provider. “In Club Dice and Noble Poker we have bought running businesses which achieve a strategic objective of diversifying our base of technology providers,” he said.
Empire Poker provided around 4 percent of industry leader Party Gaming’s 2004 operating profit, but is thought to provide as much as 20 percent of its liquidity, according to analysts.
Empire, which floated on the London market six weeks ago, had $47 million cash in the bank. Its shares have raced up from the placing price of 175p to 223p.
Finance director Yossef Pereg declined to disclose the two individuals selling their businesses, and said the group could take up to three months to complete due dilligence.
First-half profits from Empire jumped 87 percent to $25.5 milion on revenue virtually doubled to $49.7million.
It could take another three months to complete the deal, as due diligence and shareholder approval formalities have yet to be finalised.
Analysts speculated last month that it would make sense for Party Gaming to buy up Empire Online due to its high contribution possibilities.
MILLION DOLLAR TOURNEY FOR NOBLE POKER
Quest for the world's best Sit & Go player
Breaking simultaneously with the news of its pending takeover by Empire Online, Noble Poker.com this week unveiled a new million dollar global poker tournament that commenced on August 1.
The rapid-fire Sit & Go style games are normally played in less than an hour, creating pace and excitement, and have been chosen for the tourney.
Players will compete against each other, with the first competitor to win seven consecutive $10 buy-ins taking home the $1 million top prize. It's likely to attract thousands of players, making for a challenging environment with lots of pressure.
For the runners-up there is still a possibility to win big - there are to be $75 000 and $25 000 play-offs for those who manage to win five and six consecutive Play & Go's. Furhter prizes in the $300 range are available further down the log.
The quick nature of Sit & Go tournaments has made these events increasingly popular with players, and Noble appears to be exploiting this trend to the full. The site is also currently running a Maui tournament on these lines with $15 000 and $25 000 jackpots.
THE BROADBAND BOOM
It's cheap, it's powerful and it's changing the way we use the Internet
Businessweek carried an interesting story on the growing popularity, huge impact and low cost of broadband Internet services this week.
With charges in the GBP 20 a month range, UK Internet users are reaping the benefits of fast broadband connections for streaming music, sending high quality graphics and photographs, surfing the Internet...and online gambling.
More than 14 million Western Europeans have signed up for broadband access in the last year alone, the article reveals quoting PricewaterhouseCoopers statistics, bringing the total number of subscribers to 44 million.
That's more users than in the United States. Some 25 percent of European households now have high-speed Net access - enough to qualify as a mass-market phenomenom. "Broadband has become mainstream" in Europe, says Charlotte Davies, an analyst with London-based telecom researcher Ovum Ltd.
PricewaterhouseCoopers predicts that European clients will spend something like GBP 20 billion this year alone for zippy cable and DSL connections, rising to an estimated GBP 40 billion by 2008.
More important, broadband is a rocket booster for the rest of the Net economy. London-based Continental Research found that when British Web surfers upgrade from dial-up service, they're more than twice as likely to download music, use instant messaging, or frequent online auctions.
Use of Net radio stations and online games more than triples. And while a quarter of dial-up users buy books and DVDs online, the figure jumps to 40 percent for high-speed subscribers. "Broadband changes customer behavior and makes it possible to do things that weren't realistic before," says Nick Hazell, alliances director for Yahoo! Europe.
The surge of super-surfers is helping plump up results for companies across Europe. Telcos such as Deutsche Telekom and Britain's BT Group are signing up DSL subscribers as fast as they can. France Telecom, for instance, boosted its DSL subscriber base by 65 percent in one year, to 3.4 million as of the end of March, yielding record quarterly broadband revenues of $ 410 million.
And in the Netherlands, which leads Europe in broadband penetration at 47 percent of households, market leader KPN saw a 51 percent first-quarter rise in DSL revenues vs. the same period in 2004, to $ 131 million.
The broadband effect is most dramatic for companies that specialize in digital content and services online -- music, games, gambling, and the like. These companies all use online advertising, and PricewaterhouseCoopers predicts the spread of broadband will help drive European Net advertising to $8 billion in 2008.
LATEST RESULTS FROM WORLD GAMING
Wagering volumes up
Highlights from the latest quarterly and half yearly reports for the period ending June 30 2005 include:
* Quarterly royalty revenue increased by 55.5 percent to $1 530 000;
* Six monthly royalty revenue grew by 54.7 percent to $3 530 000;
* Wagering volume up by a billion dollars at $3.6 billion over the same period last year;
* Net working capital up 34.0 percent to $19.9 million;
* Two new licensees signed in the second quarter and poker software successfully launched;
* One of the new licensees will shortly launch Gambling.net - a WG dedicated portal.
* A successful AIM debut raising GBP 2,499,000 from a placing of 4,760,000 ordinary shares;
* Operating expenses decreased 55.0 percent to $2,326,000 compared to $5,173,000 for the same period last year.
The report emphasises that World Gaming is in the industry for the long run, developing its revenues, commercial relationships and products to the benefit of licensees and shareholders.
Daniel Moran, World Gaming's CEO commented: "The second quarter is seasonally the industry's least busy period in the year and the company has utilised this time well to pursue new licensing opportunities and implement robust software and hardware upgrades. We are delighted with the results of these efforts which have resulted in new licensees and greater system speed and capacity. We look to the third quarter with confidence and a resolve to continue to deliver on our strategies."
MOBILE IN THE NEWS AGAIN
Annual revenue levels of $1.2 billion to reach US$7.6 billion by 2010, say analysts
Mobile, and specifically cell-phone gambling received major coverage this week thanks to an article from vnunet.com which was picked up by the mainstream wire services, consequently appearing across a wide range of international media.
The article quotes industry analysts, who predict that the global market for mobile gambling is poised to rocket from current annual revenue levels of $1.2 billion to reach US$7.6 billion by 2010.
And in five years there will be more than 200 million consumers gambling using their mobiles, a | |
