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COMPLICATIONS FOR PARTY GAMING LISTING
Washington says principals risk prosecution
The Guardian reports that London's biggest stock market flotation for years has been overshadowed by advice from Washington that the four dotcom millionaires behind the venture risk arrest and prosecution in the United States.
PartyGaming, operator of a hugely profitable poker website, is expected to be valued at £4.76bn when it floats on the stock market in 11 days' time. The offering will transform one of its owners, Ruth Parasol, the daughter of a former San Francisco massage parlour tycoon, into one of the most successful female entrepreneurs in history. While the company's activities are legal in the UK, the US justice department is warning that operators of online gambling enterprises could be prosecuted and, if convicted, jailed for years in America. Internet gambling companies occupy a legal grey area in the US, with many in the industry insisting that case law shows them to be legitimate, while the justice department insists they are outlawed. According to the department, online gambling operators such as Ms Parasol, 38, her husband, James Russell DeLeon, 39, and their partners, Indian computing experts Anurag Dikshit and Vikrant Bhargava could face prosecution under three federal statutes: the Interstate Wire Act, the Illegal Gambling Business Act and the Travel Act. These carry penalties of between two and five years' imprisonment for each offence. The company prospectus, published yesterday, concedes that its activities "are considered to be illegal by the relevant authorities" in the US, but says case law has established that online poker sites are excluded from the legislation controlling gambling. It also says its four founders have travelled in and out of the US with impunity. Ms Parasol and Mr DeLeon have declined to give interviews, refused to be photographed and are rarely sighted in Gibraltar, where their company is registered and they are said to be living. Mr Dikshit, 33, is also maintaining a low profile, leaving Mr Bhargava, 32, as the public face of PartyGaming. The company denies that is due to concerns over the legal position in the US, and insists that the company's founders want only to lead normal lives after the flotation. The justice department's warning is likely to increase anxiety among US investment institutions, some of which are reported to be reconsidering whether to back PartyGaming. When the company announced a flotation price of between £4.4bn and £5.1bn yesterday, instead of the widely predicted £5.5bn, it rejected claims that the cut was in response to those jitters, insisting that the price tag was a "realistic assessment" of the company's worth. A senior justice department official told the Guardian: "Any business offering online gambling services that are in the United States or can be accessed in the US are illegal. "The focus today is on how we can do more about it [online gambling] and how we can charge people. If they are American citizens, it would be a little easier for us. They can face prosecution if they enter the United States." A successful flotation in London, with the vast injection of capital that would bring, would make little difference in Washington, the official added. "If they're taking bets in the UK, and it's legal there, that's fine; but if they're taking bets in the United States, that's il legal, and they will be prosecuted." PartyGaming disputes the justice department's interpretation of the law in the US, and said yesterday that no company offering similar online gambling services had ever been prosecuted there. A spokesman added: "The US does not have legislation specifically regulating online gaming and therefore there is uncertainty as to its legality." GOOD LISTING FOR EMPIRE ONLINE Gross proceeds of London placing are £123.47 million Following our InfoPowa reports last week on this IPO, Empire Online Limited, provider of marketing services to the online gaming industry, has announced the admission to trading of its Ordinary Shares on the AIM market of the London Stock Exchange. The Placing comprises a total of 70,555,556 shares at 175p per Ordinary Share (the “Placing Price”), representing 24.1 per cent of the enlarged issued share capital of the company. Following admission the number of Ordinary shares in issue will total 292,777,772. Numis Securities Limited acted as Nominated Adviser, Financial Adviser, Broker and Underwriter to the Placing. Based on the Placing Price, the market capitalisation of Empire Online on commencement of dealings in the Ordinary Shares is £512,361,101 million. Gross proceeds of the Placing are approximately £123.47m (US$222.25m.) Rags to Riches jackpot pays out Vivian W., is the latest VIP Casino player to hit the bigtime just one week after she signed up at the online casino. The 72 year-old jackpot winner from the United States cashed in $105,518.87 playing the Rags to Riches Progressive Jackpot. "I cannot believe this. I sat and stared at my screen and then it hit me, I had won over $100,000!!!" said Vivian. "I am looking forward to receiving my check and spoiling my family." The game, Rags to Riches Progressive Jackpot, is a new addition for VIPcasino.com and is part of their next phase in Internet gaming and the launch of Cryptologic's award winning Version 6 software. The upgrade brought the casino's offerings to more than 180 games, including world exclusive Fruit Slot Machines, as well as Downtown Las Vegas favorites like Casino Solitaire, Casino War and Las Vegas strip sensations, Super Fun 21 and Bonus Video Poker. DVD's FOR POKER COACHING World Poker Exchange releases 4 new educational aids World Poker Exchange has released in the USA a series of four instructional DVDs designed to help leisure and competitive poker players improve their game. The DVDs can be purchased online via World Poker Exchange's Web site. Developed in conjunction with Players Network, producer of the In the Mind of the Poker Pro instructional series, the DVDs feature strategies, tips and "hands on" coaching from world renown poker pros, including Todd Brunson, a high-limit poker professional who learned from the very best -- his father, the legendary, two-time World Series of Poker Champion, Doyle Brunson; Mike Matusow, an opinionated and controversial World Series of Poker champion; and best-selling author David Sklansky, leading global poker strategy expert. "In the Mind of the Poker Pro" DVD series gives players real hands, real pros and invaluable advice," said Haden Ware, managing director, World Poker Exchange. "The DVD brings world-class professional poker expertise into the home, enabling players to watch and learn at their own pace while making improvements to the quality and consistency of their game. Working with Players Network to develop these outstanding instructional DVDs reflects our commitment to helping poker fans at every level optimally play poker." These instructional DVDs incorporates a unique teaching format never before offered in poker tutorials by using 16 video cameras to film the three poker pros as they monitor a live poker game, allowing players to see all the hands along with the audience, and simultaneously discussing the game in real-time. The three experts weigh in with advice and coaching that offers value for experienced players seeking to improve their game. Brande Roderick, actress and Playboy Playmate of the Year, hosts the DVDs. "In the Mind of the Poker Pro' series is not just for beginners, said Mark Bradley, president, Players Network. "This series take televised poker to a new level through the use of live commentary and debate, creating an exciting energy and intriguing perspective of what it takes to play winning poker." The DVDs offer strategies and tips for novice, intermediate and experienced players: * In the Mind of the Poker Pro -- No Limit Tournament Hold 'Em provides poker fans with in-depth analysis of no limit hold'em from the first hand of a tournament, when survival is critical, to heads up play when the winner is determined by a player's ability to read his opponent, know when to slow play or act aggressively, and analyze each hand like a professional. This DVD is meant for novice, intermediate and experienced players. * In the Mind of the Poker Pro -- On Line Poker covers everything from playing for fun to learning the game, taking notes on other players, utilizing online tools such as the statistical analysis of your own play, to playing for real money in cash games and tournaments in the fast and exciting world of online poker, on sites such as on the World Poker Exchange. This DVD will benefit all players. * In the Mind of the Poker Pro -- Limit Hold'em teaches players the skills required to play like a pro in limit cash games. The difference in strategy between limit cash games and no limit hold'em is reviewed by the three experts who discuss advanced techniques, including positional play, inducing bluffs and understanding pot odds. This DVD is designed for experienced players. * In the Mind of the Poker Pro -- Omaha Hi-Low offers expert commentary on the major mistakes most novice players make when playing this exciting, action-packed card game. It also brings the viewer inside the minds of our poker pros as they explain how to calculate "outs," maximize the value of each hand, and know when even a winning hand can be a losing proposition. This DVD is designed for intermediate players and up. $1.5 MILLION FORTUNE LOUNGE GROUP PROMO And a Caribbean cruise, too. Watch out for a major (they claim the biggest yet in Internet gambling) $1.5 million online casino gaming tournament from the Fortune Lounge group. International Casino Games.com will consist of a variety of slots, table and poker games hosted at nine different casinos from next month (July) thru' to December 2005. The top 100 players will advance to a final tournament aboard a luxury liner cruising the Caribbean for seven days early in 2006, with a Grand Prize for the top gambler of $250 000. Prize money totalling a further $750 000 will be available in the weekly qualifying tournaments with a wide range of players picking up cash rewards. Royal Vegas.com is the place to go to get in on what promises to be some outstanding action with special opening offers and newbie player arrangements. Participating casinos are: Royal Vegas FEISTY CASINO CITY HAS NOT GIVEN UP Casino City appeal lodged You can't keep a good man down, and you'll be reading a lot about feisty Casino City publisher Michael Corfman over the next few months, we'll wager. Corfman has lodged an appeal in the Fifth US Circuit Court against a decision earlier this year which went against his challenge to the US Department of Justice to cease its widely perceived as intimidatory tactics against advertising venues carrying online gaming advertising. The DoJ's actions in sending "informative" letters and subpoenas opining Internet gambling as probably illegal in terms of the Wire Act to search engines and media has resulted in massive advertising losses. Corfman challenged these actions on grounds of the Freedom of Speech provisions of the US Constitution but because he had not been sent one of the "Informative" letters the ruling went against him. He's back with all guns blazing in an appeal which the federal government wilol have to address within 30 days. A positive outcome will have major implications for the industry. INTERNATIONAL POKER GIANT AWARDED eCOGRA SEAL Self-regulation comes to online poker rooms Following closely on the heels of eCOGRA’s recent approval and acceptance of poker software supplier Ongame as a member, the online gambling regulatory body has announced the award of the "Play It Safe" seal to PokerRoom.com. The international online poker giant boasts over 3.8 million global players from more than 140 countries and these will now have the benefit of eCOGRA regulations governing every aspect of poker operations from fair gaming to timeous payouts and efficient customer service. The award of the seal followed weeks of intensive onsite probity and systems inspections by an independent professional services group, which will continue to review and monitor the business activities of PokerNetwork and PokerRoom.com, including the central clearing house operations and anti-collusion measures. The award of the first poker seal has significant implications for the booming online poker industry, representing as it does real and enforced self-regulation. Ongame-owned PokerRoom.com becomes the 56th venue in a global regulatory framework within which 55 top online casinos powered by leading companies Microgaming and Casino on Net operate, handling well over fifty percent of the online casino gambling market. eCOGRA CEO Andrew Beveridge says the successful PokerRoom.com accreditation is an important milestone for both the poker industry and his organisation. "This is the first application of independent regulations to elements within the online poker industry," he said "PokerRoom.com is a highly respected brand handling a significant proportion of the international online poker market, and their commitment to player protection and responsible gaming through the G4 organisation is well known." The eCOGRA initiative is open to all and provides practical player protection through a carefully developed set of regulations that are applied through third party international professional services organisations to member casinos and poker rooms. Online gambling operations that successfully pass the inspection are identified by the eCOGRA "Play It Safe" Seal, awarded by the three independent directors on the eCOGRA Board who control the organisation's operational activities. The eGAP regulations cut across political and geographic barriers to address every aspect of online casino and poker room activity, including FATF-relevant money handling procedures, fair gaming, responsible gambling and efficient customer service. The London-based staff of the regulator includes a Fair Gaming Advocate to whom players can appeal if any disputes cannot be settled at casino or poker room level. Patrik Selin, CEO of PokerRoom.com commented: "This is the culmination of tough, detailed on-site inspections and probity checks, but we believe it is an important step forward for our PokerNetwork and partners, and for the industry as a whole. Real and practical regulation such as eCOGRA offers has benefits for everyone, protecting the players and at the same time enforcing high levels of professional and business conduct at both the software provider and poker room level."
Speculation as to new owners The word in the GIGSE corridors this morning is that Microgaming-powered Golden Star group (Miami Paradise, Francenetcasino, Golden Riviera et al) is about to change hands. There has not yet been a public announcements although rumour is that one will be made soon. The good news is that the new owners are reportedly a respected and well established, successful group that can be expected to introduce major imporvements in performance and customer care. Watch this space. NEW GAMES LAUNCHED BY CRYPTOLOGIC
14 additions to the inventory
Top turnkey provider Cryptologic CryptoLogic Inc. launched 14 new casino games this week.
Bonus Pack 7, offered through CryptoLogic's subsidiary, WagerLogic Limited, debuts 12 new variations of highly-popular, multi-line video slots and two new scratch card games - the first ever developed by CryptoLogic.
"CryptoLogic's strength lies in developing - and delivering - innovative games that Internet gamers truly enjoy playing,"said Lewis Rose, CryptoLogic's President and CEO. "Players love the excitement of multi-line slot play with added elements of skill through arcade-style bonus rounds. Bonus Pack 7 extends CryptoLogic's competitive lead with a fresh array of multi-level video slots, more bonus features, and more chances to win. That's exciting news for our customers, for their players, and for our business."
Bonus Pack 7 features eight new 20-line themed slots, including Around the World, Reel Renovations and Daily Horoscope. There are also four additional 9-line video slots, including Mr. Rich, a new Rapid Fire jackpot slot, and a multi-line version of the favourite Millionaires Club progressive jackpot game - which has already netted one lucky winner a record-breaking US$774,024 jackpot.
The new software package also introduces the first Scratch Card games ever offered by WagerLogic - High Fashion and Money Farm. The new games are an entertaining addition to WagerLogic's rapidly expanding portfolio.
UK BOOKMAKER INVESTING MILLIONS IN ONLINE OPERATION Done brothers think it's a "sexy industry" UK based Done Brothers is making a multi-million pound drive into the online gaming sector. Fred Done, the multi-millionaire Salford-born businessman who heads the UK's fourth largest betting shop business, is determined to grab a share of what he calls "the sexy industry". IGC SUPPORTS UTAH AG Authority of individual states should not be challenged The Interactive Gaming Council has shown its support to Utah Attorney General Mark Shurtleff, who denied the World Trade Organization’s ruling that allows foreign Internet gambling companies to trade in non-gambling states.
The IGC agrees that gambling rules and regulations should be left for individual states to deal with as they see fit.
However executive director of the IGC, Rick Smith, says that although they agree with Mr. Shurtleff, who last week sent a letter to the WTO criticizing their ruling, that allowing states to govern their own Internet laws works both ways.
'While this tradition means that Utah, for example, has the right to attempt to ban all gambling, it also means that the federal government should keep its hands off when Nevada or a U.S. territory such as the U.S. Virgin Islands tries to license and regulate online casinos, or when North Dakota tries to license and regulate online poker.'
MORE MOBILE Win One launched
EGET has announced the latest release of its WinOne Mobile Gaming Platform, giving operators an opportunity to expand their businesses into the mobile channel.
EGET, a supplier of money games for mobile Internet, has focused its development efforts on enriching its original platform, announced last year, with new features. EGET has also joined forces with Finnish mobile marketing technology provider, Add2Phone, to offer player profiling, mobile CRM capabilities and advanced mobile marketing tools on the WinOne Mobile Gaming Platform.
“We were one of the first to deliver working mobile solutions to the gaming market in 2003 and now our WinOne Mobile Gaming Platform is more powerful than before, providing revenue-generating services to gaming operators. User-friendliness has been taken seriously into account, allowing a smooth user experience for the players”, Martin Prantner, CEO of EGET said
NEW CASINO CHEAT SHOW PREMIERS ON COURT TV
IT'S ALL HAPPENING IN MONTREAL NEXT WEEK MORE MILLIONS IN AD WORK OFFERED
888.com has $30 million to spend on offline work in the US Recent InfoPowa stories have highlighted the multi-million dollar advertising budgets being placed in the United States by leading online casino groups, and this week a report in Adweek revealed another major account on the market. Online gambling group 888.com has launched a review for creative work on its $30 million offline ad account. Jason Gasaway, U.S. marketing manager for London-based 888.com, said he is seeking a small, creatively-driven agency to craft "brand response ads." The work would offer a brand message and drive measurable customer response. Gasaway said the site had been in talks with two shops, but is now opening the field to new contenders in the hope that it will have the work placed by August this year. He also conceded that more than a few shops had declined his invitation, "...because they won't work with our (online gambling) category." As previously reported by InfoPowa, both MDC Partners and Omnicom Group have forbidden their agencies from pursuing online gambling business. The justification for the ban is apparently that the U.S. Department of Justice claims that gambling online, as well as accepting advertising for such sites, is illegal under the 1961 Wire Act. Among the agencies currently pursuing online gambling client Belle Rock Gaming are IPG's Avrett Free Ginsberg and Havas' Euro RSCG in New York. Independent Eisner Communications in Baltimore won the review for Fortune Lounge Group's $20 million ad account in April. PLAYTECH DISPUTES SECTION OPENS
Another software provider takes the high road on disputes Turnkey provider Playtech has joined the growing list of software providers who are sensibly making provision for player disputes that have proved impossible to resolve at casino level. It's a smart move that can save providers a bad name when frustrated players are rebuffed or ignored by casino licensees and have to resort to external fora and mediators to obtain satisfaction. The company has asked a senior manager with dealing with legitimate disputes that have proved impossible to resolve with casino managements. Players with a problem are invited to go to the Playtech site at Playtech.com, look for "Contact us" and then select "Player Inquiries" and fill in the on-site form. A little patience may be necessary as this is a new facility that will probably encounter teething problems. Nevertheless, like RTG's Montana disputes site it is a move in the right direction that gives players another avenue for genuine complaints, and the ear of management. MILLIONAIRE POKER Win the WSOP on this ticket and you're made for life! Poker World has launched one of the largest prize offerings yet seen in the many World Series of Poker promotions on offer. In addition to its Ultimate WSOP Seat Giveaway, the network is putting up a very generous $5 Million Bonus promotion. During the month of June, PokerWorld is awarding daily chances to qualify for a seat to the WSOP No-limit Texas Hold'em World Championship Event in Las Vegas. In addition to the seat in the WSOP Main Event, $2000 in spending money and some cool promotional gear, they are sweetening the projected prize pool with 3 cash bonuses: $25,000 if a Poker World player makes it to the final table of the WSOP Main Event, $50,000 if he or she finishes in the top three of the same WSOP Main Event $5 Million Bonus prize if he or she manages to win the WSOP Main Event in Las Vegas. The tournament is restricted to 32 seats to give players the best possible odds of winning their way to the WSOP. There are two ways to get a slice of this action. Win Your Way With Frequent Play or through daily satellite qualifiers. All the details are available at PokerWorld. MILLION DOLLAR CHAIRMAN PartyGaming's chairman under fire from investors The ripples from the PartyGaming IPO reach into some unexpected areas it appears from some reports in the British financial press, which this week alleged that the FTSE software firm SAGE's major shareholders are less than pleased with their chairman Michael Jackson for helming PartyGaming's projected GBP 5.5 million coming listing on the London stock market. Top investors are allegedly calling for Jackson to step down as chair of the controversial gambling firm after just three weeks on the job, and they're calling for his resignation. Others believe Jackson cannot devote enough time to his software firm responsibilities. "Jackson's new role will be significantly time-consuming," one institutional investor claimed. Shareholders are also angered by Jackson's multiple chairmanships. PartyGaming will be in the FTSE 100 after it floats, meaning he will chair two companies in the leading index - contravening strict corporate governance guidelines. Jackson is also chairman of venture capital outfit Elderstreet Investments, four quoted AIM firms and the unquoted software firm SearchSpace. Sage's leading shareholders, which include Morley Asset Management, Legal and General and M&G, now question Jackson's decision to chair PartyGaming. Two of Sage's big institutional investors have launched an investigation into his new role. One said: "Our corporate governance people are probing it." Jackson, 55, will receive a salary of GBP 500,000 a year plus a GBP 1 million bonus for getting PartyGaming's float successfully completed. He earns GBP 143,000 at Sage. RREV, the National Association of Pensions Funds' research arm, said Sage's board should explain its decision to allow Jackson to become chair of the online gambling company. Sage said Jackson had discussed his position with the company's senior non-executive director, Lindsay Bury, while PartyGaming added it was satisfied that Jackson had "...capacity for his roles".
THE BEST OF THE BEST POKER...ONLINE
Projected new championship should pack 'em in
It looks as if the long-proposed concept of getting the best of the best in online gambling to compete against each other may be gathering momentum. Announcements this week suggest it could be about to happen in the very near future and that several top sites like PartyPoker, UltimateBet, PokerRoom, Absolute Poker and Golden Palace Poker have agreed to conduct two online tournaments that will make up the ten event schedule. Early reports reaching InfoPowa suggest that there will be two levels of buy-ins, $100 + $9 and $250 + $20, but there is nothing available at this stage to suggest that players might be able to get in via sponsored satellite tournaments. Any player eligible to play at the participating sites may play in as many of the events as they wish. The winner of each tournament, in addition to picking up the top prize from the tournament, will also earn a seat, hotel, travel and meal expenses to a final "live" championship series, that will apparently take place at the Trump Taj Mahal Casino and Resort in Atlantic City, NJ on October 8. This will be $100,000 in prizemoney in a one table Sit and Go, with the eventual champion taking down the top prize of $30,000 and tenth place picking up a $5,000. The top dog, or Player of the Tournament title is on the cards too, with all players registered at the OSOP website earning points toward a OSOP Leaderboard. Prizemoney will be available here too for those who accrue enough points through the ten events, with the top six money leaders from the entire event receiving cash prizes ranging from $500 to $3 000. More information on this imaginative new competition can be obtained at Online Series of Poker.com. STOP PRESS As we went to press this week the announcement was just out that Citadel Commerce Corp. is sponsoring the Online Series of Poker Leader Board. The Online Series of Poker (OSOP) allows worldwide online poker players the unprecedented opportunity to win a share of $100,000 in prize money at the Online Series Of Poker Championship Freeroll Event by qualifying through online poker tournaments at participating online poker rooms. This is the first time in the history of online gaming that a tournament has been held across multiple online poker rooms. LADIES WITH AN EDGE Gearing up for the WSOP Binion's Gambling Hall and Hotel has teamed with GamingClubPoker.com to give the ladies a hand in improving their poker play for the World Series of Poker through a $5000 freeroll tournament with special guest host and two-time WSOP bracelet winner, Susie Issacs. Branded the Ladies International Poker Tour (LIPS) the event is scheduled for Las Vegas where the famous Binion's Gambling Hall and Hotel will be the venue to this special event on Saturday June 25th. Experts anticipate that it will be the largest field in history of the ladies championship event at the WSOP, and say that the LIPS freeroll is a great way for players to polish their skills at the tables before the main competition. The first 250 entrants will face an entry fee of only $20. In addition to the $5000 that goes to the champion, there will be prize drawings throughout the day. Each player will receive an exclusively designed shirt from the LIPS Tour and Gaming Club Poker and a special commemorative card protector. There is also a special $5 bounty chip on every player in the tournament. Pre-registration can be done online at LIPSTOUR.com. WSOP RESULTS Top players are a software developer and a nightclub owner The top WSOP players were celebrating their skills and rewards this week. Pat Poels, a software developer turned pro player frpom Arizona beat a field of 699 to take the Omaha Hi-Low Eight or Better event, and playing in only his third land-based poker tournament, nightclub owner Issac Galazan won the 6-handed No Limit Hold'em event, both at the Rio Pavilion Convention Centre. Poels earned $270,100, a record first prize for a land-based Omaha High-Low tournament, and the coveted gold bracelet. Galazan, a.k.a. "The General" and "Issac G," outlasted a field of 548 players to collect the first place prize of $315,125 and the gold bracelet. Poels (37) quit his software development job in April to play poker full time. The final winners in the $1500 Limit Omaha High-Low Eight-or-Better Final Table were: 1 Pat Poels Mesa, Arizona $270,100 2 John Lukas Las Vegas, Nevada $139,870 3 Jeff Duvall London, England $77,170 4 Bahram Kianfar Palm Desert, California $67,525 5 Dan Heimiller Plymouth, Michigan $57,875 6 Jim Meehan Minneapolis, Minnesota $48,230 7 Darrell Dicken Waterloo, Iowa $38,585 8 Boris Shats Los Angeles, California $28,940 9 Minh Nguyen Lake Elsinore, California $19,290 10 Pascal Perrault Paris, France $10,610 In the No Limit Hold'em event, Galazan staged a major upset in defeating highly experienced UK player Harry Demetriou in a heads up game that lasted only 12 hands. Final able results for this event were: 1 Issac Galazan Bangkok, Thailand $315,125 2 Harry Demetriou London, England $163,850 3 Tommy Grimes Houston, Texas $85,705 4 David Singer Marmaroneck, New York $75,625 5 Antonio Esfandiari San Francisco, California $63,020 6 David Barnes London, England $50,415 CASINO CAUTIONS Allergic to payouts and response-challenged AST Gaming-powered Rochester Casino.com has been jerking players around for up to four months on pretty straightforward payouts, taking them around the houses on bonusing rules. It has seemingly developed a common Costa Rican mindset that includes ignoring emails asking for an explanation and delaying payouts on tenuous grounds to say the least. One look at the 300 percent signup and 200 percent second deposit bonuses should give experienced gamblers a foretaste of what could lie ahead, but for those who are not veterans should tread very cautiously around this operation. Phishers target Betfair clients The industry was again reminded to be on the alert this week after another phishing attempt surfaced, this time directed at Betfair clients. The UK betting exchange is the latest to be targeted in bogus emails asking clients to confirm their passwords. Anyone who unwisely does this could expect to find his or her account raided by the crooks, who have yet to be identified. The email was received by some Betfair customers on Tuesday, and immediately company executives posted information advising customers not to log on to the emails. The 'phishing' emails are presented as if coming from a financial institution such as a bank, or online processing company, asking for the receiver to ‘confirm’ his or her password. This is then used to extract funds from unsuspecting owners accounts. 29 STATES VOTE AGAINST WTO GAMBLING BACKDOWN Protect our state laws from WTO interference, say AGs The WTO dispute in which the USA is currently embroiled was centre stage again this week as Associated Press reported that 29 states are joining forces to urge the U.S. government to keep Internet gambling out of international trade agreements. Utah Attorney General Mark Shurtleff helped coordinate the effort by states to protect their gambling laws from actions by the World Trade Organization. Shurtleff and 28 other attorneys general released a letter this week petitioning U.S. Trade Representative Rob Portman to redouble efforts to protect the legal rights of states to ban or regulate forms of gambling. Their plea came after a conflicted ruling by a World Trade Organization appeals panel in April. The panel ruled the United States could keep some Internet gambling restrictions to "protect public morals or maintain public order." But the same 138-page decision opened a door for Internet gambling by finding fault with a federal law regulating interstate horse racing gambling. The panel said the United States failed to show that the Interstate Horseracing Act was applied equally to foreign and domestic remote betting services, and presented a conflict with its stand on "public morals and good order." That left the Caribbean nation of Antigua and Barbuda claiming U.S. authorities must treat online casinos in the same way as traditional gambling outlets. Shurtleff fears the WTO decision could erode state powers to regulate gaming. "Antigua has no business trying to write Utah's gambling laws. The trade representative needs to know that we have too much at stake," Shurtleff said in a statement issued Tuesday. GAMBLERS' SUIT TO CONTINUE Search engines lose bid to dismiss lawsuit A lawsuit filed some months back by U.S. online gamblers Mario Cisneros and Michael Voight was challenged this week by major search engines such as Google and Yahoo, who unsuccessfully sought to have it dismissed. Bloombergs reports that the suits target advertisements that appear alongside Internet search results, an industry that is expected to grow by 34 percent to $5.16 billion in the United States this year, according to Goldman Sachs Group Inc. The case highlights the regulatory issues faced by search engine companies when displaying certain types of advertising, such as online casinos or company trademarks. The two plaintiff gamblers claimed that they used sponsored links at search engines or Web sites to find online casinos where they lost money. During a hearing in San Francisco, Judge Richard Kramer ruled that the suit would not be dismissed as requested by Yahoo, Google and ten similar companies, and that the process of gathering evidence in the case may proceed. NEW ISLE OF MAN TAX RATES NOW IN EFFECT
The idea is to attract more online gaming companies to the jurisdiction Ise of Man licensing authorities are hoping to attract more i-gaming companies to the island jurisdiction with a new tax table approved by government in April and brought into operation this week. With the prospect of competition from the new UK Gambling Act provisions on the horizon, the island's government is also probably positioning itself to compete more effectively for the business of both existing and new licensees. Early feedback suggests that the sensibly moderate rates of taxation will be a keen incentive for licensees to remain on the island. Whilst previously the taxation table entailed a flat rate of 2.5 percent on gross gaming yield (profit on bets taken), the new scheme is based on a graduated scale. Licensees will now be annually taxed at 2.5 percent on the first GBP 10 million yielded, 0.5 percent on yield bet GBP 10 million to GBP 40 million and 0.1 percent on yield exceeding GBP 40 million. The new tax regime requires each licensee to file what amounts to a tax return / report with the Isle of Man Customs and Excise office detailing the companys revenue generated from betting stakes and the amount of money paid out in prizes and winnings. The operator is further required to report its gross gaming yield and how much duty is owed. The upside of the sliding-scale scheme is that the Isle of Man is abolishing its general corporate tax--another element of the government's strategy to expand the island's technology community and enhance its reputation as a AAA rated jurisdiction. The IOM is an attractive proposition for online gaming companies, offering a combination of world-class standards of practical regulation and an excellent telecommunication infrastructure and potential employee resource. Tens of millions of pounds sterling have been invested over the last five years in upgrading the island's technology infrastructure. Improvements include the implementation of Europe's first Super Fast (HSDPA) 3G network; two self-healing (SDH) fiber rings connecting the Isle of Man to both the United Kingdom and Ireland; 100 percent broadband coverage; and free ADSL and ISDN connections available to businesses and individuals. Set up incentives include grant packages of up to 40 percent for companies considering relocating to the island. The IOM head of e-Business, Tim Craine says the government's intention is to make an impact on key members in the international online gaming industry by showcasing the benefits of doing business in the European Union and the benefits offered by the centrally positioned Isle of Man in particular. WILL HILL - AT THE RACES COLLABORATE ON NEW MOBILE SERVICE
Officially launched this week Following a month of "soft launch" operations, At The Races and William Hill this week announced the official operational start of the UK’s first live, daily, interactive 3G sports service on 3, a British video mobile network. At The Races 3G will make available all of of the racing site's previews, news, analysis and UK and Irish horseracing content as a live broadcast to over 3 million subscribers, and gamblers can place a bet on the action through William Hill. With over 6 million 3G handsets now in use in the UK, the mobile video market is poised to make a major contribution to online gambling revenues as interactive content becomes more readily available to users via video short codes. CHINESE WEB CONTROL
Gambling one of the targets
The Australian reports this week that the general efforts of officialdom in China to control the Internet does not appear to be making too much headway. Apparently government threats to close down unregistered websites have convinced only 430,000 webmasters to make themselves known to the Information Ministry - suggesting that most of the country's estimated 4 million web loggers, or bloggers, are choosing to stay out in the cold. "There's a bit of a chill blowing through right now," said Duncan Clark, managing director of Beijing-based media consultancy BDA China. The campaign for registration is "...obviously an effort to impose control" on web activities, he said. Clark has moved his website offshore to avoid the regulators. "Netizens" who use the web to question China's authoritarian rule quickly discover that the (Communist) Party's long arm reaches deep into cyberspace. There are said to be some 40,000 "internet police" working to block access to sites the party doesn't like and cleanse chat rooms of subversive content, often within minutes of posting. According to Reporters without Borders, at least 61 people are in Chinese jails for posting illegal messages or articles on the internet. But Guo Liang, one of China's leading internet researchers, said the main targets of the drive to register websites were online gambling, pornography and some game sites. "There is still space for individuals to go anonymously online," he said. "I think maybe the Government will do something on bloggers but up to now nothing has happened." On the other hand, he points out, a 1997 regulation requiring registration of all Internet users is not enforced. "It is a cat and mouse game. I think every government wants more control but the question is how, and whether local conditions will permit it." The Chinese Web * Internet users in China, January 2005: 94 million * Growth on previous year: 18.8 per cent * Broadband users: About 42.8million * Officially registered sites (.cn suffix): 668,900 * Average use per week: 13.2 hours * Increase in average weekly use over previous six months: 56 minutes * Mobile phone users in 2004: 330 million * Fixed line telephone subscribers: 310 million * Short message service users: 237 million * SMS sent: 250 billion GFED TO OFFER MAHJONG Popular Chinese game will be available to licensees Gambling Federation licensees will soon be adding the popular Chinese tile game of Mahjong to their gambling suites, following a deal between the gambling group and gaming software developer Mahjong Systems Limited. The mahjong software will initially be available at Gambling Federation’s premier licensor, Videopokerclassic.com. Mahjong Mania President, Adriaan Brink said, “We are very pleased to integrate our Mahjong network into the Gambling Federation software. We expect their significant Asian player base to enhance our overall liquidity and the playing experience for all of our customers”. Mahjong Mania operates the only aggregate play-for-money Mahjong game on the Internet. By pooling players from all its partners and allowing them to play against one another Mahjong Mania is able to present exciting and competitive experiences. Mahjong is a 4-player game similar to Gin Rummy. Played with a set of 144 tiles it can become very complex with some of the more advanced rule sets, although the initial implementation by Mahjong Mania has been kept simple in order to encourage play. The development company responsible for Mahjong Mania, Mahjong Systems Limited is currently being acquired by Events International Holding Corporation, a Montreal-based public company whose shares are listed on the TSX Venture Exchange under the symbol “EIH”. COULD U.S. LEGAL ISSUES DAMPEN THE BIG LISTING?
Speculation on the possible impact of D of J activities Amidst the hype and enthusiasm surrounding Party Gaming's confirmation that it was to list in London, The Independent's US correspondents introduced a sober note. In a story on the big listing, it was pointed out that American regulators are threatening to clamp down on illegal internet gambling, and that this could damage prospects for PartyGaming's planned $10bn (GBP 5.5 billion) stock market flotation later this month. The report quotes a spokesman for the Department of Justice who apparently said without disclosing details this week that "....various investigations are ongoing" against internet gambling companies. He added there was a "...potential liability" of criminal prosecution for individuals who it finds have gone against the (Wire) Act. The official US position as claimed by the D of J is that virtually all online gaming is against its laws, a fact that represents a huge source of uncertainty for PartyGaming and its main UK rival, Sportingbet. Both companies derive a large chunk of their revenues from American customers. In the face of an explosion of electronic gambling across the US, the Department of Justice has been stepping up its campaign against firms that offer it. It has written to several warning that internet gaming is against the law under the 1960s-era Wire Act and has issued subpoenas to companies associated with the business. The Independent article speculates that the high profile flotation of PartyGaming could spur the DoJ to further action. The majority of players on its Party Poker website are Americans, with just 5 per cent of customers coming from the UK. Some two-thirds of Sportingbet's revenues come from US customers. Sportingbet maintains it is not breaking the law because it is based in the UK, where online gambling is legal and became subject to a host of regulations under the recently passed Gambling Act. PartyGaming is regulated and licensed in Gibraltar and its lawyers believe the Wire Act only applies to sports betting, and not poker. The uncertainty, however, means investors will be demanding clarity from PartyGaming on the legal position of internet betting in the US before they invest. Taking a more positive view, Greg Feehely of Altium Capital, said: "There is no doubt that there is a regulatory risk attached to this company and investors need to be aware of that. "But that risk has also already been priced into PartyGaming's valuation. A company with that sort of growth record and potential would float at more than 20 times earnings. It is only being valued at around 10-12 times earnings, because of the risk of the uncertain legal situation in the US." He believes it is highly unlikely the US would begin prosecuting overseas poker companies. Sorting out the contradictions between America's official legal position and the reality of the booming online industry is also likely to move further up the agenda of Capitol Hill after a recent ruling at the World Trade Organisation which broadly upheld a complaint from Antigua, one of the WTO's smallest members. RISING STAR GAMING BUYS NEW POKER SITES Express Poker and Magic Gold acquired from Windows Casino investor Barely two months back Rising Star Gaming was in the news when it purchased for an undisclosed sum the notorious Portofino and Hampton online casinos. This week an affiliate program revealed that the group has also acquired Express Poker and Magic Gold, two casino/poker operations powered by RTG and operating out of Costa Rica. The Cyber Success Group Inc. (CSG), obtained the exclusive marketing rights of the two newly launched sites which were "...recently purchased by Rising Star Gaming, a privately-held online Gaming equity fund, from ADLM Limited." ADLM is a company that involves a major Windows Casino investor, Avi Goldman who also featured in the series of rapid fire deals leading to the RSG acquisition of Portofino and Hampton. In a matter of weeks, the original owners Connect To Casino sold the casinos to Goldman's World eGaming, which sold on to RSG. According to George Klein, Director of Investment Relations for RSG, "Even though these two sites are start-up projects, we're bullish on their performance based on CSG's relationships with more than three thousand affiliates worldwide." According to Christopher Shawn, affiliate manager for CSG, "Increased pressure by the U.S. Department of Justice on U.S media to avoid accepting online gambling ads was the most important factor concentrating our marketing efforts on a strong gambling affiliate program instead of on limited media buying." The two gaming brands will be offering affiliates a new assistance and reward program called Gaming Revenue. It is claimed that this program will provide affiliates with innovative and creative, outside-the-box strategies, tools, and techniques for promotions. "Gaming Revenue promises to ensure complete transparency and clarity in all its financial relationships with affiliates, and to resolve all affiliate-related matters as quickly as possible," according to Shawn. TWELVE NEW SLOTS FROM CRYPTOLOGIC
Intercasino the first to roll out new games InterCasino is the first Cryptologic-powered online casino to launch a new set of casino games, including 12 brand new slots and 2 scratch cards The latest additions to InterCasino’s portfolio means the casino now offers over 100 casino games. “We have added eight 20-Line slots to our casino, which include the awesome Treasure of Isis and my personal favorite Daily Horoscope. We’ve also added a new Rapid Fire Jackpot Slot, Mr. Rich, which is already proving to be a huge hit amongst our players,” says manager Ryan Hartley. Hartley says that the real showstoppers amongst the new games are the new 9-Line slots and the scratch cards. “We’ve added three 9-Line slots to our mix, the best of which is a 9-Line version of our all-time favorite, Millionaires Club. The response to this game has been phenomenal and the fact that the progressive jackpot is now over $700,000 just goes to show how popular it really is!” “We also have two fantastic scratch card games, High Fashion and Money Farm, which our players are going to love,” Hartley continued. LATEST SPORTINGBET FINANCIAL REPORTS Turnover and profits show significant increases Major online gambling group Sportingbet has released its unaudited results for the third quarter and cumulative results for the nine months ended 30 April 2005. Financial highlights for the three months ended 30 April 2005 include: Increase in turnover of 31.1 percent to GBP 390.5 million (2004: GBP 297.8 million). Gross margin up 137.5 percent to GBP 57.0 million (2004: GBP 24.0 million) Operating profit increase of 242.4 percent to GBP 20.2 million (2004: GBP 5.9 million). Subsidiary Paradise Poker, delivered a particularly strong performance, contributing GBP 9.1 million to operating profit. Excluding Paradise Poker, operating profit increased 88.1 percent to GBP 11.1 million. Profit before tax was up 226.2 percent to GBP 13.7 million (2004: GBP 4.2 million) SPORTINGBET THE ONLINE GAMING SUPERMARKET? Poker is not our sole product says CEO Analysts have been commenting on the positive impact that online poker has had on the Sportingbet business since the acquisition of Paradise Poker, and this week CEO Nigel Payne gave a timely reminder that the British gambling giant covers more than just poker interests. Speaking to the media, Payne played down the emerging dominance of Sportingbet's poker business within the group's stable of online gambling products. "We are not trying to sell a single product, like HMV might do. We are trying to be an online gambling version of Tesco," he said. Sportingbet's share price has soared since the group acquired poker website operator Paradise Poker last November, giving it the biggest market valuation of an AIM-listed company, peaking in recent months at just over GBP 1 billion. MOBILE GAMING IN NEVADA Following up on Bill AB471 In last week's InfoPowa round-up we reported the passing of legislation allowing Nevada gamblers to play poker, roulette or slots from within casino grounds, and there is now more information available on this significant development for further comment. Governor Kenny Guinn has signed off on the legislation, and regulators will have to make some judgments on mobile gaming safeguards as they prepare operating rules. The board and the Nevada Gaming Commission will draft regulations on mobile gaming before wireless devices can be used to play in local casinos. AB 471 was initiated by Cantor G&W (Nevada) LP, an affiliate of Cantor Fitzgerald LP, the New York-based financial services company that claims that an adaptation of its interactive bond-trading technology will work for casino gambling. Cantor representatives produced a highly professional proposal months in advance of the 2005 Legislature, and the result was a measure that addressed every issue and was opposed by only one of the state's 63 legislators. Former state Gaming Control Board Chairman Steve DuCharme is quoted by the media as saying that the issues that will confront regulators aren't new -- they're just updated versions of existing issues, advanced by new technology. "I'm sure they'll be looking at how you restrict the area where it's used," said DuCharme, who served as chairman from 1998 to 2000 after two four-year terms as a member. "How do you prevent minors from using it? How do you protect the system from hackers?" DuCharme said regulators would likely look at the role of adult responsibility on some of the issues. "At some point, society has to rely on adult responsibility," he said. "There are people over the age of 21 who purchase alcohol for minors and there are parents who allow their children to gamble by telling them to put the coin in the machine and pull the handle." Proponents of the devices say the remote gambling option, in public locations at resorts and not in hotel rooms or other private areas, would help Nevada casinos stay competitive despite the expansion of Indian casinos, Internet betting and of resorts elsewhere in the country and around the world. "It's a reflection of changing technology and the ability to do things differently than in the past," said Bill Bible, head of the Nevada Resort Association. "It clearly behooves Nevada to keep abreast of the times and maintain its advantage over other states." It will take several months for adoption of rules implementing AB471, and Bible said casino regulators will have to be assured there's no potential for problems. Once they're authorised, Bible said there's still another test: "How will it be accepted, whether people would rather gamble on a PDA (personal digital assistant) at poolside or whether they'd rather be in the casino enjoying some of the casino excitement." Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno, raises another concern: whether the advantage of offering casino customers a convenient way to gamble nonstop is offset by the possibility that the technology could someday make it outside casino walls. "Then there may be some concern with the industry that there could be a competing product," he said, adding that the proposal "brings up the philosophical question of where should gambling take place." Joe Asher, managing director of Cantor G&W, said his firm is focused on use of the devices within and not outside casinos. He heralded the action that puts Nevada on the way to apparently becoming the first state to allow wireless gambling. "People have become more and more comfortable with technology," Asher said. "An entire generation or two have grown up with video games or mobile devices, and they are in our view likely to appreciate the ability to play without being restricted to the physical confines of the gaming area in the casino." Asher revealed that the Cantor device uses encryption to ensure security. He also said a biometric system, that reads a permitted user's fingerprint, could be used if that's what regulators want. Under terms of the measure, the devices could only be used in the public areas of casinos that have 100 or more slot machines and offer at least one other game. They would be barred from hotel rooms or any other private areas. State Gaming Control Board Chairman Dennis Neilander said it could take several months to a year for the board and its parent, the state Gaming Commission, to come up with the regulations that will govern the use of the devices. Bible, a former GCB chairman, said the concept may be new but the ability to control such gambling is strong. The wireless devices would be linked to a main casino server that could verify that the gambler is the person who checked out one of the devices at a casino. Asher told legislators that the devices could be set to stop working in nonauthorized areas, and players could establish limits in advance by depositing money on account. SKY'S POKER NIGHT LIVE DEBUTS Multiple live poker tables and pro players now on Skye Channel 226 Poker Night Live is the new late night entertainment bonanza on pokerzone SKY CHANNEL 226 in the United Kingdom. Poker Night Live introduces multiple live poker tables, two all-seeing poker pros and one groundbreaking entertainment channel very evening, from 9.30pm to 2.30am, delivering poker into thousands of homes across Britain. It's the first fully interactive poker program directly fusing online poker and live television, claims Skye and allows online players to appear on televised tournaments, offers poker tips to all players and gives pokerheads from across the world the chance to enjoy televised poker stardom. Apart from their status within the poker circuit, Poker Night Live’s expert presenters bring diverse experience to the table. “Dr” Tom Sambrook teaches psychology and has a great knack for reading players whilst Greg ‘The Axxeman’ Winters is known for his poker prowess and killer instinct. MOBILE WALLET FROM CITADEL AND PHANTOM FIBER Citadel Commerce selects Phantom for global project Phantom Fiber's mobile technology received another business endorsement this week when e-commerce payment solutions provider, Citadel signed a five-year license agreement. Under the terms of the agreement, Citadel will use Phantom Fiber's advanced wireless platform to extend its myCitadel payment service to mobile customers with support capability for more than a thousand mobile devices worldwide. Customers will be able to download the mobile wallet application to their cellular device and fund their myCitadel account while on the move - all without having to replenish their account through an Internet-connected PC. Fees for the mobile wallet application will be based on usage and a revenue share arrangement has been established between the companies. Michael Meeks, President of Citadel Commerce Corp. said, "The extension of our products and services to the mobile environment was based on finding the right partner to enable our products for a global audience, on the broadest set of devices, with a proven solution based on the strength of gaming partners and clients. Phantom Fiber was a perfect fit.” Citadel is a part of the ESI group of companies, which also includes ESI Integrity and PlayLine, providing product based services to over 20 international government lotteries, to international horse racing hubs, and to much of the Internet gaming industry. EXPERT COACHING ON TXT MESSAGING The Flying Dutchman has a new idea Poker fans can tap into expert coaching from one of the best in the business if Marcel Luske's new venture with CelebrityPokerChat succeeds. He's the first professional poker player to reach out to his fan base through text messaging, and has signed with Smart Entertainment's CelebrityPokerChat service to deliver live updates directly from the poker table to his fans as he plays. Luske will offer playing tips and include some of his famous slogans such as “Give a little bit of your chips to me!” A widely respected player in the United States and Europe, Luske's finishes in the past two WSOP tournaments have brought him to the forefront of the poker landscape. He placed tenth in the Main Event 2004 and thirteenth in 2003. His eccentic, yet eye-catching signature style is wearing his sunglasses upside down and he has developed his own marketing organisation called Flying Dutchman Marketing, which provides integrated marketing plans in the sector. Luske is the director of the International Poker Federation (IPF) and a regular contributor to Bluff Magazine. |
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