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EMPIRE POKER PURGE?
Players report large number of inexplicable account closures
The Internet poker message boards have been hot with exchanges on Empire Poker over the past week or more following what seems to be a large number of arbitrary and inadequately explained account closures. InfoPowa attempts to obtain an official comment from Empire Poker management appear to have fallen on deaf or unwilling ears, for there has been no response. The consensus in player-land seems to be that the closures are either related to taking advantage of too many bonuses, or to having multiple accounts at both Empire Poker and Party Poker, but it is difficult to be sure, since some of those locked do not appear on the face of their claims to fall in either category. Speculation that this issue may have something to do with moves at the Party network to curtail rakeback deals is similarly difficult to understand in the absence of corporate reaction. If this is a case of lowering the boom on greedy players, it is being handled in a singularly clumsy manner and with little apparent transparency. Complaining players allege that they have not been specifically told why their accounts are being closed. Some report emails with vague references to "fraudulent and wrongful practices" followed by a determined silence from the network. It seems that a poster claiming to be an Empire representative made a brief appearance at the 2+2 forums to explain without detail that the unspecified *fraud* that people were accused of commiting was in fact "bonus abusing." However, it appears that no monies are going to be seized, leaving the debate as one of poor notification but the legitimate exercise of right of admission. Many players believe that locking accounts is an unintelligent solution to a problem that could be better resolved by increasing the bonus requirements such that the bonus is covered by the rake. Better yet, by offering targeted bonuses for which Empire apparently already has a system. Several experienced players have pointed out that by taking this less confrontational route, the regular players would not be alarmed over what is perceived as being a heavy handed and arbitrary approach by poker room management. If this is a purge, Empire needs to be careful it does not throw the baby out with the bathwater, or damage its reputation and future custom. And it could certainly learn the value of honest corporate communicating. CRYPTOLOGIC LOGS ANOTHER SOLID QUARTER
TOP MICROGAMING TITLES NOW AVAILABLE ON FLASHRevenues rise 33 percent, and poker is a star performer One of the online gambling industrys top turnkey providers, CryptoLogic Inc., reports this week that its first-quarter earnings have jumped to US$4.8 million, from US$3.8 million a year earlier, as revenue rose 33 per cent. Earnings for the quarter ended March 31 amounted to 34 cents a share, diluted, compared with 28 cents per share a year ago, the Toronto-based company revealed. Record revenue, strong earnings and positive operating cash flow generation reflected continued growth in the company's primary Internet casino and poker markets. Revenue increased to $20.3 million from $15.2 million. Internet poker fees derived from the WagerLogic subsidiary rose by more than 200 percent over Q1 2004, and accounted for over 25 percent of Q1 2005 revenue. The central poker room shared by WagerLogic licensees now attracts more than 6,000 simultaneous live online players, and is one of the world's top five revenue generating poker sites on the Internet The company predicted continued growth in Internet casino and poker markets, and says that the Internet poker industry continues to enjoy strong momentum, with growth forecasts of more than 100 percent for 2005 (source: Global Betting & Gaming Consultants). WagerLogic's new six-seat poker tournament feature, which is branded SIXPAK, was a contributing factor to the quarter's growth. The software delivers "final-table" action throughout an entire tournament event and expands licensees' tournament offerings to their players. "CryptoLogic is clearly benefiting from its investment in growth and we will continue to invest in order to maximize returns at this exciting time in our industry. The landmark legislation to regulate Internet gaming in the U.K. for the first time is further evidence of the global potential and growing acceptance that this industry is here to stay," CEO Lewis Rose said. CryptoLogic is making further enhancements directed at the key areas of its business--its casino and poker software offerings, system infrastructure and scalability, and back-office and customer care. The company report also revealed a move to new office premises this year to accommodate the growing head count. Popular download games converted to instant play in answer to player requests
Turnkey provider Microgaming has been busy converting some of the top titles in its 200 + games inventory to the no-download Flash technology platform in answer to requests from many players. The following games have just been rolled out to the majority of online casinos offering Flash as well as download gambling, and most should be live by now. SLOTS: Oriental Fortune What a Hoot Spectacular Wheel of Wealth Big Kahuna Carnival Secret Admirer Skull Duggery Tomb Raider Couch Potato PROGRESSIVES: Major Millions Cash Splash Fruit Fiesta Lotsaloot TABLE: High Limit Blackjack Depending on market developments and particularly player reaction, further titles may be converted in the future, a Microgaming spokesman told us. BODOG WINNER SPONSORED FOR WSOP College undergrad wins $12 500 poker sponsorship
Online gambling group Bodog.com will be footing the bill for a University of Minnesota junior to compete with the best of the best at the 2005 World Series of Poker scheduled for July this year. Eric Zard (21) beat 430 other online players in the Bodog tournament this week on his dorm computer, winning the top prize in a tournament in which players played with their accrued points, not money. Bodog will pay the $10,000 buy-in fee for Zard to play in the final World Series event and will give him $2,500 for travel and hotel expenses while in Las Vegas. Zard plans to travel to Las Vegas July 6. The 2005 World Series of Poker will conclude July 15 at the Horseshoe in downtown Las Vegas. Last year Greg "Fossilman" Raymer beat out the other 2,576 players in the 2004 World Series of Poker, winning $5 million. Raymer, too, entered via an online poker site. NO MISMATCHES Keep your identities straight or be prepared for hassles Something of a furore erupted on at least two message boards during the week when an English player alleged that a casino had deposited money into his Neteller account but had then been able to make an unauthorised withdrawal in reversing it. On the face of it this appeared totally unacceptable, and indignant and worried players soon built up a sizeable head of steam. InfoPowa contacted Neteller for a comment on the issue, and a speedy investigation was immediately mounted. At the end of the day it transpired that in fact both casino and Neteller had been acting in the interests of protecting the player, as the following comment from a senior Neteller spokesman, Colin Francis shows. Why was the player using different identities? That's an interesting question.... QUOTE NETeller has set up a rule with it's merchants that an account holders name must match on both sides in order to allow a cash out or deposit to and or from a merchant to NETeller / NETeller to merchant. The transaction was sent from this merchant to what seemed to be another NETeller account. The player described the situation later like this: he had set up a player account(casino side)with his friend's name and a NETeller account with his own name. When the casino in question saw the error in the user's names missmatching, the transaction was reversed. This casino went out of it's way to reverse what looked to be a fraudulent withdrawal to someone else's NETeller account(as the names didn't match on both sides) The casino and NETeller were trying to protect a player against a potential fraudulent withdrawal. NETeller is currently working with the client and the merchant to correct this issue. The funds are still available to the client. He breached the merchant's and NETellers security rules and this is why there is a problem. UNQUOTE The moral of the story is....NO MISMATCHES. GILMORE LEAVES ISLE OF MAN E-GAMING New leader appointed John Gilmore of the e-Gaming Development department of the Isle of Man handed over leadership of the department to Bill Mummery this week. The Department of Trade and Industry announced the appointment of Mummery as Head of E-Gaming Development. He will continue to work closely with all parties to promote and advise in the development of the Isle of Man as a centre for e-gaming. “It is an exciting time for Bill to be joining in terms of the development of the e-gaming sector on the Isle of Man,” said Alex Downie, Minister for Trade & Industry, “This month we saw the zero rate corporation tax for the e-gaming sector come into effect, following very closely the change in policy over the acceptance of bets from the US.” “These moves demonstrate the Government’s commitment to providing an attractive proposition for e-gaming businesses considering re-location to the Island. These, alongside, the high-quality legislative and regulatory environment on the Island, allows businesses to expand and develop.” Mummery brings with him an impressive background. He has spent 20 years in a corporate environment in broadcast and IT technology, and he co-founded BetInternet, the online sport business, on the Island in 1997. “John Gilmore has been a key driver in moving the Isle of Man Government’s e-gaming proposition forward in a very positive manner,” added Downie, “Both the Isle of Man Government and the e-gaming related industries here on the Island have benefited greatly from his contribution. The Department of Trade and Industry wish him the very best.” END OF THE ROAD FOR CASINO SOLEI - PLAYTECH
Turnkey provider terminates license
The online Casino Solei.com owned by land-based gambling interests in Croatia, came to a parting of the ways with software provider Playtech this week. In a press release redolent with corporate-speak, Playtech announced the "amicable" joint decision to terminate its software license granted to VBC Ltd, operators of Casino Solei since 2003. The announcement ends a two year commercial relationship and was effective from April 23 2005. It is not known what future plans the casino has, or even whether it will remain in the industry with another software provider; as at going to press there had been no comment from Solei management. The Playtech release made it clear that players would have to liaise with Solei directly to resolve any outstanding balances or claims. SKILL GAMING MOVES Funtech and GameAccount make new deals Skill gaming was in the news this week with two commercial deals involving Andrew Rivkin's Fun Technologies and Game Account. The GameAccount deal with Digital Gaming Solutions, a supplier of online casino and sportsbook gaming systems, is to provide a fully white-labelled skill gaming system with seamless login, real-time foreign exchange rate conversions and multiple languages. The company says that the pay-per-play online games market is currently estimated at $169 million per annum and is growing at a faster rate than that for the overall online games market, but does not give a source for the numbers. Game Account predicts that the skill games sector will hit turnovers of $768 million by 2006. The deal means that Digital Gaming Solution’s user clients will have access to GameAccount’s skill-based games through their existing gaming accounts. Several gambling companies, including FHM, Tiscali, Sportingbet, Paddy Power and the Sun Online, use GameAccount’s full back-end integration, supported by a suite of online management reporting and customer service tools. GameAccount’s networked P2P games include Gin Rummy, Backgammon, 8-Ball Pool and Multi-player Golf. DGS chief Darren Rennick claims that his company manages more than 3,000,000 hits per day and millions of dollars in monthly deposits and says that Game Account's DDOS attack-prevention facilities were a factor in the giving them the business. FUN Technologies and its SkillJam gaming division, another provider of person-to-person skill gaming, also inked a licensing agreement this week, teaming up with Victoria Real Ltd., the creative communications producer and subsidiary of Endemol UK. The agreement is to supply and support unique online, skill-based games based on three of Endemol's leading shows: 'Fear Factor', 'Big Brother' and 'Last Man Standing'. Victoria Real has access to the rights to develop games on all interactive platforms, based on Endemol's 500-plus programme titles. Victoria Real is a pioneer of interactivity, distributing fully integrated applications across web, iDTV and mobile. Endemol, which became part of the Telefonica S.A. group in 2002, was established in 1994 as the result of a merger between the two major TV producers in the Netherlands. "The competitive nature of these three Endemol games makes them exceptional additions to our suite of online games, and we believe they will be well received by our over 7 million registered players,” said Lorne Abony, FUN CEO. BEJEWELED SCORE FOR WAGERLOGIC New slot will be based on a "wildly popular" game Wagerlongic scored a big one this week, landing a 5 year exclusive agreement for the Internet rights to the slot version of Bejeweled – a wildly popular game with online players that has entertained over 50 million people globally. Described as “...the best puzzle game since Tetris,” Bejeweled is the creation and flagship product of PopCap Games. According to the company, it has sold over a million units across multiple channels, while garnering multiple Game of the Year and Hall of Fame awards. Bejeweled continues to be one of the most popular titles on AOL, MSN, and Yahoo! and with mobile customers of Cingular, Sprint, and Verizon WagerLogic, which is a subsidiary of Cryptologic will be the first and only gaming provider to bring a play-for-real, 10-line slot variation of this fast-paced gem-matching game to the Internet as part of a new version of its casino software targeted for release this autumn. “Bejeweled is loved by players worldwide — and now it’s one of the many gems in CryptoLogic’s growing suite of exciting online casino games,” said Lewis Rose, CryptoLogic’s President and CEO. NEW MILLIONAIRE OPPORTUNITY
Jackpot Roulette guarantees GBP 1 million reward Online players were presented with another opportunity to win big bucks this week when Cyberslotz.co.uk, a UK-based online fruit machine and games website, launched one of the largest online jackpots yet seen. The new game, Jackpot Roulette, is exclusive to Cyberslotz.co.uk, and offers a guaranteed GBP 1 million jackpot (US $1,869,260) - claimed to be the largest on the Internet. Part of the RAL Group of companies that owns of 135 high street adult gaming centres in Britain the gambling site is one of only a handful of operators to own its own software. Over the last six-months the company has launched three unique games, including the world's first six-wheel roulette game 'Multi-wheel Roulette' as well as 'Jackpot Roulette'. This takes its impressive selection of unique and classic online games to 22. Jackpot Roulette is an enhancement of European Roulette, with a single number paying out 35-to-one. However, unlike the casino classic, whereby only one wheel is used, Jackpot Roulette brings six wheels into play, increasing the player's chance of winning by a factor of five. Furthermore, if the roulette balls land on the same number on three or more of the six wheels, the player wins an additional jackpot - ranging from GBP 30 to that mind boggling GBP 1 million. To win the GBP 1 million guaranteed jackpot the roulette balls must land on the same number on all six wheels. If, however five numbers are matched, then the player wins the progressive jackpot, with a guaranteed minimum payout of GBP 30,000, four numbers pays out GBP 1,250 and three GBP 30. Cyberslotz claims that it attracts over 100,000 visitors to its site every month. A GREAT WAY FOR A COOKIE TO CRUMBLE Eerie predictions from a New York fortune cookie Quirky story of the week comes from Reuters with a report that 110 Americans scored bigtime in the multi-state Powerball lottery recently after using numbers they found in a Chinese fortune cookie. Betting on the numbers recommended in fortune cookies, they won prizes ranging from $100,000 to $250 000 each, organisation director Charles Strutt revealed this week. By the laws of statistical probability, there should have been only four or five winners among the 10.4 million ticket buyers in the lottery operated by the governments of 27 states, the District of Columbia and the U.S. Virgin Islands. When big prizewinners came forward to claim on April Fool's Day, state lottery officials had instructions to examine each claim carefully, Strutt said. The first hint that something unusual was happening came from Tennessee, where the first three winners told lottery officials they took their winning numbers from fortune cookies. Then the story was repeated across America. An investigation was mounted, with officials visiting dozens of Chinese restaurants before tracing the cookies back to a bona fide distributor in the New York area. The fortune cookie featured six lucky numbers. The first five were good enough for six-figure prizes. The sixth figure, needed for the jackpot of $25.5 million, was two numbers out at 40, when the winning number was 42. Can anyone else hear that Twilight Zone signature tune? BETFAIR ACQUIRES MALTESE LICENSE Betting exchange adds another license to UK and Austrian authority Top betting exchange Betfair.com has added some weight to its comments last week that too large a future tax burden could persuade it to operate outside the British IslesBetfair. The company has just acquired a license to operate from Malta. “Malta’s excellent technological infrastructure, its progressive and responsible gambling legislation and its EU membership were the three key reasons for us applying for a licence there,” said Stephen Hill, Betfair’s chief executive. “We hope to launch an innovative exchange-based product from Malta in the near future.” Mario Galea, CEO of the Maltese Gaming Authority, said: “Betfair’s application for a licence comes just a year after Malta introduced its new Remote Gaming Regulations. The fact that a tier one operator has opted to get a Maltese licence goes to show that our regulations are highly regarded and that Malta is seen by operators as a serious jurisdiction for remote gaming.” Betfair now holds licences in the UK, Austria and Malta and is actively seeking licences in other jurisdictions, including Australia. The Maltese licence enables Betfair to offer P2P games to its customers. Until the new UK gambling legislation comes into force, bookmakers are not permitted to offer P2P games in the UK. BIG U.S. MARKETING PUSH FROM BODOG Multi-million dollar campaign on the cards Bodog's advertising hassles with Esquire vs the Department of Justice (see InfoPowa last week) does not seem to have slowed the top gambling group down judging by press releases this week - the company is pressing on with a multi-million dollar marketing push. The company has announced the beginning of a major advertising campaign in the US designed to accelerate the already phenomenal growth the company currently enjoys with new customer accounts doubling year over year. Starting this month, Bodog.com will launch the first of two television spots it has planned to air over the next few months. The commercials will air in major cities across the US on a wide variety of networks, including ESPN, Fox Sports, Discovery, Travel, Bravo, E!, A&E, Comedy Central, MTV and VH 1, and will be supported by a variety of print and radio ads. Four-page print ads in leading men's magazines such as Complex, Razor, and the progressive business bible Fast Company across the USA are also lined up. "This is only the start of our aggressive mass media advertising campaign targeting the US market," says CEO and founder Calvin Ayre. "Over the next six months, you'll see innovative and creative Bodog.com messaging across multiple media platforms." The marketing plan embraces other major publicity initiatives as well, and includes celebrity poker sponsorships like Shannon Elizabeth, the star-studded Bodog.com casíno night in Cannes, and upcoming product placements in major blockbuster movies.
National advertising campaign plannedNEW MARKETING CHIEF FOR GET MINTED Online gambling site Getminted.com, which is owned by the UK group Cashcade Limited has appointed Gloria Gonzalez as Head of Marketing. The marketing specialist has a wealth of experience working in various roles in the telecomms market for Ericsson, PageOne, O2, iTouch and Zed over the last 15 years. Gonzalez will handle the promotion of Getminted and partners like Bet Play and Win, Get Minted Bingo and Get Minted Poker through offline and online media. Although she only joined the group last month, she is already the driving force behind a national advertising campaign heavily promoting the bingo, monopoly and poker products offline at a number of sites throughout the UK. Gonzalez says she intends to put Getminted on the map as the place to go for lighthearted gaming fun. "I want to create an approachable brand and I will be looking at classic direct response above and below the line marketing techniques, which the company has not employed before to complement its online presence,” she says. GOOD FIRST QUARTER FOR NETELLER Over 1.5 million members and 2 900 signups a day Online money transfer group Neteller has carried forward its impressive full year numbers with news of strong first quarter trading. The group said the first quarter of the current year “...continued a very positive trend in terms of growth, increased margins and profitability.” The company acts as a clearing house for online gaming groups, and claims it surpassed the 1.5 million member mark in March with a record average daily signup level of nearly 2,900. Signups rose 38 percent from the previous quarter and 75 percent from the same period a year ago. Pre-tax profits rose 136 percent to $18.2 million for the three months to March from a year ago while revenue increased by 121 percent to $34.2 million. Earnings per share rose 158 percent to $0.14. . ANOTHER MOBILE CONTENDER Abiro throws its hat into the ring Another competitor has entered the mobile gambling lists with the announcement that Abiro, a provider of mobile multimedia and news services, has launched a mobile casino with a number of unique features. The new product joins Abiro’s existing mobile-related services. ‘Mobile Fun’ provides a very broad spectrum of ringtones, pictures, themes, games and videos to enhance the phone experience, while ‘Mobile News’ is a blog-like news service commenting on trends and other phenomena within the mobile phone industry. This service is a partnership between Abiro and a UK company whose name is becoming increasingly familiar, MobVision and is currently only available in the UK. The makers plan to apply rigorous controls of age (18+ only), daily payments (max GBP15/day) and fraud. Games are played on a mobile phone, and to get started a free-of-charge Java application is downloaded to the phone either via WAP or ordered via SMS. The user can choose from a selection of 6 casino games: Nudge7, Sunset Slots, Roulette, Hawaii Hi-Lo, Big Apple Blackjack and Pirate Poker. Other unique features include: easy to use, Nintendo-style one-button play, games are not lost if the connection is interrupted, there is extensive customer support and 90 percent average payouts and a hit rate as high as 1 in 3, claims the prss release. WORLD GAMING MARKET LISTING DATE REVEALED Listing will help raise capital ans customers The UK-based Internet-gaming software and e-business services group of companies World Gaming has followed up on its encouraging financial reports last week with an announcement on its expected admission to the Alternative Investment Market ("AIM") of the London Stock Exchange commencing May 17, 2005. CEO Daniel Moran says that upon completion of an institutional offering, WG has agreed a placing price of 52.5 pence per share on the placing of GBP 2.5 million worth of new ordinary shares with such institutional investors upon admission to AIM. The impending AIM listing has given the WG the opportunity to raise capital through institutional investment in the company's shares together with the ability in the future to strategically use shares traded on the AIM as currency for its acquisition moves. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they will be invited to transfer their shares to the AIM market should they wish to do so. Existing ADR holders will receive an explanatory communication prior to any listing on the AIM. CASINO CAUTIONS
This week saw a number of players reporting system crashes immediately following a download from Jambalaya Casino.com. This is a typical experience from one player who saw a bonus offer and hit the download button: "I, along with others...downloaded the software and WHAM, CRASH, ALL HECK BROKE LOOSE!!! It crashed my pc, I had to restore Windows along with a tech support phone call to my ISP (roadrunner) in order to get this thing up and running again!" The casino manager says it's not a casino software fault, but sidestepped a question about what gambling software he was using. Manager Harry S says, "The only program we where experiencing with our software was that slots keeps spinning for some customer but we fix that inmediatly launching a new version at midnight on the same day." And the fact that this allegedly happened to several players immediately after downloading suggests that caution is necessary. GFED downloads now clean, says PR manager Press releases announcing new GFED games at Mickey's Club Casino.com this week prompted us to contact the PR manager at GFED to enquire about the current status of their software download. Readers will recall that the group was mired in controversy earlier this year when it was learned that malware elements blocking certain sites had been included in it's standard gambling download. GFED paid a hefty price for the malpractice, departing both the IGC and iGGBA under something of a cloud. According to its official spokesperson, Talia Paschini the GFED software has been completely cleaned up and is now free from unwelcome intrusions and therefore safe to download. BIG GUNS JOIN PARTY POKER BOARD Analysts say it could presage the long awaited IPO Reuters reported this week that the world's biggest online poker company, PartyGaming, has fuelled speculation it is nearing one of London's largest initial public offerings in five years by adding two high-profile executives to its board. PartyGaming said it had appointed Michael Jackson, currently chairman of Sage Group as non-executive chairman and Brian Larcombe, former chief executive of 3i Group as its non-executive deputy chairman. "To me that says game on for an IPO," said analyst Robin Chhabra at Evolution Securities. "If you weren't going to list, why would you hire two city-friendly people like Michael Jackson and Brian Larcombe?" Chief Executive Richard Segal told Reuters: "The strategic review has been completed and we are considering the conclusions of that. Our decision will be made sooner rather than later. This is a company that has always been in a hurry." Chhabra estimated the market value of the overall company at around $10 billion, a figure backed up by other industry sources. That would make it the biggest London offering since Dimension Data floated for around 6 billion pounds in July 2000. Further evidence that PartyGaming aims to float was seen in its announcement earlier in the week that its revenue had quadrupled in 2004 to $602 million. "There's no need for a private company like this to reveal those numbers unless they're thinking of going for an IPO," said Chhabra. Reports coming in as we went to press this week indicate that PartyGaming is confident of a valuation of more than GBP 5 billion should it decide to float on the stock market. The Gibraltar-based group said its underlying profit before financial charges reached $391million (GBP 210 million) last year - four times the level of 2003. Revenues made a similar fourfold jump to $602 million. Analysts expect the group to announce a decision to go public soon, following a three-month strategic review in consultation with investment specialists at Dresdner Kleinwort Wasserstein. GAMBLING COMBINATION An unusual joint venture for charity between cyber and land poker rooms
It was refreshing to read about a new approach to charity tournament marketing from VIP Management Services, where a linked land and online gaming initiative for charity has been formed this week. Through its VIPpoker.com brand, VIP has partnered with the Normandie Casino in Los Angeles to create a $25,000 cash-guaranteed poker tournament with proceeds benefitting the Cystic Fibrosis Foundation. The May 15th tournament will be hosted by ESPN radio personalities Mason & Ireland, who host the number one sports talk show in Southern California. Called the "Big Show Tournament", the event will feature free food, free beer, playboy models and celebrity players. Mike Jamerson, the event coordinator for the project, said, "We had to convince the Normandie management that there were synergies from working with an online company. People play online to hone their skills in privacy until they have the confidence to actually go play in the more aggressive games in the casino. It is a natural progression." "This is a win/win for everybody involved. The key point to this project is running satellite tournaments online where Normandie players can go to VIPpoker.com and win their seat -- a $230 buy-in -- for free. That's value added for the Normandie customer and creates a new customer for VIPpoker.com. Additionally, the VIP customer is exposed to a quality land-based poker room." The online satellite tournaments will run daily on VIPpoker.com and Southern California players can log on and play to win their seat in the Big Show Tournament. VIPpoker.com has been encouraging players to participate in the free satellite tournaments. Alistair Assheton, CEO of VIP Management Services, said, "We believe the idea of bringing card club players into cyber space to qualify for land based games is an exciting and new concept."
MASSACHUSETTS LEGISLATOR GOES AFTER ONLINE GAMBLING
"It's running rampant...."
Media reports from New England this week indicate that online gambling faces another politician intent on stopping the industry's continuing expansion in order to protect traditional horse racing. Massachusetts State Representative David Flynn (D-Bridgewater) says he wants to ban online gambling, but according to state Attorney General Tom Reilly there is no state law banning online gambling and the issue remains a gray area. "It's running rampant right now and it's hurting us,'' said Flynn, revealing that he plans to seek an outright ban on online betting in the Bay State. "I think we've been very lax as far as protecting this (horse racing) industry that employs more than 6,000 people. We're really promoting the death knell for racing and that's sad.'' Flynn was speaking in response to the fact that online race books had taken away a substantial amount of business from the state tracks with their 10 percent to 15 percent rebate programs, and the convenience of betting online. LEND A HAND Online vs land poker and casino play Oscar King at Casino Brain.co.uk is doing a survey titled Online vs Offline Casino and Poker Play and could use a little help - in return he'll share the results of his study. If readers would like to lend a hand, please contact him and answer the following questions: Have you played in a land based casino? Have you played Poker online for real money? Have you played Poker in a land based casino / poker room? Your country of residence, age (20, 30, 40, 50, 60 as a group will suffice) and gender. CONFERENCE CORNER
Nice in Nice
Make sure you diarise the next European Interactive Gaming conference (EiG) which takes place between 7th - 9th November, at the Acropolis in Nice on the French Riviera. It's a key event for the industry that just seems to get bigger and better every year....and in the most stunning locations. After a hugely successful event last November, which saw over 400 i-Gaming industry players come together for three days of conference, exhibition and networking, EIG 2005 is set to be even bigger and better. The EiG organizers are always committed to developing both new topics and new prospective speakers for this important event. This keeps the content fresh and allows those who have never yet presented at EiG an opportunity to discuss emerging issues of concern to the industry. One word of caution, however: the general programme is NOT an appropriate venue for sales pitches so only apply for a speaker slot if you have something to contribute to the industry. If you have a suggested topic or speaker who has not yet presented at a past EiG event, contact sue@rivercitygroup.com with specifics. With an increased exhibition area available, EiG 2005 will have a bigger expo than ever before and will be situated right next to the conference halls and networking areas. The organisers have alrteady said that they will be keeping the fees for EiG the same as last year, representing great value for money. ACE gathering The Asian prospects for online gambling have always been interesting to online gambnling operators and entrepreneurs, and in the third week of June this year they can get an update at Asian Casinos Expo (ACE) in Singapore. This years event promises to draw the right land and online gambling people in record numbers, say the organisers, improving on last year's expo that attracted nearly 1,000 participants, representing 29 countries. The 10th Annual ACE convention is scheduled to take place in Singapore on June 22nd and 23rd and will focus on issues relating to both land-based and online casino gambling in Asia. The expo will feature presentations from insiders in the Asian and global gambling industry as well as an exhibition of products and services relevant to casino gaming. Aside from expert papers and exhibitions, there will of course be those all-important networking opportunities, including an intriguing 45-minute "speed networking" event which has the imagination racing.
Day two will be almost completely devoted to the online gambling industry in Asia. Connections will be drawn between the two industries, investigating the effect online gaming has on the land-based casino industry, and the convention will look at ways in which the casino experience can be better translated to the internet.
NEW PROGRESSIVE RECORD AT S- CASINO US player wins over $1.8 million on Playtech's Gold Rally jackpot
The weekend was an eventful and lucky period for US player CariM, who hit a record-breaking US$ 1,853,875.84 on a bet of $16 last Saturday playing Playtech's 8 line progressive Gold Rally at S Casino.com. The previous record for online progressive jackpot wins was held by a European player Joaquim M. who won Euro 1,453,610.18 ($1,779,827.44) on Major Millions on June 1, 2004 at Jackpot City. A casino spokesman confirmed that the full amount of the win would be transferred in one payment, and revealed that free financial advice was being offered to the winner.
Thirty-something CariM has been a regular at S Casino, owned by the IOG Casinos Limited in Antigua since January of this year. She deposited $110 on Saturday April 30 and played for around 1 hour and 20 minutes before she hit the jackpot. The winning bet cost $16.GAMBLING.COM SOLD AGAIN
And at a healthy profit it seems...
Gaming Corporation plc is clearly still on the acquisition trail, following up last week's purchase of Ted Loh's Got2Bet portal with the acquisition of Newbold Enterprises Limited, the owner of Gambling.com.
The purchase price, at GBP 10.5 million is believed to represent an attractive profit for Gambling.com's owners, who took the site over from founder Graeme Levin after a prior deal with IGH for GBP 2.5 million fell through late in 2003.
Former owner Graeme Levin told InfoPowa at that time, "I'm pleased to tell you that Gambling.com has been sold to a group of independent investors who are backing the current management team led by Tim Rosenberg and Dylan Schlosberg. Tim has been Gambling.com's CMO and Dylan ran Herotech, responsible for our advertising and media buying."
Levin was unable for commercial reasons to disclose the purchase price, but confirmed that the takeover became effective at the end of December 2003.
Gambling.com converted to a search engine format but has been active as a premiere directory in casino, poker, and sports betting since 1997. Income is primarily generated through pay per click advertising where clients bid to reach higher rankings in the search results, a model used by other search companies such as Google and Overture.
Gambling.com is the number 1 listing on google.com for "Gambling" search and has over 500 other internet and affiliate sites linking to Gambling.com globally. It also has extensive expertise in direct mailing and has built a double opt-in database of over 200,000 members.
The consideration for the acquisition of Newbold is US$20 million (GBP 10.5 million) to be satisfied as to US$15.3 million (GBP 8.0 million) in cash and US$4.7million (GBP 2.5 million) in new ordinary shares. A total of 17,375,244 Gaming Corporation shares are being issued, of which approximately 7.38 million are subject to a lock-in of six months and the balance has been placed on behalf of the vendors of Newbold with institutional investors. As at 28 April 2005, Newbold had a net cash balance of over US$850,000, which implies an enterprise valuation for the business of US$19.15 milion (GBP 10.1 million).
BANNING ATTEMPT BACK
Predictable as the seasons, Sen. Kyl is at it again
Last week InfoPowa flagged reports that the indefatigable Sen. Jon Kyl was on the warpath again with yet another attempt to ban online gambling instead of regulating it in the USA.
More detail is now available as the Republican senator from Arizona makes the initial moves for 2005 with his Unlawful Internet Gambling Enforcement Act 2005.
Perhaps predictably, Kyl is staying with the financial measures of previous years as he seeks to hamstring the online gambling industry by making it illegal to use credit cards, wire transfers or other "instruments of banking" to fund online gambling transactions.
But what makes this initiative more dangerous is the fact that - at this early stage anyway - Kyl has eschewed the carve-outs that have created special interest group problems for him in the past. In particular, the horseracing element of online gambling is currently *legal* but has been highlighted as an inconsistency in recent WTO findings, detracting from the US case in that seperate dispute.
Kyl is a highly experienced politician who knows how to manouevre and manipulate the Washington legislative machine to achieve his objectives, and he can therefore never be taken lightly despite failures in previous years of his attempts to kill off the industry. He has the experience to know that racing, lottery, Indian gaming and land-based casino industries will all hunt exemptions allowing individual states to decide whether they want to license and regulate various forms of interactive gaming.
The new draft also does not specifically define legal or illegally Internet gambling activity at this stage.
It is early days yet, and Washington has plenty of other and one would think more pressing issues on the legislative agenda. However, Kyl is a member of the Senate Finance Committee and scheduling his Bill for a hearing could be on the cards.
NOW IT'S KOREA
13 000 online gambling prosecutions and warnings
It looks as if the recent online gambling prosecutions in China and Taiwan are also being experienced in Korea, according to the Korea Times
The newspaper reports that police have caught picked up on 13,000 people who habitually visit overseas Internet gambling sites, including a diplomat and a national university professor. The report does not specify how the gamblers were found and busted.
Using credit cards, those caught spent an estimated 12 billion Won at some 50 gambling sites, according to police. Of the suspects, police requested arrest warrants for seven suspects on charges of habitual gambling, while 26 others, including a diplomat, identified as Kim, 41, were booked but not physically detained.
One accused, a diplomat, is suspected of using credit cards 122 times, racking up 30 million Won in total payments. In another case, a 62 year old national university professor, used his plastic cards 382 times to pay for his 26 million Won worth of wagering on unspecified Internet gambling sites. And a 49-year-old *unemployed* man, squandered more than 100 million Won.
Suspects used various means to camouflage their activity. One 32 year old woman illegally used her sister's name and credit card number to wager 100 million Won, forcing her sibling to be listed as a credit delinquent, police said.
"The suspects range in age from around 30 to 70. We have selected people who spent more than 25 million Won or paid more than 100 times, to face criminal charges," police said.
Official sources estimate a total of 100 billion Won had gone offshore due to gambling, 25 billion Won of it online . Police have asked the Ministry of Information and Communication to block the detected sites.
"We are seeing a rising number of cases where South Koreans register at overseas gambling sites under a foreigner's name. It's hard to control gambling sites registered abroad," police said.
BLUFF POKER TOUR PLANNED
A quest for the best online poker player
Eric Morris's Bluff Media group has announced plans for a tournament to find the best online poker player, with a ticket to WPT superstardom for the winner. The Bluff Poker Tour will run from June through Dec 2005 - a 6-month mission to find the best online poker player in the world and give him or her a shot at being the next big thing in World Poker Tour poker.
The Tour consists of weekly online poker tournaments at official Bluff Poker Tour Stops across the web. Each week, one $30 NL Hold’em tournament will be designated an Official BPT event. By registering for the Bluff Poker Tour and participating in these designated tournaments players can earn points on the Bluff Poker Tour.
Top players at the end of the season will qualify for the free-roll BPT Championship. The BPT Champion will receive buy-in to three WPT tournaments. All the details are available at Bluff Magazine.com.
COOL CASINOS
There's been a dearth of well built online casinos recently, but the draught has been broken by the launch this week of two operations belonging to large, well-established groups.
Vegas Splendido.com joins sisters Roxy Palace and the recently acquired Cabaret Club in The Palace Group using Microgaming software. It's a typically big, bold and professional MGS site carrying over 100 games of all types, including a full range of progressives. It is backed by 24 hour Support and a sophisticated banking system that embraces Neteller, Firepay and Click n Pay in US, UK, Canadian and Euro currencies. The licensing is Kahnawake, and the site has loyalty facilities, Cashcheck, Playcheck and everything the player needs. Being a new online casino, this operation does not yet qualify for the eCOGRA Seal, but the parent group is fully accredited and the services are therefore likely to be top-notch. The launch was marred by an unpleasant public spat between its owners and Vegas Red, which claimed their site had been plagiarised and resulted in some changes.
Latest from the Playtech people is 50 Stars Casino.com which also joins an established group - IOG Casinos Limited out of Antigua, which has just broken the record for a progressive win at $1.8 million. Sister casinos are SCasino, Casino Las Vegas, Casino King, Magic Box and Fair Poker. The presentation is workmanlike and clean with a large Playtech download gambling suite that offers a diversity of games to suit all tastes, backed by full Support facilities and a good range of financial options that includes Neteller InstaCash, Firepay, Moneybookers, 900Pay and Citadel. There is a wide range of bonuses available to encourage both newbies and loyal players - the signup is 150 percent maxed at $75, and there are interesting cashback offers such as a 20 percenter over six months, and a 125 percenter maxed at $200 on second deposits.
GAMBLING THE KILLER APP FOR MOBILE ENTERTAINMENT
$19.3 billion by 2009, predicts Juniper study
Mobile entertainment is going to be huge, and gambling is the engine that will drive it is the finding of a new study from Juniper Research, The research group reports that a rapid expansion in mobile content, allied to a sharp increase in 2.5G and 3G handset adoption, will combine to deliver global mobile entertainment revenues totalling over US$59 billion by 2009.
And while adult content – frequently heralded as mobile’s “killer app” – will generate healthy revenues of nearly US$2.2 billion by the end of the decade, the key drivers of mobile content are expected to be gambling and games, with their respective markets worth US$19.3 billion and US$18.5 billion respectively by 2009.
The author of the report, Dr Windsor Holden,says “Lotteries are ubiquitous in many countries, and if you start launching lotteries on mobile handsets then you're tapping into a form of gambling in which the majority of adults indulge on a weekly basis, while sports betting and casinos are also high-revenue businesses.”
Dr Holden added that mobile games were also beginning to generate substantial revenues, while sales in emerging markets – with little or no established PC or games console base – were particularly encouraging.
The report estimates that the mobile entertainment market will reach US$17.6 billion in 2005, up by 71 percent on 2004 and that the increasing adoption of non-voice services in the US and Canada will push North American revenues to US$11.3 billion in 2009, up from just over US$1 billion in 2004.
SPORTSBOOK LAUNCHED BY GAMING TRANSACTIONS
Futurebet software powers new book
Gaming Transactions Inc., the online gambling company led by two ex-World Gaming executives has launched its first version of KenoBook.com, its second venture into Internet gambling following the introduction of casino gambling earlier this year at Keno.com.
Kenobook.com offers a full range of sports betting options and an extensive number of betting types including straight bet, parlay, over/under, money-line, and teasers. The site showcases every North American sport from baseball to basketball to boxing, as well as soccer lines from over 60 different countries.
Under the terms of a previously announced agreement with FutureBet Systems Ltd., Gaming Transactions will be building a second version of the site with its own branded betting lines early this quarter. Kenobook.com's customers will have access to the same sports odds lines that are used by several of the top Las Vegas books.
POKER.COM CELL PHONE GAME ATTRACTS ATTENTION
And the U.S. paradox
It wasn't just the players who noticed Poker.com's mobile gaming service launch last (April) month - several mainstream media publications seized on the opportunity to comment on what was dubbed "The U.S. Paradox" too.
The general thrust of the stories was that the Poker.com launch highlights the fast growth and accessibility of online gambling, drawing attention to a business that has grown so much that investment bankers are circling several major players seeking lucrative new stock offerings.
But those offerings will not be in the United States due to the result of "....the Internet gambling's great paradox. The U.S. market by far is the world's largest, but the government remains adamantly opposed to Web wagering."
The reports point out that the obdurate position of the federal government in the USA has induced uncertainty and kept world class companies from venturing into a new market, although it hasn't stopped people from betting online. Yet, the government hasn't shown the will to bust individual bettors. Consequently, America gets no economic benefit from online gambling despite its dominance as a *consumer* in the world gambling market.
Quoting stats from European investment experts, Dresdner Kleinwort Wasserstein the reports reveal that online gambling is still dwarfed by traditional forms of wagering, where last year the global market was some $ 237 billion, of which only around 3.9 percent came from the online sector.
In reporting that PokerRoom.com appears to be the first Web gambling outfit to allow its game to be downloaded into cellular phones the media have it wrong however.
There's a nice plug for Sweden-based PokerRoom.com in the media, too - the reports say that Poker.com is the sixth-biggest Internet card room, though it jockeys back and forth in rank with the fourth- and fifth-placed sites, according to the knowledgeable portal PokerPulse.
THE SPYWARE MENACE New study shows unacceptable levels of private and business PC infection
Electricnews reports the disturbing news that spyware programs are present on 87 percent of corporate PCs and 88 percent of private PCs, in most cases without invitation or permission.
Spyware generates unwanted pop-up ads, hi-jacks homepages and redirects internet searches...and earns a cool US$ 2 billion per annum for their authors, says the story this week, quoting a new study from anti-spyware developer Webroot. The report looks at the impact of spyware, adware and unwanted software on consumers and enterprises.
According to the survey, 88 percent of consumer PCs and 87 percent of corporate PCs have illicitly installed spyware on their hard drives, including Trojans, system monitors, cookies and adware. These programs are used to gather data about the user, which can then be used for targeted advertising and can even be used to forward confidential personal information to spyware developers.
"People have become more aware of viruses and worms, but they haven't grasped the implications of spyware," said Conor Flynn, technical director of security firm Rits. "They would be uncomfortable if they understood the manipulation and tracking that spyware programs carry out."
The authors of the survey estimate that the spyware-related advertising market generates revenues of around US$ 2 billion per annum, which comes to around 25 percent of the US online advertising market, as reported by the Internet Advertising Bureau.
"A lot of the people who pay spyware companies for information come from the darker side of the web," said Flynn. "Many pornography and gambling sites use spyware to check click references and target consumers."
But others allege that many reputable companies also pay money to spyware firms. Ben Edelman, a spyware researcher in the US claims that companies such as American Express, Sprint PCS, Disney and Expedia also buy advertising through spyware firms.
The report also lists the most significant pieces of spyware and adware on the basis of detection rates and potential threat. CoolWebSearch, which has over 100 different variants and a reputation for resisting many anti-spyware programs, was dubbed the top threat in the study.
As we went to press an invitation to Webroot to expand on its findings had gone unanswered.
FOR ONCE ONLINE GAMBLERS WILL CHEER SPITZER
NY Attorney General is taking on the spyware sites
Internet users fed up with the barrage of uninvited and unwelcome advertising garbage dumped on their sites by uncaring marketers will be pleased with news this week from New York, where the energetic Attorney General, Eliot Spitzer is taking on the spyware merchants.
And for once many players and Internet users in general will be cheering on the man who did his damnedest to screw up Internet gaming last year.
New York Attorney General Eliot Spitzer has filed a lawsuit against Intermix Media, charging the online marketer with illegally disseminating spyware programs.
Internet-security experts say the lawsuit is unlikely to slow the deluge of stealthy programs that launch pop-up ads, track Web-browser usage and involuntarily steer consumers to unsavory Web sites. But it's a start.
Intermix operates about 40 Web sites that supply online games, greeting cards, social networking, trivia and jokes. But according to Webroot, maker of anti-spyware software, there are more than 220,000 sites distributing spyware, up from 60,000 at the start of the year.
Most often they feature music file-sharing, gambling, video games, online dating, porn, screen savers and trivia. Typically, visitors are asked to agree to usage rules that open a PC to infection with spyware. But not always. And sometimes the extent of the problem this creates for the user is not clear when he or she accepts.
"Taking down 40 Web sites, that's not even a drop in the bucket," says Webroot CFO Mike Irwin.
Intermix issued a statement denying that it "promotes or condones" spyware. The Los Angeles-based company characterised the lawsuit as a dispute about how it discloses its practices to consumers.
Intermix general counsel Christopher Lipp said he was "still hopeful" of reaching a settlement. "Many of the practices being challenged were instituted under prior leadership, and Intermix has been voluntarily and proactively improving these applications and related consumer disclosure," he said.
In a statement, Spitzer, who is running for governor of New York, said he was prosecuting Intermix to improve consumer privacy online and to aid online commerce.
According to the lawsuit, free software on Intermix Web sites secretly installed programs that generated advertisements. One known as KeenValue delivered pop-up ads; another, dubbed IncrediFind, redirected visitors to certain Web sites. Spitzer is seeking a court order restricting Intermix's business practices.
WEBCAST / GAMBLING FROM SUMMIT Ikonsoft used on new multi-purpose site
Summit Entertainment Group, Inc. is introducing online gambling activities with a new online gaming casino, sportsbook, bingo and "One of a kind" Live poker at Lucky Summit.com
The site links players from around the world to play poker against each other in real time, for fun money or real money. Action is offered on Texas Hold'em, Omaha, 7 Card Stud and Hi/Lo together with freeroll tournaments, a monthly trip to Las Vegas and a seat at the annual WSOP Satellite - with a lucky winner going to the World Series of Poker.
John D. Jarvis, president of Summit Entertainment claims, "I know that our software can compete with market leader Party Poker's, I also believe that these (financial) numbers are obtainable by Lucky Summit's Online Casino if our Summit Media Services division dedicates themselves to the same kind of success in promotion that Party Poker has accomplished."
Madison Systems Inc. subsidiary Ikonsoft Ltd, has developed the software for the venture. This marks Summit's introduction into the online gaming segment and should complement Summit's Land and vessel based gambling business plan.
Ikonsoft has been developing and refining online gaming technology and operational expertise for over five years. "We are not a patchwork of loosely coupled technology partners. Instead, we built every component from the ground up to be seamlessly integrated for superior, reliable operations and enhanced security, with a sophisticated gaming engine, advanced front-end graphical interfaces, comprehensive back-end eCommerce system, fraud screening utilities, data mining tools, and expansive internationalization," said Donald McNally, chairman of Madison Systems Inc.
In concert with the launch of the new gambling site, Summit will be launching Summit Radio, which will explore the issues that affect Internet users, online casinos and other online businesses and cover live events such as the WPT.
TEXAS SHOOTS DOWN INTERNET LOTTERY BILL
Intense bi-partisan debate a feature
The Texas media reported this week that there was intense interest in the progress of an online gambling Bill (for a lottery concept) before the state legislature, with 9 million hits on the search criterion "online gambling" on one day alone. But it was bad news for searchers after all as House members shot down the idea of an online Texas Lottery.
Lawmakers, seeking ways to help fund the state budget, rejected the measure 89 to 52, abandoning an initiative that could have raised as much as $275 million more a year by allowing the lottery to debut on the Internet. The Texas proposal was one of three state attempts to bring in Internet-oriented gambling in the US.
Reports said that passions rose in an unpredictably bipartisan fashion as lawmakers debated the virtues and vices of expanding gambling to pay for better education, health care and other programs that aid the youngest and most needy.
House Appropriations Committee Chairman Jim Pitts said the budget plan that was eventually adopted 107 to 37 without the gambling proposal will add $1 billion more toward the budget.
The Texas Lottery proposal would have allowed online transactions using a debit card, an ATM card or through an account set up by the Texas Lottery Commission.
CASINOFEED TAKEN OVER BY CASINO AFFILIATE PROGRAMS
Promo information site to be re-branded US company Casino Affiliate Programs (CAP) has acquired the Casinofeed.com service which provides "real time" promotions and bonus data feeds to casino, poker and bingo affiliate websites, direct from the managing properties. Under the agreement, CAP will assume responsibilities for sales, marketing and administration of the Casinofeed system and rebrand the service as Affiliatefeed.com. Since the service's inception in January 2005, Casinofeed has built up a user-base of some 60 casinos and poker rooms, including brands such as Ladbrokes, Victor Chandler, Belle Rock and Fortune Lounge, and has attracted more than 100 affiliate website registrations. The involvement of CAP will bring a significant marketing benefit to those properties signed up to the service from April 11th onwards. With over 2,000 active industry affiliates on the CAP roster and a popular portal incorporating the leading casino affiliate user forum, a primary role of CAP will be to ensure that affiliates are made aware of the service and are assisted in integrating the live feeds into their websites. Under the agreement, the Casinofeed service will also be moved to a fast dedicated server and will undergo a brand awareness overview. Founder Ian Sims will remain involved in the project, and has also recently been involved in the launch of a new co-venture site called Casinomatcher.com which plugs into the live Casinofeed data. Sims believes that the concept, which uses a factual database to find the best matching casinos to specific criteria entered by users, to be unique. "While doing some research on another project, I got frustrated with not always being able to find specific information I wanted to relay to potential players" Sims relates. "Things like reverse withdrawal times and similar hidden 'features' for example. Thus, every time a casino is added to Casinomatcher, we test the casino's support response and dig out important items of information of use to players that they wouldn't otherwise necessarily be aware of." NEW POKER SOFTWARE DELAYED
Red Felt wants to be sure before launching
Another industry initiative based on the opportunities afforded by UK online gaming regulation surfaced this week when Internet video games provider CYOP Systems International Inc. announced it is to launch a poker software licensing subsidiary titled Red Felt Software Ltd. based in the United Kingdom.
The Canadian company has engaged a London firm to form and register the new subsidiary in Britain, and licensing the poker game through this medium will become part of the business strategy of the CYOP.
Mitch White, the CEO of the company says that more than 200 online poker sites collectively are generating about $2 billion a year in revenues, equal to 40 percent of last year's $5 billion in gambling revenues from all of the Las Vegas "Strip".
An estimated 1.7 million players are active online, meaning they've played in the past six months. And about 150,000 people play on an average day, according to PokerPulse.com, which tracks the online poker market. Americans are thought to account for more than 70 percent of all players.
The ease of internet wagering has led to the ongoing rise in gambling at a rate of about 30 percent per year, and the company believes that this is still a very small percentage of the online gambling population that is actively playing online poker. CYOP also has plans to launch into the Asian market.
White says the company had planned to launch its poker game software on May 1, 2005. "However, we have made the decision to delay this to ensure it is 100 percent market ready with beta testing complete, translation complete and all integration issues resolved prior to launch and marketing on the SINA network. While a delay is regrettable, we believe in the long run there is more value as confidence in product and operations is paramount in the online gaming sector. Being nearly ready is not the same as ready."
WORLD GAMING TURNAROUND ON TRACK
Latest results continue to show improvement
World Gaming plc, the UK-based Internet-gaming software and e-business services group of companies has released its financial and operating results for the year ended December 31, 2004 showing increased operational profits and significant gains in other areas of its business.
The report showcases some interesting highlights, indicating that the turnaround at this once endangered business is well advanced:
Profit from operations for the year of $5,183,000 vs. $2,127,000 for the same period last year.
Royalty revenue from continuing licensees (excluding Sportingbet) up 41% percent in 2004 compared to prior year.
Operating expenses slashed 31 percent in 2004 compared to prior year.
Completion of Joint Venture transaction with Sportingbet resulting in extraordinary gain of $12,187,000 in 2004 and further minimum $16,000,000 committed development spend.
Net working capital of $14,866,000 at December 31, 2004 vs. ($126,000) at December 31, 2003.
Nil debt at December 31, 2004 vs. $2,944,000 at December 31, 2003.
Phased software re-architecture project expected completion mid-2005.
Company admission to AIM of the London Stock Exchange expected May 2005.
Wagering volumes significantly up.
Savings achieved by closing financial transaction and client services.
Gross wagering volumes increased 63 percent to $6.2 billion when compared to $3.8 billion in the prior year. Growth in wagering volume from continuing licensees (excluding Sportingbet) was 73 percent in the year. Subsequent to the end of the year, growth in revenues from continuing licensees has continued to exceed the growth levels of 2004.
Since October 1, 2004 Sportingbet pays the WG for its usage of the company's hosting facility. The payment is on a cost plus 10% basis and amounted to revenue of $621,000 in the year compared to $nil in 2003.
To compensate for no longer paying the World Gaming royalties, Sportingbet is paying a total cash consideration of $10 million on terms, has cancelled its $900,000 convertible debt with the Company and effectively cancelled its interest in 29.6 percent of WG's equity giving rise to an extraordinary gain in the year of $12,187,000.
In addition, Sportingbet is committed to spending a minimum of $16,000,000 on development over a four year period commencing October 1, 2004 and will pay a further $3,000,000 if the Joint Venture arrangement is terminated. The Company retains its right to the most up-to-date version of the software throughout the term of the Joint Venture arrangement or at such time as it may be terminated.
The report reveals that extensive software re-engineering has continued, with an expected pahased introduction from mid-2005. This re-architecture will allow greater flexibility in product offerings to new licensees and greater ease for ‘plug-in' of new products. A single integrated player account will remain across the entire product suite.
Consistent with the Board's strategies, the company is continuing with its licensing efforts, is proceeding with listing the company's shares on The Alternative Investment Market (AIM) of the London Stock Exchange and exploring business opportunities through acquisition.
Daniel Moran, World Gaming's CEO and the man who masterminded the company's turnaround comments:
"World Gaming is profitable, debt free and has strong cash reserves. Together with the listing on AIM we believe the company is well positioned to successfully execute our strategies. We have a proven management team that is highly motivated in taking the Company to the next stage of development. I am delighted with the progress made in 2004 which is demonstrated by results, both financial and strategic."
GENERAL ELECTION ADVERTISING FROM PARTY POKER
Clever marketing rides on the back of Brit election media frenzy
The marketers at Party Poker this week took advantage of the huge publicity generated by the British general election with a poster campaign questioning the poker faces of the various political party leaders headlined 'Got a bad poker face?'.
Featuring Labour's head honchos, Prime Minister Tony Blair and Chancellor of the Exchequer Gordon Brown, the campaign, which runs until May 11, includes the Tory Party leader Michael Howard and Liberal Democrat chief Charles Kennedy. The election-themed 96-sheet poster ads will be visible across 32 sites in London, and were developed by copywriter Anthony Smith and art director Murray Partridge. The first three executions feature images of party leaders matched with relevant poker straplines the Michael Howard poster for instance asks: "Good at bluffing?" while the Charles Kennedy execution observes: "No one to play with?".
The creative is designed to illustrate the most important part of playing poker online; that no matter what your skill level is, you can still play poker and take advantage of the opportunity offered by the tens of thousands of players simultaneously playing whether you are playing for free or real money.
Vikrant Bhargava, group marketing director of PartyGaming, parent company of Partypoker.co.uk, said: "Building on our initial burst of national print advertising that broke at the beginning of April, featuring the King, Queen and the Jack playing cards, we're aiming to consolidate our position as a leading player in the UK, a fast-growing poker market. The ads are designed to introduce an element of fun in an otherwise serious election campaign."
LADBROKES RAISING THE ANTE?
Another 200 shops planned to maintain market dominance
Two weeks back, InfoPowa reported on moves by William Hill to buy up Stanley Leisure betting shops in a bid to dominate the gambling market, and this week an answer to the challenge came from Hilton Group, owner of the UK's Ladbrokes betting-shop chain. The group revealed that it may open as many as 200 outlets to maintain its lead over William Hill, chief executive David Michels said.
Ladbrokes' rival bookmaker William Hill is in talks to buy 600 betting shops from Stanley Leisure for more than GBP 500 million (S$1.5 billion) to create a chain with about 2,200.
Ladbrokes, which owns 1,900 outlets in the UK, may match that number by the end of next year, poker playing exec Michels told Bloombergs. "I'm not unhappy about being No. 2 by numbers, but I would be unhappy about being No. 2 by profits. We believe the maximum number we could have without attracting attention from regulators is 2,200."
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