Online Casino News - May 2005 Week 4

MAJOR POKER COMPANY JOINS eCOGRA

Way now open for international self-regulation of online poker

The important turnkey online poker provider Ongame has successfully completed rigorous acceptance inspections for membership of the international regulator eCommerce and Online Gaming Regulation and Assurance (eCOGRA). The announcement today has significant implications for the first ever self-imposed regulation of the booming online poker industry. Ongame powers PokerNetwork which hosts many poker operators including PokerRoom.com servicing some 4 million and rising online poker players, and the successful accreditation of the software opens the way for these companies to apply for the eCOGRA seal, conditional on meeting the standards required.

The Swedish provider now joins 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 Ongame membership 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 “Ongame is a welcome addition to eCOGRA. Our compliance committee were extremely impressed with their professional approach to corporate governance and responsible gaming. >From the outset they have put the player first, and an example of this is that they were the first online gaming operation to achieve G4 responsible gaming accreditation,” he said. “For eCOGRA it is the realisation of months of in-depth research and professional advice in framing ground-breaking rules or eGAPs as we call them, for online poker sites,” he continued. “We are confident that other high profile poker networks will submit their sites to our independent inspectors and achieve the eCOGRA seal”. 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. Detailed inspection and ongoing monitoring to ensure continuous compliance with the regulations are key to the success of the initiative, and extensive financial and management probity checks are carried out as part of the acceptance process. Online gambling operations that successfully pass the inspection are identified by the eCOGRA “Play It Safe” seal, awarded by 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 Ongame commented: “This is the culmination of tough, detailed on-site inspections and probity checks for Ongame, but we believe it is an important step forward for our poker rooms and 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.”

MICROPOWER POKER PROVIDER ACQUIRED BY CHARTWELL

$4 million looks like a bargain price Canadian turnkey provider Chartwell Technology Inc. completed the acquisition of the successful and growing poker software developer Micropower Corporation of Gibraltar as we went to press this week, early reports suggesting that the price was $4 million. Founded two years ago, Micropower has quickly established a brand that is synonymous with multi-player poker technology. Some of the biggest names in the online and iTV worlds have chosen the companys poker software including ESPN (Sports Television Network), NTN (iTV Games Network), FHM (UK Men's Magazine), Easybets and BoDog.com. The acquisition enables Chartwell to offer a dynamic, multi-player poker software solution complete with single and multi-table tournament functionality, frequent player points, uploadable player images and integrated player stats. The software also presents an array of unique features including live dealers, in-game advertising and three to six table play, all designed to increase player loyalty and length of play, all in a suite that includes some of the most popular games such as Texas Hold'em, Omaha, Omaha Hi/Lo, 7-Card Stud, 7-Card Hi/Lo, 5-Card Stud and 5-Card Draw. In company with Chartwell's casino, mobile, bingo, kiosk and soft-game line-up, the new poker component is built on an expandable and scalable platform, allowing for the integration of new games as required.

Chartwell CEO Darrold Parken says, "Growth of the online poker market has been exceptional - the strategic television marketing, passage of the UK Gaming Act and the movement toward further regulation in other jurisdictions will continue to drive the growth of this market. We recognized that while our overall product suite is very strong, our poker software capabilities needed significant enhancement to quickly capitalise on opportunities. "The Micropower acquisition provides a huge boost to our software product line and our future development capabilities and will provide the impetus for the next phase of Chartwell's growth.
"Equal in importance to the new poker software product are the very talented people that Chartwell has gained through this acquisition and it is with great pleasure that I welcome over 20 key development specialists to the Chartwell poker team," Parken concluded. Available in a wide range of languages, the new Chartwell multi-player poker product uses the latest in client/server encryption and has been independently certified by the world's premier game-testing laboratory -TST (Technical Systems Testing). Gameplay is effectively maintained through a robust back office management system complete with all the tools necessary to manage a successful poker game environment. The new poker offering will seamlessly integrate with the Chartwell gaming system and with existing client platforms for stand-alone or community deployment allowing Chartwell to remain a pure software provider to many of the world's largest gaming brands. The acquisition terms include contingent consideration based upon certain new Micropower business opportunities. The total contingent consideration will not exceed $500,000 and 55,000 Chartwell shares.

IMPORTANT VIRGIN MARKETING CONTRACT GOES TO RAINEY KELLY GBP 10 million budget for brand awareness initiative British online gambling site Virgin Games.com has selected global marketing agency Rainey Kelly to handle its advertising business ahead of a GBP10 million brand awareness push. The news comes on the heels of revelations that two other major online casino groups are seeking top agencies in the USA, each with a $20 million adspend in mind. Virgin Games offers casino, poker and skill-based games and has used only limited advertising to date, other than a poster campaign in London promoting its online poker room. The brief requires Rainey Kelly to develop an outdoor and press publicity campaign that will appear later this year. The increased activity will coincide with a re-launch of the Virgin Games website, as well as the introduction of a range of new products. There will be an increased focus on poker, a company spokesman revealed. Virgin Games md Oscar Nieboer said that the market is very competitive, and as a consequence Virgin plans to increase both spend and profile significantly from July 2005. "A lot of people in the market are buying up the media well in advance and availability is limited, so we want to get in there early,” he concluded. iGGBA ANNOUNCES ANOTHER MEMBER Recruitment and training company joins up The UK based trade association iGGBA announced this week that Bettingjobs.com has joined its ranks. The company is involved in staff recruitment and training within the interactive gaming space. A spokesman for the association says that by supporting a broad and diverse membership base, reaching from content developers over testing companies and law firms to operators, every necessary aspect can be considered in the business interaction between the various parties. This premise has apparently proved especially helpful in iGGBA’s liaison between industry and government to further the regulatory developments of the UK Gambling Act. Richard Flint, chairman of iGGBA welcomed the new member, saying: “I am delighted to add Bettingjobs.com as a member of iGGBA which represents the ranks of the responsible companies who have chosen to work towards a sensible framework for regulation of the remote gambling industry in Great Britain and Europe."

TOP WRITERS FOR BLUFF Poker magazine now read by half a million players Bluff Magazine, now arguably America’s largest poker publication despite its relatively recent arrival on the gambling scene, has signed up some of the top experts in the business as contributors to its columns. World-class poker champions Phil Gordon, Mike Mizrachi and Marcel Luske have joined the magazine's lineup of regular contributors and poker authority Lou Krieger, a celebrated author of several books on poker including The Poker Player’s Bible, has joined the busy editorial staff. The affable Gordon is a perennial WPT favorite, co-host of TV’s Celebrity Poker Showdown and expert poker strategist. He has accumulated $1.1 million in tournament winnings since 2001 and is almost universally referred to ‘the nicest guy in poker’. Mike Mizrachi, known to his opponents as ‘The Grinder’, is recognized for his steadfast play and sober composure at the table, making him a serious threat in any game. The Flying Dutchman, Marcel Luske is respected for his calculated aggression, an almost supernatural ability to read his opponents and famous for his wild antics at the table. All four are experts in poker analysis, and recognised by the poker community as members of the elite. Lou Krieger joins Bluff following a 10-year stint writing for the magazine Card Player where he wrote the On Strategy Hold‘em column. Lou’s books and columns have been read by over a million poker players, and have contributed to the current popularity of the game. “I joined Bluff because I wanted to exploit my creative edge and write to the new generation of poker players that consider Bluff an essential part of their game,” said Krieger. Gordon, Mizrachi, Luske and Krieger have joined a Bluff family of super-star contributors, which include recognisable poker aces Annie Duke, Antonio Esfandiari, Josh Arieh, Clonie Gowen, Dave ‘The Devilfish’ Ulliott and Kenna James. Bluff staff claim the magazine is read by more than half a million poker players across America, making it America’s number one poker publication.

FORTHCOMING POKER ATTRACTION June launch date for new site announced Online poker fans will have a new playing venue late next (June) month according to a press release from provider CYOP Systems International Inc. The company will be launching through its UK subsidiary a poker site for cash at TenSeatPoker.com on June 20, 2005. The site, which is currently in development will be the companys flagship play-for-cash poker venue featuring several styles of poker, a choice of financial options and Support. It will be vigorously marketed to establish brand recognition and drive revenues from targeted audience areas. The UK Register reports, "In the two years since online poker first tempted punters, the industry has grown from $100,000 in gross rake per day in January 2002 to between $2 million and $2.5 million today. The online poker industry has more than tripled in the past year according to statistics provided by PokerPulse.com." CYOP recently launched a demo version of its poker room offering on a new site branded RedFelt.com.

STEINBERG TO CHAIR TRADAL?

With a GBP 550 million listing in the wings, clout in the chair is critical The speculation that online gambling group Tradal is going for a public listing was revitalised this week when news broke that the chairman and founder of Stanley Leisure, Lord Leonard Steinberg (68) is to join the Tradal board as chairman. Steinberg, a working peer and fundraiser for the Conservative party, is one of the most respected figures in the gambling industry. He started out in the 1950s taking bets in his family’s Belfast milk bar and expanded Stanley into one of the industry’s biggest players with a chain of betting shops and casinos.
Over the past few months Tradal has been repeatedly reported to be planning a London flotation of GBP 550 million. Steinberg, a respected personality in land-based casino gaming, joins Tradal shortly after the company hired stockbroker Numis to guide its future listing. Steinberg recently sold off the bookmaking shops of his own business to William Hill, and is now focused on the more upscale Mayfair Casinos. The main focus of Tradal’s business is providing customers for other online gambling sites, such as Party Poker, which has been planning an IPO of its own for some time.

ISRAELI MARKETER PLANS TO LIST Empire Online subsidiary Tradal market cap could be as high as a billion The Israeli business publication Haaretz reported this week that another major industry flotation could be on the cards. Apparently Noam Lanir (38) is planning to float Tradal, a subsidiary of Empire Online, which provides marketing to online casinos, on the London market at an estimated $1 billion company valuation. Lanir is the son of the late Israeli Air Force legend Avi Lanir. Avi Lanir was the most senior captive in the Yom Kippur war that led to his death. Empire Online is not an Israeli company. Its registration and all operations are conducted outside of Israel. Lanir entered the field of marketing for Internet gambling back in 1998, with his company Tradal, which is registered in Cyprus. Over the years, the company expanded its scope to marketing for casino games. All its operations were concentrated under the umbrella of Empire Online, which maintains headquarters in Limassol, Cyprus. Lanir himself lives in Israel, but travels each week to London and Limassol. Tradal recently hired investment bankers Numis as underwriters for the issue. It also appointed Lord Leonard Steinberg as chairman. Lord Steinberg has been in the gambling business since 1955, and built his Stanley Leisure into one of the largest gambling empires in Britain. The company has 60 employees and handles marketing for some of the world's biggest gambling Web sites as clients, including 888casino.com and Empirepoker.com, bringing in revenues of tens of millions of dollars annually and considered extremely profitable. Lanir is the company's principal shareholder. He has a number of non-Israeli private partners.

iGLOBAL TOPS VISITS LIST FOR APRIL

Magazine reports online gambling boosted by poker interest Media Life Magazine opined this week that online gambling sites have grown impressively over the past six months, driven mainly by the (USA) country’s renewed fascination with poker.

The publication says that during April, comScore Network’s gambling category of sites attracted 29.13 million unique visitors, a 14.5 percent increase versus 25.43 million visitors last November.

The top crowd puller was iGlobalMedia Entertainment’s network of sites, which includes PartyPoker.com, StarLuckCasino.com and PartyBingo.com. The iGlobalMedia sites attracted 10.35 million visitors last month, up 166 percent versus 3.89 million visitors last April.
Media Life's writer notes that many gambling companies tend to be poor communicators. He says that iGlobalMedia’s Gibraltar-based corporate site lists email addresses but no phone numbers. A call to a PartyPoker.com customer service center in India got a live agent on the phone but he declined to provide corporate contact information. Without commenting on the blitz of publicity Party has been pumping out regarding its putative IPO, the journalist speculates that the likely reason for this reticence is the testy debate over the legality of online poker in the USA. Media Life notes that some poker sites have been running TV ads featuring endorsements from well-known American players. London-based PokerStars.com, features former World Series of Poker champions Chris Moneymaker and Greg Raymer, for example. Although the ads clearly state that PokerStars.com is not a gambling site, a visit suggests the contrary. The main page of the site advertises a weekly No Limit Texas Hold ‘Em tournament with a guaranteed minimum prize pool of $350,000. On a more general level, Nielsen Netratings stats show that for the fourth straight week average Internet usage was steady at 16 sessions per person, though average domains visited per person dropped from 36 to 35. PC time per person fell 2.39 percent to just over 14 hours and 57 minutes. The publication lists the following as the Top 15 Online Gambling Sites, quoting Media Metrix stats for unique visits in April 2005:

1) iGlobalMedia Entertainment Inc.(10,346,000)

2) Cassava Enterprises Ltd. (9,574,000)

3) Vegasfrontier.com (3,105,000)

4) Bingocabin.com (2,881,000)

5) Sports Interaction Sportsbook and Casino (1,507,000)

6) Carmen Media Group (1,411,000)

7) Crystal Palace Casino (1,254,000)

8) InterContinental Casinos (ICC) (1,142,000)

9) Roxy Palace Casino (1,120,000)

10) iWin Network (1,036,000)

11) InterCasino Sites (1,027,000)

12) Diamond Deal Casino (944,000)

13) Vegas Lucky Casino (922,000)

14) Ultimate Bet (884,000)

15) Free Slots.com (878,000)

Source: comScore Media Metrix

CASINO CAUTIONS

Too much paperwork Golden Riviera Casino is unnecessarily antagonising players with excessive demands for ID paperwork which could well turn potential clients away. Some perhaps over-zealous official has been telling customers that it is "...standard procedure at the casino to request the following documentation for cash-ins exceeding $10 000; Photostat copy of Identity Document (Passport/Drivers License)
Photostat copy of Front and Back of Credit Card
Photostat copy of Utilities/Rent bill made out in your name to your
registered residential address.
Copy of your bank statement
Bank Letter stating that your account is in good order." International money laundering regulations could possibly be the cause of the first three demands, but it is an unwarranted invasion of privacy to request bank statements and bank manager's testimonials. Royal Dutch changes? The notorious Royal Dutch Casino, the centre of much player complaint and controversy earlier this year has a closed sign out this week, promising new software and updated systems. The Costa Rican based operation changed to Diamond Digital software in January, so a move so soon raises some interesting questions. As far as we can tell there has been no communication to players so far, despite the fact that activity seems to have been suspended for over a week. It all points to a need for a cautious approach. A right royal screw-up If you're playing at Virtual group's Bet Royal casino be sure to double check any bonuses that are awarded. If you don't, a goof-up by casino staff could prove expensive... for you as the player. This week a gambler reported that he/she had deposited $500 for a 150 percent bonus at Royal Bet but instead of receiving $750 he/she had been awarded $1500. Unfortunately for the player, he/she did not call the attention of the casino staff to this unexpected largesse but went on to hit it lucky and ended the session around $15 000 up. That's when the casino unilaterally disqualified all the winnings on the grounds of its error that the player had not reported. The casino's initial offer as we went to press did not appear to take into consideration that its staff had made the screw-up in the first place - it suggested that the player start over with a $500 deposit + $750 bonus!

It's Virtual group again... One has to look askance at any casino that seems to have an aversion to answering legitimate questions regarding its parentage, software or licensing and that would appear to be the case regarding new arrival JV8 Casino which InfoPowa reported on last week. Since then we have sent several chasers to our original enquiry, all of which have been ignored. However, after a little digging we're pretty sure that this is part of the Virtual group and that may explain their reticence. NEW ONLINE One for everyone Royal Wagers.com seems to have something for everyone with a sportsbook, 30 game online casino and poker room all on offer, powered by no-download software from Futurebet. That provider did not enjoy the best of reputations in the past (remember the Indio Casino mess for one?) but they appear to have escaped the bad news spotlight in more recent times. The poker room is using Ongame software and is part of the PokerNetwork. The new site has a clean and businesslike design that is easy to use and comes in English, Turkish, Japanese and German language versions. Deposits can be made through Neteller Instacash, 900Pay and eWallet Express via iDollar in the UK. Email and livechat Support is through playersupport.com and there is a poker school for newbies onsite. 20 percent signup and 10 percent re-up bonuses are offered. When we checked in at the poker room on a midweek night there were 6867 players active on the network, which belongs to PokerNetwork. Ambitious but unlikely with this franchise One of the most extraordinarily long-winded and largely irrelevant press releases we have seen for some time heralded the arrival of Get Rich Quick Casino.net from the readymadecasinos supplier. The site is not easy on the eye and appears to be using one of the Windows Casino sub-licenses on RTG software. A little French Casino France Net.com appears to be a French sister for Miami Paradise.com, a Microgaming powered casino in the Golden Star group. Online poker status quo Respected online poker information site Poker Pulse.com is always worth a visit to check on the progress of this booming sector, and this week noted that there were 303 poker rooms out there on some 56 different networks. Party Poker remains the site to beat as the biggest online. Online poker has not been the El Dorado that some thought it may be it appears - Poker Pulse lists over fifty failed or withdrawn sites. Networks to note include Action (24 members) Cryptologic (10) Boss Media's International Poker Network (36) PokerNetwork (44) Prima Poker (35) and Tribeca (formerly Apex) with 49. iNetBet going mobile soon It's been awhile since Real Time Gaming signed up with mobile gambling technology provider Phantom Fiber, and this week saw the first indications that this is producing results. Emily Hanson at RTG-powered iNetBet online casino has posted that they expect to be operational with a mobile gaming facility using Phantom technology in the near future.

BINGO FOR CASH LAUNCHED

Chartwell Tech powers new Bingo.com offering Bingo.com has announced that it has launched cash-based gaming on its website. Canadian provider Chartwell Technology Inc. powers the new cash bingo facility, with new games that offer Bingo.com's players the experience of Flash based 75 and 90 ball bingo games, complete with chat features. A full suite of soft games are also available as side games or "intermission" entertainment. With abundant room for expansion, online bingo has already attracted more than 5 million players with a demographic profile that differs significantly from that of online casino and poker players. Bingo.com has a player base of over 1 million registered players and attracts over 30,000 visitors each day, the company claims.

"With the launch of our cash games, Bingo.com has entered into a new phase of its development as a business," commented Tarnie Williams, the company's CEO.

OLA, SPORTSBOOK.COM EN ESPANOL!

Hispanic Americans targeted with new sports and online casino site America's rapidly growing Hispanic community is the target for a new Spanish language site, Sportsbook.com En Espanol, launched this week. Dedicated specifically to America's 40 million strong Hispanic population, Sportsbook claims the site is the first to cater to the country's largest and fastest growing ethnic minority group. In addition to offering the full range of odds, propositions and promotions available on the English-language site, Sportsbook.com En Espanol will provide its gambler base with more emphasis on sports and events of interest to their communities - specifically soccer and boxing. The site will also provide exclusive promotions relevant to the Hispanic audience. "Latin Americans are very passionate about sports and have a tradition of sports wagering," said Tony Delgado, a Sportsbook.com En Espanol manager. "We're delighted to provide the Spanish speaking community with a site that reflects their sports and gaming interests. For the first time, millions of potential customers now have the chance to bet in their language - Apuesta en tu idioma!" Delgado says that the online gambling industry is growing at an incredible rate in the United States, with approximately $10 billion in revenue expected in 2005. The fact that minority groups, such as the Hispanic population, are becoming more established financially is a significant factor. "As a group, Hispanics make up nearly 15 per cent of the population of the United States and have more disposable income than at any other time in their history. Online gambling is going to keep growing in this country and the Latin population is going to be a very important part of that continued growth," added Delgado.

EASYBETS SOLD FOR $32.5 MILLION

And BetonSports plans more acquisitions...

Shares in online gaming group BetonSports took on new life this week following a bullish statement and a fresh acquisition.

Despite results showing turnover for the 12 months to 6 February 2005 had slipped, the statement appeared to encourage investors. Turnover fell from $1,252m in 2004 to 1,104m in 2005 and the gross margin shrank from $90.2 to $72.5m. Net profit before tax fell a hefty$3.7m from $27m to $13.3m.

The group, which raised $44 million from its float on London's AIM last July, said the gross win margin on the sports book has returned to historic trends and is ahead of forecast.

The launch of poker operations and the repositioning of the online casino are progressing well, it added.

BetonSports revealed that it has acquired a significant foothold in the Asian market by buying Easybets.com in a deal worth some $32.5 million, made up of an initial consideration of $15 million, comprising $5 million in shares and $10 million in cash. Easybet's owners will be entitled to 43.5 percent of annual profits over the next three years providing these exceed $3 million. Easybets currently has some 100,000 customers predominantly in Asia, with over 70 percent in China, and 95 percent of business transacted over the Internet. The company reported a net profit of $3.2 million for the year ending December 2004 from a turnover of $255 million. Its chief executive Tim Lambe has been retained to continue expansion into the Asian region.

David Carruthers, chief executive of BetonSports, said it was the first of several potential acquisitions planned for this year.

The group announced the appointment of specialist small cap adviser and ex-Beeson Gregory man Chris Galloway to the BetonSports board.

DOWN WITH POP-UPS Are these uninvited visitors bugging you? Numbers of players on fora across the Internet were bewailing the increasing presence of intrusive, uninvited and difficult to remove pop-up advertisements this week, bringing this growing problem into sharp focus yet again. It seems that online marketers (and not just in the gambling industry) have yet to realise that this form of advertising could well prove counter-productive in terms of the sheer irritation and distraction that it causes. That could lead to players avoiding the sites who are invading their equipment in this manner. Quite apart from the questionable ethics of literally thrusting unwanted sales material in the consumer's face, the developers of these invasive adverts have made the covert contamination easier and their removal in some cases almost impossible without technical assistance. The battle between adware removers and adware installers is becoming increasingly dynamic as one tries to outguess the other...and the angry consumer is left somewhere in the middle trying to keep his or her computer clean. One poster wrote about a very typical experience as follows. The brands mentioned in this post are specific but these are not the sole culprits by any means - some of the biggest and most respectable names in Internet casino gambling are equally active and just as guilty: "I have been having an awful time with pop up ads on my computer. I have probably downloaded at least 10 different adware removers to try and resolve the problem. This is a huge concern for me. "Golden Palace Casino has come up many times in various scans of my computer, and I can't get rid of it. I uninstalled this casino over 6 months ago,...and yet like a parasite it has lodged itself on my computer without my consent. When I last ran my adware debugger 2 other casinos, Diamond Deal casino, and Ace Club Casino had somehow infected it, too." Another user reported that top names like Casino On Net and several well established Microgaming powered casinos were hammering away with repeated pop-up ads, sometimes presenting four and even five pop-ups one after another and causing intense frustration and anger. Surely this is not the way casinos want their customers to interact with them? Or do the stats show such positive returns from pop-ups that no-one gives a damn about what the consumer thinks? Are there no controls or guidelines for marketers using this technique? We're not talking spyware or malware here, which is another and perhaps even more serious problem - we're talking the deliberate, in-your-face presentation of specific brands in such a way that it causes resentment instead of support. That has to devalue the brand. And because this garbage was not requested and is difficult to remove, that resentment grows with every repetition.
NEW DEVELOPMENT IN LIVE BETTING AT WILL HILL All the numbers you need to bet live British gambling group William Hill has launched a new gambling feature on its website that allows users to view all live betting events in one place. The Live Betting Console provides a home to all William Hill’s “betting in running markets”, enabling punters to bet on a range of live events from just one page.

The console can be found on William Hill's homepage under “View Live Betting”.

The page displays all current and future interactive betting events, along with streaming live prices on a range of sports. Users can also place bets on mulitple markets on any event.
HILTON PROFITS DOWN DUE TO TOUGH RACING BREAKS AT LADBROKES

But online, the revenues continue to rise Hotel and bookie owner Hilton Group plc warned this week that profits since the start of the year were lower than last due to less favourable sporting results at subsidiary Ladbrokes. In a trading statement, Hilton said group profits for the first four months of 2005 were 4 pct down on last year thanks to 'tough trading comparatives' at Ladbrokes, principally on its betting shop racing activities. By contrast, Ladbrokes' online operations reported a 23 percent rise in gross win, said Hilton.
Chief executive David Michels said he was not concerned that rival William Hill group's purchase of the Stanley Leisure chain of betting shops had seen it leapfrog Ladbrokes as the UK's biggest chain. Stanley's 624 betting offices have swollen the William Hill estate to some 2,237 outlets, compared to Ladbrokes' chain of around 1,900 bookmakers. "I don't think there's a single customer who will notice that (William Hill has more outlets)," said Michels. "I still believe we are, and will remain, number one by profit. We are certainly still number one by profit per shop," he added.

A SECOND HEARING

eCOGRA's Fair Gaming Advocate at work

For Tex Rees, the Fair Gaming Advocate at regulator eCOGRA's London office a low level of complaints is not only less work, but good news for the organisation. It means that the 55 top casinos that submit to its authority are carrying out business in the consistently fair and player-sensitive manner required by the regulations.

Considering the very high volumes of business transacted daily by those casinos, which handle well over 50 percent of all online casino gambling, the complaints ratio is remarkably low, says Rees.

"Typically we average around 5 complaints a week, the majority consisting of easily cleared up issues that are resolved within 48 hours" says the experienced staffer. "In order of frequency, the most common 3 complaints concern slow cash-ins, bonuses and locked accounts"

Disputes are submitted online through the www.ecogra.org/disputes website and receive immediate attention. "Wherever possible we like to get an acknowledgement of the complaint off to the player immediately, and then keep him or her advised of progress if the issue drags on for more than a week," Rees reveals.

Complaints are regarded as a priority and one of Rees's first tasks in a working day is to review any issues that have arisen overnight.

"My first check is to ensure that the player is complaining about a casino over which eCOGRA has authority. Then it must be confirmed that the player has attempted to resolve the issue direct with the casino involved before coming to eCOGRA. In the vast majority of cases, simply escalating a dispute to casino management will see a problem resolved without our having to be involved at all," she says.

"Once this has proved unsuccessful or worse where the player has been unable to get through to casino management, we will engage with the player to resolve the problem."

The FGA's next step is to take on the dispute and contact the casino concerned. Rees has high level contacts in the management structure at all 55 casinos and says that a response is invariably fast and efficient, with records open for inspection.

Everything is documented for good order and future reference, but most of the complaints consist of misunderstandings or simple mistakes on either side that are quickly ironed out and restitution made direct to the player where this is indicated.

Because the casinos carrying eCOGRA's "Play It Safe" Seal operate within a clearly defined rules structure, assessing a complaint is made easier, but the FGA has access to expert opinion both within and outside of the organisation for more complicated cases.

"Several highly experienced industry mediators and specialists volunteered some time ago to consult at no charge on cases where we might require a second opinion, and from time to time we have sought their views," Rees says.

Once the FGA has resolved a case, she summarises her ruling and documentary proof, which then receives a final review by the CEO, Andrew Beveridge.

"Most cases are resolved within a matter of days because we know how much worry and stress this sort of experience can impose on the player, and for that matter any casino that takes a pride in a clean record," Rees says.

"Since the beginning of this year we have dealt with 125 complaints, of which 22 were about non-eCOGRA casinos where I cannot assist. The remaining 103 complaints involved 33 of our Seal casinos with a total of 92 players complaining. 8 percent of the cases were resolved in favour of the player. Considering that the average Seal casino handles hundreds of thousands of transactions in a single month, I think this complaints ratio is remarkably low."

Once the FGA has made a ruling, it's generally back to the keyboard, the mouse and the next game for the player but not at eCOGRA. The FGA is required to present her current rulings and complaint statistics to the three independent directors that control eCOGRA at their regular meetings, where the information is evaluated as an additional safety check on Seal casino performances.

Although sanctions have not thus far been required for non-compliance with regulations, eCOGRA can revoke its Seal for consistent or serious failures by any of its casinos to meet the required standards. Given the difficulty in achieving Seal status through independent inspections and monitoring, no casino manager would want that to happen.

SDS NAMED IN FURTHER GAMBLING CASE Illegal bookies busted in Syracuse Readers of last week's InfoPowa report on the New York and Pennsylvania arrests for illegal gambling last week will possibly recall the name Safe Deposit Sports (SDS) a Costa Rican outfit alleged to have handled some of the illegal transactions in that case. The name came up again this week when Syracuse and state police cracked what they say is the biggest illegal gambling operation they've ever experienced. The authorities were alerted by anonymous tip-offs more than a year ago in the Syracuse case. Once again, sophisticated eavesdropping techniques such as wire taps and advanced technology surveillance were deployed to identify and track the offenders. It transpired that local safe deposit boxes and off-shore accounts were used to launder money taken by the illegal bookies. City detectives and state police fanned out early this week and quickly arrested 41 of the 46 people including a state trooper they were looking for, said Sgt. Tom Connellan, of Syracuse police. Police charged them with a total of 403 felonies and 163 misdemeanors in what police say was a $20.3 million gambling operation. "This is unquestionably the biggest illegal gambling operation we've ever had here," said Lt. John Corbett, of Syracuse police. Detectives have found $155,000 of the money in safe deposit boxes. The rest of the money remains unaccounted for, but police have evidence money was being forwarded to Costa Rica through a "clearinghouse" known as Safe Deposit Sports, Connellan said. Police believe that was a phony corporation set up to launder money, investigators said.

Most of the betting activities happened locally and typically were on NFL games and college basketball.

THE U.S. GOVERNMENT NEEDS TO DO MORE THAN JUST "TWEAK" Antiguan minister insists on full compliance with WTO ruling The Antigua - U.S.A. World Trade Organisation (WTO) dispute was back in the headlines this week when an Antiguan government minister insisted on full compliance with the world body's earlier ruling. Antiguan Finance Minister Errol Cort said that the United States must lift a ban on the cross-border provision of Internet gambling services in order to bring its practices in line with its World Trade Organisation commitments, when he addressed the trade body on May 19. Cort told a meeting of the WTO's Dispute Settlement Body that a mere "tweaking" of U.S. legislation would not be enough to bring the United States in compliance with a WTO ruling partially condemning the ban on remote gambling, as U.S. officials contend. "To comply with the ruling, the United States must give Antigua market access for the provision of gambling and betting services," Cort asserted. "This should not be a difficult or time-consuming task." The Antiguan minister added that his country accepts that online gambling should be subject to regulation and was prepared to cooperate with the United States on rules that would give Antiguan operators "...fair, reasonable and responsible access to the gambling market in the United States." Recapping on the recent developments, on April 7 the WTO's Appellate Body upheld an earlier panel ruling backing Antigua's claim that the United States had, contrary to its assertions to the contrary, included specific commitments on market access for cross-border gambling and betting services in its WTO services schedule (67 WTO, 04/8/05 ). The Appellate Body also maintained--but only in part--the panel's rejection of U.S. claims that restrictions on cross-border gambling services were justified under Article XIV of the WTO's General Agreement on Trade in Services (GATS), which allows an exception from WTO services commitments for trade-restrictive measures deemed "....necessary to protect public morals." The Appellate Body agreed with the United States that three U.S. federal statutes in question--Section 1084 of Title 18 of the United States Code (the Wire Act), Section 1952 (the Travel Act) and Section 1955 (the Illegal Gambling Business Act)--were all measures necessary to protect public morals. Nevertheless, the Appellate Body concluded, on narrow grounds, that the U.S. ban was applied in a discriminatory manner in violation of WTO rules. The United States informed the DSB meeting that it intends to comply with the WTO ruling but did not spell out when or how it would do so. Deputy U.S. Trade Representative Peter Allgeier insisted after the Appellate Body verdict was issued that the ruling allows U.S. restrictions on Internet gambling to remain in place. "This report essentially says that if we clarify U.S. Internet gambling restrictions in certain ways, we'll be fine," Allgeier argued. The Appellate Body found that the United States failed to disprove that an additional federal statute--the Interstate Horseracing Act--permits interstate wagers to be accepted by an off-track betting system via telephone or other modes of electronic communication (including the Internet), as Antigua had claimed, thus discriminating between foreign and domestic service suppliers in violation of the Article XIV provisions. Referring to this finding, the Office of the U.S. Trade Representative said April 7 the United States "...needs to clarify one narrow issue concerning Internet gambling on horse racing" in order to comply with the ruling. Cort pointed out that the ruling addresses all forms of "remote" gambling, not just Internet gambling, and that the United States would have to ban all types of the former (including services such as off-track betting) in order to justify its "public morals" exception. "If our fellow members were not aware of it, the United States has sanctioned domestic Internet and telephone account wagering services that accept hundreds of millions of dollars in wagers each year," the Antiguan minister declared. "There is extensive remote gambling on horse races and other events and contests in the United States." Cort said a May 16 U.S. Supreme Court ruling on interstate sales of wine bolstered his country's claims in the gambling dispute. The Court struck down state laws in Michigan and New York barring out-of-state wineries from selling directly to consumers but allowing such sales by in-state wineries. "This case is remarkably analogous to our dispute and, we suspect, may very well soon have an impact on the resolution of this dispute," Cort declared.

UNLIKELY ALLIES? Racing and online gambling would make strange bedfellows CBS Marketwatch carried a thought provoking article this week on draft legislation that could see moves against Internet gambling extended to horse racing, spurred by a World Trade Organisation ruling on a dispute between the United States and Antigua. The legislation, titled "The Unlawful Internet Gambling Enforcement Act of 2005," originated in the office of would-be online gambling nemesis Sen. Jon Kyl and is now making the rounds on Capitol Hill. The CBS article opines that it could endanger currently legal Internet betting on horse racing, along with a big chunk of that industry's profits, it if becomes U.S. law.

Like several previous failed bills backed by the Arizona Republican, it would bar credit card issuers, banks, and other financial institutions from transmitting money related to online wagering and authorise a wide array of federal and state law enforcement agencies to go after the offenders. There's no indication whether Kyl's latest proposal will be introduced as a Senate Bill this session, or its prospects for passage by the Senate and House, and approval by President Bush. What makes Kyl's latest proposal different from prior failed bills is that it doesn't carve out an exception for racing. That has given rise to warnings that the only part of the parimutuel industry that is growing at all - account, or remote, wagering - could be run right out of business. Through a spokesman, Kyl declined to comment on the proposal, a copy of which was sent in draft legislation form to MarketWatch last week. At issue is an early April decision by the WTO that parts of some U.S. gambling statutes, including the Wire Act, violate the General Agreement on Trade in Services. The trade body also found in favor of Antigua on a claim that the Interstate Horseracing Act, which permits electronic wagering between states where it is legal, discriminates against foreign operators. To comply with the WTO ruling and live up to its trade agreements, the U.S must amend existing laws, said Anthony Cabot, a lawyer with Lewis and Roca in Las Vegas, which represents some Internet gambling clients. "The new Kyl bill is the most likely vehicle," he said. "It can effectively shut down any interstate betting that would go through a financial transaction service provider. And the horseracing industry has been increasingly reliant on interstate wagers for its viability." "Account wagering is the fastest-growing part of the business by a significant margin," said Greg Avioli, executive vice-president of NTRA, who expects it to hit $3 billion this year. "We are paying very close attention to the bill," he added. "But we are confident that Mr. Kyl and other members of the Senate do not want to interfere with legal parimutuel betting [and that] whatever legislation passes will adequately protect racing." As big a hit as it would be to track owners like Churchill Downs and Magna Entertainment, passage of the Kyl proposal in its current form could essentially wipe out operators like Youbet.com and TVG. A spokeswoman for TVG, which is owned by Gemstar-TV Guide, said the company was aware of the draft bill but declined to comment. "It is pretty early in the process," she said. "We are waiting to see what happens." Churchill declined comment. Neither Youbet.com nor Magna would return phone calls. Any attempt to insert a rider that would protect racing's online action could not only run afoul of the WTO again but would also bring forth other interests seeking their own exception, noted Sue Schneider, publisher of Interactive Gaming News. Indian tribes, lotteries, and other gambling providers "would all want exceptions," she said. "That causes stalemate. I think [Kyl] is taking a cleaner approach to see if it makes any difference." Schneider said the horseracing industry has been "in a bit of denial" over the danger, but noted that it can wield considerable political muscle should it choose to exercise it. "They are starting to kind of wake up to some of this a little more," she said. Still, Cabot pointed out that big political changes in Washington make derailing a proposal less of sure thing than in the past. The Republican Party controls almost all the levers of power, he said, and is in thrall to a right-wing religious constituency for which gambling is a moral issue.

"If they want to pass Senator Kyl's bill, or any version of Senator Kyl's bill," they can," he said