Online Casino News - September 2005 Week 4

KYL - LATEST ATTEMPT TO KILL ONLINE GAMING DEFEATED

Senate throws out amendment after debate

As we went to press this week the good news was coming - U.S. Sen. Jon Kyl's latest efforts to kill off online gambling in the USA have been defeated.

Kyl, a longtime and skilful anti-online gambling politician for the past several years sought to amend an appropriations bill to include language prohibiting Internet gambling in the United States.

The amendment was defeated in the Senate Thursday morning after a night of debate and political gamesmanship. Democratic leaders invoked a point of order on the amendment, arguing that it should be placed on a bill in the Banking and Finance committee and not an appropriations bill.

The point of order was passed by majority vote, essentially killing Kyl's amendment. Early reports from Reuters suggested that Kyl remain undeterred, promising to be back with another proposal.

Kyl said his legislation would require banks and credit card companies to block payments to online Internet gambling sites. He said some firms were already voluntarily blocking money transfers.

"We will proceed with this, it will become law at some point at some time," the Arizona Republican said on the Senate floor. "There should be no reason why we can't move forward on this." Sen. Barbara Mikulski, a Maryland Democrat, said that a member of her party had objected to attaching Kyl's language to the spending bill but she was not sure who. Kyl urged the lawmaker to come forward so the concerns could be addressed. Shares of online gambling sites in Britain moved higher on Thursday in anticipation of the Senate action. Partygaming Plc moved up 5 percent to 105 pence while Sportingbet.com Plc moved up 11.3 percent to 321 pence on London trading.PARTY GAMING RAINS ON CASSAVA PARADE

Stock value for IPO cut

Last week's much publicised comment by the Party Gaming CEO Richard Segal that online poker was slowing down had a predictable impact on the IPO being put together by Cassava Enterprises this week.

UK newspaper the Daily Mail reported that the Internet gambling company is to cut the value of the stock exchange float for its online casino 888.com by at least 20 percent. The London flotation will now be valued at between GBP 550 million and GBP 650 million, the newspaper reported, citing an unnamed source close to the flotation. Original speculation was that the value might be as high as GBP 1.5 billion.

Later reports suggested that the price had been set at between 162- 212 pence per share, which will give it a market value of up to GBP 714 million.

CASINO CAUTIONS

Check your account!

The fora have been lighting up lately with player reports of unexpected, and frequently automatic bonuses. Where's the problem with getting some free money, you may ask?

The answer is because these bonuses carry wager-through requirements and in many cases the player didn't ask for them. The bonanza is frequently just credited to an account, and the first the player knows about it is when a cash-out is denied because the W/T has not been met.

A growing number of players eschew bonuses because these marketing inducements too frequently lead to nightmare hassles of extensive minimum wagering requirements, denied pay-outs, confrontations with ill-trained or briefed Support and even the danger of being unilaterally declared a "bonus abuser" and subjected to disqualifications and lock-outs. In short, many believe that bonuses are just not worth the trouble they can bring.

Some pretty surreal live-chats have taken place, where Support workers have said they are actually unable to remove these bonuses when requested, and there have been cases of bonuses being credited despite a player calling Support prior to playing and telling them to hold off on the bonus!

No doubt these bonuses could be reversed once a manager is involved, but who needs the trouble?

It's something that deserves attention at casino and maybe even software level. It should not be too difficult to give the player an opportunity to reject a bonus before it is credited, especially where it involves obligations on his or her part. And the player should definitely be advised when a credit is about to made.

In the meantime, players need to keep a close eye on the transactions going through their accounts in order to catch any *surprises* before they are used and that endless cycle of bonus arguments gets into gear.

YOUNGER TABLE PLAYERS

Poker brings youth to the table games

Vegas casinos report that younger gamblers are taking an interest in table games.

Industry analysts believe that many 20- and 30-somethings like playing blackjack and similar games because they can socialise at the tables, the Reno Gazette-Journal reports.

The return of table games was one of the topics discussed at the G2E Training & Development Institute, which preceded the annual Global Gaming Expo held in Vegas this week.

Analysts credited the fad for poker, saying it has spilled over to other games, and the popularity of television shows that depict gambling, including Las Vegas.

Gamblers in the 21 to 39 age group are not only more likely to play table games than the older crowd, they are also willing to risk more when they bet.

Bart Pestrichello, vice president in charge of casino operations at Hard Rock, said that casinos have to provide the atmosphere the younger crowd wants at the tables, including training dealers to be more like an entertainment employee, and less like a cop.

MORE GROWTH AT LADBROKES

British betting group rumoured to be going after Sporting Index

Ladbrokes, one of Britain’s biggest bookmakers, has emerged as a key contender to buy Sporting Index, the spread betting group, for up to GBP 70 million, The Times reported this week.

Duke Street Capital, the private equity owner of Sporting Index, has whittled the auction down to a handful of bidders and set next week as the deadline by which they must table their second-round offers.

The shortlist is believed to comprise Ladbrokes, which is owned by Hilton Group, and two private equity firms. Bridgepoint is thought to be one of the contenders.

Duke Street, which is working with NM Rothschild, the investment bank, is expected to enter exclusive discussions with one party after next week’s updated offers. The originally mooted asking price was closer to GBP 100 million.

Analysts said that Ladbrokes appeared to have the best chance of winning the auction. The company would have an advantage over private equity rivals by being able to cross-sell its own betting products to Sporting Index punters while offering Sporting Index to Ladbrokes customers.

There is also a historical link between the two companies in the figure of John Jarvis, Sporting Index’s chairman, who was once chairman of Hilton International, the hotel arm of Hilton Group. Mr Jarvis left Hilton to set up Jarvis Hotels in 1990.

Ladbrokes, which abandoned a spread-betting foray in the 1990s, recently teamed up with a rival firm, Cantor Index, to offer financial fixed-odds bets.

Duke Street backed the GBP 53 million management buyout of Sporting Index in December 2002. The deal was led by Richard Glynn, the company’s chief executive.

GAMING CORP POPULAR

High interest in UK group's shares

ShareCast reported this week that investors were piling in to online gambling outfit Gaming Corp after the AIM-listed company gave a cheery update on trading for the year ending September.

Gaming Corporation has been dynamic this year in the online gambling acquisitions field, snapping up the popular portals Got2Bet.com and Gambling.com among others. The company has ambitious growth plans within the industry that include casino and mobile gaming according to CEO Justin Drummond.

FORTUNE LOUNGE OFFER SKILL GAMES

Gaming Account the supplier

Online casino operator and holder of the eCOGRA seal, Fortune Lounge Group, has launched a new and exciting skilled games website called Royal Vegas Games. This is in conjunction with a deal signed with GameAccount, a leading skill gaming software provider.

GameAccount has agreed to provide its full range of skill games including Backgammon, Gin Rummy and Pool to Royal Vegas Games. This is in an effort to attract more players and to up the stakes within the online casino industry.

GameAccount's skill gaming services supports full multi-lingual white-label solutions with seamless log-in and real-time exchange rates, and all games have multi-player capabilities. They also boast competitions like the world's largest knockout tournament and various progressive jackpots.

"Securing a partnership with a proven global player like GameAccount means we can provide our customers with the best skill gaming services available", says the Director of Royal Vegas Marketing, John Hughes. According to Matt Welch, Business Development Manager at GameAccount, "the deal with Fortune Lounge is a lucrative venture for both parties".

Partnerships and synergies like the Fortune Lounge/GameAccount deal signals new heights that can be reached by gaming online and it opens up new avenues for recreational as well as experienced gamblers. Now there's even more reason to try out a Fortune Lounge casino because the opportunities are endless and there's no way that you cannot be tempted by their bevy of new games.

LAND CASINO SCAMSTERS BUSTED

Hi-tech micro camera scam defeated

Two men and a woman - accused of operating across the UK - have been arrested, Sky News reported this week.

The trio are thought to have netted more than GBP250,000 from six London casinos.

They are the first to be arrested in the UK for allegedly using such a hi-tech operation, police said. The Metropolitan Police's Clubs and Vice Gaming Unit was brought in to investigate the con after a number of casinos in the capital became suspicious about people playing three-card poker.

They carried out a sting operation to snare the suspects as they played the game at a casino in the centre of the capital. Detectives said the scam worked by two players playing the game and using "micro-cameras" to beam pictures to a third person watching on a computer monitor.

The third person then instructed the two players, who were wearing hidden earpieces, whether to bet or not.

David Mills, of the UK Casino Security Managers Association, said: "We have been tracking the increasing trend towards technical casino crime for some years now and are pleased that our internal procedures proved successful once again."

All three suspects have been bailed to return to a central London police station in December pending further investigation.

NEW POKER ROOM JOINS EXCAPSA

DV8Poker launches

An Irish firm is betting on Internet poker with the launch this week of DV8poker.com - powered by the Excapsa Poker Network, which also includes two of the top sites in the market, UltimateBet.com and UltimatePoker.com

Behind the venture is AVA Leisure, which manufactures gaming machines and operates a chain of arcade outlets. Online gaming is a natural extension of the Company's existing operations, while a partnership with Paradigm New Media ensures that the new online brands, including an interactive bingo site launched in July, are backed by top class expertise in interactive marketing.
"As we continue to expand our business in the UK market it is important that we enter into strategic partnerships with licensees that have a presence in the market," stated Jim Ryan, CEO of Excapsa. "UK-based AVA Leisure is able to leverage its customer base to our poker network with their background in the arcade arena. We believe the tie in to poker will be a natural."
Internet gambling continues to grow at a rapid pace in the UK, as the increasing availability of broadband encourages more people to try out a quick flutter online. The online gambling audience in the UK has increased by 45 per cent over this time last year, with 3.2 million visiting a gambling site in February 2005.
The marketing campaign for DV8poker.com includes a $125,000 guaranteed prize pool every Sunday and qualification for major International tournaments through the site.
People can have fun learning to play poker for free at DV8poker.com before they feel ready to cash in on their newfound skills. DV8poker.com players can try their luck against Team UB pros including: David "The Devilfish" Ulliott, Annie Duke, Phil Hellmuth and Antonio Esfandiari.
BETCORP TO OFFER WHITE LABEL DEALS
Bold new step from Aussie public company
BetCorp has announced its white label partner program, WhiteLabelGaming.com. BetCorp Limited’s White Label program offers companies the opportunity to operate their own e-gaming site using the Betcorp model. Partners will be responsible for managing their own brand development, marketing and player acquisition while outsourcing all other aspects of operations to a trusted partner.

NEWS SNIPS

Bye Bye 49ers

It's goodbye to the veteran brand 49ers Casino, in the Cryptologic-powered Peak Entertainment Group, which is being rolled into big brother Omni Casino's operation, Peak's flagship brand. Players have been receiving notifications this week advising them of the move and how it will effect them.

Mac Poker

Backgammon and poker games software pprovider GamesGrid has released what it claims to be the first poker software developed especially for Macintosh users. The new software, developed by CyberArts, located in California, has been exclusively licensed to Malta-based Skill Games Ltd., which operates the GamesGrid brand.

Super Heroes from Crypto and Marvel

Following a major and exclusive licensing deal with Marvel Comics, turnkey provider CryptoLogic will soon be launching new Marvel-branded casino games (including characters such as the Hulk and X-Men) in a novel series of themed games for online gambling casinos that are sure to prove popular judging by the player response to Microgaming's Tomb Raider earlier this year.