Belgium

Both Victor Chandler and Boylesports have signed deals to take advantage of Flinders’ Maelstrom middleware platform. Myriad Payments, owned by Victor Chandler, will use it to keep strict control of customer data and it’s part of an even larger project between Victor and Flinders. Boyles are using it to help them achieve more growth in the Asian market and monitor new product lines being rolled out. Flinders also announced a deal with Jade Gaming ahead of any U.S. market opening and Brian Hooper, CTO for the Maelstrom product, said: “Operators in the US who are looking to make their step in the eGaming space don’t want to find themselves ‘trapped’ by the first eGaming partner or platform they choose. Maelstrom allows these new eGaming operators to evolve beyond the bottle-neck and differentiation problems that European eGaming operators have struggled with over the last 10 years.

Betfred boss Fred Done has carried on his charitable mood by donating £25,000 to charity Haven House. Done had promised to offer £200 for every century made at the Betfred.com Snooker World Championship and if it reached 75 he’d top it up to £25k. Even though the players only managed 71 he did so regardless. It comes as Fred readies himself for a big hit this weekend should Manchester City manage to pip United to the title. Good luck Fred. You’re going to need it.

Business News

Advisory service PricewaterhouseCoopers produced a report in December of last year which included new analysis of the land based and online gambling industries. Among the many conclusions was the statement that land-based casinos and iGaming firms working together is inevitable.

In charge of that report was partner and head of gaming at PwC David Trunkfield. Having spoken to various CEO’s including Frank Fahrenkopf of the AGA while compiling the report, Trunkfield felt that the perception that online gambling would be in direct competition with land-based casinos is largely misplaced.

He explains: “Online gives you access to a different, younger, perhaps more affluent customer that isn’t going into betting shops or going to the more traditional casinos in the US. That’s why we see it as complimentary.“

Examples in the UK of companies that have cashed in on their offline presence are bookmakers such as Ladbrokes and William Hill. They’ve reported that the overlap of players from retail to online is actually very small and US casinos can expect much the same story.

“We’ve also done analysis of offline companies like PMU in France. Their offline business has grown in the past ten years at the same time that their online business was growing really fast. So if the online business was cannibalising then the retail business would be going backwards and not growing,” Trunkfield says.

It is arguments such as this that has convinced the major land-based casino companies in the US that online gambling isn’t the enemy. However, when it comes to specific gambling activities they tend to remain sceptical about the claims that online casinos will not be a hindrance to them. Instead, they choose to put all of their support behind online poker while claiming that the deciding factor is the relatively higher level of skill required to win in poker.

Trunkfield explains: “Casino companies are nervous as lots of companies have been about losing their customers which is why they’re so protective of online casino games. However, if they see poker growing and they get a piece of the pie then they’ll be arguing forcibly for online casino games as they know that they can cross-sell that.”

While players are more likely to remain with a brand when it comes to a service that they’re familiar with, the small overlap described by UK bookmakers means that the brand is more important than matching online and offline services to each other.

A prime example of this is Ladbrokes who were of course known for their retail sportsbook. However, when the time came for the bookmaker to go online it was their poker product that stood out. This can be attributed to a combination of a recognisable brand name and the Microgaming software that the company used.

The fact that Ladbrokes Poker is in its current situation is even worse considering the start that the product had and how popular it once was. There have even been land-based casino companies that have been able to make their mark online. One of the most recognizable is Genting who not only run the pureplay Circus brand but also provide a Genting online casino and poker product. Gala will be hoping to emulate their success as they re-launch later this month with Playtech software and an entirely new look.

Even the Hippodrome Casino will offer online casino games if their joint venture with Media Corp is eventually completed while US casino companies have been pairing up with iGaming companies – if only to provide poker products.

One more example of where land-based casinos will be able to benefit from running parallel online and offline operations will be with the new opportunities that this will afford them. The Palace Casino in Great Yarmouth took advantage of such an opportunity by creating live online dealer games that allow you to play on the same tables as real customers that are actually in the land-based casino at the time.

While there are slight tweaks to be worked out in this kind of game, the point is that it was made possible by online gambling and a bricks and mortar casino combining forces. It will be the first few who manage to do this successfully that will strengthen their grip on an ever more saturated market place.

Trunkfield concludes: “There’s an opportunity there but you have to go and grasp it otherwise other people will. In most countries, although there are some land-based casinos and sports betting businesses that have a high share of the market, there’s always others who didn’t take advantage or went the wrong way about it.”

“The people who are partnered with the right people, understand the customer and understand the online marketing side of things can have great success.”

Casino News

Spain

William Hill chief executive Ralph Topping will receive his controversial pay packet after it survived a shareholder vote by the slimmest of margins. The company’s AGM saw 49.8 percent vote against the £1.2 million “retention bonus” and 8.3 percent pay rise awarded to Topping and it was almost double the amount that voted against a similar figure last year. According to the Guardian, one shareholder retorted: “CEO’s are dining in the last chance saloon trying to take as much as they can as soon as possible.”

None of this seemed to phase the company as chairman Gareth Davis reiterated his stance on Topping’s pay, stating: “I am a man of my word and I will not renege on that deal.”

StanJames.com have extended their mobile gaming portfolio by signing up with Realistic Games. It will give the site a suite of 10 games, including 8 slots, which have been specifically designed with iPads and smartphones in mind. Denis Kelly, CEO at StanJames.com, said: “Mobile is a key strategic channel for StanJames.com; adding a high quality mobile casino offering to our rapidly expanding sports betting product is a key development for us. The initial performance of Realistic’s games has been extremely encouraging and suggests that these games will be an important driver of future mobile revenues.”

Business News

Skepticism over whether he’ll get the moolah comes from the Association of British Insurers (ABI), whose members make up 15 percent of the market, and the Pensions and Investment Research Consultants (Pirc). The former has issued an “amber top” warning ahead of a possible vote by shareholders whereas Pirc has advised its members to abstain from the voting, according to the Guardian.

Company chairman Gareth Davis has already called for calm ahead of the AGM and that this isn’t a “reward for failure” due to the success that Topping has had.

“Ralph has done a remarkable job,” Davis said. “He was appointed four years ago in very different circumstances and he has turned round the company’s performance.”

Topping’s pay-rise caused consternation amongst shareholders at last year’s AGM when 34.5 percent decided to vote against the rise. Back then the company gave the same excuse of the company making significant progress over the past year. Shareholders don’t doubt that the company has made progress with strong growth online pushing revenue up 6 percent to £1.1 billion. It just looks as though the disquiet last year will increase off the back of what has become know as the “shareholder spring”.

Business News

They followed this up by adding: “We’ve also refunded all outright bets on @brianpaddick! The were only 12! #justicerefund”.

It comes after Betfred paid out on Manchester United winning the league and it’s a move that right now looks as though it’ll be cost Fred quite a bit of money.

Britain’s best bookmakers were last night rewarded for their services to the punters at the annual Betview Awards. Online company of the year went to SportingBet with in-store Team of the Year going to Paddy Power’s branch in Hayes. The highest accolade of the evening was the Bookmaker of the Year award, bestowed upon the veteran bookie William Hill. They also took home Chain of the Year and there was even a lifetime achievement award given to former Gala Coral head Neil Goulden.

Paddy Power has blamed human error after a retweet got through the net. The company’s Twitter account reposted a tweet from @beardogbear saying: “Can u place bets On Player heart attacks at football matches @paddypower #mufc”. This courted controversy as it was just weeks after Bolton Wanderers midfielder Fabrice Muamba suffered a cardiac arrest during an FA Cup match at Tottenham Hotspur. Ken Robertson commented to Marketing that the mistake was “simply one of human error in which one of our team misinterpreted the original tweet and mistakenly published it”.

Business News

William Hill

German sports betting monopoly Oddset has signed a long-term partnership with Bundlesliga double-champions Borussia Dortmund. It will mean significant stadium sponsorship for the company and they’re hoping that it coincides with the regulation of the German gambling industry. The deal also sees the two cooperating extensively in the new media sector and it will mean better value for fans of Dortmund and Oddset customers.

Paddy Power has signed a multi-year extension to their agreement with GameAccount Network (GAN) to facilitate their expansion into the Italian online gaming industry. It will give Paddy Power the chance to use GAN’s services in the country and Giovanna D’Esposito, Paddy Power’s managing director of Italy, added: “Based on our existing relationship, their commitment to Italy and wide games portfolio, GameAccount was chosen by Paddy Power as one of our partners to build and position our Italian gaming business to exploit anticipated opportunities created by further gaming regulation.”

Italian regulator l’Amministrazione autonoma dei monopoli di Stato (AAMS) has signed a memorandum of understanding (MOU) with La Direzione Nazionale Antimafia to combat the infiltration of crime into the gaming industry. The agreement will see the two sides exchange data, news and information in order to stop any mafia involvement in gambling sectors. It lasts for a period of five years and will be renewed for longer if both parties are still in agreement.

Business News

TOPPING SAYS REGULATORS MAKE TURTLES LOOK LIKE CHEETAHS
William Hill CEO Ralph Topping has rejected rumors that Hills’ Nevada gaming license application may have hit a snag over past indiscretions by its staff. Rumors of a delay originated in the Guardian last week. Among the newspaper’s claims were that Nevada regulators wanted to know more about the UK financial watchdogs’ 2010 decision to fine Hills exec Robin Chhabra £95k for passing confidential info to a friend. Teddy Sagi, the controversial head of Hills’ William Hill Online JV partner Playtech, allegedly also caused the Nevada Gaming Control Board to arch their dusty eyebrows.

Bollocks (or words to that effect), says Topping. Discussing Hills’ strong Q1 results with analysts, Topping stated that the application “to complete [our] US acquisitions is progressing well and remains within the timetable.” Topping claims to be only 10 months into an expected 12-18 month process that began after Hills acquired a number of Nevada-based sportsbook companies, including American Wagering (maker of US mobile wagering pioneer Leroy’s App) and Brandywine Bookmaking.

HILLS STAFFER SAVES BABY’S LIFE
The UK media routinely employs words like ‘blight’ and ‘scourge’ to describe the spread of betting shops on UK streets, but the parents of a very sick baby are singing the praises of a Hills shop in Manchester. Nine-week-old Amelia Grace suffered from pyloric stenosis, a narrowing of the passage between the stomach and lower intestine. Amelia couldn’t digest milk without violently projectile vomiting, yet two hospital visits produced only diagnoses of gastric reflux.

A couple weeks back, Amelia’s dad Mark Parsisson visited his local Hills shop to wager on the Grand National. Hills staffer Vicky Leonard got to cooing and oohing over baby Amelia, but when Mark described Amelia’s difficulties, Leonard’s eyebrows rose. Her own daughter had endured pyloric stenosis as a baby. Leonard informed Mark of her suspicions, helpfully writing the medical terminology down on a betting slip. Mark investigated, the doctors concurred, an operation was performed and baby Amelia is all better. The parents are overjoyed, but also plan to sue the hospital for the misdiagnoses, which could have had fatal consequences. The Daily Mail reported that Parsimmon’s Grand National fiver-each-way bet on Sunnyhillboy was a winner, which is how we describe the sharp-eyed betting shop staffer in Manchester.

Business News

NetPlay TV

William Hill’s earnings estimate has been revised to “buy” by HB Markets. The analysts raised their estimate following the firm’s Q1 results last week that saw mobile continue to post impressive figures. The Nevada application “progressing per schedule” and the relationship with Playtech seeming to have “thawed” combined with mobile performance meant expectation was lifted. Deutsche Bank followed HB by upgrading its forecast for Hills from “hold” to “buy” following last week’s results.

Media Corp has announced a member of the board has resigned with immediate effect. Chris Forman was a non-executive director with the firm and held the position for three years. He will now concentrate on other interests he holds in the telecommunications industry.

Playtech has launched an ice hockey slot as part of its new offering. The 15-payline video slot lets the player choose two teams at the start and has many other hockey related regalia to get even the calmest of Canadians pretty bloody excited. Those North of the U.S. border will rejoice at the news that their sport has a place amongst the company’s plethora of successful slots.

Business News

William Hill

“Our investments in marketing and innovations continue to deliver benefits, with our Sportsbook exceeding £50m in turnover in a single week for the first time during the quarter and mobile turnover reaching almost £11m in a single week,” Topping said. “Our mobile performance is now benefitting from our Sportsbook app being available in the Apple App Store, giving us access to thousands of new customers who have never bet with William Hill before, highlighting the growth potential of these new channels and their importance to our multi-channel offering.”

Regarding the group as a whole, net revenue increased by 12 percent with retail up 5 percent. It all contributed to an operating profit of 19 percent and meant being a on the face of Hills’ very own Captain Birds Eye. Actually…not so fast. Topping reserved some ire for the UK government and their decision to consider a point of consumption (POC) tax, with the group stating there’s “no demonstrable need for the proposed POC regulation based on consumer protection”.

Ladbrokes celebrated yesterday’s results by calling out the Irish government on gambling industry reform. Joe Lewins, MD of the company’s Irish business, called for “urgent reforms”.

“The 1931 legislation governing the sector isn’t fit to meet the challenges of emerging 21st century technologies, and this is leaving the sector unable to compete on a level playing field,” said Lewins. “If these concerns are not urgently addressed, the sector will continue to struggle and this will have a negative impact on much-needed exchequer revenue and employment.”

Blue Square has concluded its search for a new consumer communications partner by signing a deal with Hill+Knowlton Strategies. The firm will help create brand awareness by handling both reactive and proactive comms; and developing brand building initiatives. Robert May, Brand Director of Blue Square, said: “The team brings a wealth of sports experience and creative ideas to help drive the Blue Square brand forward.”

Business News

Playtech

The industry is alive with the sound of whispers. Whispers regarding the legitimacy of some of Israeli software developer Playtech’s business dealings – and not for the first time!

The 13-year old company has come under questioning once again following the news that they’re intending to buy a collection of social gaming assets owned by none other than the company’s founder and biggest shareholder Teddy Sagi.

Sagi owns 48% of Playtech and is reportedly about to sell the companies (which haven’t been named) for around £80 million. Not only have that but Playtech’s immediate plans also included buying an office in London for £10.5 million – an office which is owned by a company that Sagi also has a connection to.

This is doubly strange given that very few companies, regardless of whether they’re in the iGaming industry or not, tends to buy offices – most preferring to rent instead. Finally Sagi will also come on as an advisor to the company that he built from the ground up for the princely sum of €1 per year. This suggests that either Sagi’s negotiation skills have declined rapidly in recent times or that there may be something strange going on at Playtech.

Public Opinion

It’s no secret that the company are hoping to make the move from the Alternative Investment Market to the London Stock Exchange FTSE 250 Index. Therefore perhaps these are just their way of becoming a whiter than white public company.

However the move to re-employ their founder would appear to be backward step in the evolution of the company in the public sphere. As evidenced by Betfair founder Ed Wray’s exit from the company he created, it is necessary for the founding fathers to move in order for a public company to evolve.

Apparently this a view shared by traders too as Playtech’s shares dropped as much as 9.7% following the news of the company’s planned acquisitions.

In a note to his clients Simon McGrotty, analyst at Davy Research said: “Where concerns will be raised is that once again Playtech is acquiring assets from its founder and largest shareholder.”

“Ninety five million euros is a significant investment, especially in an area that is relatively unproven – there is no mention of the current profitability of the assets being acquired in this morning’s announcement.”

If Playtech are serious about mixing it with the big boys on the FTSE 250 then this is the sort of thing that they’re going to have to cut out. Whereas before they could get away with stunts such as this with only the iGaming industry and a few financial journalists noticing, doing such things while on the FTSE 250 will stir up much more attention.

Many UK national newspapers are already picking up on the questionable deals with some pointing to Playtech chairman Roger Withers’ previous claims that there would be no more of these Sagi deals.

Unfortunately these claims have proven to be false as the company yet again looks to line Sagi’s already well-lined pockets. Some sources claim that Sagi has taken around £500 million out of Playtech since the company floated on the AIM in 2006. This puts his personal wealth at around $2 billion according to Israeli magazine Globes who claim Forbes’ $1.2 billion estimation is too low.

Inspiring Confidence

Even if you do place faith in Playtech and Roger Wither by assuming that these will be the last of the Sagi-related deals, then there are still issues for Playtech to deal with should they hope to succeed on the FTSE 250.

The company has got to where they are today by being bullish with other companies and, where needs be, throwing their weight around. This is clearly an approach which has worked very well for the company and should not necessarily be considered as a negative way of doing business – more an effective way of getting what you want.

However when things do turn sour they can blow up rather quickly. As if it wasn’t obvious enough already this refers to the William Hill Online situation which is supposedly resolved now.

This situation was covered extensively enough as it was, but Playtech’s existence on the FTSE 250 would only increase the coverage afforded to the company. This is certainly not the type of coverage that the company would hope to attract either as it had negative effects for the share prices of both William Hill and Playtech.

The reasons for Playtech’s desire to find themselves on the FTSE 250 are clear. They’re already one of the biggest companies on the AIM and given the various legislative relaxations taking placed around the world they have considerable room to expand.

Should they do so then they’ll find themselves alongside bwin.party, Ladbrokes and joint venture partners William Hill as the only iGaming companies in this particular market. While they’re a supplier as opposed to an operator they would do well to take a leaf out of the books of the aforementioned three.

These companies have learnt how to conduct business in a manner which belies their public status. It means that they keep things quiet at every opportunity but on the other hand aren’t afraid to communicate with influential opinion-makers and journalists.

They also must learn to ensure that they’re whiter than white with no room for any questionable deals to take place. In order to do so it may well be necessary for many of the company’s senior staff to be moved on. But if Playtech are able to tackle the issues of being a high profile company then there’s every reason to believe they will be a public success.

The fact that they’re less reliant on the opening and closing of regulated markets will work very well in their favour. It means that should they stick to responsible business then Playtech could soon be the biggest public iGaming company going.

Casino News

Hills is not the leading bookmaker in Nevada, although it’s quite conspicuously trying to change that. Last year, Hills acquired American Wagering (which runs Leroy’s Sportsbook and its mobile sportsbetting pioneer Leroy’s App), the Club Cal Neva Satellite Race and Sportsbook Division plus Brandywine Bookmaking (which operates Nevada’s Lucky’s sportsbooks). The latter purchase prompted Cantor Gaming to file a non-compete/breach of confidentially lawsuit against former Cantor exec and Brandywine founder Joseph Asher. Asher filed a countersuit alleging that Cantor’s suit was designed solely to queer the deal with William Hill. Now local gaming regulators may also be standing in Hills’ way by delaying consideration of Hills’ application for a Nevada gaming license.

Sources close to the Gaming Control Board (GCB) told the Guardian that Hill’s application was expected to come up for discussion at the regulator’s April or May monthly meetings, but there’s as yet no sign of it on the agenda. American Wagering snr. vp John English told the Las Vegas Review-Journal that the “not uncommon” delay was “part of the normal process and proves the GCB is taking their time and being thorough.”

The Guardian reported that the GCB is examining the history of Robin Chhabra, Hills’ head of strategy and corporate development. In 2010, the former equity analyst was fined £95k by UK regulators for passing confidential information to an acquaintance. Also reportedly earning GCB attention is Hills’ relationship with joint venture partner Playtech, whose founder Teddy Sagi was convicted of manipulating stock prices in the mid-90s.

COKE ADDS LIFE… AND GAMING LICENSE APPROVAL?
Frankly, we have a hard time imagining the GCB not approving Hills’ application based on some stock market shenanigans that originated from within its executive ranks. After all, Cantor Gaming is headed by Lee Amaitis, who has an infinitely more colorful history. As the New York Times reported in 2010, the former bond trader was arrested in 1986 for his role in “a multimillion-dollar drug ring that was peddling cocaine at Wall Street firms. [Amaitis] pleaded guilty to possession as part of a plea bargain. The indictment was dismissed, and he was sentenced to a year¹s probation and a $5,000 fine.”

Given the GCB’s willingness to forgive and forget Amaitis’ felonious indiscretions, how then would they rationalize rejecting an upstanding UK institution like Hills? Wild, completely-unsupported-by-a-shred-of-evidence conspiracy theory alert: Cantor Gaming hopes to hobble/delay a new competitor’s entry into the market via frivolous lawsuits and string-pulling with well-positioned friends on the GCB. What? You don’t buy it? Well, sure… You’re probably the sort that still believes soylent green isn’t people.

Disregarding the above theory, Amaitis’ ‘guilty with an explanation’ plea is worth noting: “It was during the roaring ‘80s, and I got swept up in it.” So long as that’s the standard, what rationale could the GCB offer for rejecting an online poker license application from any of the Latin American-based operators who “got swept up” in the initial online gambling boom in the roaring ‘90s? Just sayin’…

Business News

Domains have been seized, indictments created and a small number of people have even been arrested. But aside from the soap-opera drama that has followed the events of April 15, 2011 there has been a considerable effort from the iGaming industry to deal with the ramifications of what has occurred.

For most, this effort has consisted of developing and implementing a strategy which would allow iGaming operators to enter the potentially extremely lucrative US online gambling market.

This has been something that some companies have found easier than others and even those that haven’t put any plans onto paper are watching on. Be they focusing on the legal situation or assessing the fortunes of those who have already made the plunge – there’s plenty to be learnt.

While watching others provides an opportunity to assess the success of certain invasive tactics, it doesn’t put operators in the place that they want to be when legislation is brought in.

Having said that, some deals may have created significant levels of risk for the parties involved. What many are finding out and some would have claimed to be able to say before is that there is no safe strategy for making your way in the US. As such cases have to assessed on an individual basis.

Below are just some of the more high profile companies that have been making noise about combining the online gambling world with the US.

William Hill

After having considerable financial success in the online sector following their joint venture with Playtech, William Hill wasted no time in extending their reach to the US. First was the acquisition of American Wagering Inc. and Cal Neva Sportsbook division. This was soon followed by the acquisition of Nevada-based betting operator Brandywine Bookmaking.

All of these moves suggest that Hills are laying long-term foundations for their online and land based expansion into the US. But it would appear that for the time being they’re going to stick to what they know best by attacking the sportsbook industry. Following the Brandywine acquisition CEO Ralph Topping explained: “We see the US sportsbook industry as a great development opportunity for William Hill.”

Caesars Entertainment

Not a company to often be found wanting, Caesars have gradually ramped up their assault on the online gambling industry. CEO Gary Loveman was the cover story of Gambling Insider speaking about all things internet while the company went about establishing Caesars Interactive Entertainment – the online arm of the casino giant.

The Reno-based company also admitted to pressing hard in order to encourage the legalisation of online poker while an investigation found that Caesars had spent $821,000 lobbying in Q2 of 2011 alone.

But it’s not just been plain old iGaming where Caesars have looked to gain a foothold. In May, a ‘strategic investment’ was made into the creators of Facebook game Slotomania, Playtika.

All of this despite a self-imposed ‘quiet period’ caused by the companies flotation on the stock market!

888

As a pureplay operator with a great brand, the staff at 888 will have been licking their lips at the prospect of getting their hands on a piece of the US iGaming pie. They certainly haven’t hung around either with reports emerging in July about talks with Caesars Entertainment over a joint venture.

This was seen as a simple way for 888 to gain a Nevada online poker license and was finally completed when the company’s B2B section Dragonfish entered an agreement with Caesars. Rather than a new deal, the January announcement was simply an extension of the existing UK deal to also include the US.

But Caesars won’t be the only ones to break bread with 888 Holdings as Donald Trump has been reported by The Times to be talking to 888 about starting up an online poker site. However before 888 shareholders get too carried away, it’s worth remembering that Trump is a fairly shrewd operator and is likely to be talking to various other online operators.

Bally Technologies

Not wanting to be left behind, Ballys sort of skipped a step when they went straight to social and mobile gaming. They did so in one fail swoop by acquiring MacroView Labs in July. By doing so Bally allowed the self to make use of the company’s free to play and mobile technology which are, to say the least, two very important markets.

October even saw the company finally create a digital arm, something which many will testify is well overdue. When it did finally arrive it came in the form of Bally Interactive and provided their operators with free play mobile and online gambling.

Perhaps recognising that they had been considerably late to the party the folks at Bally made a move to acquire the US ChiliGaming B2B platform at the end of February. This is a move which may finally bring them up to speed with the industry but they’re sure to need all the advice they can get from their newly acquired online gambling specialists.

Other European Online Operators

Despite having made the most headway, William Hill is by no means the only iGaming operator looking to the ‘Land of Opportunity’.

Irish bookmaker Paddy Power has, unsurprisingly, adopted a different approach from their contemporaries. Rather than acquiring or partnering the company has gone full steam ahead by continuing with their application to be a licensed manufacturer and operator. This plan has been some time in the making with the original application having been made in August 2010 but should it come up trumps then the Irishmen will be ideally placed in Nevada.

bwin.party have adopted a similar approach by applying for a Nevada online poker license. The iGaming super company has been among a clutch of pureplay companies to apply for a coveted Nevada gambling license. Given Anurag Dikshit’s $105 million deal with the US government you would hope that bwin.party will be able to seamlessly move into the US but things continue to be less than easy.

Even 32Red’s whiter than white approach to grey markets has been tested with CEO Ed Ware recently admitting that they were having had ‘conversations’ with various US companies.

Big Names

Given the potential size of a legal US iGaming industry it’s no surprise that it has attracted the attention of many organisations across the world.

Of those who have made their iGaming intentions clear, few are more high profile than Donald Trump. Trump teamed up with Marc Lasry’s Avenue Capital Group hedge fund in October in an attempt to launch an assault on the US online poker market.

Steve Wynn is another who is sure to want to cash in on his brand and has been rumored to be doing so in a social capacity. The beginning of this month saw reports in The New York Post claiming that Zynga may strike a deal with the casino company Wynn Resorts.

With many more companies looking to capitalize on a legal US iGaming industry the deals and strategies above are sure to be replicated many times over.

It’s clear that these deals and strategies are more relevant now than ever. To illustrate just how close we now are to a legal iGaming industry in the US just look to Nevada.

The recent meeting of the Nevada Gaming Policy Committee to investigate the ways in which Las Vegas can take advantage of online gambling shows that plans must be made sooner rather than later. According to those in the know, when this committee meets things tend to happen – suggesting that if companies haven’t already got an online US strategy, they better get one.

Poker News

• Offer bets on any Olympic event, with due regard for the integrity of the Games.

• Report all unusual betting patterns detected through our in-house risk management tools and any identified breaches of IOC rules to the UK Gambling Commission’s Sports Betting Integrity Unit, under existing UK regulations.

• Not knowingly take any bets from anyone accredited by the IOC.

• Ensure that senior personnel manage our internal systems and offer a 24-hour reporting service.

• Suspend or void bets if given clear guidance by the Gambling Commission unless directed otherwise by the operator’s own regulator.

• Restrict media comment on integrity to joint statements with the Gambling Commission and the IOC.

According to a release by the RGA, it will also mean signatories in other jurisdictions now report suspicious betting patterns to the Commission. We can only assume this will have to first be reported to the EGBA or ESSA and the length of time it takes will be a crucial factor. Apart from that, much of what has been laid out is simply an update to what would already happen. If suspicious betting patterns are detected, the systems in place will report it straight away. As we heard yesterday from the chair of the meeting, Mike O’Kane, the bookmakers are less worried about the Olympic Games as a betting event.  Euro 2012 represents more business for gambling industry firms and ultimately the popularity of the sport presents more risk of match fixing.

It’s no surprise the various authorities are thinking of every eventuality when it comes to the Olympics being the unfettered spectacle everyone is hoping for. We just hope they aren’t ignoring other more realistic threats by focusing attention on possible betting corruption.

Sports News

Big Buck’s pipping Voler La Vedette at the final fence cost the bookies dearly with Paddy Power alone losing £3 million on free bets being refunded and the millions that chose to back the Paul Nicholls trained horse. The mood amongst the bookies was summed up well on Sportingbet’s official Twitter feed. See if you can detect the hint of sarcasm!

“Today was a brutal day. We were best price on Big Buck’s for MONTHS and the legend done us up good and proper. Office in tears. Goodnight x,” it said.

Another that took the bookies for a fair bit was the Ryanair Chase where heavily tipped Riverside Theatre won. William Hill had taken the horse on at 11-2 on raceday and Keith McDonnell, former Bodog Europe managing director, tweeted: “Bookies hammered yesterday with big bucks and Ryanair winner #tips.”

In terms of the day ahead there are already some in confident mood. Sportingbet head of media Russ Wiseman was one of today’s early risers – either that or he pulled an all-nighter – and vowed “this is the day that will put punters firmly back in their place.” Coral spokesman Simon Clare confessed the company had a “shocker” on day three of the festival and “the age-old contest” between bookies and punters “is in the balance” and “could go either way”.

Sports News

Playtech

Fall out from the ructions in Tel Aviv suggest the “future shape” not including Playtech. If that’s the case they’re likely to hold out for the highest price for their side of a business that’s performing very well. It’s reported by OnlineCasinoReports.com that the deadline for talks is November and Hills have until then to activate a call option to buy out Playtech. The cost will be circa £354 million with UBS, Deutsche Bank and JPMorgan the banks tasked with deciding the right price. Mor Weizer, CEO of Playtech, is open to any suggestions and is looking forward to commencing discussion “as soon as possible,” according to OnlineCasinoReports.com.

Performance for 2011 saw gross income increase 41 percent to €243.6 million (€173.1 million in 2010) with total revenues up 46 percent to €207.5 million from €142.3 million. Both those figures meant adjusted net profits hitting €112.8 million – 21 percent higher than €93.2 million in the previous year.

Roger Withers, non-executive chairman, added: “In view of the Company’s Board changes and progress in the last year, Playtech looks forward to an exciting year ahead with potential new joint venture partnerships, new licensee prospects and a commitment to joining the Main Market.”

So far in 2012 the company reports strong trading with “like for like up 23 percent.”

Business News

Intralot has released its latest game for the Dutch market. In conjunction with Holland’s national lottery, De Nederlandse Staatsloterij, they’ve implemented the numerical-type game “Miljoenenspel.” Players can access the game at retail locations across the country, at the lottery’s website and through player’s subscription. The release is part of an agreement signed between the two in 2008 and continues a fruitful relationship between Intralot and the oldest continuing lottery in the world.

WorldSpreads are looking for a new chief executive after Conor Foley resigned with immediate effect. Foley remains the group’s largest shareholder and the company is hoping to replace him with former WorldSpreads Ltd chief executive Roger Hynes. WorldSpreads confirmed they’re in “negotiations” with Hynes, who is still a director with the firm. Lindsay McNeile, non executive chairman of WorldSpreads and WorldSpreads Ltd, becomes executive chairman of both companies with Dominic Bacon, general counsel and group head of compliance, has also been appointed to the WorldSpreads board.

Business News

Sacre left the bookies holding out for a hero and boy did they get it. The crowd of 54,471, up from 53,318 last year, were dumb-founded when Hurricane Fly could only manage third on the podium and for once the bookies were happy Ruby passed the post first. Rock On Ruby that is.

Betfair reported “of the £10m traded on the Champion Hurdle at the off, £8m of that was on Hurricane Fly.” Russ Wiseman, head of media at Sportingbet, added to this, tweeting: “All square after Day 1. Doesn’t bear thinking about if The Fly had landed CH.”

Mark Pearson, head of media at Betfred, was equally happy with “The Fly” being swatted stating it was “a great result.” This was after they had finished up “with huge liabilities and on the returning champs.”

Stan James would have lost “a million” had the result gone in favor of the punters and Paddy Power reported it was a “punter day” for their bettors – even with the good news on Hurricane Fly. Another of the horses that lived up to the billing alongside this was Quevega, Kate Miller at William Hill admitting that a punter had won £133,000 off a £200,000 bet on the horse.

Overall the outlook is good with the consensus it’s 1-1 between the bookies and punters. How long it’ll last is anyone’s guess and it could even come down to the Gold Cup itself. Thank god they all had a hunch/knew something about Hurricane Fly. Otherwise the punters would have a commanding lead.

THREE FATALITIES ON DAY ONE

In more somber news, three horses fell victim to the course on the first day. The cross-country course was to blame for two fatal broken legs to Scots-Irish and Cheltenham favorite Garde Champetre in the Glenfarclas Chase. Educated Evans taking a heavy fall in the final race followed this, and Robin Mounsey, British Horseracing Authority spokesperson, said: The course, both the construction of the jumps and the ground, was inspected eight days ago and today, when it was found to be good to firm. On both occasions it was deemed t

Sports News

As quick as it gets

Fred Done’s firm has found a cash cow in the shape of Goals Galore and you can tell when you download the app. The best part is the fast track to GG as soon as you sign in. Unfortunately the app doesn’t stimulate your excitement like it could and compounds this with relatively slow loading times.

Pros

+ Dedicated Goals Galore tab on home page

Cons

- Feels very basic

- Slow

- Goals Galore odds not displayed clearly enough

Score – 5

Bet365

bet365 in association with New Era

This Stoke-based outfit has made their name by offering good value and reliability in equal measure, both of which are present here. Bet365’s app isn’t one that will jump through hoops and make you particularly excited. It does offer a quick and easy way to bet on absolutely anything and comes with a brand name you can trust. It might not be all-singing-all-dancing but it does the job.

Pros

+ No need to download from App store

+ Easy to use and clearly set out

+ Although web-based it’s specifically laid out for iPad

+ Good quality streaming

Cons

- Hard to find transaction history

- Boring and doesn’t have the wow factor

- Ray Winstone should be there somewhere.

Score – 9.5

Photos: a rarity in gambling apps

Betfair

Although this one’s out on its own as a betting exchange it gives the traditional sportsbooks a run for their money. It’s the quickest of the lot and the downloadable app is smooth as a new born baby’s backside. Placing a bet is simple and the same goes for topping up your account. It would be perfect…but there’s a distinct lack of streaming!

Pros

+ Made specifically for iPad and looks the part

+ Very quick

+ Easy to keep track of bets

Cons

- No streaming

Score – 8.5

Always giving the customer something back

Paddy Power

Paddy’s app is much like his company as a whole – geared towards customer enjoyment. The downloadable app has Money Back Specials (MBS) on the start page at all times. It’s quick and easy to place bets. There’s one quite significant spanner in the works though. The app stopped working numerous times during our test and it’s a real let down for a good-looking app.

Pros

+ MBS at its heart

+ Quick

Cons

- No streaming

- App regularly malfunctions

Score – 5

Sportingbet

If you decide Sportingbet is the one for you then we doff our hat to you if you can stay awake. The live score section is useful for football buffs but anyone else will find it hard to be motivated to return after their first visit. It’s hard to navigate around meaning placing a bet takes a while.

Pros

+ Live score section is useful

Cons

- Only available in portrait

- Slow and hard to navigate

- Extremely boring

Score – 5

Shake it out!

William Hill

Lets make one thing clear from the outset: Hills have got this right. The layout is very welcoming and works perfectly with the app. They’ve gone further than many competitors with sections like “Trending” – to identify what’s popular – and the standalone “Shake-a-Bet” app. Whilst the former might have traditional Hills customers wondering about fashion the latter could be the answer to getting the girlfriend interested in sports betting. It works like a slot machine and puts togethera random selection of bets in an accumulator. Hills offering, as good as it may be, hasn’t yet been optimized for iPad and thus doesn’t gain the top rating.

Pros

+ Layout straightforward and easy on the eye

+ Trending section is out on its own

+ Shake-a-Bet is an innovative option

Cons

- Made for iPhone

Score: 9

Ladbrokes

This portrait-only offering is very easy to get around. Each sport has an icon at the top of every page and if you can forgive the mad Italian commentator making an appearance you’ll grow to like it. Horseracing fans will have a field day with the streaming offering. Placing a bet is easy and contrary to some reports we had no problems with it crashing.

Pros

+ Horserace streaming available

+ Easy to navigate between sports on all pages

Cons

- The annoying Italian commentator greets you

- Only available in portrait

Score: 8

Sky Bet

Sky Bet’s app impressed us in that its streaming service was one of the best that we encountered during our review period. The app itself is out there in the boring stakes with Sportingbet and bet365 with nothing that really jumps out and says, “bet with me!” It’s a solid offering whilst at the same time leaving you with no feeling that you should be moving your account to Sky Bet.

Pros

+ Horseracing streaming among the best

+ Easy to place bet and navigate

Cons

- Boring

- Could use Sky Sports coverage more

Score – 7.5

With the new iPad out later this week it will be interesting to see if anyone aims to take a march on bet365 with an enhanced app. William Hill remain best placed to do so and an iPad app would put them top of the pile. In the meantime Stoke’s finest can sit pretty atop the pile.

Marketing News

Another battle is looming on Hills’ horizon, one much more grounded in reality. Last last week, Hills boss Ralph Topping told the Evening Standard there were no issues between his outfit and Playtech, Hills’ partner in joint venture William Hill Online (WHO). Topping dismissed the donnybrook that went down between Hills and WHO staff in Tel Aviv and Bulgaria as the actions of a few “rogue employees.” But on Sunday, the Financial Times reported that Hills will open talks with Playtech this month about either scuttling the partnership or finding what a source referred to as “a third way.”

Hills has an option coming due in 2013 to buy out Playtech’s 29% stake in WHO, and last month, Topping stated that the existing relationship “can’t continue in its current form.” A particular bone of contention was Playtech’s strategic veto, which Topping said needed to “disappear.” Playtech’s public flirtation with Hills’ rivals like Ladbrokes was also a sore point. The FT quoted Playtech chief Mor Weizer as saying it was “imperative that all options are explored, including structural changes to the joint venture, something we are not opposed to.”

Business News

While Topping was more than happy to draw attention to the success experienced in retail shops, we all expected him to continue to ignore the ongoing questions about his company’s relationship with Playtech. But Topping shocked us all by coming out and admitting that the joint venture must be changed from its current form.

This is a painstakingly obvious point but one that still came as a surprise when it came straight from the horse’s mouth. It is effectively as close to an admission of a mistake as we’re likely to ever get from the Scot who is a veteran of the bookmaker and has been CEO since February 2008.

It is an admission that will have had many in the iGaming industry thinking very loudly to themselves “we told you so”. As soon as it emerged that talks were taking place early in Topping’s tenure with software suppliers Playtech there were more than a few suggestions that the bookmaker’s staff didn’t quite know what they were getting themselves in for. During their impressive rise to market giants, Playtech have not only built a reputation for providing excellent software but also for being rather ruthless when it comes to the more commercial side of things.

Still the bookmaker charged into the joint venture and in October 2008 had themselves a deal. It’s a deal which has seen them make plenty of good money as last week’s released figures continue to show. However the rumours of discontentment, staff boycotts, servers being secured by armed guards and ex-Mossad agents surfaced last year to the great surprise of absolutely no one. The comments made by Topping last week and at the end of last year show that while he may not have expected an argument, he’s certainly not going to back down from one. But he should certainly not be too hasty in distancing himself from Teddy Sagi, Mor Weizer and the rest of the Playtech crew.

Yes they may be a pain to deal with at times and will always argue their corner but you have to take into account the simple fact that they have helped William Hill to make money. Quite frankly, without the support of Playtech, William Hill Online would not be the operation it currently is. The Israeli pureplay company has used its online knowledge to make the William Hill brand competitive online. Something that it’s unlikely that Hills would have been able to do on their own.

If Topping needs any confirmation of this all he need do is look at the online failings of their biggest competitor Ladbrokes. Richard Glynn’s “galvanised” company have continued to struggle online and even took to making a deal of their own with Playtech. They say that imitation is the best form of flattery and that’s certainly what Ladbrokes were doing when they opened talks with Playtech about a potential deal. While that deal was shut down by Hills, they should take note of the signs from Ladbrokes.

Although Topping will be desperate to renegotiate his current deal with Playtech he may be forced to wait until the pre-determined date of October.

A Daily Telegraph article that broke the story back in October of last year even suggests that the trouble that has been experienced at WHO may have been a threat created by Teddy Sagi. A threat that meant unless William Hill pay a high price to buy Playtch out of WHO that trouble of this scale will continue to occur.

Even if Topping does negotiate a buyout many of the WHO staff will have an allegiance to Playtech and as a result the company may fail to see the profits it has become accustomed to since 2009.

It appears that William Hill are, for the time being, locked in a loveless marriage that they are desperate to get out of. But they should bear in mind that divorce isn’t exactly going to be an easy or cost effective solution. Despite this, it’s likely to be a solution that they’ll be forced to make.

IGT’s Major Mistake

Moving on from one iGaming deal that has turned sour to one that has a high chance of following suit. While IGT’s purchase of social gaming application Double Down Casino is unlikely to create the same sort of staff problems and drama that has been seen at WHO, it’s likely that this deal won’t be without its problems.

To begin with, IGT paid well over the mark, perhaps by more than double. Regardless of even this it’s hard to see how they’re going to make any significant return on investment from this deal. Even ignoring the astronomical price it’s hard to see why IGT, a B2B software provider, decided that it wanted to purchase a product which is customer facing. Perhaps it’s part of a strategy that we aren’t privy to yet but it’s already upset some in the iGaming business. The folks over at Mr Green reportedly enjoy a fairly close relationship with IGT. However this didn’t restrain them from telling the software provider exactly what they thought of the acquisition – most of which wasn’t positive.

While we certainly won’t have heard the last of the WHO situation, the powers that be at IGT will be desperate for us to hear much more about Double Down Casino – or else they will have made a very expensive mistake.

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