The Betshop deal follows the successful integration of the casino games module into the Expekt.com sportsbook recently, and Net management are anticipating further business leading to good returns.
Net Entertainment had a busy week, additionally launching Skeet Shooter, the first skill based slot machine software on the Internet.
The convergence between casino gaming and adventure type skill gaming has been debated frequently during the last decade by both Internet and land-based gambling interests with skill-components rare, say NE execs. Skeet Shooter is claimed to be the first Internet based casino game where a player can earn higher winnings by playing skilfully. The bonus game is a skeet shooting session where quick hands and accuracy - not Lady Luck - help to hit the targets that fly over the screen, earning rewards for the player.
"Remote Gambling" is the catch-all term that the DCMS is now using to pull together the concept of online gambling and all it’s other monikers (i-gambling/e-gaming/wireless gambling/online gambling etc).
The 28 page DCMS paper gives a snapshot of the government’s view to date as well as many pointers to the legislative structure that is being proposed for a British-based remote gambling industry. The majority of the document confirms much of what has been expected, but the thinking and understanding that is contained in it is refreshing. The author contrasts this with the ‘head-in-the-sand’, prohibitionist attitude of the Americans.
Apparently a Gambling Commission will deal with the detailed regulatory measures and procedures, whilst ‘The Gambling Bill’ itself will only create an outline framework within which the rules will be set. The Gambling Commission will be expected to issue codes of practise (with the ability to revise them quickly to reflect technological changes), will issue operator and personal licenses (there will be three remote gambling licence categories - gaming, betting and lotteries) and will have powers of entry, search and seizure from licensees. License costs are yet to be determined and, importantly, existing British licensed gaming operators will not automatically qualify for a new remote gambling licence.
It is particularly gratifying that the paper apparently covers the issues of player protection (both underage and problem gamblers) and security in great detail. Specifically it highlights thinking on privacy, security, player screening, reality checks, responsible management, site content filtering, play for fun games and payment methods.
Player identification gets a whole section dedicated to it, looking at the options and possibilities available. It seems that draconian measures like passport identification have been dismissed as unworkable. Despite the lack of real evidence, the topic of money laundering also gets its own section, with licensees expected to follow advice to be issued by the Gambling Commission, taken from other more specialised agencies.
Testing procedures will be sub-contracted to specialists in the field. The document lists a dozen areas that will be subject to testing but the good news is that, once an RNG has been approved, each new game played on that RNG will not be subject to testing and approval. The DCMS is also clear on the issue of what, technologically, needs be based in the UK. Primary servers must be based in the UK in order to allow inspectors to physically access them. The gaming itself and critical records (the RNG game logic payouts/games/financial records audits reports and game management software) must all be held on these servers.
Some of the DCMS’s most refreshing thinking is on the issue of how the UK’s jurisdiction on online games effects other countries. The DCMS has come to the right conclusion on attempting to regulate and police international, online gaming. Explaining the background and the thought process behind the decision, the DCMS has opted for the totally free market approach, meaning that there will be no country blacklists.
On the desirability or practicality of prohibition, and with a pointed jibe at USA, it says “[it flies] …in the face of reality of international banking and the inherently international nature of 21st century telecommunications.” Very interestingly, the section on cross border gambling also contains a clear statement from the DCMS on the always ambiguous question of ‘where does online gambling take place?’ The DCMS have taken the stance that “the regulated activity takes place where the operator is based”.
On advertising, the DCMS says that the Gambling Commission will be the monitor of the rules but will follow the E-commerce Directive, as well as taking advice from UK industry bodies like the ITC and the ASA. One point that is clarified is that only licensed operators will be allowed to advertise in the UK.
The only disappointment in the document is the area of taxes. Again, although the DCMS acknowledges how important this will be to the success or failure of a British-based remote gambling industry, Customs and Excise can still not say what the appropriate level of taxation for remote gambling will be.
Although the document itself does not contain a timetable, it is understood that the expected timetable will be for the Gambling Bill to be introduced 2003/2004 session, with royal assent in Summer 2004. Whilst this is progressing, a shadow Gambling Commission will commence work around April 2004. It is expected that the Gambling Commission ‘proper’ will be live by early 2005.
In summary, Fraser congratulates the DCMS on it’s work to date on this topic and hopes that it bodes well for the establishment of a world-leading British-based remote gambling industry.
The full position paper can be found at www.culture.gov.uk
DANISH TIT FOR AUSSIE TAT
Nordic approach could be bad news for Aussie operators.
The Australian government's mandatory review on its 2001 Internet gambling ban law has certainly garnered numerous and diverse responses, amongst which has been a request by the Danish government asking Australia to prevent it's online gambling companies from offering Internet gambling services to Danes.
The Danish Ministry of Taxation's appeal was addressed to Australia's communications and information technology minister, Sen. Richard Alston, and requested that Denmark be given "designated country" status under Australia's Interactive Gaming Act 2001. The act, which is two years old and is currently under review, bars companies from taking bets from Australians.
The Danes have invoked section 9A of the Act, which states that countries can ask that Australia prohibit online gambling services originating in Australia to the designated country as well. This section of the law has apparently not been used.
Under the "good neighbour" premise of section 15A of the Act, Denmark has been blocking online gambling services to Australians and would like Australia to reciprocate.
According to the Australian Financial Review (AFR), other Nordic countries could follow Denmark's lead in limiting the ways their citizens can gamble online. In its submission, the Danish government noted gambling of any kind is of great concern to the country for two reasons: to avoid negative social consequences of gambling and to allow the profits of state-run gambling operations, such as lotteries, to fund social and charitable causes. The AFR quotes Peter Loft, permanent secretary for the Denmark Taxation Ministry, who revealed that at a recent meeting of Nordic countries, representatives from Norway, Sweden, Finland and Iceland said they will also seek to limit online gambling from Oz.
"I know we are the first to write the Australian government, but we've just had a Nordic meeting and I know the others are probably going to," he said.
ARE WE HAVING FUN YET?
Hacking disables site
Quirky story of the week focuses on Funtime Bingo.com. The detail was sparse as we went to press this week, but it seems that Fun Time Bingo.com was criminally hacked over ten days ago and has been down ever since.
The hackers are alleged to have encrypted all backups stored on the hard-drives and are then reported to have deleted the main database, initially demanding a ransom of $30 000 to release the backup coding. It is unknown if the hack also impacted other Fun Time operations, but the site was still down late in the week.
The latest development was even stranger. Players started receiving emails in fractured English and allegedly from the hackers, claiming responsibility for the attack and possession of the players' full details, credit card numbers and winnings. Unless Funtime paid a ransom of 10 grand the hackers threatened to sell the credit card numbers on the internet and send player winnings details and addresses to the tax authorities in their home State.
When approached on the emails, the casino management said, "An ex-employee of Funtime stole the email addresses of our players and he sent out that email. He doesn't have any credit card info or anything personal info of our players. That was sent to put panic into our players."
There was no other information on this intriguing incident, leaving players to speculate on the fate of the disgruntled employee, why he had embarked on such a drastic reprisal and what action they were taking against him.
And it did not explain why the site has been down for
some time and is still not operating...until further questioning, when the
operator claimed that the reason the site had been down for ten days going
on two weeks was a "software upgrade". We find this
doubtful. This would not be the first time that a site has failed to
adequately caution its clients regarding a lapse in the security of
their credit cards. Remember Bring Me Luck last
year???
CENTREBET WORTH A BOMB
Million dollar
operation up for sale
Reuters reports that casino and hotel operator Jupiters
hopes to sell its online sports betting agency Centrebet at between A$118
million ($77 million) and A$147 million, quoting a source close to the deal.
"A reasonable price range would be a multiple of 8-10 times (EBITDA)," said the source, when asked about the valuation for Centrebet. A spokesman for Jupiters said Centrebet's EBITDA (earnings before interest tax, depreciation and amortisation) for the year ended June 2002 was A$14.7 million.
"There is a strong field of well-qualified and financially sound Australian and international buyers engaged in the tender process," they said.
The source said Jupiters has received strong interest from Australian and overseas companies for Centrebet.
So far, Australian sports betting provider International All Sports has said it plans to bid for Centrebet. Centrebet management is also said to be attempting to engineer a management buy-out.
Analyst valuations for Centrebet have been wide-ranging, between A$60-A$185 million because of varying views about potential changes to online gaming regulations, particularly in Scandinavia where Centrebet earns over half of its annual A$400 million ($250 million) revenue from online sports bets placed in Nordic countries. The rest of its income comes from Europe and a relatively smaller proportion from the Australian market.
Jupiters was taken over by Australia's largest gaming group Tabcorp and is selling Centrebet as part of the A$1.2 billion merger. The company is expected to reach an agreement on the sale of Centrebet in July. The Tabcorp-Jupiters merger officials announced this week that nonbinding expressions of interest are now due for Centrebet. A short list of buyers will commence due diligence in late May and submit binding bids by late June.
"There is a strong field of well-qualified and financially sound Australian and international buyers engaged in the tender process," they said.
COOL CASINO
Veteran online gamblers frequently advise the newbies that playing at an internet casino owned by a reputable land-based gambling group is usually a safe proposition, and this week's "cool" choice fits into that category. Victor Chandler Online Poker can be found on the url vc-poker.com featuring a minimalist but very workable site that is fast and efficient. The download gambling suite centres on Texas Hold 'Em poker in limit, no limit and pot limit games played on 9 tables and 6 fast action tables. Single and multi-table tournaments are available. The software RNG is certified by BMM International. This Gibraltar licensed operation is owned by the well-known British gambling group whose name it carries and has features such as a loyalty program and round-the-clock Support that is fully contactable. Although the poker room currency is US dollars, deposits in all currencies can be accepted at fair exchange rates, but credit card deposits must be denominated in GBP sterling. The signup is a sensible 20 percenter maxed at $100.
CASINO CAUTIONS
The return of BML...they hope
That acronym for Bring Me Luck.com makes the blood of experienced online gamblers run cold at the memory of a slew of seriously bad practice incidents last year that included not warning players after a large amount of private and personal credit card data was mistakenly exposed on the 'Net, irregularities like non-payments and the webmaster at Casinomeister being subjected to "punishment" by a casino manager through floods of porno email after he warned players about the casino. Then there were questionable "awards" that the casino apparently gave itself. Claiming changes of staff and the pain that all this bad publicity was causing them BML manager Jay Morris this week appealed for the Casinomeister "Rogue" listing to be expunged. His chances of success are limited.
Slow Sterling
RTG-powered Sterlinghouse Casino.com has an unenviable rep for slow paying, and judging by recent complaints things haven't changed much at the Pair of Dice group online casino. Some players were only paid in April this year on amounts due since last December, and it is reported that the usual lame excuses have been offered. Patience is almost certainly a necessary virtue here if the complaints are to be believed.
How NOT to run a casino
RTG-powered Virtual Casino has featured in "Cautions" on several occasions, but just keeps coming back for more. This time it is a tale of woe that makes one marvel at the fortitude a player needs to make even a small legitimate cashout from this operation. We will let the player tell the story in his own words because it captures the frustration and incompetence (or rank dishonesty) so well:
"I write this knowing that many of you have felt the rape and mistreatment of the Virtual Casino and its many clones. I too was foolish enough to play at Virtual and I have been wanting to blast them so badly, but I had to wait until I was paid.
Well, months later, I have finally been paid. I cannot fully remember all the injustices that I experienced at their hands, but I will outline for you some of the more prominent ones that I recall.
1) They hung up on me at least 4 or 5 times.
2) They put me on hold twice for over 20 minutes each time.
3) They pretended that my phone was cutting out and that they could not hear me.
4) Finally when I got through, the customer service guy told me that I had to call back the next day and talk to Jennifer, the person in charge of my account.
5) I called back the next day, only to be told that no one by the name of Jennifer works there.
6) I continue to harass them and warn them to not hang up on me again. Finally, they put me through to some woman named JC. JC informs me that the reason why after months my cash-in is still pending is because I have not played at the casino lately.
7) I tell JC that the reason for my inactivity is due to the fact that I was waiting to be paid before redepositing more money. JC tells me that I must continue to show interest in the casino if I wish to be paid. She tells me that the Accounting Department wants to see some kind of activity on my part, even if its in "Fun Mode". I openly laugh at her on the phone with pure disgust in my tone.
9) I play at Fun Mode for the first time in my life at a casino. I start with $1000 fictional dollars and lose it all within minutes.
10) I call JC back and inform her that I have indeed played some "Fun Mode" She promises that I will get my money within 48hrs to Neteller.
11) 72 hours pass with no money. I call Virtual again, only to be informed that no one by the name if JC works there.
12) The next day I call again, enraged, and they put me through to JC. She promises that I will get the funds within 48hrs. I warn her not to lie to me
13) the next day, I get my funds in Neteller. Many months
and many phonecalls later. So to all those that have been screwed by the
online world......you are not alone......
MORE BAD NEWS FOR KERRY
PBL's bid for interactive TV betting turned down
Things have not been going smoothly for Kerry Packer's Australian PBL gambling group lately, with the closure of their costly foray into internet gambling at Crown Games.com followed this week by the probable failure of another gambling initiative.
Australia’s federal government has rebuffed Packer’s bid to allow live betting via iTV. Packer, Australia’s richest man and head of PBL, wanted the ban on live TV betting lifted because "....the restrictions contained in the Interactive Gambling Act 2001 have the potential to limit the ability of Australian television companies to offer attractive interactive services to viewers through digital television,' PBL argued in a submission to a review of Australia’s gambling laws.
Communications Minister Richard Alston wasn't budging, and has indicated he will not grant a request by the Packer public company to lift the ban on betting on sports events already in progress, arguing that it would increase gambling addiction.
"At the time the legislation went through, there was some research which indicated it was related to problem gambling," a spokesman for Senator Alston said last week. "We will probably not be looking at reform in that area."
GOOD GIG FOR UKBETTING
Mobile together
Dynamic Brit betting group UK Betting has chosen Global Interactive Gaming (GIG) as its technology partner in mobile gambling.
Live betting – bets made while the game is in progress – is being touted as the next big thing in online betting, taking advantage of the capabilities of interactive TV (iTV) to deliver play-by-play thrills to punters watching the action unfold on their TV screens. But what if you don’t have a TV? Or if you’re at the game and can’t get to a PC to make a bet?
UKbetting and Global Interactive Gaming Limited (GIG) think that their new service, in-game betting for mobile phones can bridge that gap, and a deal has been done that opens up the highly advanced UK mobile telephone market to the GIG play-by-play wagering product.
Both companies are confident the service will appeal to UK sports fans at live games, or, in particular, those watching the game on TV at the pub. It also opens up 'in run' betting to anyone who has access to even basic television service. In effect, the mobile telephone replaces the interactive set-top box and allows the user to experience 'play-by-play' wagering while watching a sporting event from the comfort of their home.
The deal will see GIG parent
company ISWI's SportXction software integrated into a suite
of betting services being marketed to key players in the UK mobile industry.
ukbetting plc has already concluded deals with the UK's leading mobile
operators who are making their betting services available to WAP-enabled
devices through their wagering brands 'ukbetting.com' and 'totalbet.com.'
OZ SPORTS GAMBLERS LIKE CASINOS, TOO
One in seven online sports gamblers use Internet casinos
Lasseters, the nation's only legal online casino, open only to non-Australians, accepts 18 million bets a month - 90 per cent of those on poker machines. Its customer base has grown more than 10-fold in the past three years.
Professor McMillen said the results of her three surveys - two regarding online sporting gambling and the other on Lasseters customers - proved the online gambling ban had been unsuccessful and that the Federal Government should legalise and regulate the industry. In her submission to the Government's review of the Interactive Gambling Act, she said allowing an Australian company to offer online gaming while banning Australians from playing was `morally inconsistent and indefensible’.
Professor McMillen said the surveys had shown there were two types of internet gamblers: those who had simply switched from placing telephone bets to the internet; and those who were `gambling nomads’ - trialling the internet for new games or better odds and who used the resources of the internet constructively.
TAILPIECE