Issue N1, 2007

January 11, 2007

The Upcoming eCOGRA Report

The online gambling market is waiting with baited breath for the results of a report commissioned by the watchdog group, eCOGRA (eCommerce Online Gambling Regulation and Assurance). While the actual results of the report are only due to be made public on January 23^rd at the ICE exhibition, draft versions of the report show that the industry is in for a surprise or two.

The survey was carried out by the Nottingham Trent University gambling research team and is considered the most comprehensive questionnaire of its kind in the industry. Over 10,000 participants were asked about their gambling habits and opinions and topics covered included player protection, the value of gambling portals, responsible and underage gambling, favorite online casino games and other relevant issues.

The Turks Slam Online Gambling

As the rest of the European continent heads in the direction of a more lenient approach to online gambling, and gambling as a whole, the leading Turkish daily, “Yeni Safak” ran a report this week that the countries authorities are set to apply a law that will prosecute the online casino industry. Although the original law was established to combat online crime (such as child pornography and indecency), authorities will extend the law to also include online gambling.

The law states that ISPs will now have to block sites that offer gambling services of any kind over the internet. The Turkish authorities will also prosecute the owners of these sites.

It is strange how a continent as small as Europe can have so many diverse opinions about online gambling. The more realistic countries have decided to deal with the issue head on and look into regulation laws that work. Other countries, like Turkey, however, choose to take the difficult path and refuse to accept the fact that online gambling cannot be made to disappear simply by ordering ISPs to block sites.

Poker Marathon Unveiled

Poker lovers will be pleased to note that a new year-long poker marathon was launched on the internet this week. Two big names in the field – the popular online casino and poker 888, as well as the online poker authority, PokerNews.com - will sponsor the event.

The marathon will have the format of a total of six two-month leagues that will take place over a period of a year. Ten poker players will gamble their way up to the finale of the marathon – the end-of-year PokerProForaYear Championships that will be held in a secret location and will be played out between the final ten.

The winner of this marathon will earn him or herself an awesome prize. The hosts have revealed that the winner will receive a sponsorship to no less than four top poker tournaments in 2008. The runner up will receive sponsorship to one major live tournament next year.

Sale of 365 Media Group Nears Closure

The online gambling industry is particularly active these days concerning mergers and acquisitions as companies struggle to find their place and footing in a new, post-UIGEA setting. The latest acquisition deal that is set to close in the coming weeks is the purchase of the 365 Media Group by BSkyB. The deadline for 365 to accept the offer has been extended to January 19^th.

Initially, only 30% of 365’s shareholders will willing to consider the sale however this number has steadily risen to over 60% as more and more of them realize the benefits to be had by the deal. BSkyB is offering 68p a share (translated to approximately 96 million Pounds). 365 has an extensive network of websites, including popular gambling sites such as ClubOnThePark and TotalBetCasino, as well as a web audience of 9 million users per month. The new acquisition will greatly expand BSkyB’s gambling prospects and will produce the company with over 60,000 new gambling customers.

English Gambling Company Enters Spanish Market

More and more gambling companies from around the globe are taking advantage of the progressive wind blowing through the industry on the European continent and trying to establish themselves in the market. Both Italy and Spain issued tenders for licenses this month, allowing companies to apply for the right to operate gambling businesses in these countries.

Spain recently announced its intention to regulate internet and land-based gambling and – as an initial step – betting licenses were being issued in Madrid to cover all types of gambling, from kiosks and betting shops to remote wagering. An established English gambling operator, Ladbrokes PLC, announced its intention to join together with the Spanish company Cirsa Slot Corp and establish a sports betting business directed to the Spanish gambling market. Ladbrokes hopes to get a piece of the $38 million Spanish gambling action by getting its foot in the door first and establishing itself in the market before other regions in Spain also go in the regulation direction.