Issue N34, 2007
September 6, 2007
Irish Online Casino Shows Record First Half Profits
Paddy Power, Ireland’s biggest gambling service supplier, announced record profits in the first half of 2007 and this trend shows no sign of letting up for the rest of the year. The company, which provides sportsbook and online gambling entertainment as part of its portfolio, reported that its profits had increased to nearly 15 million Euros – an increase of 53%! The average player using Paddy Power’s online services increased his or her bet by 3% to around 28 Euros, contributing to the fact that the overall amount of money spent online by players was in the excess of 279 million Euros.
The reason for such impressive figures is due to many factors. For one, Paddy Power continues to invest in new markets, such as the development of foreign language sites to grab a piece of the international gambling sphere. Secondly, the company has added new games to its range, including bingo and spread betting so that existing customers can get an even bigger choice of gaming options. It is understood that these positive figures are already running into the second half of 2007 and the industry expects a good year for this company overall.
New Report Shows Problem Gambling in UK on the Rise
The results of a research study carried out by the National Center for Social Research in conjunction with the University of Birmingham were leaked early to the press, a full month ahead of the time that the report was due to be made public. The Gambling Prevalence report studies the gambling habits of the English population and several UK dailies have published findings that show that there has been a marked increase in problem gambling among the general population. While a similar report conducted 8 years ago showed that only 0.8% of the population had some type of gambling problem, today that number has shot up to nearly 2%.
Many online casino companies feel that the findings were not released by accident. They are sure that this is just another excuse for the anti-gambling lobby in the United Kingdom to prove that wagering is not good for the nation, despite the fact that new legislation has been passed to regulate the industry in the country. Online gambling companies and bookmakers are thus gearing for a tough fight ahead. Other findings revealed that English gamblers make up a third of the total number of European online gamblers, with around one million regular gamblers spending $2,000 on their favorite sites on average per year.
Poker Room Services US Players via Check
With poker players from the United States needing to search around a bit to find a good site where they can play and pay in a secure environment, it is heartening to read that Poker Stars, the reputable online poker room, is doing all it can to assist US gamblers. The site recently reported that it would be providing once again the eCheck service to at least part of its US clientele. Many changes in online gambling payment processes were made with the passing of the Unlawful Internet Gambling Enforcement Act last year.
Poker Stars will conduct a stringent verification process of players wishing to use the service and after the player’s account has been given the okay, the casino will withdraw the money from the player’s bank account using electronic transfer technology. Fund amounts are limited to $2,000 a month, while each transaction cannot be less than $25. Players who have winnings that they wish to withdraw from the Poker Stars site will be able to do so using eCheck as well, and then deposit the money back into their own bank account.
More US Politicians Back anti-UIGEA Bill
Two more American politicians have put their signatures on the Internet Gambling Regulation and Enforcement Act (IGREA) – a bill that has been proposed to counter the effects of last year’s anti-gambling UIGEA act. Democrat Steve Israel and Republican Peter King published a convincing report in the New York Post in which they described the reasons why the US government should pass this new act and do away with the ban on online gambling. In the report, entitled “Web Gambling: Tax, Don’t Ban it!” the two offered the IGREA as an alternative and showed why it would be more effective.
Some of the reasons cited by Israel and King as to why the UIGEA is not a viable solution to the issue include the fact that US authorities should be busy with more pressing and important things than chasing after online casino operators. In addition, they state that the country would benefit much more from an industry that is well regulated and taxed. The United States would thus enjoy the financial fruits and the industry would function within a well-defined framework. Many believe that the bill stands a good chance of getting through, especially since a Democrat and a Republican have given it their blessing.