Issue N41, 2007
October 25, 2007
Recent Acquisitions Bear Fruit for Redbet
Mergers and takeovers are a constant part of an industry as volatile as the world of online casinos. Some of these business transactions are not successful, although many of them are and it is particularly satisfying for the purchasing company when this success is translated into numbers. Such has been the case for Redbet Holdings this year, a Swedish-based gaming operator that required at least two different gambling companies.
In recent months, Redbet purchased Pull Gaming (owned by Mike Bennett) for nearly $2.3-million, and with this purchase acquired several successful sites in their own right – Total Poker and Gold Club Casino. In addition, Redbet bought the Latvian lottery operator, Teletoto for $2.13-million. As a result of these recent acquisitions, as well as the success of Redbet’s subsidiary sportsbetting site, Redbet.com, the company announced a whopping 416% increase in turnover to the tune of $2.8-million.
Bet2Go Adds New Bookmaker to its List
Anybody searching for a one-stop platform to enjoy the best of sportsbetting and odds comparison will find what they are looking for with the UK based Bet2Go. The company has a long list of big name clients on its list such as Ladbrokes, Blue Square, Victor Chandler and Paddy Power, to name just a few. Recently, Bet2Go added another popular choice to its list, UK bookmaker Better. From now on, players who access the Bet2Go platform will be able to enjoy Better’s line of services, as well as the service of all other listed casinos through one simple registration step.
Both Bet2Go and Better will benefit from the new partnership deal. Better has a sound commitment to quality and aims to improve its product line by offering access from the Bet2Go platform, a free, user-friendly service. “By joining forces with Bet2Go we believe we can significantly enhance our potential reach and of course the user experience,” said a spokesman for Better. On the other hand, Bet2Go understands that the more diverse its platform is, the more traffic it can generate. Players from around the world can try the Bet2Go services from the company’s online site, and players from the United Kingdom can also access the platform from their handheld remote devices and cellular phones.
Chinese Online Gambling Operation Busted
Chinese authorities continue their clampdown on any form of online gambling. The country’s leading newspaper, the Shangai Daily, reported that local police raided the house of a woman believed to be operating an illegal online wagering ring, and arrested her and another 20 men, believed to be players with her operation. According to the newspaper report, the police became suspicious after a larger-than-usual number of people were seen entering and leaving the house on a regular basis, with conversation supposedly centering on sports-related themes.
According to the arrest report, the middle aged woman, identified as He Cui, single-handedly operated the online gambling ring by helping mostly unemployed men access an unidentified website and place their wagers. For the eight months that He Cui was involved in her business, she managed to earn herself over $2500 in commission – a small fortune in Chinese economic terms. It is believed that over 100 gamblers used He Cui’s services from February to September 2007, wagering over $500,000 in total.
US Granted Extension in WTO Compensation Case
The United States requested an extension of the deadline set by the World Trade Organization to continue in its mission to find a suitable solution to compensation claims against the nation by no less than seven countries, as well as the European Union. The WTO initially ordered all sides involved in the conflict revolving around the US’s unfair online gambling practices, to reach an agreement by October. However, all sides agreed to extend this deadline to December 14th. The WTO has the right to send the case to an arbitration committee if the parties do not resolve the issue by this deadline.
In 2003, the tiny twin-island Caribbean country, Antigua and Barbuda formally complained to the WTO that the United States was discriminating against offshore online gambling companies by barring them from operating with the country, all the while allowing local companies to compete in the market. The WTO finally ruled in Antigua and Barbuda’s favor this year, triggering the United States to re-clarify its commitment to WTO policy and excluding online gambling in the process. This step brought an onslaught of compensation claims by the original complainants, as well as other big players in world economic circles such as Canada, the European Union, Japan and even Australia. Experts believe that the US could face compensation claims of up to $100-billion, which could pose a serious threat to US industries. Many are calling for the United States to adopt Republican politician, Frank Barney’s Internet Gambling Regulation and Enforcement Act, which calls for the licensing and regulation of all online gambling operations and would allow local, as well as foreign operators, to gain equal footing in the industry if they meet the Act’s stringent requirements.