Issue N42, 2007
November 1, 2007
Quarterly Results shows 888.com Expansion Pays Off
The popular online gambling group, 888.com has shown that its geographic expansion and aggressive advertising campaigns have paid off. The company announced a 37% increased in its third quarterly profits to the tune of $52.5-million. Last year’s figures from the same time period were $38.3-million. The average gambler on 888.com sites now spends $227 per quarter – 6% up from last year. The biggest growth came from the company’s new backgammon and bingo interests which brought in an impressive $5-million in one quarter.
The Gibraltar-based 888.com has spent the last year actively seeking new markets since it was forced to turn its back on the US gambling industry. It has since launched a successful Italian sportsbook site, 888.it, and has also launched a major television advertising campaign due to the new, relaxed gambling laws in the United Kingdom that relate to such promotions. 888.com management is naturally pleased with the quarterly results, especially since the third quarter is traditionally a quiet month. “With the continued roll-out of innovative product offering and our expansion in new geographic markets, we are confident about our performance in 2007 and beyond,” the company’s CEO, Mr. Gigi Levy stated.
Conference Spells the End to Swedish Online Gambling Monopoly
The Swedish gambling industry is soon to become de-monopolized after the leading political party voted to privatize the country’s Svenska Spel. At a weekend conference that took place in Gavle, the Moderate Party heard the opinions of several Members of Parliament who were in favor of turning the state owned Svenska Spel over to the public sector and listing it on the stock market. It is estimated that the company, which generated over $700-million in profits last year, could be worth as much as $10-billion.
One of the main reasons for privatizing Svenska Spel is the fact that a state online gambling monopoly is not in line with free trade policies set out by the European Commission. In the past, the EC has demanded that Sweden drop its monopoly on the industry and allow other European based companies to compete in its market. The latest decision is thought to come as a move to appease the EC and bring Sweden in line with the policies of its European counterparts. The conference attendees also voted to make money available to deal with problem gambling research and treatment should the need arise. The Christian Democratic Party was the only group that opposed the new de-monopolization policy.
Poker Head Says US Losing Billions Because of UIGEA
The chairman of the Poker Player’s Alliance, Republican Alfonse D’Amato, has stated in an interview to the New York Post that he is concerned that the Unlawful Internet Gambling Enforcement Act would cost the United States a lot more than it bargained for when the law was past last year. D’Amato was referring to the trade sanctions that are likely to be imposed on the country by the World Trade Organization over a conflict with the twin-state Caribbean country, Antigua and Barbuda. Earlier this year, the WTO ruled that the United States unlawfully blocked offshore gambling companies from competing in its industry, all the while allowing local companies to offer horse racing betting and state lottery services.
With the United States facing billions of dollars in compensation claims from countries such as Canada, Japan, India and the European Commission, the PPA Chairman believes that a strong new lobby will evolve within the country that will push for a major change in the US gambling policy and the UIGEA. It is hoped that more politicians will back a counter act introduced by Barney Frank, which calls for the legalization of online gambling in the United States within a restricted and regulated environment.
32 Red Sells Betdirect to Stan James
This week, two popular gambling companies, Stan James and 32 Red Plc. announced the completion of a viable deal that would mean the transfer of the 32 Red owned betdirect to Stan James by the end of the current year. The Chief Executive Officer of 32 Red, Mr. Ed Ware, was reportedly very pleased with the sale to the Gibraltar-based company that is considered well established and reputable within the gambling industry. 32 Red will work closely with Stan James staff to ensure that the transition of the betdirect customer databases, brand name and assets goes as smoothly as possible.
In a statement released this week, 32 Red that it would continue to offer sportsbetting and gaming services to its clients, although the 5.75-million UK Pounds sale meant that it would be able to focus on the launching of new products and services within the international gambling market. While contracts have been exchanged between the two parties, the final sale transaction will only take place after December 10th, 2007.