Issue N42, 2009
November 4, 2009
Ladbrokes Plc. Finalizes Move to Gibraltar
After making the decision to move its entire online sports betting operation to the island of Gibraltar, the UK sportsbook, Ladbrokes announced that the relocation has now been completed. Ladbrokes followed its chief rival, William Hill to Gibraltar, in a bid to stay in a competitive position in the UK gambling market. Ladbrokes, as well as William Hill, found it continuously difficult to function in the UK market where they were expected to pay Value Added Tax on input costs and Gross Profit Taxes, both set at 15% by the UK government. Sportsbetting operators are also forced to pay 10% on profits made on British horseracing as a Horserace Betting Levy.
“Competing from the UK against offshore operators with significant tax advantages was unsustainable and we are very pleased that, having made the decision to relocate, we are doing so ahead of schedule,” said the Chief Executive of Ladbrokes Plc., Christopher Bell about his group’s move to Gibraltar this week. “We have used the opportunity to invest in improved technology and in the weeks ahead we will be launching our very latest sportsbook that further improves our competitive position.”
Bet on Sports Executive Gets Jail Time
Gary Kaplan, the founder of the once-giant sportsbetting operator, Bet on Sports, was finally sentenced in a Missouri court this week, after being under house arrest for over two and half years. In a plea deal reached with the US authorities, Kaplan pleaded guilty to charges ranging from illegal betting activity to racketeering. He was sentenced to four years in prison (51 months) and will need to pay a forfeiture of $43 million. As Kaplan was arrested in 2007, he will have the months spent under house arrest counted as part of his jail term that he needs to serve.
A Special Agent in Charge of the FBI in St. Louis, Missouri, Roland Corvington said about the sentencing: “Gary Kaplan was sentenced to the maximum under the plea agreement which sends a message to those operating illegal offshore gambling enterprises. In addition to being in prison, hopefully some of the money forfeited will go to useful purposes such as fighting other Internet-related crimes, such as catching child predators who think they can hide on-line.”
A number of others involved in Bet on Sports, including two of Kaplan’s siblings, are also in custody awaiting sentencing.
Net Ent Signs with Italian Microgame
In a bid to enter the lucrative Italian gambling market which is enjoying massive reforms these days, the Swedish gaming group, Net Entertainment has signed a deal with the Italian based Microgame. Microgame is considered the leader in remote gaming in the Italian industry and provides unbeatable products and services to at least 25 percent of the online poker market, and a further 28 percent to the sports betting market.
“We are very happy to join Net Entertainment to our exciting gaming project for the new emerging Italian casino games market,” said the Chief Executive Officer of Microgame, Fabrizio D’Aloia. “The worldwide recognized Net Entertainment's expertise in the casino games development and marketing will be strategic for Microgame to maintain the leadership in the Italian online gaming market”.
Net Entertainment will provide Microgame with its industry leading CasinoModule product, allowing Italian players to enjoy top games and brands. Net Ent’s Chief Executive Officer, Johan Ohman said: “Gambling is huge in Italy and is expected to generate a gross gaming yield exceeding Euro 17 billion in 2009, making it the country’s third largest industry. In light of this, it is obviously extra encouraging that one of the dominant incumbents selects Net Entertainment as their strategic casino partner.”
Two Players Fight it Out at Grand Slam of Slots
Microgaming’s Grand Slam of Slots event has finally come to a dramatic end, with an ecstatic player, known as ‘pattoned’ taking home the incredible first prize of €1 million! However, pattoned’s journey to this win was not smooth sailing and he needed to work hard to grab the reward away from the runner up, Rick H. The latter topped the leader board in the competition for almost a week and he was sure that the prize money was as good as his. However, in the last 36 hours of the competition, pattoned came up from behind to knock Rick H. off the number one spot, defending his position fiercely against Rick and the other top ten players on the leaderboard until the end.
“It was great to be No 1 for so long... but “pattoned”'s game was very well played,” said Rick H. after his loss. However, the player also gets to take home a cool second prize of €50,000! Interestingly, two players in the top ten on the leaderboard originated from the Microgaming powered Red Flush casino site.