Issue N44, 2007
November 15, 2007
Microgaming Grabs Maltese Gambling License
Microgaming, the iconic online gambling industry software provider, has been awarded a Class IV license from the Maltese Lotteries and Gaming Authority (LGA). Essentially, this means that all online casinos carrying Microgaming software will be able to operate legally within the European Union jurisdiction. Mr. Roger Raatgever, Microgaming’s Chief Executive Officer announced last week: “We are delighted to have been granted a Maltese license for our casino product and look forward to being able to offer our operators this gateway into the EU.”
Already, Microgaming-powered poker rooms have been able to enjoy the benefits of a Class III Maltese license since January 2007. It is believed that the general licensing of all Micograming software at such a high level will encourage many online casino sites to choose this company as their provider and move their operations to Malta. The Maltese authorities instituted some of the toughest licensing criteria in the world and were the first in the European Union to regulate online gaming. It is said that Microgaming’s management is particularly pleased that a strict body such as the LGA has recognized the company’s top standards.
Neteller Announces Poor Third Quarterly Performance
Despite optimistic statements and an aggressive new marketing campaign, Neteller, the e-processing company, has announced the disappointing results of its third quarterly performance. Revenues fell an incredible 75% in comparison to last year’s third quarter, bringing in only $17-million against 2006’s $67-million. All in all, Neteller showed that it was running an operating loss of $146-million in its last financial report.
Clearly, the Unlawful Internet Gambling Enforcement Act has had a direct impact on Neteller’s performance. Whereas the company was once considered the favorite method of payment of the vast majority of US online gamblers before the UIGEA kicked in, the Act essentially forced Neteller out of the North American market after the arrest of several of the company’s key figures. Only after Neteller agreed to forfeit over $130-million in settlement fees was the case against the company closed, although the damage has obviously been done.
Despite the poor performance results, however, Neteller’s management remains optimistic about the future. The company’s CEO, Ron Martin, said that results from the Asian and European markets demonstrate the resilience of Neteller’s business and that the company is regaining the public’s trust.
PartyGaming Bets on Comprehensive Horse Racing Service
A new deal was signed in the industry last week between the online gambling group, PartyGaming and the Gibraltar-based sports betting firm, Sporting Index over the creation of a unique and comprehensive horse racing service that will work off PartyGaming’s PartyBets.com platform. The new service will cover all major racing events around the world, as well as local UK and Irish runs. The new service is being launched with super promotions, including doubled winnings on the player’s first and fifth wager.
As part of the new agreement, Sporting Index will also create a new division, called Spin Services, which will essentially provide trading advisory services to PartyBets.com horse racing gamblers. The London-trading PartyGaming is said to be particularly pleased with the creation of Spin Services, not least because of the fact that Sporting Index’s traders are known to be among the best in the industry. It is believed that these traders will be able to provide PartyBets.com players with expert advice in spread betting and horse race odds compilation. A spokesman for PartyGaming summed it up this week by saying: “Teaming up with Sporting Index to expand our fixed-odds betting services is a winning combination.”
EU Trade Commissioner Blasts US Anti-Gambling Legislation
During a visit to the United States this week, the European Union Trade Commissioner, Mr. Peter Mandelson urged the country to repeal its anti-online gambling legislation and open its markets to foreign competitors. Mandelson said that it was not in the United States’ best interest to exclude responsible gambling competitors from entering its markets and that eventually the US would need to change its policy that presently discriminates against European operators.
Mandelson’s visit to the North American continent comes in the wake of mounting pressure by European Union gambling operators to force the United States to pay almost $100-billion in compensatory sanctions, after it contravened international World Trade Organization agreements. Since Antigua and Barbuda won its WTO case against the US, seven major claimants have put their demands to the organization to reach a fair settlement deal over the country’s monopoly on online gambling within its borders. Negotiations have been extended twice as all sides try to reach a compromise.
Peter Mandelson also met with Barney Frank, the US politician who is trying to push an alternative gambling law through the Senate, which would essentially legalize online gambling within a restricted framework. Mandelson said of his visit with Frank and their discussion about the industry: “I think Frank takes a fair-minded, common sense approach to this and we look forward to that being effective legislation”.