Monthly Archives: February 2015

Betfair buys US HRTV network, lets horses drive rally cars

The US division of UK-listed exchange betting operator Betfair has acquired the HRTV horseracing television network from the Stronach Group. Betfair TVG has agreed to pay $25m up front with future payments of up to $47.8m depending on the effect of the deal on TVG’s race betting handle.

The deal expands TVG’s racing coverage by adding broadcast rights to all races at tracks owned and operated by the Stronach Group, including Santa Anita, Gulfstream Park, Pimlico, Golden Gate Fields and Laurel Park, for a seven-year term.

Betfair believes the deal “strengthens TVG’s ability to drive incremental wagering on its advanced deposit wagering platform and is expected to lead to additional advertising and distribution opportunities.”

The deal will eliminate the $4.3m annual sum TVG had been paying to the Stronach Group for broadcast rights. Betfair said the transaction would be earnings-neutral in the first year but accretive thereafter. HRTV lost $3m in 2013 on revenue of $9.5m.

Back in its home market, Betfair has unleashed a new racing-themed TV ad campaign to prepare the ground for next month’s Cheltenham Festival. The ‘Tap Tap Boom’ spot was created by WCRS, directed by Papaya’s Brent Bonacorso and expands on Betfair’s ‘This is Play’ marketing pitch.

The spot (viewable below) features horses driving rally cars, to the apparent chagrin of the jockeys sitting in the passenger seats. WCRS executive creative director Leon Jaume said the spot fit well with “the Betfair world of ping pong playing cephalopods.” Betair brand director Mark Ody said “people believe betting is exciting and that betting with Betfair is even more exciting. Our new suite of ads brings this to life in a highly distinctive, enjoyable and engaging way.”

[youtube http://www.youtube.com/watch?v=ym4FdlacSjY&w=560&h=315]

In Nevada Court, Millions of Dollars Wasted in the Name of Macau Data Privacy Law

Clark County Nevada District Judge Elizabeth Gonzalez is considering further sanction against Sands China Ltd. for redacting “personal information” from about 2,600 documents the company produced in 2013 as part of an ongoing wrongful termination suit first filed in 2010 by Steven Jacobs, the former president of Sands Macau. Jacobs alleges that he was wrongfully fired for refusing to engage in unlawful acts, including promoting prostitution and spying on Chinese politicians in order to find potentially embarrassing information for use in obtaining favorable treatment for the casino.

MGM Resorts has best quarter stateside since before the recession

Casino operator MGM Resorts International believes its Q4 and FY 2014 results are further evidence that Vegas is back, baby. Chairman/CEO Jim Murren called Q4 earnings at MGM’s wholly owned US properties the best since their pre-recession peak while 2014 as a whole was its best in six years.

Despite the good news stateside, overall revenue fell 5.1% to $2.38b and MGM recorded a net loss of $342.3m, more than six times the loss in the same period a year earlier. The company blamed declines in Macau and a $263m income tax hit for the red ink. For 2014 as a whole, revenue was up 3% (+5% US, -1% in Macau) while earnings rose 5%.

Stateside, MGM’s US properties saw revenue rise 5% and operating income up 10%. The company credited the gains to improvements in table game turnover and win rate. Slots revenue rose 5% and room revenue rose 6% as occupancy increased three points to 88%. The MGM Grand Las Vegas was the star performer, with revenue up nearly 18% to $292m.

MGM’s partial ownership of the CityCenter in Vegas and the Borgata in Atlantic City had decidedly different fortunes, with the Borgata contributing $11.3m to MGM’s bottom line while CityCenter subtracted $18.1m.

Murren told analysts that he knew a “release valve” had been opened in Las Vegas when a party of 12 at the Bellagio’s Prime Steakhouse rang up a $300k dinner tab. Murren declined to make a trend out of one ridiculously extravagant dinner but called it “a sign people are ready to spend money again.”

Murren also referenced the possibility of boxers Floyd Mayweather Jr. and Manny Pacquiao finally squaring off in the ring, saying MGM was “holding the date on May 2 for a fight, and we hope it’s a big, big fight.” However, Murren cautioned that he was “just responding to newspaper rumors.”

MGM China Q4 revenue and earnings each fell 22% to $719m and $185m respectively, while operating income dropped by a third to $109m. Mass market table drop fell 4% but win rate gained five points, which pushed mass table revenue up 19%. It was a different (but all too familiar) story at the VIP tables, where turnover fell 32% and revenue fell 39%.

Banker to banker' lottery resurfaces; state losing millions

The illegal private lotto operations, popularly referred to as ‘banker to banker,’ which were banned by the government in 2006, are still booming in some parts of Accra. The government banned their operations when it was noticed that their activities were not contributing to national revenue in any way.

Al Haymon's PBC on ESPN2, New Details Emerging

Rumors are rampant that ESPN2, like several other networks, will be doing time-buys for their boxing programming and now details are emerging on how this will be executed. BoxingScene.com first reported the situation on February 5th , regarding Al Haymon’s negotiations to bring ‘Premier Boxing Champions’ to ESPN.

Nevada Gaming Control Board recommends legalizing Olympics betting

Nevada casinos and sportsbooks received some good news after the Nevada Gaming Control Board acquiesced to legalize betting on the Olympics.

A proposal from a group of Nevada casinos was discussed during a meeting held earlier this week and concluded with the board recommending to the Nevada Gaming Commission to overturn the long-standing ban on Olympic betting in the state.

Gaming board Executive Secretary Marie Bell told Bloomberg that the parameters the board agreed to would make “Olympic sporting or athletic events, sanctioned by the International Olympic Committee,” legal in Nevada, albeit with the caveat that betting would still be “subject to limitation by the chairman or the chairman’s designee in his sole and absolute discretion.”

The Nevada Gaming Commission can still alter these parameters if the recommendation contains language that needs to be changed such as allowing betting on events that don’t involve judges. On that end, popular Olympic sports like gymnastics, figure skating, and diving would remain illegal whereas other sports would be deemed legal to bet on.

The Commission is set to meet on Feb. 26 and this discussion is likely to be included in that meeting. Should it eventually green light Olympic betting in Nevada, it would be a significant step forward for the state, which has long banned betting on amateur sports not including college sports, thanks in large part to the effort of Senator John McCain.

The Olympics was part of that 2001 ban, even though betting on it has been widespread in other parts of the world, including the UK, which not only offers a plethora of Olympics-related bets, but also famously rolled out a platter of prop bets tied to the quadrennial event.

Lest we forget the prop on Queen Elizabeth II’s hat during the opening ceremonies of the 2012 London Games? Or that a UFO would appear during the same ceremony at 1,000/1 odds?

FanDuel planning new round of financing, looking to go public in 2016

Daily fantasy sports site FanDuel is eyeing a new round of fund-raising that could end up with the company being worth at least $1 billion.

Multiple sources have told Fortune of the Scotland-based company’s short and long-term plans to continue holding its mantle as the number one daily fantasy sports site in the business.

FanDuel’s goal is to add at least another $100 million in the latest fund-raising, adding to the $88 million it has already raised through numerous fund-raising attempts, including a score of $70 million from an investor group that includes Shamrock Capital Group, Kohlberg Kravis Roberts & Co, and NBC Sports Ventures. The company didn’t disclose the valuation for that fund-raising, although sources have told Fortune that the amount reached close to $400 million.

This time, FanDuel has become more ambitious, targeting a figure that would make it the first daily fantasy sports site to be worth ten figures.

The company’s braintrust has yet to decide on a course of action, although it is reported that the board of directors will proceed with this plan in the near future with an eye towards accelerating customer growth and tying up with more professional sports teams.

FanDuel already boasts of an impressive list of partnerships with a host of NBA teams, including the Cleveland Cavaliers, Dallas Mavericks, Orlando Magic, Brooklyn Nets, New York Knicks and Chicago Bulls. The company has also struck a deal with the NBA itself and the NFL’s Washington Redskins.

More importantly, the company’s revenue numbers reflect the growing popularity of the industry. Revenue from Q4 2014 reached $37 million, a dramatic improvement from the $7.4 million it earned in the same period in 2013.

NBA Second Half Preview: Championship and MVP Props

We’re still a couple of days away from the start of the second half of the NBA season. You now what all this idle time means, right?

Yep, it’s time to roll out my not-so-annual preview of what lies ahead for the NBA, complete with odds info on who goes to the Finals, who wins MVP, who makes the playoffs, and which blog Dan Gilbert will bully next. I only made up one of those so I’ll leave it to you to guess which one doesn’t really have odds attached to it, even though there should be probably be a way to bet on it.

In any case, the most intriguing thing about the remainder of the 2014-2015 NBA season is the fact that there doesn’t appear to be any clear-cut favorite to win the title. It’s not like in year’s past when you have two teams that are so above the fray that their odds are dramatically lower than the rest of the contenders.

This season, it’s all bunched up with the Golden State Warriors and the Cleveland Cavaliers posting the shortest odds at 9/2. In fact, five teams have single-digit odds right now, including the San Antonio Spurs at 13/2, the Atlanta Hawks at 7/1, and the Chicago Bulls at 17/2.

Not too far behind are a handful of teams with 14/1 odds, 18/1 odds, and 20/1 odds. All this should tell you one thing: there’s a lot of value here, especially from contenders with double-digit odds like, you know, the Oklahoma City Thunder at 11/1 odds. If the Thunder somehow makes it to the playoffs as the eight seed, you can’t tell me that the Golden State Warriors aren’t sweating that match up.

The same can be said in the Eastern Conference where the Indiana Pacers could be a dark horse if Paul George somehow makes a successful comeback and pulls them into the playoffs. You think the Hawks aren’t worried about that match up? Oh, and the Pacers are currently 150/1 to win the title. Food for thought, right?

Outside of the title odds, the other NBA prop bet that I consider a favorite is the Regular Season MVP. From the looks of things, there’s really only four viable nominees at this stage in the season. Stephen Curry is the short favorite at 5/6 odds with James Harden and LeBron James not too far behind at 6/4 and 11/4 odds, respectively.

AG nominee Lynch unlikely to reverse Wire Act opinion

President Barack Obama-nominated, as the next attorney general, Loretta Lynch said that she likely wouldn’t alter the Justice Department’s opinion that the 1961 Wire Act only applies to sports betting.

During a confirmation hearing before the Senate Judiciary last month, she was asked by Sen. Lindsey Graham, who sponsored the Sheldon Adelson-backed Restore America’s Wire Act (RAWA), whether she was familiar to 2011 Department of Justice opinion to the 1961 Wire Act. Lynch said that she was familiar with the opinion but hadn’t studied in detail.

Rep. Jason Chaffetz, R-Utah, has reintroduced the “Restoration of America’s Wire Act,” or RAWA, which would restore the effective ban on Internet gambling by rolling back the legal landscape to what it was before the Department of Justice issued its opinion.

In a follow-up written response, Lynch further explains her views to the Senate Judiciary Committee saying that if confirmed, she would review the 2011 memo from the department’s Office of Legal Counsel that reinterpreted the Interstate Wire Act of 1961, the federal law that restricts the transmission of wager information.

“It is my understanding, however that OLC opinions are rarely reconsidered. Unless in the course of my review I conclude that OLC’s interpretation of the Wire Act is unreasonable, I do not intend to take any action to suspend or revoke the opinion. I would, of course, welcome the opportunity to work with you and other Members of Congress to address concerns about online gambling through legislation,” Lynch added.

She was also asked if she thinks it is appropriate for OLC “to effectively open the door for the states to offer Internet gaming without involvement of the Congress, the public, law enforcement, and state and local officials?”

Lynch answered, “OLC exercises the Attorney General’s authority to provide the President and executive agencies with advice on questions of law. Because OLC helps the President fulfill his constitutional obligation to take care that the law be faithfully executed, it is my understanding that the Office strives to provide an objective assessment of the law using traditional tools of statutory interpretation.”

Global Poker Conference North America 2015 coming this February 27

The Global Poker Conference North America 2015, which will be held on February 27 at SLS Hotel, Beverly Hills California, United States, is a one day North American Poker Industry summit that is held together with its sister event—the Global Poker Conference: Europe—which will be held on March 25th at the Portomaso Marina Hilton Hotel, St. Julians, Malta.

The goal of the diverse conference is to give poker world representatives more easily discuss and address trending industry topics, offer them a place to network and become more tightly inter-connected, and discover the Global Poker Index’s many new and existing initiatives. The conference will be held at the same time as the American Poker Awards for North America and European Poker Awards for Europe.

The Global Poker Conference is set to be held in two tiers – with one leg in conjunction with the American Poker Awards in North America and a second in conjunction with the European Poker Awards in Europe.

Participants will have a chance to meet players and tournament organizers, to networking with new prospective projects and partnerships between poker rooms, tournament tour/ event managers, and industry stakeholders, to gain knowledge on new technologies to better equip professional cash games and live tournaments to operate more effectively and more seamlessly and to hear more of GPI’s latest updates and many new industry initiatives.

One of the highlights of the event is being col-located with the American Poker Awards to celebrate the achievements of players, industry operators, and personalities within the thriving North American poker scene.

For further information about the American Poker Awards and the Global Poker conference, please visit: http://www.americanpokerawards.com

Click here to register.

Online Poker – Unleash the Niche

The term ‘niche market(ing)’ is extremely overused in online gaming.  I find that ‘niche’ is a pretty term to jump behind when struggling to explain this industry to others. In poker specifically, I can think of every conceivable niche being attempted. The copycat – innovation – abject failure cycle has been fast and furious in poker. Seriously, what didn’t the industry try?

Let us not forget that:

Poker is a game that someone else created.

Poker wasn’t invented by PokerStars or anyone else in the industry for example.

The savvy companies and individuals in poker that have been successful are so because they have found their respective niches within poker as a whole.

The online gaming industry is worth billions of dollars. It is not going anywhere and is growing. Based on this gaming growth chart, the outlook is pretty good. I wanted a second source, so this business insider article confirms that the gaming industry in the USA is worth 240bn.

For perspective, the National Hockey League (NHL) is about to set a record with 3.7bn in revenue.

How Likely Is Pennsylvania to Pass an Online Gambling Bill in 2015?

Pennsylvania is one of a handful of states that have given serious consideration to legalizing online gaming, and the Keystone State seems to be one of the most likely candidates to join Nevada, Delaware, and New Jersey.

But is Pennsylvania really ready to take the plunge? That may depend on the state’s new Governor, Tom Wolf.

Wolf’s plan

Pennsylvania’s newly elected governor Tom Wolf ran on a platform of overhauling the state’s income tax code in order to halt the state’s rising property taxes. The question is, will Wolf’s plan be enough to reach the 40% education funding he is shooting for without finding other revenue streams – such as online gambling?

PokerStars Mission Weeks Returns with $400K in Prizes

Online poker players who enjoy completing missions and taking a shot at some big bonus cash in the process should click their way over to PokerStars for a new Mission Weeks promotion that is running now until March 1.

A grand total of $400,000 in prizes is on the line for players who choose to accept the Missions at hand. Those who successfully complete their personal challenges will receive tickets to any of eight $50,000 All-In Shootouts that take place on March 2 and promise $5,000 to the winner.

To begin, players need to click on the “Challenges” window found in the PokerStars lobby. Hitting the start button means you have accepted the assignment and are ready to proceed.

There are three separate Missions: Mission Play runs from Feb. 16-22; Mission Win from Feb. 23-March 1; and Bonus Mission runs the entire length of the promo, Feb. 16-March 1. You must click Start on each Mission for your results to count.

Station CFO optimistic about Las Vegas economy after strong 2014 perfomance

Locals gaming giant Station Casinos, whose properties in the valley include Palace Station, Red Rock Resort and Green Valley Ranch, reported its fourth quarter and full-year earnings today. Revenue : $333.7 million for the fourth quarter, up 2.2 percent from the same quarter in 2013.