Monthly Archives: February 2015

Gaming Industry News Weekly Recap – Stories You Might Have Missed

THE AMERICAS

Three prominent California tribes and Caesars Entertainment rolled out the welcome mat for PokerStars while Gov. Chris Christie was accused of keeping Stars out of New Jersey; a US securities watchdog launched a probe of Amaya Gaming’s acquisition of PokerStars; online gambling revenue rose in New Jersey and Pala Interactive’s Jim Ryan said new credit card codes would give the market a boost; Boyd Gaming said it expects $5m in online gambling earnings in 2015; seven of Atlantic City’s eight casinos posted January revenue gains; the Borgata planned AC’s first non-poker skill-based wagering competition while the Trump Taj Mahal was fined $10m for anti-money laundering lapses; a Canadian poker player was arrested for assault and robbery at the Fallsview Poker Classic; Zynga admitted it botched its poker revamp; Doyle Brunson announced he would have his 12th major surgery after a cancer diagnosis; Minnesota got a new sports betting bill and Rafi Farber made slots manufacturers go mano y mano.

EUROPE

William Hill made a play for 888 Holdings while Bwin.party saw its stock fall one-fifth after would-be suitors reportedly walked away from the table; Guts.com exited Germany following a Munich court verdict; Ireland’s online betting bill neared the finish line; Unibet finished 2014 on a positive note; Russia sought new ways to block online gambling sites; the UK Gambling Commission issued new social responsibility requirements; Market Box Media’s Yoni Sidi examined marketing strategies in a point-of-consumption world; Coral’s Tania Self discussed social media strategies while Robbie Davies suggested using branding to crush rivals; Focus Online’s Phil Fraser offered online bingo predictions for 2015; Lee Davy talked video game wagering with Gaimerz.com founder Martyn Denney while the developers of first-person shooter game First Strike warned pro players about match fixing; the Global Poker Masters inked a deal to live stream on Twitch; former PokerStars pro Marcel Luske launched Fortified-ID Holdings to combat online fraud; Lee Davy recapped the International Gaming Awards and Rebecca Liggero looked back at her six favorite features of ICE Totally Gaming 2015.

ASIA

Melco Crown Entertainment saw VIPs vanish in Q4 and SunCity’s chairman warned that VIPs were irreplaceable; Chow Tai Fook announced plans for a $2.6b casino in Incheon while Paradise Co announced a Jeju expansion and Grand Korea Leisure was overrun by Chinese gamblers; 500.com saw revenue fall without a World Cup boost; Vietnam said the winner of the Van Don casino derby had to start building by April; Iao Kun Group was denied a dual listing in Hong Kong; SkyCity’s profit dipped 10% in H1; China executed a tycoon with gambling ties and a Chinese teenager cut off his own hand to ‘cure’ his online gaming addiction.

$30 Lottery Ticket Nets McHenry Man $100,000

A northwest suburban man recently changed up his usual lottery strategy, and it paid off-to the tune of $100,000 Kent Pleva usually buys a $1 or $2 instant lottery ticket, once a week. But recently he decided to go with one, $10 Million Cash Bonanza ticket, purchased at Convenient Food Mart, 2126 W. Algonquin Road in Lake in the Hills, according to a statement from Illinois Lottery issued Feb. 12. One scratch of the $30 ticket later, Pleva finds himself $100,000 richer and pondering what to do with his winnings.

Boyd Gaming expects up to $5m in online earnings in 2015

Casino operator Boyd Gaming’s online gambling operation in New Jersey generated $1.8m in earnings in Q4. Boyd CEO Keith Smith reported the figure as Boyd handed in its fiscal report card, which showed gains in Atlantic City and Las Vegas.

Boyd CFO Josh Hirsberg said the $1.8m “kind of reflects a clean operating quarter” and Boyd expects similar online cleanliness in 2015. With 2014’s startup costs behind them, Hirsberg believes Boyd’s online business could generate “anywhere from $3m to $5m” of EBITDA in the current year.

Boyd and MGM Resorts each hold a 50% stake in Atlantic City’s Borgata Casino, which has partnered with UK-listed operator Bwin.party for online gambling in New Jersey. Borgata-licensed sites have been the overall revenue leaders since the market launched in November 2013. The combo recently added a new partner in Pala Interactive, the first tribal online gambling operator licensed in New Jersey.

LAS VEGAS REBOUNDS AND REGIONAL MRRKETS STABILIZE

Overall, Boyd revenue nudged up 1.4% to $531.6m but the company posted a net loss of $32.4m in Q4, dragged down by $40.6m in impairment charges. Boyd operates 22 casinos across eight states but the star performers were the Las Vegas Locals and Atlantic City markets.

Borgata revenue was up 14% to $179.1m thanks to a $7m contribution by its online operations. Smith said the property “set all time quarterly records for market share in every single metric.” January revenue is up 17%, leading Smith to conclude that the business freed up by the rapid-fire closure of four of AC’s casinos “has stayed in the market.”

In Las Vegas, Boyd’s locals market had its best quarter since the 2008 global economic mélee. Smith said he was “unwilling to create a trend after two or three months of positive news” in the locals market but Boyd will “sure be paying attention” to see if the good times last.

Is Las Vegas Vulnerable to The Same Problem That's Crushing Macau?

Investors have lowered their confidence in these companies because of The Chinese government’s crackdown on corruption and increasing regulation of high-net-worth Chinese and their gambling activities in Macau has led to a dramatic decline in VIP gambling. Casinos are feeling the pain since Macau makes up a significant portion of these companies’ revenue bases — as much as 75% for Wynn Resorts last summer.

Prison guards foil double murderer's plan to escape from prison…

Special needs student, 15, films the shocking moment a TEACHER writes that he is an ‘ugly a**’ on wipe board in front of entire class Free speech and Jews under attack again: SECOND Copenhagen attack sees man shot in head at synagogue hours after 200-bullet fatal assault on cafe as police hunt lone wolf ‘jihadi’ in chilling echo of Paris terror spree Mom-of-four, 26, who won Powerball reveals what she plans to spend the $188m on… including donating millions to her church They don’t get paid until the doors are shut, have some very nasty nicknames and could probably punch your lights out: The secrets of flight attendants revealed EXCLUSIVE: Heartbroken lover of ISIS hostage Kayla Mueller breaks silence to reveal his desperate bid to save her by pretending they were married… But says she DENIED it to Isis ‘judge’ and sealed her fate Bobbi Kristina’s organs ‘are shutting down but Bobby … (more)

Poker player arrested for assault at final table of Fallsview Poker Classic event

A Canadian poker player who was chip leader at the final table of the Fallsview Poker Classic’s Event #1 was arrested for assault on Tuesday before play could finish. Harnam Matharu (pictured), a 21-year-old Edmonton resident, was in line for a potential $200k payday but ended up being escorted out of Niagara Falls’ Fallsview Casino in handcuffs before he could say ‘bad beat.’

It was subsequently reported that Matharu was the chief suspect in an assault and robbery of another poker player, Uri Miro, at the World Poker Tour Montreal tournament in Kahnawake, Quebec last November. Miro’s friends were at the Fallsview Casino and thought they recognized Matharu from the Kahnawake tourney. They managed to snap a picture of Matharu, then sent it to Miro, who agreed that Matharu resembled the man who stole $5k from him at a motel in Chàteguay, Quebec.

Following a dinner break, Matharu was about to take his seat at the five-man final table, only to be clapped in irons by two members of the Ontario Provincial Police’s Casino Enforcement Unit. Play continued with antes and blinds duly deducted from Matharu’s stack in his absence. Two players busted out before a winner was eventually declared, but Matharu’s stack was still $88k tall, so at least he’ll have bail money. Or cigarette and candy bar money, should he be convicted.

Casino Enforcement Unit Detective Sergeant Rick Davidson told The Globe and Mail that there was a Canada-wide warrant out for Matharu and the police in Chàteguay had been willing to travel to Ontario to collect their suspect. Matharu was interviewed by Chàteguay police on Thursday and was to appear in court the following day.

Full Tilt "Classic" Poker Action from Feb. 15-22

Online poker players who enjoy basic poker tournaments at affordable buy-ins may want to click their way over to Full Tilt.

Beginning on February 15 and running eight days through the 22nd, Full Tilt has announced a “classic” tournament schedule that features two deep stack freezeout events each day. Cards will be in the air for both daily tournaments beginning at 13:30 and 15:30 ET.

The buy-ins begin the first day at a mere $0.50 and get a bit steeper each day until the final day on Feb. 22 when a $100 buy-in is good for a seat in the $200,000 guaranteed prize pool Main Event. In-between the high and low entry fees for the series will be tournament buy-ins of $1, $2.50, $5, $10, $25 and $50.

As an added bonus, every player who competes in a Full Tilt Classic event will receive a ticket to a freeroll held the next day. Players who play in a No Limit Hold’em Classic event will be awarded a Classic Hold’em Freeroll Ticket, while players who were part of the field in a non-NLHE Classic tournament get a ticket to a Classic Freeroll.

Zynga admits it botched Poker revamp and NFL Showdown launch

Social gaming outfit Zynga saw its shares tumble nearly 16% on Friday – its biggest one-day drop in two-and-a-half-years – after the company turned in underwhelming Q4 and FY 2014 numbers.

Bookings, the sale of virtual good and credits, rose 4% to $182.4m in Q4, well below market expectations of $201m. Advertising revenue rose 139% to $58m but the company still booked a $45m net loss for the quarter.

For the year as a whole, revenue fell 21% to $690m. Game revenue fell 28% from 2013 while ad revenue grew 34% to $153m. Net loss for the year came to $226m, of which $129m was stock-based expense, $24m in restructuring expenses and a $7m income tax benefit.

Looking for a bright side, Zynga pointed out that average daily bookings per daily average user was up 31% in Q4. Trouble is, the number of daily average users fell 2m to 25m, monthly active users fell by 4m to 112m and monthly unique users fell 9m to 71m.

Zynga’s efforts to transition to a mobile-focused company appear to be paying off, as Q4 mobile bookings rose 14% sequentially and 120% year-on-year. Mobile now represents 60% of total bookings and the company has set a 2015 target of 75% mobile bookings.

Zynga’s core franchises – Farmville, Zynga Casino and Words With Friends – reported 35% year-on-year bookings growth. Zynga Casino saw Q4 bookings rise 8% from Q3 thanks to a 34% gain in the Slots category, which was driven by a 27% gain in Hit it Rich! Slots and the launch of Wizard of Oz slots titles in mid-November. But Zynga Poker saw Q4 bookings fall 7% from Q3.

HASTE MAKES WASTE FOR POKER, SPORTS PRODUCTS

Guts.com exits Germany; federal betting laws attacked from inside and out

Malta-licensed online gambling operator Guts.com has announced it’s withdrawing from the German market after a recent court case involving a player fined €65k for playing on an unauthorized international online casino site.

Guts.com affiliates reported receiving emails this week telling them that German accounts will be locked “from 16th February 2015.” Withdrawals will be processed following that date but affiliates will no longer be able to send German players to Guts.com. The decision mimics the recent withdrawal from Germany of the Gibraltar-licensed Mansion Group.

Guts.com apologized for the inconvenience but said the move was necessary due to the recent Munich court verdict, which “goes against everything the [European Union} stands for.” Guts said it expects the verdict to be overturned, but until then, caution was the name of the game.

GERMAN BETTING ASSOCIATION TELLS GOV’T TO GET A MOVE ON

Germany currently permits only online sports betting and even that situation is legally murky. The 20 federal online sports betting licenses issued in September are currently mired in legal limbo as non-recipients challenged both the artificial cap on the number of licenses and the flawed licensing process.

This week, the recently formed sports betting industry group Deutsche Sportwettenverband (DSWV) said the legal uncertainty has been a boon to the “booming black market.” The DSWV, whose members include both domestic and international operators, said the situation is “only a logical consequence of the German licensing chaos.” The DSWV would love to “immediately initiate legal action against illegal vendors” on its own initiative but until its members’ had some legal clarity regarding their own status, “our hands are tied.”

The DSWV also believes the licensing process needs to be resolved as a matter of fairness to the private operators who pay the bulk of the country’s betting taxes. Citing figures from the Ministry of Finance, the DSWV said private sports betting operators paid 97% of the total €226m in federal betting tax in 2014, leaving just 3% contributed by state-owned operator Oddset.