Monthly Archives: April 2015

New online gambling merchant category codes no ‘silver bullet’ for US markets

Friday saw the launch of new Merchant Category Codes (MCC) for online gambling, but their introduction isn’t expected to change the fortunes of operators in US regulated intrastate markets anytime soon.

One of the biggest problems states like New Jersey have had in jumpstarting their fledgling online gambling markets is the reluctance and/or outright refusal of many large financial institutions to process transactions for gambling sites.

In the absence of a nationwide federal stamp of approval for online gambling – not to mention significant efforts underway to stuff the intrastate genie back in the bottle – major banks and credit card companies have been understandably leery about embracing the new islands of forward thinking.

Last September, plans were announced to introduce a raft of new online gambling MCC to replace the catch-all 7995 MCC that had become so toxic in the eyes of financial firms following the 2006 passage of the Unlawful Internet Gambling Enforcement Act. On Friday, Mastercard, Visa, American Express and Discover introduced three new online gambling MCCs covering state-sanctioned online lotteries (7800), online casino games (7801) and advance deposit wagering for horse and dog racing (7802).

Eldorado Resorts Shares Go Higher Amid Takeover Battle Between Two Rivals

Since March 9, when Gaming and Leisure Properties announced that it sent a letter to the Board of Directors of Pinnacle Entertainment conveying an offer to acquire the real estate assets of Pinnacle at an enterprise value of $4.1 billion, shares of Eldorado Resorts have been on a huge run. Over the same time span, Eldorado Resorts has increased 35%.

Irish online point of consumption tax kicks in Aug. 1; Paddy CEO gets 30% pay raise

Paddy Power CEO Andy McCue (pictured) got a 30% pay bump since assuming the chief executive role on New Year’s Day.

McCue’s pay rise was revealed this week via the release of Paddy’s 2014 annual report (ever so humbly titled “The Year Paddy Power Saved The Earth.”) McCue’s base annual salary now tops €700k, only €80k less than his predecessor Patrick Kennedy was earning when he hung up his spurs last New Year’s Eve.

Paddy enjoyed record betting turnover of €7b last year, a 16% gain over 2013. Revenue rose 18% to €881.6m, only slightly less than the sum Paddy plans to return to shareholders in the form of dividends over the next few years, pending shareholder approval at Paddy’s annual general meeting next month.

Paddy might want to hold off on making it rain, given that Ireland’s new point-of-consumption regime now has an official starting date. The Irish government announced this week that their new POCT would take effect Aug. 1, after which all Irish-facing online operators will pay a 1% turnover tax – or 15% of betting exchange revenue – on all wagers taken from Irish punters.