Let your mouth speak archive

Playtech has acquired the entire issued share capital of developer of interactive gambling and betting games Ash Gaming.

The online gaming software and services provider has acquired Ash Gaming for a total cash consideration of up to £23m, comprising initial consideration of £15.5m and deferred contingent consideration of up to £7.5m.

Playtech, which is a finalist in the International Gaming Awards in January, believes that there are significant combined benefits to be gained from the acquisition, including greater revenue opportunities and enhanced economics across the value chain.

The acquisition will also enable the broader distribution of the game developer's content both internationally and through a wider range of distribution channels than its historic position on an operator's games tab. This will include being positioned more broadly within Playtech's mainstream casino product; through poker and bingo side games; on Videobet's land-based platform; and on both mobile and social platforms. This is expected to deliver a number of incremental revenue streams combined with the organic growth of Playtech's content library.

It will also retain a greater proportion of the economics from its existing casino and games product. The acquisition of Ash Gaming, which has one of the highest penetrations of games in the UK market and a number of licensees through Playtech's GTS open platform, will substantially increase the percentage of GTS content over which it retains full revenue economics.

Mor Weizer, CEO of Playtech, said: "The business is demonstrating significant growth and we expect this to continue. I am confident that given the historic performance and current run rate this acquisition will prove to be very attractive for Playtech's shareholders. Ash Gaming continues to deliver great games that operators want on their sites. This is key for many licensees where content is king and we strive to provide them with the very best games and a diversified portfolio to enhance their player experience as that maximises their player loyalty and player value.

"At the same time, we see this as complementing our strategic actions by ensuring class leading content alongside our leadership in technology. Together this makes a powerful combination and by owning significant games content we will maximise both revenue and earnings across the value chain. In newly regulated markets both in Europe and other territories such as Canada, Ash Gaming's content is set to gain considerable traction."

In the internet gambling industry there is one thing that stands out above everything else, that being the value placed on game development and content. The online betting public is always on the look out for new and exciting innovations which keeps them coming back to firms that offer the best and most rewarding experiences while they play. One such software provider that has been around since the beginning of interactive gaming is Cryptologic.

Originally from Canada the firm relocated to Ireland a few years ago and it looks as if the company may once again be owned by a Canadian company.
Amaya which is based in Canada is reportedly offering $34.5 million US for iconic Cryptologic to expand its Amaya’s existing customer base. This comes as no surprise as Cryptologic did include a possible sale of the company in the strategic review of the business last March.

Amaya has been expanding at a fast pace and holds about 7.5 percent in CryptoLogic that it has obtained in small increments. Amaya’s offer of $2.50 per common share in cash with some pre conditions such as insuring there are sufficient funds available to complete the purchase and a requirement to announce it’s intention to purchase CryptoLogic by January 12, 2012.
The share price that Amaya is offering is considerably more than what the shares are going for on the New York stock exchange, in fact it is 52 per cent over Cryptologic’s $1.64 closing price recently. Amaya is in the process of being sold to the Canadian investment bank Canaccord Genuity Corp. for approximately €15 million through the exchange of a series of Canadian dollar-denominated warrants.

Cryptologic has been hit with some serious financial issues of late and was forced to cuts jobs by 47 percent as part of a restructuring plan to reduce its costs. It is thought that these two firms compliment one another and combining the two firms will enhance growth opportunities and provide financial stability through cost effectiveness.

Online gaming company 888 said on Monday that it expects earnings this year to significantly overshoot market expectations, thanks to “very strong” trading in its casino and poker businesses.

That comes after 888 last month posted record quarterly revenue of $86m (£55m), fuelling suggestions that, rather than heading out to the shops, consumers were opting to stay at home, watch more television and play online games.

Analysts had been expecting full-year earnings of around $40m (£25m) from 888, but in light of the update, Panmure Gordon upped its estimate to $51.1m and Evolution to $50.7m.

“Few companies can have experienced the degree of turnaround over such a short period of time as 888 have,” said Peel Hunt, raising its earnings estimate to $50m. “While 2010 was a low benchmark, the fact is that in October the group achieved a record revenue number, higher than even when it was in the US.

In the last couple of years 3 provinces began offering online gambling (casino and poker) in Canada – BC, Quebec and New Brunswick. It was expected that Ontario would quickly follow suit, but the province has held off and to date Ontarians have to wager offshore if they want to bet online. I spoke with Tony Bitonti, a spokesperson for Ontario Lottery and Gaming (OLG) who said that Paul Godfrey, the former President and CEO for the Toronto Blue Jays and the current chair of OLG wanted to ensure that Ontario got it right the first time. Consequently Ontario monitored the offerings of other provinces along with other online operations around the world, conducted research of its own and came to decisions to ensure best practices would be met when they launched. In hindsight the decision was probably for the best. While BC’s online site playnow.com and the casino site at Lotto Quebec have been somewhat successful they have also had issues. The BC Lottery Corporation actually had to shut down playnow.com site for a period due to a security breach which allowed customers to see other player’s personal information and there have been numerous complaints expressed with the games themselves. In fact in the few months after its release some newspapers in both BC and Quebec called the games very amateurish.

As for sports betting, all provinces currently allow it via the sport select lottery which requires people to select 3 or more game parlays but single game sports betting is illegal under the Canadian criminal code. That law is currently being challenged and it appears likely it will be repealed. NDP MP Joe Comartin has introduced a private member’s bill to get the law overturned and there doesn’t seem to be much opposition to the motion. Comartin, along with the Canadian Gaming Association believe that the sports lottery only appeals to smaller bettors and that the bulk of sports betting will continue to be done offshore or with illegal bookmakers unless the government can provide a comparable product, i.e. single game sports and competitive odds. Members of all 3 of the major Canadian parties I have spoken too had the same reaction. As far as they are concerned gambling is a provincial concern and if there is no provincial opposition to repealing the single game sports law they will happily agree to the request. Up until 1999 dice games were illegal under federal law but when the provinces asked for that law to be repealed the federal government complied. It’s notable that British Columbia just announced that it has partnered with Paddy Power, a major sportsbook based in Ireland to supply product, pricing and risk management services to the BC Lottery for its online sports betting business. Right now that consists of the sport select lottery but it’s unlikely Paddy Power would have taken on this venture unless they were given some indication that single game sports betting will soon be introduced.

However, even if the law is changed Bitonti stated that sports betting isn’t on the menu for the time being.

“It will be a phased in process,” Bitonti said suggesting that casino games like slots and roulette would be the first games to be introduced followed by poker and lotteries. At some point sports select could also be one of the lotteries introduced but single game sports betting is a ways off even if Comartin’s bill passes. Online horse racing betting is already available to Ontarians but it’s regulated and controlled by a completely separate entity.

Unlike BC and Quebec, OLG isn’t interested in running the games themselves. They don’t believe it’s in the best interest of players or the Corporation so they are looking for a “soup to nuts” company that can provide everything from software to management skills to risk management software to payment processing. I asked Bitonti if companies like Cryptologic, Bodog or Bet365 would be considered if they applied to be the provider and he said there were no restrictions on who could apply. That said, OLG isn’t the organization that will make the final decision. The Alcohol and Gaming Commission of Ontario (AGCO) is the regulator of all betting in the province and whatever they decide will be accepted by OLG. If the AGCO sets rules which excludes certain companies from applying then the OLG will adhere to their wishes. However, as far as Bitonti knows there are no restrictions. The AGCO, however, will ensure that the applicants are in good standing and that they can ensure the software addresses issues relating to problem gambling, underage gambling and geo coding. Under Canadian law only Ontario residents will be able to bet on the Ontario based website which means that the software will have to be able to block IPs from other provinces and countries.

I was somewhat confused as to what roll the OLG will actually have if another company is running the website and the Gaming Commission is regulating it but Bitonti said that they will actually control and manage the sites and the operator they hire will be responsible for the day to day operations. He said that this is a similar system to Casino Windsor where Caesars actually owns and operates the casino but OLG oversees all the gambling and the Gaming Commission regulates it. Again Bitonti was unable to say whether Caesars has expressed any interest in running the website.

Asked exactly how much money Ontario is hoping to generate from the website, Bitonti said that their studies have shown that over $100 million in profits can be generated in the first 5 years. Currently Bitonti said that Ontarians wager $425-$450 million offshore every year with the majority being bet on poker so the OLG is hoping that a large portion of those customers will bet on the Ontario website to keep the money in the province. As well, payment options will be much easier. Right now Canadians are somewhat limited to how they can deposit and withdraw offshore but if they wager with a Canadian website they wo

Latest casino gambling news reports allege that Kim Jong Il was ‘in a fit of rage’ prior to his sudden collapse shortly after sustaining a ‘bad beat’ during a major online poker tournament.

Latest reports coming out of North Korea reportedly indicate that the deadly heart attack which claimed the life of Kim Jong Il, was caused by a phenomenon straight from Texas. To give you a hint, this Texas institution is also something that’s hated by the administration of US President Barak Obama, and we aren’t talking about former US President George W. Bush.

Korean sources indicate that No Limit Texas Hold’em , the ultra-popular form of online poker allegedly led to the demise of the North Korea strongman. A recent flurry of reports coming from online poker forums frequented by Koreans from around the world shed light on the events surrounding the death of the mysterious death of North Korea 69 year old leader.
Online Poker Tournament Kills Axis of Evil?

The reclusive Kim Jong Il, the second in a series of dynastic totalitarian rulers of the communist country, reportedly become enraged after suffering an unexpected loss, known as a ‘bad beat’ while playing in a high profile online poker tournament.

Reports indicate that the reclusive Kim Jong Il has frequented online poker games under fictitious names for years, enjoying anonymity and the challenge of beating opponents not part of his sycophantic inner circle. An avid poker player for ‘a few year’, Kim Jong Il has been reportedly receiving anonymous private lessons from some of the top ranked players from around the world.

There is no indication as to the name of the tournament or the online poker website that was played by the recently deceased. Strong suspicion falls on the 10th Anniversary $10,000 high roller tournament at Poker Stars as well as Sunday tournaments at Party Poker and Everest Poker also a distinct possibility.

Online gaming software and services giant Playtech has capped a massive year of expansion in all its sectors, by acquiring top games developer Ash Gaming for a total of up to £23 million.
New Addition

Founded in 2002, Ash Gaming is one of the leading developers of internet gambling games - particularly in slots and sports betting, where it holds more than 30 licenses. As such, Playtech officials believe this latest deal will strengthen the company's wholly-owned content library, and give it great revenue opportunities.

Ash Gaming continues to deliver great games that operators want to use on their sites, Playtech CEO Mor Weizer said. He added that his company will use the acquisition to continue to provide licensees with the very best games and a diversified portfolio to enhance their player experience and reward loyalty.
Big Year for Playtech

This has been a big year for Playtech, and the next one is set to be even bigger. In late November the leading gaming company announced it was looking to raise £100 million to fund an ambitious expansion program of acquisitions and joint ventures in emerging markets.

Playtech already has an existing joint venture with William Hill and provides software to leading casino operators like Bwin.party and Paddy Power. The joint venture - William Hill Online - includes offerings in sports betting, online casino games and online poker, and is one of the reasons the Playtech name has come to be one of the biggest in the business.

The Playtech stable already includes some of the leading online video slots on the web, and soon a new title will be added to it - Cowboys and Aliens - based on the adventurous story that also features on the big screen.

HENDERSON, KY (12/20/11) – On December 13, 2011, Governor Steve Beshear spoke about the contentious issue of expanded gambling in his second inaugural address. He advocated for allowing more gambling options in the state in his first address, but Kentucky’s legislature has come to an impasse on the subject. Beshear now intends to “go all out” – he is calling for a referendum on the issue by pushing for an amendment to the state’s constitution if the Assembly votes the measure down again.

An up-or-down vote by the people after the legislature continues to vote down the measure would be fair, Beshear said. This would mark progress from the standstill on the issue in Frankfort, regardless of any viable lawsuits that may come. Kentucky lawmakers have been deadlocked for years, and the possibility of a state-wide referendum would allow citizens to decide if they want their communities to provide expanded gambling options.

Some lawmakers rely on statistics that suggest more gambling opportunities can endanger communities as well as a detriment to livelihoods. Others oppose expanded gambling based on moral or religious views. Proponents say the data on the subject is inconclusive and it should be up to the individuals, not government, to resolve the issue by proclaiming their approval or disapproval. Proponents also point to added revenue for race tracks that would, in turn, contribute more revenues to the state’s General Fund and Kentucky’s tourism industry.

Beshear’s agenda on gambling would appear to help Henderson’s Ellis Park Race Track, which has already been approved for Instant Racing at the track by the Kentucky Horse Racing Commission. Kentucky’s other tracks, including Churchill Downs in Louisville and Keeneland in Lexington, would all stand to benefit from a legalized casino and slots industry.

In a recent Civil Beat editorial, Lowell Kalapa asked the question, “Can Legalized Gambling Fill Hawaii’s Budget Hole?” and then proceeded to argue against it.

The real answer to his question is: “Yes it Can!” Hawaii is the only American state outside of Utah that prohibits gaming. There are 311 million people in the other states and including Hawaii, but excluding Utah, 99.6% of them, live in states that permit gambling, and all of the residents of Utah have hundreds of casinos within easy driving distance of the borders of their state.

What we have here in Hawaii, instead of legal gaming, is a large, uncontrollable, criminal gambling enterprise that involves all sorts of bad elements — including, according to the news reports, rogue police officers. Estimates of the size of our homegrown, illegal, gambling operations range all the way up to one billion dollars per year, and history has shown that Prohibition creates crime, not lessens it. Legalizing gambling will have the same effect that legalizing alcohol had. It will lessen, or even end, that crime. How much “bathtub gin” do you think is made and sold here? None. But there is plenty of illegal gambling and none of it is taxed. If it were taxed, we in Hawaii would have about $50 million in tax revenue added annually.

But what about other, legal, gambling? Hawaii residents also spend about a billion dollars a year on that. Hawaii residents take a total of about 500,000 total trips to Las Vegas, and other gambling destinations each year with many of our citizens taking multiple trips per year. Boyd Gaming alone reported that it earns about $600,000,000 from Hawaii visitors each year. That means that Hawaii is contributing about one billion dollars to the economy of “neighboring” Nevada each year.

Economists like Mr. Kalapa tell us that each dollar spent in a local economy generates about 3.5 times as much, via what they call “the multiplier effect.” That is, the more money that is flying around in an economy, the more money it generates. The billion dollars that Hawaii residents are “contributing” to Nevada, adds about about $3.5 billion each year to their economy and takes from our own. We get nothing. No wonder they love us in Nevada!

All, or virtually all, of our mainland tourists come from states that already have casinos or other forms of gambling, and many of them favor our having one also. After all, there is virtually nothing for tourists to do after dark in Waikiki. No movie theaters. Almost no major entertainment venues. The Waikiki Improvement Association did some polling of our Asian visitors recently, and found that nearly 80% of Japanese, South Korean, and Chinese visitors would appreciate having a casino as an entertainment option in Waikiki.

The bill we had introduced in the legislature last year calls for limited gaming. One stand alone casino, only. All entities that would bid on that single license would have to ante up a $1 million, non-refundable fee, just to bid. The winning bidder would have to pay a $150 million “impact fee” to the state, and the casino itself would be subject to a General Excise Tax of 15%, a tax equal to more than three times the tax paid by all other tax payers in Hawaii. The economic modeling that we did indicates that the single, stand alone, casino would employ 3,660 directly, and produce another 5,717 jobs off-site, increasing the number of total jobs for Hawaii workers by 9,377.

Casinos are very labor intensive. The gross wages per year for those new jobs would amount to an aggregate of nearly $533 million in new money to the local economy. It is expected that the increased taxes from gaming fees, income taxes from employee wages, and from the ripple effect of new vendor jobs, etc., and from the General Excise taxes, will generate an added $86.3 million each year. None of this includes the investment costs for construction and etc. which are estimated to be well in excess of $300 million.

Ah, but what about the “social costs?” The emotional attacks that legalizing gambling will create crime, increase personal bankruptcy, and so on, are always a “hot button” item here in Hawaii. However, the facts in the rest of the country don’t bear them out. Both sides in the casino debate cite various academic studies in their interests, but the only source on that issue that ought to count is the Congressional National Gambling Impact Study Commission, and in its official study of those questions, it found that legalizing gambling has no significant effect on crime, personal bankruptcy, etc., either way. And the facts bear that out among the more than 307 million Americans in 49 states that have already ended prohibition of gambling.

So, to answer Mr. Kalapa’s question, “Can Legalized Gambling Fill Hawaii’s Budget Hole?” The answer is yes, it undoubtedly can help. No single “silver bullet” exists that will solve all of Hawaii’s need to have sufficient income forever. But it goes without saying, that Hawaii will need a wider variety of sources of income than we have now and no other industry is beating down the door. Casino gaming is something that ought to be tried.

With Denmark recently deregulating their online gambling industry, witnesses are marveling as the sector continues to open up. As of January 01, 2012, Denmark will officially be a brand new online gambling licensing jurisdiction. Denmark also signed a bilateral cooperation agreement with licensing bigwig the Isle of Man, mainly to learn how to be a successful licensing jurisdiction. This agreement will be formalized as well on January 01, 2012. Denmark has also created a similar agreement with the Alderney Gambling Control Commission as well.

In the Czech Republic, the accidental passing of a new piece of legislation has the country doing some massive backpedaling. Recently the parliament’s lower house passed legislation stating that video lottery terminal operators would be offered a €77.7 million tax break. This has created much firestorm in the media. A 20 percent tax on the video lottery terminal revenue is also cites to become split between three groups – local municipalities, education, and charities as to be determined by the local gambling industry. However, it was originally only supposed to be split between the municipalities and the education. But the controversial wording has everyone up in arms right now.

Lastly, Greece has recently passed a number of laws that look as though they will be challenged by the Remote Gambling Association in court. It is to take place at the beginning of the New Year. However, with this last year not faring well for Greece in terms of their economy, no one knows if 2012 holds anything much better, especially as far as the online casino industry is concerned. Cyprus also looks like it could be changing very quickly. While it is currently considered a haven for not just British retirees but also the remote gambling industry, things look like it could be changing for the latter, and not in a positive direction. Stay tuned for the New Year to find out more.

California gambling tribes have given $275,000 toward Gov. Jerry Brown's new 2012 ballot initiative to raise taxes on sales and the wealthy, the first known major contribution to his effort.The California Tribal Business Alliance and two of its member tribes have written checks to help Brown's cause, said the group's political director, David Quintana. The Alliance gave $75,000, while the Lytton Band of Pomo Indians and Paskenta Band of Nomlaki Indians each gave $100,000. Brown's initiative would raise the sales tax by a half-cent and increase income taxes starting at $250,000 for individuals to raise an estimated $7 billion in the first fiscal year. Both would expire at the end of 2016.The contributions mark the first known major financial support to Brown's initiative campaign, though it has become difficult to track donations since the secretary of state's campaign finance website, Cal-Access, failed earlier this month.

Governor Cuomo and the New York State legislature announced earlier this month that the state will consider a constitutional amendment to legalize casino gambling to put money in state coffers.

Legalization could raise as much as $2 billion, but legalization would happen no sooner than 2014. The amendment would need to be approved in 2012 and then again in 2013, and, finally, would need to be adopted by voters during a 2013 referendum.

Currently, casinos are restricted only to five Native American reservations, which oppose legalization.

The move, though, would not be without its pitfalls. Cuomo has urged caution, and told proponents to use the next two years to iron out a solid plan for implementation.

Locally, Assemblyman Steven Cymbrowitz is requesting that any plan include funding to address gambling addiction. Cymbrowitz is chair of the Committee on Alcoholism and Drug Abuse, which has jurisdiction over compulsive gambling.

“With the current limited availability of gambling opportunities in New York State, nearly one million New Yorkers are problem gamblers. Additionally, a survey of 7th through 12th grade high school students found that ten percent, or 140,000 of these students, showed signs of problem gambling in the past 12 months. These are sobering statistics. If we are considering increasing the number of casinos, we must also consider the toll it will take on New Yorkers prone to gambling addiction and do everything possible to insure that they are protected,” Cymbrowitz said. “If the Legislature moves forward with the process of approving additional casinos it is paramount that we have a comprehensive plan in place to prevent an increase in compulsive gambling and also bolster existing problem gambling treatment programs.”

What do you think? Should gambling be legalized in New York State, or does it bring too many problems?

Playtech, Hoping for “A Source for Success,” Will their latest Acquisition of Ash Gaming Make Them A Standout Leader in the online gambling sector?

In recent news regarding Teddy Sagi we had reported that Playtech had recently acquired Mobenga and had other plans, although not yet known what the future would hold as far as new acquisitions were concerned. In regards to acquisitions, Playtech is looking to discover new platforms and innovation to complement, expand their existing products and technology. With the news earlier today we are now aware that the software developer has acquired Ash Gaming.

Ash Gaming began in 2002 with a fundamental approach to deliver high quality gaming, focusing solely on providing innovative, best-of-breed games to the betting and gambling sector. Recently releasing Lock & Spin™ features on some of their featured slots games. (The Lock & Spin, gives players the chance to lock wilds where ever you want them and when ever you want to!) Checkout their YouTube channel to view some of their exciting slot games.

Playtech will pay ₤15.5 million immediately for Ash Gaming and a deferred payment of ₤7.5 million over the next three years. This will be Playtech’s tenth acquisition and the fourth since the start of 2011.

Playtech said that Ash, “Enhances Playtech’s wholly-owned content library and value chain economics; complements Playtech’s technology leadership with additional premier content capability.”

Playtech CEO Mor Weizer said, “We see this as complementing our strategic actions by ensuring class leading content alongside our leadership in technology. Together this makes a powerful combination and by owning significant games content we will maximize both revenue and earnings across the value chain. In newly regulated markets both in Europe and other territories such as Canada, Ash Gaming’s content is set to gain considerable traction.”

With the recent acquisitions Playtech has finalized, expectations for a new innovative gaming experience is surely going to be exciting. Will these recent changes and newly added technology under one roof propel Playtech’s brand to the top of the gaming sector? Only time will tell.

LONDON & MUNICH, Dec 19, 2011 (BUSINESS WIRE) -- In May the Spanish government passed a law that will transform and liberalise most sectors of the Spanish online gambling market starting at the beginning of 2012. Liberalisation always sounds good, but the question is whether it will turn into a success story in Spain. MECN has analysed the situation in depth and compiled the most comprehensive and detailed report on the Spanish gambling market available ( Spain_gambling_market-report ).

The Spanish gambling market is currently at the top of the strategic agenda of most industry executives. While other jurisdictions are still figuring out the details of their likely liberalisation, Spain is ready to start right now. The question is whether the liberalisation will turn into a success story for the licensed operators and the Spanish state - according to industry insiders, the hopes are high.

Spanish market has a high relevance -- 80% of operators are likely to apply for a license

For most of the global market (over 90% of the experts surveyed) the future relevance of the Spanish online gambling market is high. Therefore it comes as no surprise that nearly all operators (ca. 80% of the operators surveyed) are likely to apply for a license. As one operator keen on a license put it: "Spain is already a key region for us -- and we will do everything we can that it stays this way".

Obtaining a license will pay off financially - Spanish model convinces industry

More and more operators are wondering whether licenses will eventually pay off financially - at least since the partly negative experiences in France. But Spain seems to be a different story as, for example, gambling taxes are significantly lower (mostly 25% of gross revenues). Therefore, nearly all of the experts surveyed believe that a Spanish license will pay off financially.

Martin Oelbermann, director of MECN and co-author of the study adds, "Many operators lost a significant amount of money in the liberalised French market -- therefore, operators became more sceptical. They now analyse the financial effects of the tax rates and other key regulations (e.g., identification processes, ...) even more closely. But the Spanish model seems to convince them and brings back a lot of optimism to the industry".

Size matters -- online gambling gross revenues expected to grow to over Euro 680 million by 2015

The figures regarding the Spanish gambling market are impressive: total market size in 2010 of ca. Euro 28 billion in turnover/wagers and Euro 9.5 billion in gross revenues. The online gambling market (gross revenues) is estimated at Euro 465 million in 2010 and is expected to grow to over Euro 680 million by 2015 with betting and poker leading the way.

The use of smart phones is on the increase and so is the number of things these devises are capable doing for the consumer. One element that is expanding at a significant rate is the use of Near Field Communication chips available on the newest mobile devises. This technology is reported to be increasing by 128% in the next year. According to IMS Research mobile payment services are driving this growth with 80 million set to be sold in 2012. The firm projects that growth will be fuelled by the use of the devises that have the NFC chip at the London Olympics. Many big firms such as Telefonica UK, Samsung and Visa, want to employ the chip capabilities to make payments easier for the consumer.

NFC is not an unproven or untested technology with it’s presence in London through Oyster Cards which are used extensively for payments on the public transportation system. Google Wallet also employs the NFC technology on its Android platform smart phones.
PayPal is launching a beta test for the system over the holidays and has issued as statement explaining the arrangement, “PayPal has announced today that it will be testing a new NFC mobile payment application in Sweden over the Christmas holidays to bring NFC payments to the point of sale. As a part of the test, PayPal is partnering with two Swedish retailers:
Alpingaraget, a leading retailer of ski and sports equipment and the electronics store, Webhallen…While an NFC-pilot program may sound surprising given PayPal’s apparent ambivalence toward the technology, [PayPal's Head of Consumer Engagement Marketing in Northern, Central and Eastern Europe, Catrine] Rhenberg said the In-store effort is a part of PayPal’s overall strategy.”

This is significant news for the online gambling industry in so much as it will give punters an alternative to payment processes already available. It will surely be available for online gambling account holders within a few years, of course depending on the jurisdictions that will allow it to proceed.

(NECN: Peter Howe, Boston) Massachusetts already runs one of the biggest-grossing state lotteries in the nation per capita -- $4.5 billion a year, with over $900 million of that flowing back to cities and towns as aid to local governments, schools, and public safety agencies.

Now state treasurer and Lottery Commission chairman Steve Grossman has an idea for boosting sales even more: “In early January, the Massachusetts State Lottery will enable its customers to use debit cards to purchase lottery products,’’ Grossman said in an interview Wednesday.

Grossman’s theory is that many people are already using debit cards, not paper dollars, all day long for everything else. “Debit cards are cash. It's not like cash. It is a 21st century form of cash,’’ Grossman said. “So why not let people use the money they already have?’’ (According to the website CreditCards.com, as of late 2010 Visa had 397 million debit cards in circulation in the U.S., MasterCard, 123 million, accounting for nearly $1.4 trillion of purchases in 2010.)

But Grossman’s plan is raising some concerns at the Massachusetts Council on Compulsive Gambling.

“At the council, we're always concerned when gambling is expanded,’’ said agency spokeswoman Margot Cahoon. The nine-person agency runs a gambling addiction hotline and other programs using a $1 million annual appropriation earmarked from Lottery revenues. “When people aren't gambling with cash,’’ Cahoon said, “we're afraid that that might make people not think of it as money as much as they could some cash in your pocket.’’

Grossman said he respects those concerns but is confident existing gambling-addiction efforts can address problems.

“I'm going to let people make their own decisions about how to spend their money, and I'm always going to be conscious of people who overdo it and educate people’’ about not overspending on lottery games.

Massachusetts Lottery Commission officials say that of the 42 states that have lotteries, 33 already allow people to buy tickets with lottery cards. Especially in high-crime areas where convenience store owners have to worry about being held up by robbers, many lottery agents have said they like being able to reduce significantly how much cash they have on hand and have lottery ticket proceeds automatically swept into their bank accounts.

Grossman says the lottery will closely monitor its 7,500 agents through the state to make sure none are taking credit cards – or, as a number of stores in Lynn, Mass., were recently caught doing, allowing people to use EBT “food stamps” card to buy prohibited non-food items.

“If you don't restrict yourself to the debit cards that we're permitting, we will come down on you like a ton of bricks,’’ Grossman said. “You will be hauled in for a hearing, and you can easily lose your license, and nobody wants to lose their license.’’

Grossman said he expects to roll out debit card purchases sometime after Jan. 1, only after a thorough process of training store owners and making sure they’ll keep customers’ debit-card PIN numbers safe.

Cahoon said she hopes addicts prone to overspending won’t slip down a slippery slope with debit cards.

“We hope that people will set limits on their gambling, both the amount of money and the amount of time that they spend on gambling,’’ Cahoon said, “and that they'll stay in those limits to keep safe.’’

A Quinnipiac University survey Wednesday showed a whopping 64% of state voters – and 65% of city voters - favored Atlantic City or Las Vegas style casinos in New York, up from 56% who favored such casinos in September.

“New Yorkers say shuffle and deal,” said Quinnipiac pollster Maurice Carroll.

Only 31% of New York voters opposed legalized casino gambling and another 68% said such casinos would be good for the state’s economy, according to the poll.

Gov. Cuomo has called for legalized gambling in the state and is expected next year to propose changing the state’s Constitution to do so. The governor has yet to detail where in the state he’d allow casinos.

A constitutional amendment must be approved by two successive Legislatures and by the public in a referendum.

Quinnipiac’s poll also revealed that New Yorkers are split on the thorny issue of hydro-fracking. Forty four percent of New Yorkers support the controversial natural gas drilling procedure while 45% oppose it because of environmental concerns.

When actor James Franco hosted the Oscars with Anne Hathaway, resounding public opinion was that he didn't rehearse, or put in much effort into any of it. Franco just seemed to show up and lazily read his lines from the teleprompter. And now, a former professor at NYU is claiming the same, saying that Franco, who was a student in the school's MFA program, was lazy and ineffective and therefore got a "D" in his class.

After he gave Franco the grade, the professor, named José Angel Santana who taught Franco in his "Directing the Actor II" class said he suffered ridicule from the University as well as Franco, who both seemed to think Franco was all that and a bag of chips. And for giving Franco the grade, Santana claims he was ultimately fired from his job and he's now suing the University for wrongful termination and hopes to get his job back.

The New York Post reports that the Oscar-nominated actor missed 12 out of 14 of Santana's classes and that professor contends that other professors gave Franco high grades purely due to his celebrity status.


"The school has bent over backwards to create a Franco-friendly environment, that’s for sure," Santana told The Post.

In his suit, Santana alledges that professor Jay Anania, who Franco hired to write and direct the film Shadows & Lies, gave him good marks unrelated to his scholastic efforts. Moreover, the school hired Franco to teach a class, despite the fact that he had earned low marks in Santana's class and film department chairman, John Tintori, was given a cameo in a film financed by Franco and written and directed by Anania. Conflict of interest much?

Santana added, "In my opinion, they've turned the NYU graduate film degree into swag for James Franco's purposes, a possession, something you can buy."

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One can argue about the IPO of Zynga Inc. (Nasdaq: ZNGA), the giant Internet gaming company, but one cannot question the company's success and that it has become a role model. Zynga succeeded in addicting a million people around the world to the green pastures of FarmVille, while simultaneously inspiring a slew of young companies. One of these is Israeli game company Playtika Ltd., which was founded just 18 months ago, and began marketing the two games it developed a year ago.

Playtika's success has been amazing, and the company that decided to take a chance with it is US casino giant Caesars Entertainment Corporation, the largest player in the industry. Last May, Caesars acquired 51% of Playtika at a company value of $80-90 million, and received an option to acquire the balance of shares within two years. Caesars did not wait long. Sources inform ''Globes'' that Caesars acquired the balance of Playtika shares for a slightly higher value than its value when the first investment was carried out.

The acquisition of Playtika is amazing on almost every possible level - it is the largest exit ever in the Israeli gaming and gambling industry. Caesars is not just another company, and almost everyone who has been to Las Vegas knows that it is the largest and best-known casino operator in the world. The US does not allow internet gambling within its borders, but big players like Caesars know that the Internet is the future, and they are trying to integrate their extensive experience and strong brand name with social network games, while simultaneously operating online gaming outside US borders.

Playtika will operate within Caesars' unit Caesars Interactive Entertainment.

The timing is no coincidence

"It is no coincidence that we chose to acquire the balance of Playtika shares now," Caesars Interactive CEO Mitch Gerber told "Globes" in an exclusive interview from his home in Canada. "Playtika's activity is advancing according to our plans, and company growth has been consistently strong. We have learned that controlling a portion of a company's shares it not the same thing as having complete control. The integration of Playtika and Caesars Interactive was important for Playtika's long term growth, and required additional investment that the current shareholders were not sure they wanted. We reached the conclusion that we prefer acquiring full control of the company before it is too late, which will enable us to fully integrate it within Caesars Interactive. We have many plans for the future."

When Gerber talks about current shareholders, he is referring to Playtika co-founders COO Uri Shahak, the son of former IDF Chief of Staff Amnon Lipkin-Shakak, and CEO Robert Antokol, who previously founded game company Cmate SA, which he sold to Oberon Media Inc. six years ago. Shahak was previously a senior games manager at Israeli gambling company 888 Holding plc (LSE:888).

Shahak and Antokol have the largest equity stake in the company, which means that they will receive tens of millions of dollars from the current deal. Other investors include former 888 CEO Gigi Levy (Shahak's former boss), 888 investor Ofer Lezovsky, former Empire Online VP marketing Avner Yasur, as well as real estate developer Igal Ahouvi, Yariv Gilat, Dafna Weiss, and Domaine du Castel winery founder Eli Ben-Zaken. They will each receive a few million dollars from the sale.

Playtika currently employs 50 people, but Gerber says that this number will rise over the coming year. "2012 is going to be a very big year for Playtika, which will be reflected by, among other things, the hiring of additional employees in Israel. A large portion of the investment that we are making in the company will be for hiring new people," he said.

Playtika currently offers two games of chance: Slotomania, which is a slot machines game, and Farkle, which is a game of dice. Gerber promises that additional games will be launched in the near future.

Gerber has not disclosed details about Playtika's profit or revenue, but analysts estimate that its revenue is a few million dollars a year, and growing. Playtika currently has 10 million unique users every month, half of whom are from Facebook. The company, in contrast with Zynga, also markets its games on the Russian Facebook equivalent, V kontakte.

"Next year, we will concentrate on Playtika's competitive advantage and on widening its activity on social networks other than Facebook," Gerber said. "Caesars Interactive and Playtika will be focusing on Asia in the upcoming year." Gerber says that every game that is developed by Playtika for the Asian market (China or Turkey, for example) will be customized to the specific culture of that country.

This is Caesars' first Israeli acquisition, but Gerber's second. When he was CEO of PartyGaming, the company acquired what remained of Empire Online for $40 million. "I love Israel, and I love doing business there," Gerber said. "I think Israel has the best start-up companies in the world, and I am proud that I brought Caesars here."

Which Israeli company are you going to acquire next?

"I haven't found one yet, but I assume that I will, and therefore I am taking advantage of this public forum to announce: I am interested in acquiring additional Israeli companies."

With Denmark recently deregulating their online gambling industry, witnesses are marveling as the sector continues to open up. As of January 01, 2012, Denmark will officially be a brand new online gambling licensing jurisdiction. Denmark also signed a bilateral cooperation agreement with licensing bigwig the Isle of Man, mainly to learn how to be a successful licensing jurisdiction. This agreement will be formalized as well on January 01, 2012. Denmark has also created a similar agreement with the Alderney Gambling Control Commission as well.

In the Czech Republic, the accidental passing of a new piece of legislation has the country doing some massive backpedaling. Recently the parliament’s lower house passed legislation stating that video lottery terminal operators would be offered a €77.7 million tax break. This has created much firestorm in the media. A 20 percent tax on the video lottery terminal revenue is also cites to become split between three groups – local municipalities, education, and charities as to be determined by the local gambling industry. However, it was originally only supposed to be split between the municipalities and the education. But the controversial wording has everyone up in arms right now.

Lastly, Greece has recently passed a number of laws that look as though they will be challenged by the Remote Gambling Association in court. It is to take place at the beginning of the New Year. However, with this last year not faring well for Greece in terms of their economy, no one knows if 2012 holds anything much better, especially as far as the online casino industry is concerned. Cyprus also looks like it could be changing very quickly. While it is currently considered a haven for not just British retirees but also the remote gambling industry, things look like it could be changing for the latter, and not in a positive direction. Stay tuned for the New Year to find out more.

Deep in the heart of Texas, travelers who enjoy casino gambling are hopping into their cars or boarding buses this holiday season to head across the state line.

For a day or more, these gambling Texans visit Louisiana, Oklahoma or New Mexico, where casinos are legal and money flows. Visits typically increase right after Christmas Day, industry officials say.

"Without question, the holidays are more popular at casinos," said Wade Duty, executive director of the Louisiana Casino Association. "People have a little more free time around the holidays. You can only take so much family togetherness until you're looking for an alternative."

Texans make up a sizable portion of Louisiana casino business all year, Duty said — something that in-state gambling interests point out each Texas legislative session when they try to legalize casinos in the Lone Star State.

"We are dependent on a large segment of our market coming from Texas," Duty said. If Texas legalized casino gambling, he said, it would not obliterate Louisiana gaming, but "it will have a dramatic impact."

About 53 percent of casino gaming revenue in Louisiana comes from out of state, mostly from Texas, according to the association's website.

Out-of-the-area visitors make up an estimated 55 percent of Shreveport-Bossier City casino-goers in northwest Louisiana, Duty said. For southwest Louisiana casinos in Lake Charles and at Delta Downs horse racetrack in Vinton, the estimated out-of-area visitor figure is even higher at approximately 80 percent.

The association defines out-of-the-area visitors as those traveling more than 150 miles. The Louisiana Casino Association represents and lobbies for casinos and racetracks and related businesses. It does not represent Native American casinos in Louisiana, which attract plenty of Texans.

Either state-licensed private sector casinos or Native American casinos — or both types — operate in Louisiana, New Mexico and Oklahoma.

Lots of Dallas-Fort Worth area gamblers these days flock to the WinStar World Casino operated by the Chickasaw Nation in Oklahoma. It offers 6,400 electronic games, numerous table games and during these holidays boasts big-name entertainers such as rapper Lil Wayne and country artist Blake Shelton.

On its website, WinStar publicizes bus trips, not necessarily operated by the casino, that bring Texans from San Angelo, Dallas, Corpus Christi and the Rio Grande Valley and other areas.

Up to 90 percent of customers at some casinos just across the Oklahoma border are Texans, according to 2010 research cited by Win For Texas, a group that pressed for legalizing slot machines at Texas race tracks and on Native American reservations.

A Native American operation in southwest Louisiana that's popular with Texans further south is the Coushatta Casino Resort in Kinder, La. It has 2,800 slot machines, 70 table games and an 18-hole golf course.

Among its entertainers this year were country stars Willie Nelson and Hank Williams Jr. The casino resort placed a prominent ad in the December issue of Texas Monthly magazine to lure visitors.

"We usually do get quite a few of the Texans," said Bryan Williams, spokesman for the Coushatta casino. He said business picks up right after Christmas Day. "New Year's Eve is pretty popular around here."

Dozens of Texans booked a Christmas Day bus trip to Coushatta through OK Tours in San Antonio. At least 40 people had signed up for the six-hour ride as Christmas weekend approached, said tour company general manager Anna Sarmiento.

They'll stay overnight and receive a few dollars in "perks" from the casino, Sarmiento said. OK Tours also offers casino trips to Marksville, La., and Delta Downs.

"It's an older crowd, mostly the senior crowd," Sarmiento said, though some teachers who are off work during winter break make the trip, too.

First Class Tours based in Houston offers daily departures to Louisiana casinos and on its website advertised in December: "Now Taking Reservations for New Year's Eve!"

Only a limited casino, the Lucky Eagle Casino on the Kickapoo Indian reservation in Eagle Pass, currently is allowed to operate in Texas.

Texans' gambling dollars eventually end up in Louisiana's state budget. A total of $531 million in taxes were generated in fiscal year 2010 from riverboat and land-based casinos and racetrack slot machines in Louisiana, Duty said.

Despite efforts to allow full Las Vegas-style casinos in Texas or slot machine "racinos" at horse and dog race tracks, it doesn't appear there's any threat of Texas taking away other states' gambling proceeds.

Even in dire budget years, Texas lawmakers have refused to permit it. Opponents say casinos don't provide as much tax revenue as they purport to and that the money dwindles further in a down economy.

So for the foreseeable future, OK Tours and other buses will keep rolling to out-of-state casinos during the holidays and throughout the year.

"In Texas we don't have that," said Sarmiento, the OK Tours general manager. "It's a nice little getaway."