Feeds

Gambling sites play double or quits

Non-Americans like poker, too

Website security in corporate America

House of Cards A recovery in the online gaming economy act is gaining traction, according to several reports. The passage of the Unlawful Internet Gambling Enforcement Act by the US left a swath of economic misery in its wake, but efforts by the major players in the industry to refocus their energies on Europe and Asia are starting to pay dividends.

Both Sportingbet.com and Partygaming.com reported stronger than expected earnings last week, as increasing numbers of players from the European and Asian markets offset the loss of the enormous American market.

Partygaming.com reported an increase in daily poker revenue from $637,000 in October to $721,000 in November. Overall daily revenue in November, excluding the sportsbook, averaged $921,000.

Sportingbet.com reported an increase in traffic from 6,000 players per day to about 7,000 according to Gamingpublic.com, an industry trade paper. Banking giant UBS responded by upgrading its stock evaluation from reduce to neutral.


The wave of consolidation in the sector continues to pick up steam.

Harrah’s has agreed to a $27.8bn buyout, according to a company press release. The largest gambling conglomerate in the world is being taken private by a group of investors led by the Texas Pacific group, in one of the largest leveraged buyouts in history. Harrah’s began as a bingo parlor in Reno in 1937, and became the first Casino operator to be listed on the NYSE back in 1973. This comes on the heels of Murdoch’s BskyB’s takeover of 365 Media, which itself had just gobbled up longtime competitor Bowman’s.

It also follows the announcement a strategic partnership between the Sands and Cantor Gaming, and the confirmation by El Reg of ongoing merger talks between Ladbrokes and 888 Plc.

Scandinavian-oriented poker site Purplelounge.com recently rejected a $59m offer for half the company, according to Gambling911.com.

The collapse of the sector after the passage of the UIGEA has provided both the opportunity for consolidation- i.e., ridiculously low stock valuations relative to the cash generated by the sector- as well as the impetus to get big enough to weather any adverse legal developments in jurisdictions such as Germany, France or South Africa where internet gaming remains controversial.

It’s easy to imagine the online gaming sector going through same growing pains that beset the search portal industry in the late ‘90’s- too many competitors in a field likely to be dominated in the long term by a few major brands. Ironically, major American players like The Sands or MGM Mirage, with strong brands and cash to invest, are well positioned to pick up the pieces of a fragmented, weakened market.


Another response to the knee jerk reaction against online gaming by American authorities has been the development of poker currency exchanges to facilitate wildly popular online poker tournaments. Sites such as Pokerstars.com offer tournament credits which can be redeemed at a third party site for real money at discounted rates.

American authorities just can’t seem to squeeze that genie back in the bottle. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.