Online Betting News

Chancellor Gordon Brown announced heavy increases on gaming duty in yesterday’s budget.

Many online gambling firms operating from tax havens in Gibraltar, Malta, Alderney and Cyprus, are not expected to return under these conditions.
Budget summary for gambling firms:

• The 2.5% starting band of gaming duty has been scrapped.
• Remote gambling will not be liable for VAT
• 15% remote gaming duty on companies moving from offshore to the UK
• 50% tax band for casino operators with revenues above £10m

Damian Aspinall, of Aspinalls casino in Mayfair, London, said, ‘It’s insane. They spend years deregulating the industry and then overtax it.’

The Remote Gambling Association said it was disappointed that the UK had effectively priced itself out of the online gambling market and ‘missed a real opportunity to lead the way in terms of international regulatory standards.’

However, Chief Executive Clive Hawkswood did acknowledge that it wasn’t all bad news. “The VAT issue was the scary one, but it has been put to bed for now.�

Personally, I was surprised by the announcements as I thought the government would was eager to tempt the bookies back on shore with tax breaks.

In the aftermath of Gordon Brown’s 11th budget, the announcement to cut the basic income tax rate from 22p to 20p has led to Paddy Power cutting Labour’s odds to win the next General Election.

Labour, though are still outsiders to win the next General Election due to the points deficit in the polls, have been cut from 5/4 to just over evens at 11/10.

As a result David Cameron’s Conservatives have been pushed out slightly by Paddy Power to win power from 4/7 to 4/6 but still remain favourites to win.

Darren Haines, spokesman for Paddy Power, said: “Some may see the headline news of the tax cut as a bribe to the electorate by the Prime Minister-in-waiting but if the public feels it is better off in the pocket they could be right.

“Labour still has a deficit in the opinion polls but this should almost certainly improve Gordon Brown’s future prospects when he takes over at Number 10.”

Justin Hawkins is a marginal favourite with bookies William Hill to win ‘Making Your Mind Up’ on this Saturday at 7/4. Brian Harvey is his nearest challenger at 3/1.

Of the outsiders Cindi is the only act to have seen any money and is perhaps the dark horse to snatch victory. Dancing On Ice also reaches its conclusion over the weekend and Kyran Bracken is the 1/8 shortest prices favourite in the history of the show with one Hill’s customer from Blackburn prepared to place £8,000 to win £1,000 on his successful skate. Tara Palmer-Tomkinson could take the bookies to the cleaners if she wins Celebrity Fame Academy and she is currently favourite at 5/4.

“All three of our reality TV markets are coming to their conclusion this weekend and we are hoping for an industry turnover in excess £1 million. We are showing a loss on our reality markets this year courtesy of Shilpa and Helen Mirren and if the three favourites come in on Saturday it will be a disaster,� said Hill’s spokesman Rupert Adams

William Hill odds on ‘Making Your Mind Up’:

7/4 Justin Hawkins

3/1 Brian Harvey

7/2 Big Bruvaz

6/1 Liz McClarnon

6/1 Cindi

10/1 Scooch

William Hill Dancing On Ice Odds:

1/8 Kyran Bracken

6/1 Clare Buckfield

12/1 Duncan James

William Hill Celebrity Fame Academy odds:

5/4 Tara Palmer-Tomkinson

7/4 Shaun Williamson

3/1 Tricia Penrose

10/1 Colin Murray

Austria-based online gambling group BWIN Interactive Entertainment AG said on Wednesday that it has made a “very preliminary” takeover approach to Sportingbet PLC.Sportingbet had said early on Wednesday that it had received an approach, resulting a nearly 15 percent hike in its share price, but did not name the prospective bidder or offer any further details.

BWIN said that it is engaged “in very preliminary discussions with Sportingbet for the acquisition of the entire issued share capital of Sportingbet which may or may not lead to an offer.'’

Sportingbet last month posted a loss in the second quarter after the company was forced out of the U.S. market following the passing of new US gambling legislation.

However, it also announced a 54 percent increase in operating profit, driven by its European business as it began to reorganize the business following the U.S. ban. The company was also optimistic about the third-quarter, which “has started well, building on the developments that have been put in place during the second quarter.'’

Arbuthnot analyst Paul Leyland urged caution on a prospective deal, noting that the “regulatory aspects of the due diligence process are complicated and an acquirer must have a significant risk appetite.'’

U.S. Congress surprised the gambling industry last year when it added a provision to a bill aimed at improving port security to make it illegal for banks and credit card companies to settle payments to online gambling sites. President Bush signed the bill into law Oct. 14.

Ladbrokes PLC, the world’s biggest bookmaker, said shortly after the U.S. decision that it was in talks with online gambling group 888 Holdings PLC. Ladbrokes Chairman Ian Robinson said last month that “discussions continue and are complex because of the current conditions in the U.S. We will update the market as and when appropriate.'’

Ladbrokes along with William Hill and Paddy Power recently announced huge increases in profits.

There is another twist in the tail of the online gambling industry today with news that the former CEO of 888.com is to be questioned by French authorities.

The company says John Anderson has been asked to attend an interview.

888 says its French business represents a very minor part of its revenues and profits.

The French authorities’ move follows several high profile arrests of executives in America after the US government outlawed internet betting.

It ruled that it was illegal to make bets over the internet using credit cards, effectively bringing an end to foreign firms entering the US’s market.

Cynics of the US ruling suggested that the ban was put in place to protect the US’s giant gaming institutions.

An Indian teenager is fighting to stop being forced to marry a relative as part of a gambling debt.She was just two years old when her father “lost” her in a poker game.

He had racked up a debt of 10,000 rupees – a mere £115.71 - which he was unable to pay back.

So he told the relative, Lal Haider – whom he owed the money - that he could have his daughter when she grew up.

Now, the child - Rasheeda – who is 17 is trying to make the deal void.

She has filed applications with the police and a local councillor asking them to prevent Mr Haider from taking her to his home.

He was paid the money owed last year but insists the girl should be given to him because of tribal customs.

Both families live in Hyderabad and belong to the same tribe in Baluchistan province.

The girl’s uncle said Mr Haider apparently wants his son to marry the girl.

Khalid Rajput, a local councillor dealing with the case, said the decision that Rasheeda should be handed over was taken late last week at a tribal council meeting.

But police officer Irfan Bhutto said Mr Haider had been summoned.

“We will ensure the girl does not have to do anything against her will.”

Ladbrokes has reported a massive increase in profits for 2006, as the UK bookmaker continues to expand its geographic presence and strengthen its online operations.

The firm saw revenue jump 6.8% year-on-year to £970m, while gross win topped £1bn, compared to £918m in 2006.

Net earnings for Ladbrokes totalled £617.2m for the 12 months ending December 31, 2006, an 86.5% jump on the £331m for 2006.

Commenting on the results Ladbrokes CEO Christopher Bell said: “We can look back on a significant year of achievement at home and internationally and we are pleased to post a record profit performance.

“We began the year by selling the hotel division, delivering one of the biggest returns to shareholders on record and announcing our consultancy in China.

“Along the way we have expanded our online business, invested in our retail estate by launching Ladbrokes Xtra and commenced rollout of the latest FOBTs.�

The online bet reported last week that Ladbrokes has also announced it will bid to operate Manchester’s Super casino, and is interested in operating several of the 16 new small and large casinos to be awarded under the 2005 Gambling Act.

Ladbrokes have already stopped taking bets on Dame Helen Mirren to win the Best Actress gong at this year’s Oscars.

At odds as short as 1/6 Ladbrokes finally closed their book, the star of the blockbuster film ‘The Queen’ was tipped as the red-hot favourite for the prestigious award, but the bookies all seem to have fled.

David Williams, spokesman for Ladbrokes said “It lasted barely 24 hours but enough is enough. Punters have gone bonkers for Mirren and we can’t take any more punishment.”

“We thought we’d entice some money in for the outsiders but the public haven’t taken our bait. Dame Helen was the only one they wanted. It’s been a nationwide gamble.”

In other Oscars betting, punters have latched onto Martin Scorcese’s The Departed and Ladbrokes are now odds-on at 10/11 that the film wins the Best Picture Award.

“We opened at 5/4 but had to go odds-on when the money flooded in. Often the early money is the best guide to where the gongs are heading” added Williams.

The Gambling Dispute between Antigua and the USA Hots up as Miriam Habtesellasie Antigua & Barbuda’s Minister of Finance and the Economy, Dr. Errol Cort, revealed that the Caribbean island has presented a complaint to the World Trade Organisation (WTO) over reported leaks from U.S. officials on what was deemed to be a confidential initial report by the WTO.

The final report of the WTO’s Dispute Settlement Body on the four-year-old legal battle between Antigua & Barbuda and the US on America’s internet gambling restrictions, a key source of revenue for the island, is due to be released tomorrow.

Antigua & Barbuda first brought their case to the WTO in 2003 arguing that US laws blocking the placing of bets across states lines by electronic means infringed WTO rules.

“The WTO had specifically said to all parties that… no party should say anything in respect of the matter. Unfortunately the US has gone and they have said a lot of things and we have protested,� remarked Cort.

“We’ve written to the WTO that while all parties were asked to remain confidential in terms of the interim report, we have kept our side, but the US has not.�

Cort also said that the WTO has since reiterated its request to both parties that the report remain classified until it is finally published.

It’s seems that it’s not just American bureaucrats who have banished internet gambling. Russian MPs yesterday passed a law that will effectively drive land casinos and slot machines out of Moscow and other major Russian cities along with the outlawing internet gambling.

The law effectively means that any gambling must be located in several regions far from Moscow.

The law had been proposed by Russian President Vladimir Putin in 2006 and was passed overwhelmingly by the lower house on Wednesday.

Slot machines can be found in many locations across Russia, including airports, supermarkets and apartment building lobbies. Under the new legislation, these would be also be illegal.

The law also bans online gambling anywhere in the country.
Several online poker and bookmaking companies have aggressively courted Russian customers in the last 12 months, including Gamebookers.com and EuroPoker. Austrian based Bwin.com has reported that Russian based players make up a large percentage of their customer base.