iGaming News all over the world 11.05.2010

11.05.2010, Cryptologic Online Gambling Software Reports First Quarter Drop / Sands China bets on Japan / Lobbying Efforts for USA Online Gambling Over 5 Million / Microgaming announces joint venture with 888 Holdings in French market

Cryptologic Online Gambling Software Reports First Quarter Drop
Cryptologic is a leader in innovative online gambling software and has a many noteworthy games to it's credit. The originally Canadian firm now headquartered in Ireland has reported it will show a lack lustre first quarter return in 2010.

Better returns from branded games and marked savings in costs was the saving grace in the financial performance record. Following the first quarter results comes the announcement that Huw Spiers will be the new Chief Financial Officer for Cryptologic. Spiers takes over from Stephen Taylor, who for five years has been in Ireland and will return to Canada in August. The company's financial summary revealed that the decrease in revenue was a reflection of slow wagering activity and a reduced contribution from a key customer. Operating expenses, plus general and administrative expenses were reduced significantly offsetting the losses in revenue and creating projected gains in the near future.

President and Chief Executive Officer of Cryptologic, Brian Hadfield, commented, "While subdued wagering activity impacted our revenues in the first quarter, the outlook for 2010 as a whole remains encouraging. Operating costs have declined further while our revenue base is showing signs of improvement in the second quarter." He added, " The start of the World Cup soccer tournament in June provides short term uncertainty, however with a strong backlog of new business we expect our results to improve gradually as the year unfolds. As would be expected, the company continues to assess its revenue streams, costs, and strategic direction as it moves towards profitability." On the addition of Mr. Spiers and his 20 years of experience to Cryptologic's team Hadfield said, "First, I would like to thank Stephen for his commitment and dedication to CryptoLogic, in particular during it's move to Ireland, and for assisting in implementing the management's restructuring programme. We wish him and his family all the best for the future." "I would also like to welcome Huw Spiers, who brings extensive management experience and a background from the high growth technology sector. His appointment will help to revitalise the Company's management team following a period of radical change and we look forward to his contribution with much anticipation."

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Sands China bets on Japan
Macau-based Sands China, the world's second-most valuable casino operator, has its sights on expanding into Japan, which it predicts could become Asian largest gambling market. In Macau, the firm's second-quarter outlook is "extremely good," said CEO Steve Jacobs.

CEO Steve Jacobs told Reuters on Tuesday that the companny’s second-quarter outlook is "extremely good," after the firm posted first-quarter earnings that quadrupled from a year ago on a strong performance in the former Portuguese enclave and strict cost controls.

"All indications are it's going to stay as strong as it is today," Jacobs said, referring to the outlook. "In a month where the market was up by about 70 percent, you've got to assume that we did fairly well."

Macau, the world's largest and fastest-growing gambling market, generated record gambling revenues in April, up 70 % from a year earlier. Sands, which has been approached by local gaming firms in Japan, is eager to move into a market with the potential to be Asia's largest gambling market, Jacobs said.

Expanding in Asia beyond Macau has become important for casino operators such as Sands and Wynn Resorts, which worry about Beijing's erratic travel restrictions on mainland Chinese visiting Macau, the only place in the country where casino gambling is legal.

Japan has long debated legalising casino gambling and could make a decision soon as it looks to the example of Singapore, which recently opened two major casino resorts, Jacobs said. "My own personal view is that their decision to go ... or not to go will be made sooner than most people think," he said. "I think what they are trying to do is to find an element to drive tourism - so they are looking more to integrated resorts as opposed to a casino resort or a casino only."

Sands China's parent Las Vegas Sands opened its us$ 5.5 billion Singapore casino resort, the world' second-most expensive, late last month.

Japan has made slow progress on allowing casinos, partly due to fears they could trigger social problems. If Japan moves to legalise casino gambling, the first casino could open by around 2014-15, said Jacobs, who was chief executive of an international management services firm before he joined Las Vegas Sands in March last year.

Others are less optimistic. "Japan would be the Holy Grail of gaming in Asia," said Aaron Fischer, head of CLSA's Asian gaming research, adding that a large appetite for gambling and a high average income would create strong demand for casino operators. "But CLSA has been talking about gaming legalisation in Japan for the last five years, so we're not holding our breath."

Cost overruns for Sands China's next mega casino resort in Macau's Cotai Strip - billed as the next Las Vegas Strip - are "a low probability," Jacobs said, adding that us$ 1.7 billion of the financing is "already in the ground."

Analysts fear that a possible move by Macau's government to restrict the number of non- resident workers on construction projects could result in cost overruns or project delays for Sands China.

The project, whose first two phases will cost us$ 2.35 billion to develop and is set to open by the third quarter of 2011, will house the world's biggest casino as well as Shangri-La, Traders and Sheraton hotels. They would complement Sands China's three existing Macau casinos, including the massive Venetian Macao.

Analysts say Sands China is their favourite pick among Macau casino stocks due to the firm's aggressive expansion plans and exposure to the mass-market gambling segment, which is more resilient to economic turbulence than the VIP gambling segment.

Sands China, whose rivals include Wynn Macau and Melco Crown Entertainment, reported January-March net profit of us$ 110.51 million versus us$ 26.66 million a year ago. The results were widely expected as Sands China had reported its first-quarter profit of us$ 113.3 million, according to U.S. GAAP standards, last week, together with Las Vegas Sands.

By 0510 GMT, Sands China shares were down 1.4 %, tracking a broad decline in the benchmark Hang Seng index. The stock has risen about 17.5 % this year, underperforming Wynn Macau, which is up by around a fifth.

Yogonet.com / Sharenet

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Lobbying Efforts for USA Online Gambling Over 5 Million
The Internet Gambling Federal Lobbying Report for the first quarter of the year 2010 has revealed that a considerable amount of money is being spent in Washington D.C. to reverse the current prohibition on online gambling activities in America. The BolaVerde Media Group compiled collected data that states 36 different parties spent a combined amount estimated to be around $5.16 million USD.

Harrah's Entertainment Inc. spent the most at an estimated $1.22 million USD. The report went on to explain that Harrah's increased it expenditure on lobbying by 73% from the fourth quarter of 2009. Harrah's Interactive division, located in Montreal Canada operates an online casino and poker room for customers in the U.K. Contributions from the Poker Players Alliance was at $785,000, UC Group at $717,239, U.S. Chamber of Commerce (USCC) at $664,442 with the Interactive Gaming Council at $412,580. The total for the first quarter of 2010 was reduced by 16% since the last quarter of 2009.

The U.S. Chamber of Commerce made a significant 66% cut in its lobby spending over last year's final quarter. The first quarter 2010 Internet Gambling Federal Lobbying Report is full of detailed information that ranks the amount of influence each organization is having on the Federal lawmakers in Washington. Recently Nevada Representative Dina Titus came on board as a supporter of the Bill before the Senate to overturn the ban indicating the land based casinos in Nevada are looking at the possible benefits of online gambling regulations in the States. Commenting on the details of the report by the BolaVerde Media Group, Managing Director Mark Balestra, said, "Anyone interested in the global Internet gambling industry needs to take notice of the bigger picture in the United States, including who is plotting entry and who might be reconsidering their positions, as well as the financial weight being thrown around. In this sense, an evaluation of lobbying strategies and spending trends lends pretty good insight into how things could pan out in Washington."

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Microgaming announces joint venture with 888 Holdings in French market
Microgaming has announced a joint venture with 888 Holdings which, subject to the necessary licence approvals, will deliver a French Poker network that will benefit from a shared pool of player liquidity on a single platform. This venture will see the combination of Microgaming’s world-class software, with 888 Holdings plc first class technological and marketing capabilities to provide a French Poker Network that is aiming to rapidly become established as one of the leading Poker offerings in the French Market.

Gigi Levy, CEO, 888 Holdings plc, comments: “This deal marks a turning point in the industry with big networks collaborating in newly regulated markets to create a shared pool of liquidity, benefiting customers and assisting in rapidly generating large poker networks in each market. Once we have obtained the required licence and the French market is operational this represents a strategic opportunity for us. It provides us with the ideal platform to secure a meaningful market share in France which is set to become one of the key poker markets in Europe.”

“This is an important step in the development of the industry, and marks the start of European regulated companies collaborating in the poker field to increase their competitiveness,” Levy added.

Roger Raatgever, CEO, Microgaming, comments: “We are delighted to be working with 888 to deliver a poker solution to the French market. We look forward to combining our wealth of experience and knowledge to bring the highest global standards to the local market. We are working hard to ensure quick and seamless integration of our software, and are fully committed to the French market, ensuring that we are fully compliant with all French regulatory standards”

Yogonet.com

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