iGaming News all over the world 20.05.2010

20.05.2010, Macau casino revenue rises by 90% / Increased Taxes and Regulated Online Betting Coming to Ireland / Finland's RAY Contracts Playtech for Online Gambling Launch / Microgaming and Betware Strike Marketing Deal

Macau casino revenue rises by 90%
Macau casino gambling revenue for the first two weeks of this month probably increased by 90 % to us$ 1.12 billion from a year earlier, according to CLSA Ltd, an independent brokerage and investment group in Asia

It looks like some of the casino operators are significantly increasing their working capital,” or the amount lent to junket operators, who are paid commissions to bring in high rollers, CLSA analyst Aaron Fischer said in a note to clients yesterday. Macau in 2006 surpassed Las Vegas as the world’s biggest gambling center by revenue.

Revenue growth for casinos in the only Chinese city where they are legal is accelerating, rather than slowing down because of the “tightening” in China, Fischer said. Compared with the first two weeks of April, gambling revenue in Macau increased by 40 %, according to his estimates.

The city’s casino gambling revenue in April rose about 70 % from a year earlier to more than US$ 500 million, Portuguese news agency Lusa reported, citing data from the casino operators. Macau gambling revenue was up 57 % in the first quarter to about us$ 5 billion, according to the city government, which doesn’t release monthly figures.

China last month imposed a ban on loans for third-home purchases and raised mortgage rates and down payment requirements. The central bank this month ordered lenders to set aside more deposits as reserves for a third time in 2010. Tighter monetary policies make it more difficult for junket operators, who also provide credit to their clients.

SJM Holdings Ltd., the casino operator with the largest market share in Macau, rose 6.2 % to close at us$ 0.62 in Hong Kong, the biggest gain since March 30, while the benchmark Hang Seng Index fell 1.8 %. The stock has gained 19 % this year compared with a 10 % fall for the benchmark. SJM, controlled by billionaire Stanley Ho, yesterday said first-quarter profit rose more than fivefold to us$ 97.4 million on increased revenue from high rollers.

SJM “is gaining market share consistently,” Morgan Stanley analysts Praveen Choudhary and Corey Chan wrote in a note to clients today. “First quarter is seasonally the weakest; thus full-year 2010 should be at least higher than annualized first quarter.”

Sands China Ltd., Asia’s biggest casino operator by market value, fell 3.9 %, paring its gain this year to 8.5 %. Wynn Macau Ltd. declined 5.6 % today and has risen 13.5 % in 2010.

Yogonet.com / Business Week / Bloomberg / Betasia

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Increased Taxes and Regulated Online Betting Coming to Ireland
Ireland has been attempting without much success for some time now to change the old laws regarding it's gambling industry in the country. Ireland is facing a situation of under funding and falling attendance within their horse racing industry, that is very much like the failing horse racing industry in America. Revenue is needed to prop up the horse racing industry and in America some states have increased revenues by adding slot machines and other gambling venues to the attractions available at the track. At a recent dinner put on by The Irish Field racing newspaper Irish Prime Minister, Brian Cowen, indicated in his speech that he has a solution for the ailing horse racing industry advocating the taxation of online gambling operations and the introduction of a regulatory licensing system of offshore wagering sites. Cowen said, “Such betting must be brought within the tax net, not just because it will increase revenue, but also because it will mean that those currently not contributing to securing the future of important indigenous industries will now make that contribution.”

Online gambling operators are unsure of the repercussions involved with these sorts of proposals. Those operators who are already in Ireland and providing jobs that contribute to Ireland's overall economic prosperity fear these changes in the tax laws will unfairly target them. Two online gambling operators William Hill and Ladbrokes both moved their home operations to Gibraltar, and out of the UK. The move was made because of the high tax rate that William Hill and Ladbrokes were paying in the UK and since the move, both companies have seen dramatic increases in profits. With the proposed changes of increased tax levies and the registration of offshore companies in Ireland it is estimated that 90 million euro in extra revenues would be generated helping top up the Irish Horse and Greyhound fund.

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Finland's RAY Contracts Playtech for Online Gambling Launch
Finland's monopoly state gambling operator Rahaautomaattiyhdistys RAY has announced it has awarded Playtech a four-year contract to provide RAY with internet software for an online casino and poker room Finland's RAY plans to offer soon. RAY spokesperson Tuula Lehto said earlier this year that the purpose of the company’s new online business is to provide a " national, reliable and responsible alternative for Finnish players." Finland’s monopolies have major support in the country, where they are often seen as more accountable than private operators, and with any profit collected by the state staying within Finland. Established in 1938, RAY currently has 19,000 slot machines in roughly 8,400 locations across Finland, together with 300 club-based casino games, and Finland's only casino, the Grand Casino Helsinki. Its 2009 revenue totalled €651m. As well as RAY and Veikkaus Oy, Finland’s other gambling monopoly is Fintoto, which offers racing betting, while Finland’s semi-autonomous Åland islands also have a gambling monopoly.

In February 2010 the Finnish Government confirmed an amendment to RAY's gaming licence which enabled it to launch an online gaming offering in addition to its existing slot machines and casino games monopoly. Under the terms of the contract, RAY's interactive offering will include casino games utilizing Playtech's EdGE gaming platform as well as a mobile gaming capability. Poker players will enjoy a multiplayer poker room with both cash and tournament games on an exclusive local network.

CEO of Playtech, Mor Weizer, said, “This important agreement is further evidence as to the superiority of our product and the success of our stated strategy in soon-to-be- regulated markets,” “We have longstanding experience of helping land-based operators develop highly successful and complimentary online offerings. I am delighted that RAY has recognised our unparalleled credentials and chosen to partner with us. RAY is an extremely experienced operator and very highly respected by Finnish players and the community as a whole,” Executive Director of gaming operations at RAY, Janne Peräkylä, commented, “Through our formal tender process it was clear that Playtech not only satisfied all requirements but had the best solutions for these challenges. We are looking forward to starting this new business with Playtech.”

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Microgaming and Betware Strike Marketing Deal
Betware has a long history in gaming, created in 1996 Betware Ltd. manufactures and distributes games and software for sports betting, lottery, Internet, and casino games. The company’s products include casino games such as blackjack, video poker, roulette, craps, and slots; and lottery games such as classic lotto, bingo, and keno and it's products are constantly researched and developed to keep up with industry trends. Betware's headquarters are based in Iceland with regional offices in Denmark, Spain, Poland and Canada. The company bought Danish game developer Certus in 2006. Based in Odense, Denmark, Certus develops skill games for the web and mobile phones. The synergy between the two companies results in an outstanding portfolio of over 100 games. Betware announced recently an agreement with Microgaming to sell their market leading Casino games on top of its existing platform, to state lotteries. Microgaming, defined as the world’s largest supplier of online gaming software granting Betware an opportunity to supplement its growing suite of lottery, sports betting, bingo, racing, skill and casual and multiplayer games accessing over 85 casino games from the Microgaming portfolio, representing a unique offering for state lotteries.

Chief Executive Officer and Managing Director at Betware, Stefán Hrafnkelsson, commented, “We are very proud and excited to be licensed to sell and market Microgaming’s casino games to growing markets. This agreement significantly expands our product offering, and provides our customers with a great opportunity to leverage on the fantastic success of the Microgaming brand. Ultimately we believe that this venture will not only be beneficial for the state lotteries we service, but for both ourselves and Microgaming too.” Microgaming's Chief Executive Officer, Roger Raatgever, “We are delighted to be able to license our casino games to Betware, which is truly a market leader in its field. Betware’s long history in gaming combined with its extensive lottery network will be beneficial in pushing the Microgaming brand into exciting new territories and markets. We look forward to a long and successful working relationship.”

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