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Gambling News by House of Odds
Thursday, August 31, 2006
Megaresort Planned for Sands Site
As reported by the Press of Atlantic City: "The buyer of the Sands Casino Hotel likely will tear down the existing casino to make way for a $1 billion megaresort that would take about three years to build, according to a gaming analyst. "Attorneys for the Sands' owner, billionaire investor Carl C. Icahn, have confirmed that negotiations are under way to sell the casino, but have not yet disclosed the names of potential buyers. "Gaming analyst George L. Smith III of Davenport & Co. said Las Vegas-based Pinnacle Entertainment Inc. appears to be the front-runner for the Sands. Pinnacle has been looking for other ways to enter the Atlantic City market after losing out in May to Columbia Sussex Corp. in a $2.75 billion bidding war for Aztar Corp., parent company of Tropicana Casino and Resort. ".Smith added that Pinnacle probably would demolish the aging Sands to build a new casino. Icahn's American Real Estate Partners investment group recently acquired oceanfront property next to the Sands that could be combined with the existing casino site for a $1 billion megaresort, Smith noted. ".Demolition of the Sands likely would put most of the casino's approximately 2,000 gaming and hotel employees out of work while construction continued for three years on the new resort."
As reported by the Toronto Star: "It's not unusual to have people walk into the Ontario Lottery and Gaming Corporation office and ask for millions - but rarely two at the same time. "Anne Gray and her husband Michael Psaki had alerted the lottery staff that they would be coming to the Dundas St. office to claim their $10.8 million prize at 11 a.m. yesterday. At the same moment, unexpectedly, Antonio Arrojado and his family walked into the office with a winning $9.1 million ticket. "'This is rare,' said Teresa Roncon, the senior manager of public relations at the lottery corporation. ".Gray, 46, and Psaki, 54, have known for more than two weeks they were millionaires. On Aug. 12, their ticket was one of four that split the $43 million Lotto 6/49 pot. "As for Arrojado, 'life is going to be a lot easier, he said. The winning number was drawn Aug. 19, but the construction worker didn't realize his Lotto 6/49 ticket was a winner until last Friday. He rushed in yesterday to collect his prize."
Hungry to release its highly anticipated Mixed Martial Arts (MMA) reality series, BodogFight, digital entertainment powerhouse Bodog.com has wrapped filming in the jungles of Central America and the debut episode of the action-packed weekly series is scheduled to air September 12 on Men's Network, a Dish Network satellite channel, and online at Bodog.TV. In an onslaught of head-to-head bouts, Bodog.com's billionaire Founder, Calvin Ayre, has set the stage for the toughest fighters in the world to showcase their talents. In the eight-episode series, seven elite modern-day American warriors will earn the right to represent the United States. As part of "Team America", the seven fighters will square off against members of the Russian Red Devil Sports Club, which is known for its fierce roster that includes world heavyweight champion Fedor Emelianenko. This USA vs. Russia grudge match will be broadcast live on pay-per-view in November and will include three Superfights. Viewers will get a behind-the-scenes look at the secret training regimen of the elite Russian squad as well as the individual training programs and lifestyles of the American fighters all through the eyes of BodogFight's special agents - rock phenomenon Bif Naked in the United States and her beautiful Russian counterpart Natalia Vilakova. The sexy duo will be on a quest to find the toughest, most ruthless Mixed Martial Arts athletes the two countries have to offer. Plus, audiences are going to be treated to up close and personal experiences with fighters as they prepare to enter the ring, and spectacular training and interview footage shot in the lush Central American jungle and rustic Costa Rican cities - visuals that will leave no doubt BodogFight has set the new standard for reality TV. "As each episode of BodogFight airs, viewers are going to witness firsthand why we are emerging as a dominant force in mainstream digital entertainment," says Calvin Ayre, creator of a number of reality television series and Founder of Bodog.com Entertainment Group. "The footage capturing the lives, personalities and grueling training regimens of each athlete can only be described as raw and riveting. Bodog has captured the essence of Mixed Martial Arts as a sport and lifestyle for the world to see."
Elimination battles, behind-the-scenes training, interviews with fighters, and lifestyle segments will compose seven of the weekly one-hour "BodogFight" episodes, with the recap finale leading into the PPV main event. The three massive super fights and the spectacular USA vs. Russia event will be produced by the Mixed Fight Championship (MFC) and sponsored by BodogFight.
Culminating a summer of special tournaments, prizes and parties, Aces.com will host a gala Movie Premiere Party in Hollywood October 7th to celebrate the release of ACES the Movie, the sexy new poker movie sponsored by the retro-Vegas-style online casino. Tournament and contest winners will win all-expense-paid trips to the party, and hundreds of L.A. area Aces.com players will be invited to join the director and cast at Vanguard Hollywood, one of the biggest dance clubs in Los Angeles. Organized by Hollywood party producer Alex Quinn, this Aces party is sure to be an A-list crowd. ACES the Movie, from Rolling Stones video director Daniel Zirilli, is the story of three sexy college girls that take a high tech cheating scheme to the underground card rooms of Las Vegas. It will be released on DVD by Warner Brothers October 3rd but new players registering at Aces.com will receive a free copy. In all, five lucky players will win an all-expense paid trip to the gala movie premiere. Two party prize packages were awarded to Wednesday Night Free Roll Tournament winners in July and another two will be awarded September 13th and 20th. The winner of the Three-Card Poker Tournament September 11 - 18 will also win airfare and accommodation to attend the event. "It's an incredible time for Aces.com - with the movie and the new re-designed site, we're really in the mood to celebrate!" said Rene Quesada Manager of the long-established site that recently underwent a total makeover. "We've had a lot of fun with the girls from the movie - hosting our online tournaments and making special appearances at the WSOP last month. It'll be great to have them all together again in Hollywood!"
Alex Quinn, son of Oscar-winner Anthony Quinn, is known for throwing exclusive invitation-only Hollywood parties.
"What Alex Quinn has done so far is beyond FAB," says Courtenay Semel, daughter of Yahoo CEO Terry Semel and Quinn's cohort on the E! reality show 'Filthy Rich: Cattle Drive'. "His parties are glam and chic, not to mention filled with hotness. They're only going to become more exclusive and the talk of the town. AQ Presents = tres sass to the millionth degree."
The cavernous 20,000 square foot Vanguard Hollywood is one of L.A.'s biggest, trendiest dance clubs - the most technologically advanced and sophisticatedly designed venue in the United States. One Hollywood party-scene blogger says it has a ".frightening mofo light and FX rig on ceiling! Massive sound system that will actually compress your brain with avalanches of bass!"
Tribeca Tables Europe Ltd, the leading providers of comprehensive ePoker solutions has announced that Sporting Index have joined the Tribeca Tables Poker Network, the world's largest aggregator of ePoker brands. Sporting Index, the world leaders of sports spread betting having captured approximately 70% of the UK market, have chosen the Tribeca platform ahead of other poker vendors due to Tribeca's long standing reputation and position in the poker industry. Tribeca represents the best choice of poker vendor going forward with their in-depth poker knowledge and expertise. Steve Cook from Tribeca Tables said, "We recognize Sporting Index's unique position in the spread betting market and many of their customers have a very close synergy with poker. Sporting Index will be able to take advantage of the lucrative poker market with their extensive customer base. Everyone at Tribeca is extremely pleased to welcome them onboard. They are a significant signing for us and we look forward to their launch around mid September". Warren Murphy, Sales & Marketing Director, from Sporting Index said, "Sports spread betting maximises people's interaction with sporting events and dominates all other forms of betting in the provision of "in-play or in-running" betting. The challenge, interactivity and excitement generated by Poker is a natural extension of our offer. Our partnership with Tribeca will solidify our reputation as World Leaders in the provision of highly involving betting and gaming content".
Sporting Index join many prestigious brands in the Tribeca network such as Paddy Power, Blue Square, Victor Chandler, Golden Palace, Doyles Room, G-Fed Games, Bowmans and USbets. Tribeca now boosts over 150 poker and lifestyle brands and they are now considered to offer one of the best poker room environments. Their impressive client portfolio speaks volumes for its growing reputation in the poker industry and Tribeca are one of very few choices left in the market as a poker vendor that do not own or promote any in-house brands.
The Tribeca poker network frequently has over 12,000 players online simultaneously and regularly updates the network with new features. Steve Cook added, "We are constantly adding new software functionality and games. We are very excited to announce that we will be releasing shortly a new game designed by Tribeca called "HoldemWarz". A wacky fixed odds shoot-out betting game for those that need an adrenalin rush! As well, we are releasing a series of casino side games; foreign language clients, a new custom avatar feature for players to upload their own pictures, graphics and text; a new play again STT feature; a seat rotation function and many more new enhancements. We are also completing our poker software integration with several other large brands and we will be releasing further details in due course."
Bond Star Gets the Gambling Bug After Casino Royale Role
As reported by the (UK) Express: "New James Bond actor Daniel Craig has added gambling to his range of 007-inspired skills. "The 38-year-old star, who had to learn how to drive a high-powered car and handle a gun convincingly for his Bond debut, revealed he has now become a card-sharp. "Craig was taught to play a plausible hand of poker during the filming of gambling scenes in the forthcoming 007 movie Casino Royale. "In one casino scene, Bond has to ruin the arch villain by bluffing him at the poker table. And Craig enjoyed learning how to play poker so much he has taken to the game in his spare time as well. "...British card player John Duthie, who has made £1.5million from poker, was asked to advise on the gambling scenes. He said Craig not only had to learn the game but also had to look convincing playing it..."
As reported by the Yuma Sun: "After more than a year of feeling like the ball in a political pingpong game, the Quechan Tribe appears on the brink of securing a new gambling agreement. "The California State Assembly voted 50 to 1 last week to ratify a new compact with the Quechan Tribe that sets regulations under which the tribe can build and operate a new casino. The legislation is scheduled to go to the Senate floor today, where it could receive its final state approval. "After Senate approval, the compact must be submitted to the U.S. Department of Interior for final approval, which Felix Montague, chairman of the tribe's construction committee, said he expects to 'be a formality.' "Quechan Tribal President Mike Jackson Sr. said on Monday that he's been told by Senate leadership the bill likely will pass. "The tribe needs the new compact with the state of California to construct a proposed casino and resort off Interstate 8 at the Algodones exit."
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As reported by the Rhode Island Providence Journal: "A memorandum of understanding signed this spring by the Mashantucket Pequots and MGM Mirage, the publicly traded gaming colossus, lays out a plan for possibly more casinos in southeastern Connecticut, elsewhere in Indian Country, in Atlantic City or on the Las Vegas strip. "The Mashantuckets and MGM envision, in addition to the $700-million expansion already under way at Foxwoods, the potential for more new casinos on the Connecticut reservation using MGM brand names and other nongaming, destination-resort development along Route 2 in North Stonington. "The tribe announced its intention to partner with MGM in April. The memorandum, released by the state Division of Special Revenue in response to a Freedom of Information request by The Day, includes these provisions: "The Foxwoods expansion, scheduled to open in 2008, will get an MGM brand name, probably MGM Grand. The Mashantuckets will have access to additional MGM casino hotel brand names for future expansions.
".MGM and the Mashantuckets will establish a new entity, jointly owned, that could develop casino resorts all over the country, including the Las Vegas strip. A specific 14-acre site in Atlantic City now owned by MGM is one location mentioned as a possibility.
".The National Indian Gaming Commission, which is required to approve anything considered to be a management contract with an Indian tribe, is also reviewing the Mashantucket/MGM memorandum, a spokesman said."
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The National Indian Gaming Commission (NIGC) is undertaking changes to its website to address reliability and security issues. In addition, the NIGC has recently been the victim of website hackers. This incident has in no way compromised the content of NIGC's website or our networks and the Commission is moving swiftly to resolve this issue. The NIGC website was cosmetically defaced, which means the hackers inserted their materials in front of NIGC's homepage by breaching NIGC's current hosting company's security measures. With anticipation of continued increase in usage of the website, the Commission is in the process of relocating the website to another hosting company that possesses additional security against such attacks. This transition should be complete next week.
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As reported by the Argus Leader: "Circuit Judge Max Gors ordered state officials Monday to add an explanation to November's ballot about the repeal of video lottery, putting the tax loss of $112 million into the context of the state budget. "Gors, in a 12-page order, said no one disputes that the loss of video lottery would cost the state $112 million. But he told Attorney General Larry Long, who wrote the ballot explanation, to add a phrase that points out the amount is 11 percent of the state's general fund. ".Long said his office is satisfied with that decision. ".Long is required to write brief explanations about the purpose and effect of each ballot measure. Supporters of the gambling repeal complained that Long's inclusion of the amount of money that could be lost, $112 million, was the equivalent of sticker shock without some context. "Ending the video lottery case and a challenge to another ballot explanation that is in the state Supreme Court will clear the way for ballots to be printed."
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As reported by Reuters: "The clean-up is mostly complete and business is brisk at the beachfront casinos, but a year after the devastation wrought by Hurricane Katrina, Biloxi is still struggling to get back on its feet. "...A year of uncertainty over new building codes and the anaemic local economy have prompted long-time residents to considering leaving the city, especially since government funds to help rebuild houses have only trickled in. "...Most of the pre-storm population of about 50,000 has returned, city officials aid, and the state government has recently begun distributing federal funds to rebuild homes. "...Mississippi loosened casino restrictions in the aftermath of Katrina, allowing more land-based facilities to help replace revenues lost when the storm ravaged the giant floating gambling barges that once dotted the coast. "Tax receipts from the casinos, which contributed more than a third of Biloxi's $50 million in annual revenues, have rebounded to pre-storm levels in recent weeks, and the city is hoping to more than double the number of gambling houses to 20 facilities in the next decade.
"More important are the 15,000 jobs the casinos generated before the storm. Nearly 10,000 of those jobs have returned, and the re-opening of the Beau Rivage scheduled for the August 29 anniversary of Katrina will add more than 1,000 to that..."
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Sheriff Proposes Casino Cameras Cover Las Vegas Strip
As reported by the Associated Press: "Clark County Sheriff Bill Young is pushing for the gambling industry to install and manage an expanded surveillance camera system on the Las Vegas Strip that could film robberies, fights and other crimes and alert police immediately. "'For a very reasonable investment, I think we can provide a much more secure net to encompass the entire tourist corridor,' Young told the Las Vegas Review-Journal. "Young estimated it would cost about $3 million to get the program involving about 120 surveillance cameras up and running, not including operational costs. "'The idea would be to expand on what they have now. None of the cameras would be on public property; they would all be on private property,' he said, adding, 'We'd all benefit from it.' "Several casino companies said they wanted more information on Young's proposal..."
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As reported by the Yuma Sun: "After more than a year of feeling like the ball in a political pingpong game, the Quechan Tribe appears on the brink of securing a new gambling agreement. "The California State Assembly voted 50 to 1 last week to ratify a new compact with the Quechan Tribe that sets regulations under which the tribe can build and operate a new casino. The legislation is scheduled to go to the Senate floor today, where it could receive its final state approval. "After Senate approval, the compact must be submitted to the U.S. Department of Interior for final approval, which Felix Montague, chairman of the tribe's construction committee, said he expects to 'be a formality.' "Quechan Tribal President Mike Jackson Sr. said on Monday that he's been told by Senate leadership the bill likely will pass. "The tribe needs the new compact with the state of California to construct a proposed casino and resort off Interstate 8 at the Algodones exit."
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As reported by the Rhode Island Providence Journal: "A memorandum of understanding signed this spring by the Mashantucket Pequots and MGM Mirage, the publicly traded gaming colossus, lays out a plan for possibly more casinos in southeastern Connecticut, elsewhere in Indian Country, in Atlantic City or on the Las Vegas strip. "The Mashantuckets and MGM envision, in addition to the $700-million expansion already under way at Foxwoods, the potential for more new casinos on the Connecticut reservation using MGM brand names and other nongaming, destination-resort development along Route 2 in North Stonington. "The tribe announced its intention to partner with MGM in April. The memorandum, released by the state Division of Special Revenue in response to a Freedom of Information request by The Day, includes these provisions: "The Foxwoods expansion, scheduled to open in 2008, will get an MGM brand name, probably MGM Grand. The Mashantuckets will have access to additional MGM casino hotel brand names for future expansions.
".MGM and the Mashantuckets will establish a new entity, jointly owned, that could develop casino resorts all over the country, including the Las Vegas strip. A specific 14-acre site in Atlantic City now owned by MGM is one location mentioned as a possibility.
".The National Indian Gaming Commission, which is required to approve anything considered to be a management contract with an Indian tribe, is also reviewing the Mashantucket/MGM memorandum, a spokesman said."
--- [This E-mail scanned for viruses by Tradebooster Anti-Virus]
The National Indian Gaming Commission (NIGC) is undertaking changes to its website to address reliability and security issues. In addition, the NIGC has recently been the victim of website hackers. This incident has in no way compromised the content of NIGC's website or our networks and the Commission is moving swiftly to resolve this issue. The NIGC website was cosmetically defaced, which means the hackers inserted their materials in front of NIGC's homepage by breaching NIGC's current hosting company's security measures. With anticipation of continued increase in usage of the website, the Commission is in the process of relocating the website to another hosting company that possesses additional security against such attacks. This transition should be complete next week.
--- [This E-mail scanned for viruses by Tradebooster Anti-Virus]
As reported by the Argus Leader: "Circuit Judge Max Gors ordered state officials Monday to add an explanation to November's ballot about the repeal of video lottery, putting the tax loss of $112 million into the context of the state budget. "Gors, in a 12-page order, said no one disputes that the loss of video lottery would cost the state $112 million. But he told Attorney General Larry Long, who wrote the ballot explanation, to add a phrase that points out the amount is 11 percent of the state's general fund. ".Long said his office is satisfied with that decision. ".Long is required to write brief explanations about the purpose and effect of each ballot measure. Supporters of the gambling repeal complained that Long's inclusion of the amount of money that could be lost, $112 million, was the equivalent of sticker shock without some context. "Ending the video lottery case and a challenge to another ballot explanation that is in the state Supreme Court will clear the way for ballots to be printed."
--- [This E-mail scanned for viruses by Tradebooster Anti-Virus]
As reported by Reuters: "The clean-up is mostly complete and business is brisk at the beachfront casinos, but a year after the devastation wrought by Hurricane Katrina, Biloxi is still struggling to get back on its feet. "...A year of uncertainty over new building codes and the anaemic local economy have prompted long-time residents to considering leaving the city, especially since government funds to help rebuild houses have only trickled in. "...Most of the pre-storm population of about 50,000 has returned, city officials aid, and the state government has recently begun distributing federal funds to rebuild homes. "...Mississippi loosened casino restrictions in the aftermath of Katrina, allowing more land-based facilities to help replace revenues lost when the storm ravaged the giant floating gambling barges that once dotted the coast. "Tax receipts from the casinos, which contributed more than a third of Biloxi's $50 million in annual revenues, have rebounded to pre-storm levels in recent weeks, and the city is hoping to more than double the number of gambling houses to 20 facilities in the next decade.
"More important are the 15,000 jobs the casinos generated before the storm. Nearly 10,000 of those jobs have returned, and the re-opening of the Beau Rivage scheduled for the August 29 anniversary of Katrina will add more than 1,000 to that..."
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Sheriff Proposes Casino Cameras Cover Las Vegas Strip
As reported by the Associated Press: "Clark County Sheriff Bill Young is pushing for the gambling industry to install and manage an expanded surveillance camera system on the Las Vegas Strip that could film robberies, fights and other crimes and alert police immediately. "'For a very reasonable investment, I think we can provide a much more secure net to encompass the entire tourist corridor,' Young told the Las Vegas Review-Journal. "Young estimated it would cost about $3 million to get the program involving about 120 surveillance cameras up and running, not including operational costs. "'The idea would be to expand on what they have now. None of the cameras would be on public property; they would all be on private property,' he said, adding, 'We'd all benefit from it.' "Several casino companies said they wanted more information on Young's proposal..."
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The Harrah's casino in Reno expects to see one of its regulars in the next few days. But this man won't receive the typical welcome when he walks through the door. Instead, a Harrah's casino manager will approach him and bring up an unpleasant topic: recent comments the man made to a casino host about refinancing his house and gambling with his retirement money. After expressing concern, the manager will give the man a problem-gambling hotline number and a chance to enter himself into a database that will stop mailers from being sent to his home, among other self-help services. The unidentified man is an unwitting participant in a program that casino giant Harrah's Entertainment implemented several months ago that is believed to be the first and most aggressive problem gambling effort of its kind in the country. The "ambassador" program - taking its name from the casino managers charged with approaching gamblers with information about programs many casinos have offered for years - has captured the attention of problem gambling treatment experts normally skeptical of casino efforts to help compulsive gamblers. Casinos in Nevada and many other states are required by law to post problem gambling hotline numbers, offer self-help pamphlets and educate casino workers about warning signs. Harrah's also allows gamblers to sign up on a "self-exclusion" list that applies to all of its casinos nationwide. These efforts, which acknowledge problem gambling as a legitimate mental health disorder similar to alcoholism, require gamblers to take the first step themselves. The Harrah's program is different, experts say, because it requires workers such as dealers and cashiers to notify a manager if they believe a person has a gambling problem. The manager then calls the "ambassador" on duty to handle the touchy task of sitting down with the customer. Competitors say the responsibility to help gamblers already lies with every rank-and-file employee on the casino floor as part of state-mandated training programs.
In reality, problem gambling advocates say, workers are being told about the disease but are rarely taking the initiative to intercept people on the casino floor.
"Frankly, there's a lot of lip service at the corporate level that doesn't get translated down to the employees," said Keith Whyte, executive director of the National Council on Problem Gambling. "I can't tell you the number of times I've gone into a casino and have found brochures tucked away and employees who don't know what their responsibilities are. There's a difference between having a program and making sure employees are comfortable enough to take action."
Previously, workers didn't feel at ease approaching people who probably needed help, said Andy Donato, a casino supervisor at Harrah's Reno and one of about 700 "ambassadors" who have volunteered for the added responsibility nationwide.
"This program reassures them ¦ that we really believe in this," Donato said.
The program requires employees to take action based on what a person says. Casinos and some treatment experts believe that unless a gambler's behavior is over the top, words are a more definitive indicator of a person's mental state.
There aren't any specific "trigger" phrases - that's left to employees' judgment. Workers receive several hours of training that includes watching instructional videos with interactions between employees and distraught customers.
"We don't want to shoehorn them into a box so that they're thinking, 'If I don't hear this phrase then I don't need to help the person,' " said Harrah's spokesman David Strow.
So far, about two to three such conversations have occurred at each Harrah's property per month. Gamblers don't appear to be resisting efforts to strike up a conversation, though in some cases, ambassadors find that the best time to approach them is not right away but after the person has had time to cool off from his last gambling session.
Some appreciate the information and concern but do not appear to need help, while others have been referred to treatment as a result of the program, Strow said.
Donato said he received input from outside problem gambling and human resources experts on how to approach people in a friendly way without making them feel defensive or combative.
For example, a Harrah's manager might approach a gambler and suggests a "timeout" over a drink or a meal.
"I've been with Harrah's almost 30 years, and over the years you hear all sorts of statements, like, 'My wife is going to kill me when I go home' to 'I'm having a bad day, I never should have come here,' " Donato said. "It's not easy to evaluate without talking to the person directly whether the person is serious."
Henry Lesieur, a staff psychologist at Rhode Island Hospital's gambling treatment program and one of the nation's foremost treatment experts, calls the effort "one of the most thought-out programs I've seen" from a casino company.
Lesieur, who co-authored the first definition of problem gambling included in the American Psychiatric Association's diagnostic manual, said discussing self-help schemes with gamblers in the casino is an "improvement." However, he questions Harrah's commitment to maintaining a growing "watch" list documenting conversations and outcomes involving hundreds, even thousands of gamblers for years to come.
The program also is not going to catch each gambler who tries to re-enter casinos after requesting that they be excluded or refused service from Harrah's properties, he added.
Some problem gambling experts are skeptical that the program will make a difference for gamblers in the throes of addiction.
Robert Hunter, clinical director of the Problem Gambling Center in Las Vegas, said Harrah's may have trouble reasoning with addicts in a gambling environment.
"If someone at a bar has had too many drinks, that's not the time to talk to someone about their drinking," Hunter said. "I see folks who've already crossed the line into addiction. For them, this is not going to be much help. That said, I support any efforts to get people into recovery."
Carol O'Hare, director of the Nevada Council on Problem Gambling, says the program still represents a "big step" for the industry because it aims to help people before they hit bottom.
Lesieur says the program is a sign that the industry is willing to face its Achilles heel head-on rather than be pummeled by critics.
Strow said the effort resulted from a policy of continuous evaluation and improvement based on new research. It is not a knee-jerk reaction or an admission of inadequacy of past programs, he said.
Lesieur, though, said the program does not go far enough.
The responsibility to be more proactive lies with state governments, not Harrah's, he said.
"Harrah's is in the business of making money," he said. "I don't expect them to have a hard sell. If any education of gambling is to be done, it needs to be done by the state."
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As reported by the Tulsa World: "State Indians' spending on issues representation has soared since the start of this decade. "Oklahoma's American Indian tribes are scoring political points with a significant increase in spending on federal lobbying. "According to the U.S. Senate Office of Public Records disclosure statistics, 13 of Oklahoma's 38 tribes reported that they paid lobbyists a total of about $1.17 million in 2005. "That's up from five tribes that paid less than $90,000 in 2000 -- at least a 13-fold increase in Indian lobbying in five years. The Center for Responsive Politics estimates the total spending on American Indian lobbying nationwide at $2.2 billion. ".The biggest tribes aren't spending the most money, however. For 2005, the 16,000-member Osage Nation reported spending $380,000 on lobbying while the 38,000-member Chickasaw Nation reported spending $250,000. ".With Indian gaming revenues at a total of $22 billion a year, the tribes' investment in the mechanisms of politics is skyrocketing. "The changing political focus of the tribes comes in part from gaming revenues, but it also has roots in changes made in federal law about 30 years ago, one chief said."
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Research guru Jim Medick doesn't want to rub it in. But it's difficult for him not to say, "I told you so," after a handful of major gaming companies have blamed rising gasoline prices for lackluster profit growth at lower-rent properties frequented by budget-conscious tourists. Tourism honchos had disputed results of a controversial telephone survey of Southern Californians that Medick's MRC Group conducted last September showing that gas prices were closely correlated with trips to Las Vegas. Prior to somewhat disappointing second-quarter performance figures, gaming giants and the Las Vegas Convention and Visitors Authority were asserting that gas prices and other national economic concerns were not affecting business. Medick's telephone survey of Vegas travelers told a different story, that rising gas prices were significantly cutting into travel plans over other activities such as going to the movies or the mall. In fact, close to half of the respondents said they had cut back on trips to Las Vegas as a result of higher gas prices. Drivers also were asked at what point they would stop driving to Las Vegas, a question based on the assumption that most folks have a limit. About half of drivers said they would stop driving to Vegas if prices hit $3.50 per gallon and about 80 percent would stop if gas reaches $4.33 per gallon. With the LVCVA reporting a 2 percent decline in visitor traffic in June and the state noting a 7 percent drop in Strip casino revenue for the month - the biggest dip in three years - even Gov. Kenny Guinn admitted that "an economy based so much on tourism is always at the mercy of higher gas prices and a slowing of the economy." What does Medick make of all this?
"I have a saying: 'Never be afraid to stand up for what you believe in but always be prepared to duck,' " he said. "With this survey, I was ducking."
. . .
A prime piece of resort land is in play - again - on the Strip.
An investment group including Starwood Hotels & Resorts Worldwide, Edge Group, Tristar Capital and RFR Holding picked up 63 acres of land just east of Interstate 15 and behind Mandalay Bay for about $202 million in May. It's now on the market for more than $400 million.
Investors say they had plans for a large, mixed-use project on the parcel - one of the largest assembled on the Strip. It made sense: Development costs are forcing operators to build projects with large numbers of rooms - including condos that can be sold upfront to help finance construction.
But it's hardly a slam dunk.
Rising development costs continue to delay major Strip projects, which could mean more land resold for a quick profit in the months to come as resorts prove to be less profitable, real estate experts say.
Even well-known groups could have problems trying to pencil out profits and secure financing for multibillion-dollar projects on the Strip, they say.
"We think people are buying land in the hope that the larger fish are going to assemble bigger parcels down the road," said luxury residential broker Bruce Hiatt. "I also think we're going to see a shrinkage of projects, which we want to see because it changes our supply-demand balance in a favorable way."
Seller and investment partner Adam Frank of Edge Group, who is building Las Vegas' first W hotel at Harmon Avenue along with Starwood, says they're not in the business of flipping land. Rising development costs did not factor into the decision, either, Frank said.
The Russell Road site was under contract well before the company picked up 25 acres in June next door to its W project, the site of the failed Las Ramblas condo resort complex, he said.
"To make this work you have to have a lot of density," Frank said. "Now that we've got 50 contiguous acres, it allows us to do that at the W site. It's more logical for us to focus all our energy in one place."
. . .
Paging Little Richard, Frankie Avalon and Debbie Reynolds ¦
In an era of rising prices, Coast Casinos regulars are wondering about the future status of Coast's slot club - a program that lets low-rollers rack up freebies - as well as its stable of lower-priced vintage acts.
Parent company Boyd Gaming Corp. has made it clear that the company, which is buying out Coast boss Michael Gaughan in exchange for his purchase of the South Coast, isn't planning on changing things much at the remaining four Coast properties that Boyd owns: the Barbary Coast, Gold Coast, Suncoast and Orleans.
But some Coast-goers remain suspicious of changes on the horizon once Coast founder Gaughan - who built his reputation on serving "the little guy" - is out of the picture.
Boyd President Keith Smith says not to worry.
"Michael stepping away from the business really doesn't change anything, from our entertainment policies to our slot club policies to our promotional policies," Smith said. "That said, every morning you wake up and the world has changed. We have no planned changes for how we operate that business, but maybe there are some opportunities for us to further integrate the properties."
That could include streamlining purchasing for all properties and, more important for customers, integrating the Boyd and Coast slot clubs. Boyd now has separate clubs for each of its non-Coast properties.
Boyd is likely to fold the club for Sam's Town - the only big locals property Boyd owned outside of the Coast chain - into the Coast club program.
"That makes the most sense to do quickly," Smith said.
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As reported by the Arizona Central: "Russell Green's wife gave him a hard time when he whipped out a video camera recently to capture his youngest daughter's first day of kindergarten. All the parents were doing it. "The excitement Green felt that day was a far cry from his anxiety a year ago, when Hurricane Katrina drained his bank account, separated him from one of his daughters and sent his family hopscotching their way to Arizona from Louisiana. ".Green, a sous chef, found work at Harrah's Ak-Chin Casino in Maricopa, which reached out to several families displaced by the disaster. A couple of people have returned to New Orleans, but about 20 have stayed, Harrah's spokeswoman Susan Baker said. "He said he hopes improvements will come soon for people living outside of the French Quarter. ".Cheryl Bernard agrees. One of Green's co-workers at Harrah's, Bernard visited New Orleans in February and has no desire to go back. ".Even though she is without her close-knit family, Bernard said she is happy here. She calls Arizona home."
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As reported by The Korea Times: "A hundred and sixty senior citizens have launched a nationwide campaign to root out gambling. "The members of the National Council for Upgrading Korea held a press conference yesterday at the New Kukje Hotel in Seoul proclaiming a war against gambling, criticizing the current situation where Korea is being labeled as a 'Gambling Republic' instead of 'a developed country.' "It has decided to create a citizens' group with other civil organizations, help gambling addicts and launch a nationwide campaign to eradicate the addictive habit. "...The council asked for a clear explanation about the 'Pada Iyagi,' or 'Sea Story' scandal from the person responsible and also demanded that the government employ powerful steps needed to remove the stigma of the 'Gambling Republic.'..."
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The Lotteries and Gaming Authority would like to bring to your attention that a foreign remote gaming company by the name of Pokerzade.com is claiming that it is being regulated by 'Malta Gaming Commission Ltd.' The Lotteries and Gaming Authority which is the only body that regulates lotteries and gaming in Malta would like to inform the public at large that the above statement is not true. Pokerzade.com has no connection whatsoever with the Maltese jurisdiction. The LGA strictly advices the public to play responsibly with companies licensed with reputable jurisdictions who have sound remote gaming regulations.
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As reported by the Australia ABC News: "More than $100,000 raised from poker machines is being distributed to community groups in Griffith and Wagga this week. "Under the Community Development and Support Expenditure Scheme, clubs making more than $1 million profit from gaming machines are required to return money to the community. ".Mission Australia says while the charities receiving money are certainly worthy, these donations could not have been made without gambling."
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As reported by the Iowa Times-Republican: "The City of Tama is making a run at putting a casino riverboat on its recently acquired Cherry Lake near downtown. "The Tama City Council on Monday approved an agreement with Signature Management Group to negotiate and develop a casino project after a representative presented them with a strategic plan to compete for a gaming license. "Petitions circulating recently had amassed 1,031 signatures by Thursday in favor of asking voters whether to legalize gambling during this November's general election. ".Mayor Chris Bearden said he approached SMG in May about looking at Tama as a possible site for a future casino after Caraustar Industries donated the 40-acre Cherry Lake and surrounding land next to their Tama Paperboard mill."
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As reported by the Kansas City Star: "A plan to significantly shorten Missouri's lifetime self-ban from casinos for troubled gamblers failed to win approval Wednesday from the Missouri Gaming Commission. But the idea is not dead. "The shorthanded commission, meeting in Maryland Heights, Mo., voted 2-1 for a proposal to allow a minimum two-year ban before gamblers could apply for reinstatement and admission to the state's riverboat casinos. ".More than 10,000 Missourians have placed themselves on the list since it was established in 1996. Those caught violating the ban can be arrested and prosecuted for trespassing. The ban also forces violators to forfeit any jackpots they win. "The proposal would have given those on the list an opportunity to switch to the two-year minimum ban. Under the plan gamblers could petition the commission to be removed from the list if they met certain requirements for counseling and self-education. "Missouri's self-exclusion program was the first in the nation and has been copied by other states that do offer a menu of self-banning options, which is the approach favored by the National Council on Problem Gambling."
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Pennsylvania Regulators Calls for Slot Law Changes
As reported by the Pittsburgh Tribune-Review: "State gambling regulators have joined the chorus of critics calling for changes to Pennsylvania's slot machine law, saying they will take matters into their own hands to the degree possible if amendments are not made. "In a letter dated Wednesday to a dozen state lawmakers, Thomas Decker, chairman of the state Gaming Control Board, said the board wants 'critical' amendments to the law that would include: "- Prohibiting public officials from holding up to a 1 percent interest in gambling companies. "-Banning political contributions from slots license holders and their immediate relatives. "- Eliminating blind trusts that the board says are designed to 'circumvent' the ban on political contributions and other disclosure requirements.
"- Giving the state broader powers to regulate and control gambling operations.
".The proposals generally echoed changes that Gov. Ed Rendell, one of the key gambling proponents, recently suggested in his own letter to lawmakers."
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Experts: Japan Gaming Won't Affect Singapore's Resorts
As reported by the Channel News Asia: "Three gaming licences could be awarded in Japan in 2009, with the projects expected to be completed around 2012, according to some market watchers. "But while that will add to the growth of the industry in Asia, they say the emergence of the gaming sector in Japan is not likely have a major impact on Singapore's integrated resorts. ".Said Sean Monaghan, vice president of equity research at Merrill Lynch (Singapore), 'In 2008, the government is likely to pass the legislation. So you probably have tendering in 2009 and the award of around three casino licenses, probably one in Tokyo, one in Okinawa and one in another major city on the main island - so three major casino licenses. Obviously if you have a tender, you will have global focus on it, massive bidding and probably at least US$10 billion investments for those three casino properties.'."
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Empire Resorts Announces End to Horsemen Arbitration
Empire Resorts, Inc. ("Empire") today announced that the New York Racing and Wagering Board has arbitrated terms of a new contract with the company's horsemen. The new contract will run through December 31, 2007. As part of the agreement, the horsemen will receive 8.25% of the first $100 million of VGM revenue, after which they will receive 9.25%, with a minimum of 200 race days per year. In addition, for insurance, legal, and administrative matters, the horsemen will receive $20,000 per month as a direct management contribution, along with 3.5% of revenue from all sources; in 2007, the horsemen will receive 4.5% of revenue from all sources. Empire Resorts continues to review its options and possible avenues of appeal.
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Spectrum Gaming Group announced the latest addition to its casino-oriented suite of services: confidential casino audits. The new service, which has already been met with success in different gaming markets, leverages Spectrum's depth of experience in casino operations by conducting anonymous covert interactions with gaming staff. This service supplements Spectrum's consumer-service audits, which already measure customer satisfaction in various critical areas. Spectrum Vice President Harvey Perkins, with nearly three decades of experience in casino operations in positions ranging from dealer to assistant general manager, oversees the auditing service. "We offer casino operators a view of their operations through the eyes of a team of experienced professionals," Perkins said. "Qualified Spectrum professionals interact as players with gaming staff members. This vantage point would simply be otherwise unavailable to management." Spectrum employs a depth of experience in gaming operations and regulation not offered by traditional mystery-shopping programs or other consultants. Spectrum has developed and refined various techniques that would measure, among other things:
-- Compliance with regulations
-- Courtesy and professionalism
-- Adherence to company policy and procedures
-- Condition and control of gaming equipment
-- Procedures regarding the evaluation and issuance of player complimentaries
"Recently conducted audits at various casinos have revealed unprofessional and unethical employee conduct, player mismanagement and questionable operational practices with respect to compliance, staff integrity and ethics," said Spectrum Managing Director Fredric E. Gushin, a former regulator and Assistant Attorney General in New Jersey. "As with all our services, these confidential audits provide critical gaming knowledge to our clients to help save money, improve operations and ensure compliance with regulations."
As the anniversary of Hurricane Katrina approaches, Island View Casino Resort in Gulfport, Miss. is preparing to open, creating one of the region's largest casino properties. Island View officials announced today that the property, which will be the city's only casino, will celebrate its grand opening and unveiling of the project's first of two phases on Monday, September 18 at 7 p.m. The land-based waterfront resort is privately held by Rick Carter and Terry Green -- owners of the former Copa Casino, which was located in Gulfport's harbor and was destroyed in the storm. In March, Carter and Green purchased Harrah's Grand Casino resort on 40 acres of land on Gulfport's beachfront as the site for the new Island View. "This has been a year of challenges and changes for the MississippiGulfCoast, but the people of Gulfport are ready to look forward. As the city's only gaming resort, Island View Casino wants to lead the way in rebuilding our community to be better than ever," said Rick Carter. "On September 18 we will open an exceptional property, with first-class amenities and state-of-the-art gaming. But equally as important, we will provide more than 800 jobs to this area, with an additional 700 positions to be added in the second phase," Carter added. The grand opening, which is open to the public, will feature live entertainment, food and beverage, and dignitaries who will do the honors of the first dice roll and first slot pull.
Hollywood Sportsbook features odds on the MLB game between the New York Yankees and the Seattle Mariners on August 24th 2006.
The New York Yankees grabbed full control of the AL East race with an almost unimaginable five straight wins at FenwayPark, finishing the run with a 2-1 victory on Monday. New York outscored Boston 49-26 in the five games. Now the Yankees will try to continue their roll as their powerful lineup follows its stunning sweep in Boston with a matchup against the sinking Seattle Mariners at Safeco Field on Thursday. The game is scheduled to start at 10:05 p.m. (ET) and Hollywood Sportsbook proudly features odds on the event. Hollywood's Media Relations executive, Alejandro Gomez, was quoted saying – "After sweeping a five-game series from their archrivals, it seems that the New York Yankees are playing their best baseball of the season". "On the other hand, the Seattle Mariners are mired in an 11-game losing streak. The slide is the Mariners' longest since September 1992, when they dropped a club-record 14 straight. Beyond that, the New York Yankees took two of three from Seattle from July 17-19 at Yankee Stadium, with two of the games decided by one run and the other decided by two. So, let's see how all this will end," added Mr. Gomez. Hollywood Sportsbook is eager to provide you with a convenient and secure environment through which you can enjoy your recreational sports betting; they are currently offering sports betting lines for the game mentioned above. It's really easy to contact them via phone or internet from anywhere in the world. You can get started by opening your account within 5 minutes of verification of your funds. Three easy steps: Register, Deposit and Play. It's that simple!
Dealers at Wynn Las Vegas have universally voiced their displeasure over the casino's plans to restructure tip distribution that will cut their wages between 10 and 20 percent. Legally, however, they may have little recourse, labor law experts said Wednesday. Starting Sept. 1, table game supervisors will share in the tips earned by dealers. Wynn executives said the move is being done to correct the widening disparity between the wages earned by dealers and casino floor supervisors. Las Vegas attorney Gregory Kamer, who specializes in labor law and represents Wynn in labor matters, believes the plan, where the shared tips will supplement the salaries earned by table game supervisors, is "ironclad" legally under Nevada law. "This has been vetted every which way possible," Kamer said, adding that he believes other casino companies will adopt this plan. "I believe this will ultimately become the industry standard within a matter of months." Kamer said the plan is allowed under Nevada law that deals with tip earnings. He said several rulings regarding the pooling of tips and how that money is shared by a group give the plan solid footing. He cited a U.S. District Court decision in 1975 that allowed tip pooling at the Las Vegas Hilton and opinions by the Nevada attorney general. In the 1975 decision, a federal judge said that a group of employees all contribute to the good service given to a casino customer, and as such, should share in any gratuities.
In an Aug. 21 memo distributed to all Wynn table games employees, casino President Andrew Pascal used almost the exact language as the 1975 decision in saying that supervisors contribute to customer service as much as dealers.
"As such, it is only appropriate that each of these positions share in the generosity of the customers," Pascal said in the memo.
Las Vegas attorney Richard Segerblom, who represents employees in labor disputes, said he believes the Wynn Las Vegas tip distribution plan may withstand any legal challenges.
"Based on the legal rulings we've seen regarding tip pooling, I think they can make an argument in favor of what they're doing," Segerbloom said.
Wynn Resorts Ltd. Chairman Steve Wynn and other executives told table game employees of the pending changes Monday night.
One Wynn Las Vegas dealer, writing a post on CasinoDealers.net, an Internet forum, said Wynn challenged the dealers to contest the changes.
"He even had the guts to stand up and say in the meeting, 'You can try to get a lawyer, but don't bother. Just talk to our lawyer and he'll tell you that what we are doing is legal by Nevada law,' " the dealer wrote.
Pascal said that dealers at the property are the highest-paid dealers in the city, averaging about $100,000 per year in salary and tips. But the employees supervising dealers average about $60,000 a year in salary, Pascal said.
The large tips are due to Wynn's reliance on high-end customers, such as baccarat players, and is the main reason for the salary gap.
Dealers who split tips by shifts now will share those tokes with team leaders and supervisors, who also will receive a boost in base salary.
Pascal said dealers will earn an average of $90,000 annually while supervisors will be paid $95,000.
In addition, Wynn Las Vegas will implement a bonus program that will allow dealers to earn additional pay.
"We're still going to have the highest-paid dealers on the Strip," Pascal said. "What it does is rebalances the structure of our table games division and gives a person an incentive to take on more responsibility."
Wynn Las Vegas operates 140 table games, including baccarat. Pascal said about 820 table game positions at the casino will be affected in the restructuring.
The changes won't affect the casino's poker room and slot machine area.
Riviera Holdings Corp. said Wednesday it will conduct a shareholder vote next week on a $426.5 million buyout offer from a privately held investment group after the company's board of directors said it did not have enough information to determine if an 11th-hour competing offer was credible. The vote, in which Riviera stockholders will either accept or reject a $17 per share offer from Riv Acquisition Holdings, had been scheduled for Aug. 8. That same day, International Gaming & Entertainment proposed to pay $20 a share for the company, which operates the Riviera and a Colorado casino, causing the vote to be postponed. "In a statement, Riviera Holdings said its board of directors had not received sufficient information from International Gaming & Entertainment on the takeover proposal to compare the offer to one from Riv Acquisition, a well-financed investment group that includes Starwood Capital Group founder Barry Sternlicht, Las Vegas developer Brett Torino and Chicago developer Neil Bluhm. ""The information requests pertained to, among other things, (International Gaming & Entertainment's) equity investors, assurance of obtaining financing, and plans for obtaining the necessary approvals to consummate the acquisition," Riviera Holdings said in a statement. "Riv Acquisition President Scott Butera said he wasn't surprised that the company rescheduled the vote.
""It was a bizarre offer. There wasn't a lot of substance behind it," Butera said. "We're ready to go forward with the vote. We're still firm in our position that we are the only credible bidder out there for Riviera. We have proof of our financing and we believe we have offered a full price for the company."
"The shareholder vote was rescheduled for 1 p.m. Tuesday.
"Approval of the buyout by Riv Acquisition is not a foregone conclusion, however. Several of the company's largest shareholders have said they will vote against the buyout, saying the $17 per share price is too low.
"Some investors thought the 26 acres of Strip property that houses the Riviera is worth twice the purchase price, which values the land at $10 million an acre.
"Asset management firm D.E. Shaw, which controls 1.2 million shares; and Triple Five Investco, a subsidiary of Canadian mall developer Triple Five Group, which owns 1 million shares; have said they would vote against the deal.
"Riv Acquisition already holds more than 2.1 million shares of Riviera stock, having purchased the holdings of company Chairman Bill Westerman for $15 a share.
"Riviera Holdings needs approval from 60 percent of its outstanding shareholders for the deal to be approved. If a shareholder doesn't participate, that will have the same effect as if he voted against the buyout.
"Westerman has actively lobbied shareholders to support the transaction, even during the company's quarterly conference.
"In Wednesday's statement, Riviera said it remained open to discussions with International Gaming & Entertainment. However, if shareholders reject the buyout offer from Riv Acquisition doesn't mean the company would enter an acquisition agreement with the second bidder.
"Riviera Holdings made the announcement after trading closed Wednesday on the American Stock Exchange. Shares in the company fell 28 cents, or 1.38 percent, to close at $20.
Playtech (LSE: PTEC), the international designer, developer and licensor of software for the gambling industry, today announces Interim Results for the Six Months Ended June 30 2006. Financial Highlights · Revenues up by 139% to $46.2 million (2005 - $19.3 million) · Casino revenues up by 129% to $40.4 million (2005 - $17.6 million) · Poker revenues up by 851% to $4.8 million (2005 - $0.5 million) · Adjusted net profit* up by 172% to $37.3 million (2005 - $13.7 million) resulting in a margin of 81% compared to 71% last year · Adjusted basic EPS* up by 157% to 18 cents (2005 - 7 cents) · Interim dividend of $18.5 million equating to 8.7 cents per share to be paid on 6 October 2006, representing approximately 50% of the adjusted net profit*
Operational Highlights
· Seven new licensees added so far this year - three through migration of active game sites with the majority accommodating Asian and European players
· New products developed and launched
· Mobile offering - providing Casino gaming through mobile phones
· Videobet - providing access to the land and server based gaming terminals
· Initiating new Asian focused games and product development, including Mahjong.
· Long-term recruitment initiative underway - PlaytechAcademy in Estonia and new development centre in Bulgaria
Avigur Zmora, Chief Executive, commented:
"Playtech is ideally placed to take full advantage of the growth being enjoyed by global gambling markets. Geographical diversification through the addition of quality licensees, coupled with our new product pipeline, will allow us to offer an enhanced and more complete solution to our licensees and their customers. As a result of our various initiatives, the global markets, in which we hold strong positions and the continued growth being enjoyed by the online gaming market worldwide, I look forward to the second half of the year with confidence."
*excluding founders cash contribution and employee stock option expenses of $6.8 million
Chairman's Statement
It gives me pleasure to present the first set of financial results for Playtech since its shares were admitted to AIM by way of an Initial Public Offering in March this year.
In the six months under review the Group has made outstanding progress in all key areas of performance. I am pleased to report that the business has grown significantly in terms of revenues generated from existing licensees and, importantly, in terms of winning new high quality clients. In the period, seven new licensees have been added to the portfolio - bringing the total to 42 operators. Between them, our clients operate 137 gaming sites, making Playtech one of the world's leading software providers to the gaming industry.
The out-performance of the operations has translated into strong financial results. In the period, the Group improved revenues by 139% and adjusted net profit increased by 172%. As a result the Board is pleased to declare its maiden dividend as a listed company - an interim payment of 8.7 cents a share. Adjusted basic earnings per share* amounted to 18 cents per share, a 157 % rise, which is a creditable achievement from a growing company.
The international online gaming market continues to grow strongly for Playtech. Recent legal issues in the US have caused concern amongst investors in the online gaming sector, however, as Playtech is not an operator, does not supply Sportsbook software or have exposure to this section of the market, we believe that the Group remains in an extremely strong position. It is the Board's firm view, therefore, that the worldwide trading environment remains robust and that the US legal issues have not altered the prospects for Playtech in any way.
Playtech is committed to diversifying its business portfolio, in terms of both geography and product, and I am pleased to report that progress has been made in both of these areas. The percentage of total revenues derived from the US have decreased, whilst the contribution from Europe and the exciting Asian markets have increased. The Group launched two new products last month. Its mobile product offers players access to Playtech's popular Casino platform through their mobile phones, whilst the Videobet product provides access to the land based gaming terminal market, an entirely new market segment for the Group that utilises the leading expertise that Playtech has gained through the development of its other online gaming software products.
The Group also has a number of products under development due to be released in the second half of the year. Mahjong will provide this hugely popular game to the Asian market and its live gaming offering is also being enhanced to further support the Asian market in which this type of gaming is favoured.
In a show of particular generosity the founding shareholders of Playtech have offered the employees of the Group a cash contribution of $6.6m from their IPO proceeds payable through a designated trust, as an expression of their appreciation for the hard work and commitment shown to date. For this the members of the Board would like to extend their thanks. I would also like to add my thanks to all our employees and to my fellow directors for the significant contribution they have made to our success.
In summary, the Board is very excited about the prospects for the second half of the year. Growth in the international online gaming market continues apace and the Group is building its position in its traditional markets whilst expanding into growth markets such as Asia. Product development remains at the forefront of Playtech's strategy which will enable the Group to continue supplying operators with market leading products and new solutions. As a result we look forward to a prosperous and successful future.
Chief Executive's Report
I am delighted to report a very successful first half of 2006, our first as a publicly quoted Company. Despite the demands that successfully completing the IPO has placed on the management's time in this period, we still managed to reinforce Playtech's position as one of the world's leading software providers to the gaming sector.
The Company has managed to build on its already high historic growth rates during this period, achieving a 139% increase in revenues compared to the same period last year and an 172% increase in adjusted net profit*. The poker product now accounts for over 10% of the Company's top line and is expected to increase this contribution into the future.
The Board's focus in the first half of the year was to maintain our high growth rates and this has paid off with the Company registering the fastest growth in its short history. We would not have been able to achieve this had it not been for the outstanding efforts of our employees and for this I extend the sincerest thanks of the Board. As a public company we are now able to offer a share incentive scheme that rewards such loyalty and this will help us recruit and retain the quality of staff for which Playtech has become known.
One of the main reasons for becoming a public company was to create new and exciting business opportunities for Playtech and I am pleased to say that our aim in this respect has been achieved. We are taking part in much larger business development opportunities and achieving a higher level of sales than we ever had before.
Since the Company was established, at the end of 1999, it has been evolving its strategy to adapt to the changes and dynamic growth within the online gaming market. Our first transition period involved geographical diversification in order to reduce exposure to any one particular market whilst taking advantage of emerging high growth markets such as Asia, and positive changes have been made in this regard.
We are currently in the middle of our second transition period which is focused on diversifying the Company's product portfolio by leveraging the success of the casino software offering in order to become a major multi product supplier. We are investing considerable efforts into new product development and have launched two new products last month - namely Mobile gaming and Videobet, our server based gaming terminals product.
Strategy
Our goal is to be the leading software solution company to the international online gaming market. In order to achieve this, the Board has set out the following aims:
1. To continually develop market leading solutions for our licensees which enable them to increase their revenues
2. To supply a global software solution that is tailored for specific markets
3. To enhance cross selling opportunities using the unified system philosophy
4. To continue worldwide expansion
Recruitment Programme
At the heart of any successful software company lies quality employees. In order to ensure that we attract the highest caliber employees we are undertaking an extensive recruitment program aimed at enlarging the Company's research, development and production capabilities. We have established PlaytechAcademy, our own computer science academy based in Tartu, Estonia, where 40 graduates are already studying and receiving a world class, tailored IT education. The first intake will graduate by the end of September 2006, which will provide a significant number of new programmers trained to the exact needs of Playtech. In addition we have established a new development centre in Bulgaria which is in the process of recruiting its first 20 employees, all of which are IT specialists.
Our recruitment program is central to our strategy of increasing the number of licensees and for the introduction and support of new products. Growing our base in Estonia and expanding into Bulgaria will allow us to keep control of our low development and production costs whilst increasing our revenue potential.
Licensees
The Board is continuously looking at ways to diversify its licensee portfolio by adding quality international customers. So far this year seven new licensees have been added, three of which migrated their active game sites and the majority of which accommodate Asian and European players. This goes a long way to achieving the Board's goal of adding between 10 to 12 new licensees for the year.
Choosing the right partner licensee is very important to Playtech as client operators carry with them the reputation of Playtech into the wider market. It is, therefore, of the utmost importance that the Board is confident that a new licensee has the potential to attract a substantial level of players.
Being a public company provides a level of security and transparency required by some of our prospective licensees. As a result, we have a good business pipeline which helps the Board look forward with confidence.