Visa Betting
ZYNGA'S SLUGGISH IPO ASSESSED (Update)
2011-12-21
Analysts study slow start to trading
The IPO on Nasdaq last week of social gaming giant Zynga was the subject of analyst assessments Tuesday following the company's disappointingly slow progress - it closed almost a dollar down on the $10 listing price Monday.
The San Francisco online gaming company, which generates most of its revenue from games on Facebook's social-networking platform, sold 100 million shares at $10 apiece Friday, raking in $1 billion and valuing the company at $7 billion (see previous InfoPowa reports).
However, the stock price began falling almost immediately after hitting the open market, and shares ended down 5 percent at $9.50. That pattern didn't change Monday, as Zynga stock slid to a closing price of $9.05.
Some analysts believe the stock is suffering from a large offering and increased competition. The offering represents 15 percent of the company, a much larger offering than other recent tech IPOs such as LinkedIn, Groupon and Jive, which all offered less than 10 percent.
That decision led to the inability of individual investors excited about the stock to raise the price, said Sam Hamadeh, CEO of PrivCo.com, which compiles financial data on private companies. The offering was "too big to move," he said.
Other observers opined that the company's reliance on Facebook and fears that its meteoric growth may be plateauing could have discouraged investors, along with a changing sentiment toward tech companies, with buyers becoming more sceptical and perhaps fearful of another internet bubble.
They pointed to recent IPOs that excited initial interest that proved unsustainable: LinkedIn's May IPO saw the stock price quickly double, whilst Pandora hit $16 despite only targeting a high end of $12. However, both companies were unable to hold on to those highs, and other tech IPOs in recent weeks also failed to live up to their initial hype, with Angie's List and Groupon both struggling to maintain early momentum.
Jim Krapfel, equity analyst at Morningstar, said investors viewed these as cautionary tales when evaluating Zynga. He claimed the market turned negative in August: "Until that improves meaningfully, that kind of trend will likely continue into 2012."
The economic recession has not helped confidence either, Hamideh observed.
SWEDISH HEALTH PROFESSIONALS WARN ON YOUNG PROBLEM GAMBLERS2011-08-04Problems among young men have doubled in the past decade.
General levels of problem gambling in Sweden have remained stable over the past decade, but a marked increase in the male 18 to 24-year-old demographic has prompted the Swedish National Institute of Public Health (Folkhälsöinstitutet - FHI) to issue a warning.
The results of the latest FHI study of problem gambling in the Scandinavian country, where the state holds a monopoly through Svenska Spel, show that despite the considerable expansion in gambling alternatives over the past ten years, the number of those suffering from gambling problems has remained stable, and has even declined among minors, the newspaper The Local.se reports.
However, there has been an alarming 100 percent rise in problems among young men aged 18-24, with 40,000 gamblers in this demographic reported to be suffering from gambling problems of varying severity.
"When we look at the evolution of different population groups, there are number of warning signs," said Marie Risbeck, FHI's coordinator gaming prevention, in a statement this week.
"Among men aged 18-24, the proportion of problem gamblers has doubled in ten years and today amounts to around 10 percent of the age group - around 450,000 people in Sweden."
Risbeck said that a total in excess of 260,000 Swedes, of which 75,000 are children, are impacted by gamblers with problems.
Sweden is well-served by organisations providing help and counseling for problem gamblers.
However, the FHI report calls for improvements in what is on offer to problem gamblers, and for better coordination across the country.
RED TAPE ROW OVER HONG KONG FOOTBALL TOURNAMENT2011-08-01Bureaucratic ban seriously hammers Jockey Club betting
Jockey Club of Hong Kong football punters were seriously irritated this week when the regional government's Home Affairs Bureau slapped a ban on betting on an international clash between two English Premier League teams visiting the city, ruling that because the match was part of a tournament in which a local team was playing, betting was prohibited.
The bureaucratic ban on the clash between Chelsea and Aston Villa (the former won 2 - 0) spoiled a holiday in France being enjoyed by Jockey Club chief executive Winfried Engelbrecht-Bresges, reported the South China Morning Post.
Engelbrecht-Bresges observed: "The world, from Churchtown to London, is betting on it. I understand from my colleagues that more than 130 overseas bookies, including most major offshore and online bookmakers in this region, opened betting pools, but not the Jockey Club... and the game is being played in a stadium we built!"
He said the club had applied to the Home Affairs Bureau last week to open local betting pools for the final between the two Premier League teams.
"Clearly, neither of the two reasons why we cannot normally offer betting on matches involving Hong Kong teams - namely integrity concerns and insufficient public interest - are applicable,” said the dismayed Hockey Club chief.
"However, regrettably and to my great disappointment, the Jockey Club was asked to seek special approval from the bureau for taking bets on the match between Chelsea and Aston Villa. To me, it is a way of creating a change in the licensing conditions by restricting football betting to the entire tournament instead of the individual matches which a Hong Kong team will participate in."
A government spokesman said no betting was allowed without government approval for matches involving a Hong Kong team and that 'matches' meant the whole tournament.
Engelbrecht-Bresges responded: "If one would apply this logic every time a Hong Kong team plays in a tournament ... it would mean we could not even bet on the World Cup as a Hong Kong team [played] in the qualifying matches."
AAMS AND ARJEL IN COLLABORATION2011-05-18Italian and French regulatory bodies in co-operation agreement
The Italian regulator AAMS is due to sign a memorandum of understanding with French regulatory body ARJEL in the near future, tmnews.it reported this week.
The memorandum seemingly covers various issues including the exchange of information on licenced operators, player protection, defending the integrity of sport and the fight against unlicenced operators.
AAMS and ARJEL have refuted media speculation that the agreement may lead to a shared liquidity over the two jurisdictions.
LIVE DEALER EXTENDS GAMES OFFERING2011-05-06Web-based blackjack joins the inventory
The Manilia-based live dealer provider EntwineTech has launched web based Blackjack tables on its live dealer non-download platform.
The BJ addition to the web application will give a complete solution to the non-download version, being flash based and customised to the browser in a way that the player can see the table in full screen.
Entwine also offers its 50 licensees over 14 live dealer games in which players can select from two different live variations for their gambling entertainment - Philippine or Western dealers working from different casino-studios.
More additions will soon be rolled out to the web based, no download application, a spokesman for the Alderney-licensed provider said this week.
THE RIPPLES WIDEN (Update)2011-04-19US players turned away by online casinos
US players started reporting Tuesday that they were being turned away from at least two online casinos where they had previously been welcomed - Platinum Play and Seven Sultans.
The players received emails advising them:
"As you may be aware, certain unfortunate circumstances have recently affected the ability of parties to process online gaming transactions in certain regions.
"This means that we will no longer be able to accept deposits from you.
"Even though our ability to accept and transfer funds has been severely impaired, we will endeavor to honor all withdrawal requests as soon as possible.
"Your account will remain open for the time being should you wish to play through any remaining balances."
No further information was available when InfoPowa went to press.
FTOPS RELEASES XX SCHEDULE2011-03-23Popular online tournament series kicks off on April 17
The twentieth edition of the Full Tilt Online Series of Poker (FTOPS) will start on April 17, an announcement from the online poker giant this week reveals.
First up will be a $200+$16 NLHE multi-entry event with a $3 million guaranteed prize pool, and over the following two weeks there will be 45 more competitions - 13 of them million dollar affairs - with a total of over $38 million in guaranteed prize pools.
Player-popular features such as Rush Poker and Multi -entry events are again available, along with a range of other poker game-styles that should attract record numbers of players at least the equivalent of the recently completed FTOPS XIX.
The buy-in for the Main Event will be $600+$40, with a Full Tilt guarantee on the prize pool of $7.5 million. Judging by the huge response to the FTOPS XIX main event earlier this month (see previous InfoPowa reports), that should be quickly generated as thousands of players sign up.
Full details of the event can be found at: http://www.fulltiltpoker.com/promotions/full-tilt-online-poker-series/schedule.php
ONLINE GAMBLING A MAJOR ELEMENT IN SWEDISH GAMBLING2011-03-2126 percent of all gambling in Sweden takes place over the Internet
A key element in Sweden's busy gambling industry is the online sector, which accounts for 26 percent of all gambling in the wealthy Scandinavian country, according to new research by the Stockholm-based Research Institute of Industrial Economics.
That ranks it among the highest in Europe, say the report’s author, Professor Henrik Jordahl of Rent Spel in recommending to the government last week that it should formally recognise the activity as an important contributor to the nation's successful business development.
Founded by former Unibet chief executive Petter Nylander, Rent Spel (Fair Play) is a trade association of parties interested in the gaming industry.
Sweden's state-owned gambling monopoly Svenska Spel has only comparatively recently started to make tentative moves that could liberalise its industry, under some pressure from the European Commission.
Swedish companies are among the most successful in the internet gambling space, a fact acknowledged and applauded in the Jordahl assessment of the industry, which notes that companies outside the state monopoly have a market valuation in excess of SEK19 billion and employ almost 2 000 skilled people.
The employment numbers rise to 4 500 when government workers in gaming operations are added - the majority in Sweden.
Jordahl gives those numbers perspective by pointing out that the gambling industry employs as many Swedes as national car manufacturer Saab - and is more successful.
Another example he gives is the video gaming entertainment industry, often held up as a shining example of Swedish technological competence and success, when the online gambling sector is actually worth more, performs better with greater numbers of highly educated employees, and is more profitable.
These and other industry contributions to Swedish success align the online gambling sector positively with the wider EU "Digital Agenda for Europe," Jordahl points out.
The report urges Swedish parliamentarians to recognise the success of the internet gambling industry in order to ensure that the nation does not lose ground in the wider European arena, where there is a growing trend toward recognition and regulation.
Jordahl again uses examples to illustrate the point, noting that Malta is attracting increasing numbers of highly skilled Swedish specialists through Swedish companies like Betsson and Net Entertainment operating in that jurisdiction.
There are also advertising opportunities that are being passed up by Sweden's present restrictive position on the industry, he opines.
Interestingly, the Research Institute of Industrial Economics assessment also reveals that despite ministerial statements to the contrary, investigations by the domestic newspaper Dagbladet recently found that the government, operating through the National Pension Fund, has share holdings in major online gambling companies such as Unibet, Betsson, Net Entertainment or Ladbrokes - companies that have not been granted licensing by the Swedes despite being prepared to pay for the privilege.
These holdings could be worth as much as SEK972 million, a significant percentage of pensions assets invested in internet gambling and therefore the continued successful performance of the companies concerned.
Jordahl concludes by recommending that the gambling market in Sweden is in need of an extensive regulatory revamp that will bring it into line with current European regulatory trends and maintain its leading position in the new market environment that is evolving.
“Given the challenges to existing regulations in the form of EC law and technological developments, which were clearly described in the Lotteries Commission report of eleven years ago, it is no longer acceptable that the government remain passive in this matter,” the report urges.