Paddy Power said first half operating profit had grown by a third to 80 million euros against the same regulatory headwinds.
Discussions were continuing to finalise an all-share merger but key terms have been agreed to create one of the world’s largest online betting and gaming groups with revenue of over 1.1 billion pounds, the companies said on Wednesday.
The gambling sector is seeing a wave of mergers.
Paddy Power Chairman Gary McGann would keep his role in the combined group, while its CEO Andy McCue would become COO.
DUBLIN/LONDON Betfair and Irish rival Paddy Power have agreed in principle on a 5 billion pound merger to stake a claim to leadership of the online gambling market in Britain.
“We fundamentally believe this industry is all about scale,” said Betfair Chief Executive and ex-Paddy Power Chief Operating Officer Breon Corcoran, who would lead the new group.
Paddy Power is the larger of the two with a market capitalisation of 3.46 billion euros (3 billion pound) at Tuesday’s close, versus 2.43 billion pounds for Betfair, which has seen its shares rise by 140 percent in a year on the back of strong revenue growth.
Betfair is an exclusively online business, best known for its technology which allows gamblers to bet against each other. Paddy Power’s portfolio of almost 600 betting shops, more than half of which are in Britain, will also remain part of the plans.
“By putting together two distinct but phenomenally strong brands, we’ll have a market leading position in the UK, Ireland, Australia and in the United States,” he told Reuters.
The new group would be the market leader online in the UK with a share of 16 percent, according to industry data, passing a merged Ladbrokes Coral group on 14 percent, as well as William Hill and privately owned Bet365.
Davy Stockbrokers declared “the two best quality companies in the European online gaming sector are on the verge of merging”.. 888 and GVC Holdings are locked in a bidding war for online gambling firm Bwin.party Digital Entertainment.
Betfair said core earnings rose 19 percent in the three months to July 31, despite higher UK tax charges. Alongside its core exchange product, the firm is also targeting a larger share of the broader sports betting market.
Both firms also gave trading updates on Wednesday.
Last month bookmakers Ladbrokes and Gala Coral struck an all-share deal, creating a 2.3 billion pound betting group. Betfair finance chief Alex Gersh would also stay put.
Analysts pointed to significant scope to cut costs through the removal of duplication within the two businesses.
GAMBLING ON MERGERS
Under the terms, Paddy Power shareholders would own 52 percent of the group with Betfair investors owning the rest. Immediately prior to completion, Paddy Power shareholders would receive a special dividend of 80 million euros.
The betting sector has seen a string of deals this year as companies respond to higher tax bills in Britain and tighter regulation by looking to bulk up and better compete in an online market buoyed by the increasing use of mobiles and tablets.
Shares in Paddy Power and Betfair were up 18 percent and 17 percent respectively on the news.
Under the proposed merger, Corcoran said both brands will operate side by side in Europe
Moreover, online casinos that have a number of different gaming avenues tend to be safer. However there are those websites that are set up to scam players from their money and that’s where online casinos guidelines for safe gambling come into play. The first on the list of online casinos guidelines for safe gambling is ensure that the online casino you wish to play at has a valid license and you can do that by simply checking the websites that post reviews and ratings of the online casino.
Online casinos usually offer odds and payout percentages that are almost the same as land-based casinos. Having multiple revenue streams, giving them more incentive to stay honest and making it more likely that they will stay profitable.
Every player should choose sites which can provide them maximum protection against hacks and other breaks in security.
Online casinos are created and operated in such a way that it has won over the trust of millions of players the world over. Through this useful casino guide, one can play with much safety in a gambling site.
However, if you’re not sure about how safe a casino is, try doing some online research to see what others say.
When you gamble in an online casino the only one in reach of your pockets is anyone you let into your own front door. Today, a casino guide to identify safe online casino sites is much needed by all gamblers. There are a lot of other options out there.
Safety is the pre-eminent concern that players have about online gambling. They want to know if the games are honest and if their money will be safe. Your credit card is fully safe with the online casino you can be sure that your personal details stay with the casino for you to authorize deposits into your casino balance and most online casinos even use higher level encryption than your bank.
There are some groups dedicated to making sure that online casinos are safe. If a casino is verified by such a group there will be a link to them on the website of the safe casino Such groups include the Kahnawake Gaming Commission and the Interactive Gaming Council.. Be careful of online casinos that have outrageously high bonus offers or that have only been around and in the long run, if you’re not comfortable with a certain casino, don’t use it. Many players are hesitant to put money into an online casino because they are concerned that they will not get paid when they win or that the games are rigged and they will lose their money. The safety of playing should be guaranteed from the first deposit of money to the final withdrawal of cash. While some online casinos offer even higher payout percentages on their online slot machine games others publish payout percentage audits on their websites usually approved by a third party accounting group approving that the online casino is using an honest programmed random number generator (RNG) which eventually makes the online casinos even reputable at some points over the land based traditional casinos
Even the precise number of online casinos is hard to calculate. Almost all online gambling sites work the same. O’Brien observes in Bad Bet, his comprehensive account of America’s gambling industry, “Judging by dollars spent, gambling is now more popular in America than baseball, the movies and Disneyland combined.”
The prosecutors’ focus on sports bets appears to stem from legal precedent in the law they relied on. A Ninemsn spokesperson says that the site does not now offer online gambling and would not comment on future plans. Says Opel, “Bringing in the big names and established companies only adds credibility and visibility to what we’re already doing.”
Is it legal?
A few hurdles have to be cleared before such ventures can take off – beginning with the federal government. If, on the other hand, an activity is in the physical world – betting on horses, or casino betting with Indian tribes – it becomes subject to federal criminal sanction when it occurs in cyberspace. The American Gaming Association, a trade group of gaming firms, maintains this view regarding online wagering: “The industry has been state-regulated and we think it should remain that way. Nor would it prohibit online fantasy sports leagues, online lotteries in states where they are legal, or online betting on any live horse race where it would otherwise be lawful to wager. The minimum amount to begin an account varies. Passed during the term of crime-fighter Attorney General Robert Kennedy, the law was intended to outlaw betting over telephone lines. Together, these sites have about 4,300 registered customers in 96 countries around the world. to gain access to offshore sites,” says Sebastian Sinclair of Christiansen/Cummings. But the travails associated with fending off lawsuits have essentially put the company out of business. Anyone over the age of 18 can set up an account with Centrebet and place money on a variety of worldwide sporting events, including U.S.
That partnership leads many observers to believe that an online casino – using Microsoft platforms, of course – is in the works. In 1997, published reports put the total number of operating online casinos at 15.
The office of U.S. Attorney White has proceeded slowly and quietly. For one thing, gambling from one’s home allows for a variety of techniques that would get one tossed out of a regular casino. Would-be wagerers open an account with a credit card, although some sites also accept cash and cashier’s checks.
Nonetheless, some experts think the case could be made to stick. In January, MegaSports began taking Internet bets from Australians; it expects soon to allow global gambling on sporting events. If an activity is prohibited in the physical world but not on the Internet, the Internet becomes a safe haven for that criminal activity. As Timothy L. Aruba, for one, is refusing to extradite any indicted individuals to the U.S., and thus far the U.S. But as more and more traditional firms become involved, the consumer will look for the brand name. attorney’s case involved the casinos’ sportsbooks.
But even if Congress comes up with the best-crafted legislation in history, there are significant factors beyond its control. “Think about what would happen to Wal-Mart (WMT), General Motors or Microsoft if these companies had to continue to dodge federal roadblocks to access their customers,” says Sebastian Sinclair, senior associate at Christiansen/Cummings Associates, a management consulting firm. The Justice Department doesn’t think that online casinos (including those that offer gambling on sports events) can legally conduct business in the United States, even if they are based in places where gambling is legal. Blackjack players can very easily count cards, or even consult odds charts; the Kennyrogerscasino.com site actually has a printable chart showing the best strategy for every possible hand of blackjack. That may suggest that, as some legal observers have argued, the 1961 federal Wire Act is too old and too loosely written to prohibit online gambling. Bets generally range from $1 to as much as $300. Justice believes that any legislation addressing criminal misuse of computers or computer systems (including the Internet) should have three vital characteristics. attorney’s office theoretically operate out of the Caribbean. In November 1998, for example, a division of Hilton Hotels acquired the company that runs Centrebet, a Web and telephone sports-wagering system based in Australia (www.centrebet.com.au). Casino games are available on a site or via downloadable software. Although it uses a CryptoLogic template similar to several other online casinos, Kennyrogerscasino.com may be unique in letting bettors wager as little as a penny at a time. In the ’70s, Atlantic City legalized casino gambling; in the ensuing decades, state lotteries, Indian casinos, gaming ships, offtrack betting parlors and card clubs have sprouted across the landscape. “And it is possible that records could be subpoenaed of various banks where these companies maintain accounts.”
So how is it that these companies appear to operate legally, but a dozen Caribbean cowboys found themselves under felony indictment?
More than a year later, however, no cases have come to trial, and nine defendants have accepted plea bargains for state misdemeanor charges with no jail time. I’ve not had problems being paid.”
One major barrier to profitability is the law. But according to Inland CEO Don Speer, elusive profits need not be one of them. Estimates range from $650 million to $1 billion a year, worldwide – a tiny fraction of the amount spent on more traditional formats. Why should it be legal to bet online on a horse race in another state, but not legal to bet on a basketball game in one’s own state? If Native American tribes can establish new, legal, physical places where adults can gamble, why shouldn’t someone be able to do the same in cyberspace?
But a hard-core base will continue to turn to Internet betting for its clear advantages.
Gambling is as at least as old as Christianity (that is, if Ben Hur can be trusted).
Does the seeming invincibility of online gambling make it an enticing business? Jason Ader of Bear Stearns, urges caution. “I wager on football games and usually bet in the neighborhood of $1,000 every weekend.
Today, Americans spend some $600 billion a year on legal gambling, making it by far the favored national pastime. And for sports bettors – who make up a majority of online gamblers, according to industry insiders – the ease of using cyberbookies can’t be beat. attorney for the Southern District of New York, indicted 14 managers of six Internet companies for offering gambling on their sites. He claims Inland’s Internet gambling business went slightly into the black in March, on annualized revenues of about $1 million.
First, legislation should treat physical activity and cyberactivity in the same way.
But the growing acceptance of online betting and the Internet’s inherent ability to shatter jurisdictions bring the inconsistencies of American gaming law to a boil. Kyl introduced a revised version earlier this year, removing some of the more onerous and hard-to-enforce provisions. “The telephone is being used to facilitate these wagers and I believe the government has a solid case,” explains Tony Cabot, a Las Vegas-based gaming lawyer and author of a book on Internet gaming.
Internet Gambling Worldwide, Past and Future
Take Interactive Gaming and Communications, another publicly traded company, located in Blue Bell, Pa. …
All the sites indicted by the U.S. Today, a roster on one “gambling portal” site lists well over 200. One Australian state, Queensland, is already awarding licenses for online gambling, and others may follow soon. college and professional sports. (The company’s Indian casino and Web-development divisions make more.) “This is the really exciting point, because I know where it goes from here,” Speer said in an interview. Tony Cabot, an attorney specializing in gaming issues, says flatly, “When you see Kerry Packer get together with Microsoft, you have to believe there is a future for this type of wagering.”
The amount spent on Internet gambling is harder to calculate. Inland, for example, operates two Web sites in addition to the one bearing Kenny Rogers’ likeness: Casinoaustralia.com and Goodluckclub.com. Legislation tied to a particular technology may quickly become obsolete and require further amendment. Packer is a man with a voracious gambling appetite.
You might think that the prospect of competing against the likes of Microsoft would terrify a $20 million company like Inland. “I use the service because it’s convenient and I have access to it when I want,” says one online gambler.
Prosecutors focus on sports betting
Intriguingly, though, all the bets that make up the U.S. At one point, Interactive Gaming looked like it could be an industry leader. But following a 1997 indictment, the state of Missouri settled a suit against the company and its president, Michael Simone, for about $35,000. That figure exaggerates the size of the Internet gambling sector, since some companies operate more than one online betting parlor. The vast majority of customers will satisfy their demand for commercial gambling through less onerous and risky alternatives, such as lotteries, bingo, pari-mutuels and casinos.”
Second, legislation should be technology-neutral. According to an analysis by Sue Schieder of Rolling Good Times, the online gambling magazine, the new legislation would not punish the casual bettor. The defendants, many of whom live abroad, were threatened with up to five years in prison and $250,000 fines. “We get daily reports, and you’ll see these people who spend a couple of hours gambling, and the total amount they bet is like $1.81,” says Thomas Holmes, Inland’s head of technology. About 2,000 years later, Bugsy Siegel took the concept a step further and built the Flamingo Hotel in the desert town of Las Vegas. FBI agents placed bets on games – uniformly National Football League matches, although many other options are available – and followed up, whether they won or lost. But they say the more bettors, the better. Even the firms that have enjoyed some stock-price popularity – such as Youbet.com – have shaky fundamentals. “Since there are no controls at present regarding Internet wagering, I would urge investors to shun these firms at present,” he says. Legislators have considered enlisting Internet service providers to patrol for undesirable sites, although Internet gambling insiders consider that proposal dead on arrival. One of Microsoft (MSFT)’s less-publicized adventures is Ninemsn, an Australia-based Internet service to which Bill Gates has pledged tens of millions of dollars. 474, introduced into the Senate by Arizona’s John Kyl in 1997 as the Internet Gambling Prohibition Act. They almost always include slots, blackjack and video poker, but many sites carry more exotic games, from baccarat to pai gow. . Says Sinclair of Christiansen/Cummings: “You are going to feel more comfortable wagering with a Hilton than you will with Joe’s Casino.”
Is Microsoft betting too?
The potential action is too compelling for even the largest tech tycoons to resist.
Finally, the DoJ believes that any federal law must recognize that the Internet is different from other communications media: It’s a multifaceted communications medium that allows for both point-to-point transmission between two parties (like the telephone), as well as the widespread dissemination of information to a vast audience (like a newspaper). In most cases, this means operating out of Australia. “Federal legislation will make it difficult but not impossible for Internet gamblers in the U.S. For decades, Vegas was about the only legal option for gamblers. In a highly publicized March 1998 “raid,” Mary Jo White, the U.S. The Wire Act obviously has no mention of wagering over the Internet. In 1998, the Senate passed, by a large margin, an amendment prohibiting Internet gambling, but that bill died before becoming law. (The company did not respond to repeated requests for an interview.)
Group calls for regulation of Net gambling
For years, another barrier to the growth of Internet gambling has been strong opposition from those most threatened by gambling sites: legal American casinos. The Internet is presently unregulated and we support a federal law regulating Internet gambling.”
The original version of Kyl’s bill failed most of these tests. The Standard obtained a Department of Justice analysis of the bill S. Like the Communications Act passed in the 1930s, technology has now leapfrogged the law. Failure to account for that specificity in legislation could stifle the Internet’s growth or chill its use as a communications tool.
Similarly, the Las Vegas-based public company American Wagering, owner of Leroy’s Horse and Sports Place in Nevada, also operates a sports gambling site located in Canberra called MegaSports (www.megasports.com.au).
It’s not because they operate in any fundamentally different way. Their case is based on the 1961 Wire Act. citizens, it will be increasingly tempting for them to turn to locations abroad. That makes for an Internet gambling environment too porous for U.S law enforcement to plug. His equal partner is Australian tycoon Kerry Packer of the Crown Casino in Victoria. (However, an HBO sports program attempted to locate one of these ventures in Aruba, and ultimately found that the genuine server was in a residential neighborhood in Bethlehem, Pa.) And the Caribbean nations would like to keep their haven status.
If such gamblers are not satisfied by options available to U.S.
But over the last several months, at least some traditional casinos have pursued the time-honored strategy of joining an Internet gambling trend that they can’t beat. White’s hesitancy suggests that the law may not be as solid as she thought when she indicted. has had little cooperation from any other nation. “Ultimately, Internet gambling operators are selling a product.
Running an online casino carries all the usual challenges of Internet businesses, from low click-through rates to servers that fail. Her higher-ups in the Justice Department appear to agree
By necessity their approach is very research-oriented and concise, since with millions of dollars at risk there is little margin for error.
A round-table discussion among the 4-5 oddsmakers involved in making the line for each sport is then conducted and a consensus line is decided upon by the Odds Director before it is released to the sportsbooks. In doing so they attempt to make more attractive the team that is getting less action. Of the 4-5 oddsmakers, generally the 2 most respected opinions are weighed more heavily by the Odds Director before he decides on the final line. Each of these oddsmakers bring unique opinions, strengths and weaknesses to the process.
There is a common misconception that point spreads represent the oddsmakers’ prediction of how many points the favorite will win by. We do this by drawing from past experiences and applying them to current situations. Also, adjustments are made after reading each team’s local newspapers to get a sense of what the coaches & players are thinking going into the game.
For example, if the pointspread on a game is 7 and most of the money is coming in on the underdog (taking the +7), sportsbooks will then move the number down to 6 ½ to try and attract money on the favorite. Oddsmakers have to determine if any changes are necessary and send out an “adjusted line.”
The purpose of these adjustments, like all line adjustments, is to more equally divide the betting action.
Moving the line is the oddsmaker’s effort to balance betting action, and often times such moves can have a major impact on a bettor’s decision. The power ratings are adjusted after each game a team plays. Seba explained that it all starts with each oddsmaker creating a line on each game based upon their own personal approach. In our extended interview, Seba explained that there are 4-5 oddsmakers assigned to make lines for each of the major sports (pro & college football and basketball; MLB, NHL, boxing, golf). Reasons for such adjustments include:
Experts working for the individual books having a strong opinion on the game
Las Vegas Sports Consultants (LVSC) is the world’s premier oddsmaking company and the most respected authority on making the lines.
The last step in the line-making process for each oddsmaker is taking one final look to determine whether or not the line “feels right.” This is where common sense and past experience with how games are bet enters into the picture. “We’re not trying to pick the team that covers the spread, we’re trying to make it a coin flip, a tough decision (for the bettor). People think it’s much more complicated, but it’s not.”
Divided action means the sportsbook is guaranteed a profit on the game because of the fee charged to the bettor (called juice or vig – typically $11 bet to win $10). This usually includes having up-to-date power ratings on each team. Stated another way, they want to create a line that half the people find appealing to bet one way while the other half find it appealing to bet the other way (known as ‘dividing the action’). By moving the line, sportsbooks can influence how the public bets on a particular game.
How the Opening Line Is Made
Oddsmakers at LVSC are professional sports junkies who love what they do and would probably do it for nothing if you asked them, but they do get paid for it. Mike Seba is a Senior Oddsmaker at LVSC and has been making lines for the last six years.
Why the Line Changes
Once a game’s power rating based pointspread is determined, the oddsmaker will make adjustments to that line after considering each team’s most recent games played and previous games played against that opponent.
The opening line is the first line created by the oddsmakers, which is then sent out to sportsbooks.
What Is the Line Trying to Accomplish?
“The #1 thing for us is to make a line for each game that creates good two-way action.
“You either have a passion for it or you don’t,” Seba said. If we’ve done that, we’ve done our job.”
Oddsmakers can also change the line depending on various event-related factors such as player injuries or weather.
“The main objective is that our clients get equal action on both sides,” Seba said. That is not the case at all – their intent is NOT to evenly split the ATS result between the teams; rather, their goal is to attract equal betting action on both sides. Obviously, if the line comes out a week ahead of the event (which is the case in football), there is much that could happen during the week leading up to the event that could affect the line. Of course there is an entire method to the madness on how the opening line is created.
Power ratings are the oddsmaker’s value of each team and are used as a guide to calculate a “preliminary” pointspread on an upcoming game.
Since the oddsmaker’s ultimate goal is equally dividing the betting action, public perception and betting patterns must be taken into account. For example, the public might have heavy betting interest week after week on a popular college football team such as USC. Examples of non-game factors that would require an adjustment to a team’s power rating are key player injuries and player trades. Individual books having players who consistently bet with certain tendencies (such as an extreme bias toward favorites or toward a certain popular team like USC)
Once the opening line is released by LVSC, the individual sportsbooks decide if they want to make any adjustments before offering it to the public. If an oddsmaker comes up with a preliminary line of USC -7, then an adjustment up to -7.5 or -8 would be made in response to the public’s expected USC bias.
Once betting begins, sportsbooks can adjust the line at any time
Placing a sports wager on an online sportsbook that has slow pay-outs or poor customer service is something every sports fan tries to avoid. Studies indicate that 7 out of 10 U.S.
The online gaming industry is one of the world’s fastest growing industries on the Internet, rivaling even the most traditional of industries. For the past decade, i-Sportsbook.com has solidified its relationship with their customers by setting the standards in these values. Even though many online sportsbooks have cut off U.S. These days, not only is online sports betting entertaining, it has become a part of mainstream culture. Online sports wagering veteran, i-Sportsbook.com has recently received its well-deserved recognition as a powerhouse in the gaming industry by winning the award for Best Overall Sportsbook by Gambling Online Magazine.
Over the past 10 years, i-Sportsbook.com has carved out a dynasty among the online sports betting world. In the extremely competitive industry of online sports betting, sportsbooks have come and gone. I-Sportsbook.com takes a customer-first approach, creating an unparalleled online betting experience.
Online sports betting megacorp, i-Sportsbook.com wins Gambling Online Magazine award for “Best Overall Sportsbook”.
It’s hard enough choosing which sports teams to bet on. With online gaming sites being criticized for their lack of commitment to the American market, i-Sportsbook.com has built 10 years of trust and dedication to their loyal customers in the United States.. Trust, reliability and stability are among the biggest concerns for individuals who place bets on online sportsbooks. Sticking with a sportsbook that has been around for a while certain has its advantages. Built on trust, strength, and tradition, i-Sportsbook.com has continued on its commitment as the definitive American sportsbook.
While the sports betting industry has seen some changes, i-Sportsbook.com has experienced unprecedented growth. bettors, i-Sportsbook.com has continued to implement options in an effort to continue serving its members. adults place at least one wager with 35% of male college students betting on sports