Exclusive: Intralot launches US-facing freeplay site

Posted on March 6, 2013 by t.washington

Deepstack Casino platform is adapted version of software developed for DC Lottery before supplier contract was pulled in 2011

Intralot has launched a US-facing freeplay casino site for the first time as it moves to expand its online portfolio beyond lottery products.

Deepstack Casino has been in development for a number of years, having been created using the platform Intralot intended to provide to the DC Lottery as part of a proposed five-year lottery and gaming management contract which was cancelled in 2011.

Intralot US will use the site, which features a wide range of poker, video poker, blackjack, bingo and skill games, primarily as a proprietary B2C product, creating an additional revenue stream through the sale of virtual poker chips.

However the lottery supplier told eGN NA it intends to offer the platform as a B2B white label offering to clients in the future, including as a real-money site to operators within regulated US jurisdictions over time.

“If the real-money market opens up, we anticipate entering that market as long as it makes sense for Intralot to do so,” said Lee Wilson, senior project manager, igaming, who added that the site gives Intralot “invaluable experience” in running a US-facing operation.

“We have designed Deepstackcasino.net to look and feel like a real-money gambling site. There is a full loyalty programme behind it which can be linked to lottery’s retail operations,” he said.

Upgrades to the hardware platform are ongoing in order to accommodate greater player numbers, and new games will be added on a monthly basis, Wilson added.

Intralot US is one of only a few major gaming suppliers yet to apply for an interactive gaming licence in Nevada, explaining that “the cost versus ROI for a Nevada licence doesn’t make sense at the moment”.

However as more states begin to regulate online gambling within their borders, lotteries are likely to expand beyond their core draw games into gaming products such as poker and casino. Delaware for example, where all gaming is managed by the state lottery, will soon appoint an egaming system and service provider after Governor Jack Markell approved a bill in June 2012 that legalised online gambling in the state.

In 2009 Greek-owned Intralot was approved to manage the DC Lottery’s online lottery and gaming platform in a five-year contract worth around US$40 million after the state became the first US jurisdiction to pass intrastate egaming regulation into law in April 2011.

The deal subsequently fell through after the DC Council voted to repeal an online gambling law in late 2011 amid concerns of wrongdoing – not concerning Intralot’s involvement – by government officials responsible for selecting the service provider.

Fellow lottery supplier Spielo G2 has already launched into the US freeplay market – through deals including with California tribe Barona Resort& Casino – a strategy seen as a means of attracting new players and promoting offline brands. In September last year the software provider signed a free-play deal with the Barona Resort and Casino, aimed at preparing the casino for future regulation in its home state of California.

Christie signs conditional veto of egaming bill

Posted on February 7, 2013 by r.weston

New Jersey Governor Chris Christie calls passing online gaming “a historic opportunity” saying he will approve a bill if his suggestions for greater player protection and transparency are met

New Jersey Governor Chris Christie has issued a conditional veto of a bill which would legalise online gambling in the state, calling the legislation a ”historic opportunity” and setting out crucial amendments which must be made for the law to be approved.

Christie, who many thought would block the bill entirely as he did in 2011 due to fears around cannibilisation of land-based casino revenues, revealed today that he recognises the “value and potential” of internet gaming to support his administration’s efforts to revitalise Atlantic City’s ailing industry.

However he will not let Assembly Bill 2578, which would allow the state’s 12 casinos and racetracks to act as operators of online poker and casino games, to be implemented in his current form.

In his conditional veto Christie asks that online winnings should be taxed at 15% rather than the suggested 10% and for the existing law to “sunset” or undergo a complete review after 10 years.

He also makes recommendations to improve the safeguards to limit risks of gambling addiction, corruption and improper influence, including that state-elected officials “promptly disclose their past and present representations of entities seeking or holding internet gaming licences”.

Furthermore, the fee for issuance of an internet gaming permit would be increased from $200,000 to $400,000, the fee for renewal from $150,000 to $250,000, and the annual payment by a licensee to compulsive gambling programmes from $150,000 to $250,000.

It is expected that these amendments will be made within the next few weeks and that the bill will be presented once again to Christie for approval.

“This bill represents an important policy decision for the residents of New Jersey, and a historic opportunity to continue the State’s leadership as a premiere destination for tourism and entertainment,” Christie said in a statement.

“Such a significant step must be carefully considered, balancing the benefits of job creation, economic development, and the continued revitalisation of Atlantic City against the risks of addiction, corruption and improper influence. It is my duty as Governor to make these determinations, always mindful of my duty to guarantee the continued welfare of our families, our neighbors, and the future generations who will call our State home.”

“My proposal continues the tradition in New Jersey of a fine, careful, and well-regulated implementation of gaming. With these changes, we will increase resources to treat compulsive gambling, provide sensible safeguards to ensure careful oversight and a proper annual review of the implementation of internet gaming, along with a 10-year sunset for future leaders to carefully reevaluate internet gaming as a state policy broadly and critical transparency measures to guard against undue and improper influence and self-dealing.”

The Senator Raymond Lesniak-sponsored bill was first approved by a New Jersey committee in May 2012. Lesniak has long argued that online gambling is needed to boost Atlantic City’s struggling casino industry which has been in rapid decline and last year recorded its worst results since 1993.

Last month a leading analyst claimed legalising online gambling in New Jersey was one of Governor Christie’s “last chances” to protect the future of Atlantic City, explaining that in the near term, the state’s online market could generate between US$650m and $850m a year, based on 5.8 million adult players and a per-capita annual online spend of $111-$149. That would mean an additional $150m in additional tax revenues each year.

The Poker Players Alliance (PPA), commended NewJersey Governor Chris Christie for his decision, with its executive director John Pappas saying: “While the New Jersey legislature has some work to do before this bill becomes law, we believe this is a victory for New Jersey residents who reached out to the Governor in droves expressing support for this bill.

“Now, New Jersey is well positioned to serve as a leader in the innovative Internet gambling market and can pave the way for other states to adapt similar structures moving forward. We urge the legislature to act swiftly to pass this important legislation.”

The first version of the bill included a ‘bad actor’ clause made which would have prohibited any organisations that offered online gambling in the US after 31 December 2006 including the likes of PokerStars and Full Tilt. This provision was removed from Lesniak’s bill in December.PokerStars has since agreed to acquire the struggling Atlantic Club Casino Hotel from investment group Colony Capital for a fee thought to be less than $50m, and is in the process of applying for an operator’s licence from the state’s gaming commission.

Connecticut tribes get behind egaming

Posted on November 16, 2012 by r.weston

Foxwoods and Mohegan Sun voice approval as politician calls for legislature talks

Connecticut’s two tribal casinos Foxwoods and Mohegan Sun have voiced their support for legal online poker after a key Connecticut politician said the state should consider it when the General Assembly convenes in January.

Republican Stephen Dargan, co-chairman of Connecticut’s public safety committee which oversees legal gambling, said this week that egaming should be discussed in the legislature, especially as revenues from the casinos are decreasing. In October, Foxwoods’ slot revenues were down 15.6% year-on-year, from US$50.8m to $42.9m.

The Mashantucket Pequot Tribal Nation (MPTN), owners of the Foxwoods Resort Casino, told local newspaper the Hartford Courant that it supports the legalisation of online casino games as well as poker: “Regulation of internet gaming will provide the much-needed player protections that are currently not available through unregulated offshore operators who are currently taking bets in the US and Connecticut. MPTN has been diligently studying the Internet gaming space and is preparing itself to be an active participant in the marketplace when regulations permit.”

A technology partnership agreement between Foxwoods and Sportingbet due to be announced in October was delayed due to the interest in the operator from William Hill and GVC Holdings.

The Mohegan tribe’s chief of staff for governmental and external affairs, Chuck Bunnell, also confirmed that it would operate online gambling, if legalised, albeit only internet poker. Mohegan Sun signed a deal with Bally Technologies last month for the use of the latter’s online gaming platform.

After the statement in December 2011 from the DoJ clarifying that the Wire Act only applied to online sports betting, Connecticut Governor Dannel Malloy initially welcomed the ruling, before later expressing concerns. At the time, Foxwoods and Mohegan Sun were also wary that legalised online gambling could change their legal agreement with the state. They provide Connecticut with more than 25% of their slot machine revenue annually.

Bally posts record Q1 revenues

Posted on October 26, 2012 by t.washington

CEO Richard Haddrill expects online revenues to kick in during second half of the year

Bally Technologies has reported record Q1 revenues, marking its fifth consecutive quarter of year-on-year earnings per share growth, with CEO Richard Haddrill expecting income from its online operations to begin increasing incrementally later this year.

The casino and slot game manufacturer, which has been steadily building its online offering over the past 12 months since launching Bally Interactive in October last year, posted total revenues of US$235m, up 21% from the same period last year, while operating income for the period was also a first quarter record $54m, up 43% from last year.

Haddrill explained that the company has created Flash, HTML5 native iOS and Android versions of an initial library of some of its most popular titles for online distribution, and expects its 12 “major operators”, including the recently announced GameAccount Network, to feature the Bally virtual game library on their platforms during the second half of this fiscal year, “generating incremental revenues”.

Haddrill added that the company’s mobile arm also continued to make good progress. “Bally Mobile continues its strong momentum and has now grown to approximately six million users. Thanks to the measurable ROI these mobile applications are generating for our customers, we are seeing significant growth both in new customer acquisitions, which has grown by more than 50% year-over-year, and in the delivery of new features for existing customers,” he said.

Bally’s own open-architecture online gaming platform, acquired from Chiligaming in February, has attracted a number of clients including the Mohegan Sun casino group earlier this month.

The casino was the third to strike an online poker partnership with Bally this year, after fellow Nevada-licensee American Casino and Entertainment Properties (ACEP) inked a deal last month, and Golden Nugget went live with a freeplay poker in June.

ACEP’s agreement will see a freeplay poker site launch by the end of the year, with a real-money product in Nevada to follow once Bally’s systems have been approved by an independent testing laboratory. Bally has already been approved for an interactive licence by the state’s Gaming Commission, while Golden Nugget was granted an operator licence last week.

“[A]s the requirements of land-based mobile and online gaming continue to merge, the open architecture strengths of our iGaming platform and its ability to enable a single view of the player, continue to resonate well with our prospective customers,” Haddrill noted.

Meanwhile, revenues from offline gaming equipment sales increased 28% to $83m in the quarter, compared with $64m last year, driven by higher domestic replacement sales, the shipment of 670 units to the Atlantic Lottery Corporation, and initial shipments into the Illinois VGT market.

Bally and GameAccount strike content deal

Posted on September 26, 2012 by t.washington

Bally’s suite of online and mobile gaming content will be made available to software provider

Bally Technologies has continued its recent flurry of activity in the egaming space by announcing an agreement to provide a wide range of online and mobile content to software provider GameAccount Network.

The GameAccount Network platform is licensed and regulated in European jurisdictions and will now offer a host of Bally’s video slot content online and as HTML5 mobile games.

Bally’s games will be made available to GameAccount via a remote gaming server, whereby customers can access content and integrate it into their existing platforms. Available titles include Cash Wizard, Pharaoh’s Dream, Tiger Treasures and Big Vegas.

Dermot Smurfit, CEO of GameAccount Network, said of the deal: “Bally Technologies is a company known in the gaming industry for its technology, content, integrity, and most of all − innovation. We are committed to providing the best available content and service to the growing number of regulated gaming markets around the world. Bally’s games will absolutely help us continue to meet this commitment to our customers.”

Bally Technologies’ vice-president of business development John Connelly added: “We are very pleased to reach this agreement with GameAccount. Bally has an unmatched level of experience in the gaming industry. We have been providing top-performing content for the highly competitive land-based casino industry in North America for years. Both the providers and players of online and mobile gaming in Europe will see great benefit from these outstanding titles.”

In a productive week for Bally, the gaming supplier has announced it will act as online partner to Vegas’ Stratosphere casino parent company American Casino and Entertainment Properties (ACEP). ACEP became the third operator to gain an interactive poker license in the Silver State just last week, and will launch a freeplay poker site by the end of the year, followed by a real money site once Bally’s online poker technology has been approved by one of the Nevada Gambling Control Board’s independent testing labs.

Meanwhile GameAccount Network announced it was set to launch online slot games in Italy in a deal with Eurobet Italia. Initially launched on an instant play, non-download basis only, the Crown Jewels tumbling reel slot is part of a full suite of casino games along with blackjack and roulette on Eurobet’s website.

While slots are yet to be fully launched in the Italian market, the country’s legislation allows for non-spinning slots.

WMS forms new egaming division

Posted on July 17, 2012 by t.washington

Chicago-based Williams Interactive will be headed up by WMS president Orrin J. Edidin

WMS has announced the formation of Williams Interactive, a wholly owned subsidiary that will focus on expanding and developing its egaming services.

The new entity will be headed up by Orrin J. Edidin, president of WMS Industries, who has been promoted to the position of president and chief executive officer of Williams Interactive.

Williams Interactive will concentrate on its online wagering, social, casual and mobile gaming offerings in order to “capitalise on the emerging industry’s significant potential growth opportunities by supporting casinos’ participation in these new distribution channels”, WMS said in a statement.

Brian R. Gamache, chairman and CEO of WMS Industries, added: “Establishing Williams Interactive is an important step forward in concentrating our efforts and increasing our collective ability to leverage our operational and development initiatives to propel growth and returns to the next level.”

In the last few years WMS has built a suite of egaming services aimed at supporting the online efforts of its land-based customers. Its operations include B2C online casino JackpotParty.com and a B2B online casino site in Belgium in collaboration with Groupe Partouche.

More recently WMS strengthened its egaming credentials by acquiring online gaming content developer Jadestone Group and Phantom EFX, a leader in social and mobile game development with a suite of more than 35 casino and slot products developed for desktop, Facebook, and mobile.

Earlier this month the company also announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, to pursue both social and real-money online poker in the US, when legally permitted.

WMS is one of more than 30 companies to have applied for an interactive poker licence in the state of Nevada, although its application has yet to be given a place on the state’s Gaming Control Board agenda.

Newly appointed Williams Interactive president and CEO Orrin J. Edidin added: “Creating a single organisation to unify the company’s efforts in online wagering and interactive gaming distribution channels, while drawing upon our extensive existing library of great gaming content, will better enable WMS to participate in the many high-margin opportunities this content convergence offers.

Vote on Delaware gaming bill delayed

Posted on June 27, 2012 by t.washington

Support for HB 333 “slipping back and forth” – expected to be first on Wednesday’s agenda

Delaware’s Senate has delayed a crucial vote on a bill authorising online gambling in the state.

HB 333, a bill which would permit the sale of online lottery tickets, allow residents to play online casino games and expand gambling beyond the state’s three casinos, was scheduled for a vote on Tuesday.

A source close to the matter said the Senate broke for caucus prior to a vote yesterday due to further discussions needed around amendments in the latest draft of the bill. These include provisions to satisfy the state’s horse racing business, which has asked for a greater share in the profits from online gaming.

The bill is now expected to be first on today’s agenda and will need to be signed by Governor Jack Markell by the 30 June legislative deadline in order to pass into law.

According to local news source Delaware Online, Senate Majority Leader Patricia Blevins said support for the gambling expansion was “slipping back and forth” and Democratic leaders “wanted to be certain where we stood.”

A spokesman for Governor Markell, who is understood to be in support of the bill, was reported as saying: “Members of the administration were working with senators and others on an amendment that was of concern, and while progress was made and the sponsor agreed not to run it, given the late hour Senate leadership decided the bill will be worked first on the agenda on Wednesday instead.”

The bill, sponsored by Representative John Viola, passed out of the state Senate earlier this month.

Delaware egaming bill faces crucial hearing

Posted on June 26, 2012 by t.washington

Delaware could become third US state or territory to regulate online gambling if Governor Jack Markell signs bill before 30 June deadline

The future of online gambling in Delaware hangs in the balance today as HB 333 faces a crucial Senate vote.

The bill, sponsored by Representative John Viola and backed by Governor Jack Markell (pictured), is scheduled for a vote in today’s Senate session which begins at 2pm EST where it must receive a 60% majority to pass.

It would permit the sale of online lottery tickets – including instant win games – and allow Delaware residents to play casino-style games including slots. All games would be offered under the control and operation of the state lottery.

To date, only Nevada and the US Virgin Islands have regulated online gambling, although bills are under consideration in other states such as California and New Jersey.

Governor Markell’s plans would also expand the locations in which keno games could be played beyond Delaware’s three existing casinos to more than 100 sites, as well as making sports lottery available at venues other than the video lottery agents, such as bars or convenience stores.

Having been passed by the state House on 12 June, the bill faces a legislative deadline of 30 June, by which time the Governor must sign it into law.

Markell first announced plans for egaming in the First State back in March and claims that the expansion of gambling would provide a welcome boost to the state’s land-based casinos.

He says the extra revenue the regulation would attract would eliminate the US$4m in slot machine fees paid by casinos each year and cut their table game fees from $6.75m to $3m, helping them to remain competitive with nearby states.

Delaware egaming bill heads to Senate vote

Posted on June 21, 2012 by t.washington

HB 333 heads for full floor vote on 26 June – would allow online casino games through state lottery

A bill which would authorise online gambling in Delaware including casino games and sports lottery is heading for a crucial vote which could see it passed into law by the end of the month.

HB 333 cleared a Senate committee hearing on Wednesday, having been passed by the state’s House of Representatives earlier this month. It will now be subject to a full floor vote at the state senate on 26 June, where it must receive a 60% majority to pass.

The bill, sponsored by Representative John Viola, would allow the sale of lottery tickets online and casino-style games and to be offered under the control and operation of the Delaware Lottery.

It also permits the expansion of keno games beyond Delaware’s three existing casinos to more than 100 sites, and sports lottery at venues other than the video lottery agents, such as bars or convenience stores.

HB 333 has the backing of Delaware Governor Jack Markell, who needs to sign the legislation into law before the legislative session ends on 30 June.

Markell first announced plans for egaming in the First State back in March and claims that the expansion of gambling would provide a welcome boost to the state’s land-based casinos.

Delaware’s egaming bill passed by state House

Posted on June 13, 2012 by t.washington

HB 333 would permit casino and lottery games through the Delaware Lottery

A bill which would authorise online gambling in Delaware including casino games and sports lottery has been passed by the state’s House of Representatives.

HB 333, known as the Delaware Gaming Competitiveness Act of 2012, permits the sale of instant-win lottery games, and tickets for the Powerball and Mega Millions draws, while casino games such as slots and blackjack would also be permitted. All games would be under the control and operation of the Delaware Lottery.

It would also allow the Delaware Lottery to operate the sports lottery at venues other than the video lottery agents, such as bars or convenience stores.

The passage through the House follows The House Gaming and Parimutuels Committee voting in favour of the bill last month.

The bill, sponsored by Representative John Viola, states that “internet lottery games would be offered solely to persons within the State of Delaware at the current time. A person’s location would be determined from a person’s computer or mobile device”.

Delaware Governor Jack Markell first announced his interest in regulating online gaming in March, stating that the expansion of gambling would help casinos by eliminating the US$4m in slot machine fees paid by the existing casinos and cut their table game fees from $6.75m to $3m, helping them to remain competitive with nearby states.

HB 333 also proposes the expansion of keno games beyond Delaware’s three existing casinos to more than 100 sites.