25 April 2008

Swedish gambling chief resigns

It’s all over for Jesper Kärrbrink, the now former CEO at Sweden’s gambling monopoly Svenska Spel. Kärrbrink is leaving his post due to conflicts with the company’s directors on how the Swedish gambling monopoly needs to be run.

Or is it?

“Lately it has become obvious that my ideas on how to run Svenska Spel do not agree with the conception of the owner,” Karrbrink said about his departure. “Therefore, I and the Board have reached a mutual understanding that the best thing to do in this situation is that the Board finds a successor as CEO.

“My years with Svenska Spel have been fantastic, I will remember them with much delight – especially all the wonderful co-workers and their incredible commitment,” he said.

The recently appointed Svenska Spel board chairperson Margareta Winberg has issued her own statement concerning Kärrbrink’s departure:

“I regret that Jesper Kärrbrink now leaves Svenska Spel,” said Winberg. “He has been a creative leader and has re-organised Svenska Spel in an efficient way. But I also understand Jesper’s situation. If you do not share the owner’s fundamental perspective on how the company should be governed you can no longer be the leader of the company.”

Those of you who have been following the stellar growth of online bingo in the Scandinavian market will also be aware of the pressure being put on Sweden’s gambling monopoly by the European Commission. It’s this pressure that is obviously behind Kärrbrink’s resignation.

Kärrbrink has done a great job at Svenksa Spel where the company has seen excellent growth over the years to become a powerhouse in online gaming, including online bingo games. Kärrbrink has also signed an agreement not to work for a competing company for one year.

So what happens in one year? Will we see Svenska Spel confronted by the double whammy of losing its monopoly status and the emergence of Kärrbrink at a competing company? I wonder if Kärrbrink will take his expertise into the bingo online industry if he does decide to stick with online gaming. After all, the market for those who play online bingo in Sweden is one of the most robust in the world.

Written by Bingo Lady

23 April 2008

Looking at yesterday’s Bingo Street news I saw an article reporting that Gala Bingo, a very fine online bingo site, was claiming the most winners in online bingo. I quote:

Gala Bingo, a popular online bingo hall you can access through online bingo portal Bingo Street, is claiming it has more online bingo games winners that any other bingo online site.

Gala’s claims centre around its fixed 50p win in its One-To-Go games, a process the site claims can be converted into many extra wins because a win of 50p can then buy an online bingo player 10 extra cards, thus multiplying the chances of more wins.

This is clever marketing and my hat goes off to those who dreamed up this claim based on wins of 50p. But I think we can all agree that the prizes we all take notice of are the big money prizes, a case in point for the argument of quality over quantity as a true measure for online bingo prizes.

Written by Mike

22 April 2008

Sisters take each-other to court over bingo win

A nasty little dispute has erupted between three UK land-bingo playing sisters who are taking each other to court over a £50,000 win according to a Sky News report.

Siblings Linda Kenny and Doreen Thomas are teaming up against their sister Edna Sexton in a bid to get an alleged share of the £50,000 that they say she backed out on paying. The two plaintiffs say they had all agreed to split the winnings three ways after the win on a National Game ticket at the Buckingham Bingo Palace in Hunts Cross, Liverpool last June.

Both Linda and Doreen are suing Edna for £16,666 each plus interest.

In her defense, Mrs Sexton says the three sisters had made a different agreement in which payments over £1,000 were not split.

According to Sky News, the case continues.

My bet is that Edna has already splurged on the winnings and doesn’t have any prize money left to split. As for Linda and Doreen, maybe they should think about getting involved with an online bingo hall and putting their efforts into learning how to win and play online bingo games. There are plenty of great prizes to be won in online bingo, such as Wink Bingo’s £1,000 Guaranteed Jackpot – now there’s something they could put their effort into.

Written by Mike

21 April 2008

The taxman and land casino freedbies

It’s often been said that land-based gaming operations will always have one major advantage over their online competitors – the ability to load on freebies in the form of complementary meals, extra entertainment, free accommodation etc. However, the worm seems to be turning with reports that the US taxman is now targeting what are called ‘comps’, the American land-casino tradition of plying its customers with extras and add-ons.

Online bingo does a fine job of providing its players with attractive bonuses and promotions and, best of all, it’s all above board and okay with the taxman. If you play bingo online, you can expect to see exceptional jackpot wins and the chance to win some pretty amazing prizes – and you don’t have to travel halfway across the country to enjoy it.

However, land-based gaming operators could find themselves having to cut back on their freebies which some government revenue services see as a potential money earner. How amunsing.

Your average online bingo games operator does not have to worry about such things which means they can work on providing the best free online bingo service they can. The same can’t be said for our land-based bingo cousins who are suffering badly at this time.

So, if you’re thinking about enjoying a night of bingo, go online and save yourself the time of traveling to a land-based gaming operation that is probably more worried about what it can cut back on than what it can offer you.

Written by Mike

10 April 2008

Tv commercialism a sing online bingo is alright

There is no doubt that we are seeing increasing amounts of bingo adverts appearing on UK television screens. With the relaxing of advertising rules allowing gambling to be promoted on TV, it was inevitable that the fastest growing niche in online gaming, online bingo, would take to the airwaves to promote its message.

It actually goes all the way back to Think Bingo’s original online bingo ad in September of 2005 – ancient history now! Since then we’ve seen the likes of Jackpotjoy advertise its ‘The Price is Right’ game followed by efforts from the Sun newspaper to use TV to promote its bingo site.

For those of us who play online bingo via a trip down Bingo Street, the Foxy Bingo advert is probably the most memorable of the bingo online related TV commercials. Remember how the site’s mascot ‘Foxy’ leading a crowd of people down a street as a few famous bingo calls are made, complete with two fat ladies (88), a knock on the door (number four) and two little ducks (22).

Then there’s the celebrity factor appearing on TV with online bingo halls. Vic Reeves’ made an appearance in 888 Ladies bingo’s TV commercial. He is seen gettingup in drag complete with a pink wig and pint of beer to play bingo online.

What this all points to is that the online bingo industry is positively humming. The cost of placing a TV ad is not insignificant, and only an industry on the move can contemplate such promotions. Is online bingo taking over TV? Maybe it will be the next big thing after the reality TV trend has finally done its dash.

Written by Bingo Lady

09 April 2008

Investing in online bingo proving a winning strategy for 888.com

The dramatic decrease in 888.com’s profit over 2007 is yet more evidence that the Unlawful Internet Gambling Enforcement Act (UIGEA) has proved very damaging to the online bingo games industry. To its credit, 888.com went on to invest in online bingo halls in the UK as it withdrew from the US market to avoid possible prosecution by US authorities. Despite the company losing nearly 55% of its sales due to the loss of the US market, 888 believes it can look forward to a bright future. “2007 was a year of transformation,'’ Chief Executive Officer Gigi Levy said in a statement after the company released its 2007 results. “With many strategic initiatives now underway, we see a bright future.'’ I would say that a major contributing factor to 888’s optimism is its continued investment in bingo online and in the belief that the amount of people who play bingo online will grow. Online bingo is still one of the fastest growing niches in online gaming and with the growth in the Scandinavian markets assured it’s a pretty safe bet that companies that follow a bingo investment model will do well.

Written by Bingo Lady

08 April 2008

Death of the comp may be a sign of things to come in bingo

An Associated Press report receiving a lot of coverage in the US says that a major advantage land-based casinos have enjoyed over online casinos may be about to change due to the current US economic slowdown.

‘Comps’, or what is known as freebies in the form of meals, entertainment, accommodation and, in some cases, money, is a Vegas tradition extended to regular land casino players and has been difficult to duplicate in the online sector of the gaming industry. However, the current economic gloom descending on the US seems to be putting pressure on this practice as casino operators mull the financial benefits of continuing to offer up comps.

According to the report, comps in Atlantic City may have declined by as much as 24% in the last year.

The report may offer an insight into the current direction in the bingo industry where land-based bingo, particularly in the UK, has seen a drastic drop in attendance while online bingo has been a growth, albeit niche part of the online gaming industry. Online bingo halls offer bingo bonuses and promotions as part of their general marketing strategies while land-based bingo halls can go a step further in providing extras such as drinks and meals, etc.

For those who play online bingo though, the allure of playing from the comfort of their own home is seen as a major advantage, especially since the implementation of the smoking ban in the UK.

Concerted efforts by land-based bingo operators have, so far, failed to stem the tide to players leaving for the online variation. As an potential economic downturn starts to bite, what advantage land-based bingo halls may have in offering ‘freebies’ to players may simply become economically untenable, as is happening to their land-based casino cousins in the US.

Written by Bingo Lady

04 April 2008

UIGEA criticised as- oo ambiguous to work

The Congressional hearings into the viability of the existing Unlawful Internet Gambling Enforcement Act (UIGEA) this last April 2 have received a huge amount of media coverage as delegates heard reasons why the law is, in fact, too ambiguous to effectively provide regulations for.

UIGEA has been in effect now since late 2006 and has wreaked havoc in the online bingo industry with many online bingo games operators and online bingo halls having to exit the US market to avoid possible prosecution. However, the actual regulations which are meant to govern UIGEA’s use by US authorities are not in place with a preliminary draft now undergoing public consultation.

During the April 2 hearings, Federal Reserve and Treasury officials gave evidence that they were struggling to craft the UIGEA rules because federal law is unclear about what type of gambling is illegal online.

UIGEA seeks to disrupt financial transactions between US-based online players and non-US online gaming companies. There have already been a number of high profile casualties due to UIGEA prosecutions including well known e-wallet Neteller that was forced into having to pay a substantial fine to avoid prosecution. Many online gaming companies, including those involved in bingo online, simply chose to exit the US market to avoid similar legal issues.

During the hearings Congressman Luis Gutierrez, Chairman of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, said: "One of the most common complaints is that the proposed rules fail to sufficiently define key terms, leaving financial institutions with significant compliance difficulties." He added: "For example, the regulation fails to adequately define what constitutes “unlawful Internet gambling” or a "restricted transaction," yet requires the financial institutions to make a determination on their own about what is lawful or unlawful.

"Consumers will be placed at risk of having lawful transactions blocked. It is easy to see how these regulations, if implemented in their current form, could wreak havoc on electronic commerce in the U.S."

Written by Bingo Lady

03 April 2008

More landbased bingo halls sold off

The rot in land-based bingo continues to set in with the sale of two more bingo halls by the Carlton Clubs bingo operation. My hat goes off to Carton Clubs in securing a sale for their old halls, but surely this is yet more evidence that free online bingo is where it is at in today’s online-savvy world.

The popularity of bingo is not what is at stake here. UK bingo players are as mad about the game as ever, but they are finding there are more alternatives out there to indulge in their favourite pastime without having to even leave their home. Online bingo halls are growing, land-based bingo halls are slowing.

For evidence as to how much online bingo games are booming, take a trip down Bingo Street where I’m sure you’ll be almost overwhelmed by the sheer choice of bingo online clubs to visit. It’s easy, it’s convenient – and that’s just the point!
Whether you’re making money by playing the game or by providing an online venue, it’s increasingly obvious that online bingo is the future trend in the bingo business.

Written by Bingo Lady

02 April 2008

A way to piggyback into the Asian market

I recently read an interesting interview with new Cryptologic head honcho Brian Hadfield which he gave to Ireland’s Tribune and found it a very good indication of where the online gaming industry is heading in this post-UIGEA world. (you can read a summary of the interview in Bingo Street’s online bingo news section today)

Cryptologic’s software is used by a number of online bingo halls in the UK and the company is now expanding its reach into the Asian mahjong market in line with its strategy of going global to compensate for the loss of the US market.

Watching Cryptologic is a good indication for online bingo games operators to see how the developing Asian market fares and if there will eventually be a bingo online market of any note to take advantage of. My guess is that as long as the US continues to pursue its damaging UIGEA policies, forward thinking online gaming companies will continue to probe other, more friendly markets. Those operating free online bingo games using Cryptologic-based software may have the chance to piggyback on Cryptologic’s expansion into these exciting and exotic new markets.

Written by Bingo Lady

01 April 2008

UIGEA hearings updates

The controversial and downright destructive piece of anti-online gambling legislation known as UIGEA is to get its day in court in the form of a US Congressional hearing into its continued viability.

As those in the bingo online community who have been following this blog know, the online bingo games industry was hit hard by the arrival of UIGEA in late 2006 with many online bingo halls having to exit the US market to avoid legal issues with US authorities. UIGEA seeks to disrupt the financial transactions between online gaming operators and US-based customers.

The April 2 hearing looking at the practical implementation of the Unlawful Internet Gambling Act (UIGEA) gives our industry a perfect opportunity to educate US legislators as to the destructiveness of UIGEA. I hope that those in the US fighting UIGEA take this opportunity to really put a spoke in the UIGEA wheel and promote a more favourable solution along Barney Franks’ proposals.

Let’s see what happens over this week before we get our hopes up, but at the same time let’s hope this hearing heralds a return to sanity in the US online gaming market.

Written by Bingo Lady