Paddy Power is well known for its Irish roots. Therefore it comes as a surprise to hear recent news that that the betting firm is considering a move abroad. The company’s chief executive Patrick Kennedy recently went on record last week to announce that Paddy Power was considering moving its operations offshore if the Government introduces plans to tax telephone betting operations.
In 2009 Paddy Power reported a 15% decrease in pre-tax profits, down to €67.2M.
The strict tax regime in Ireland is a major problem for Paddy Power, and the company is sensing new plans by the Department of Finance to impose more taxes.
Kennedy said that if the 1% turnover tax was imposed, a further €2.5 million would be dropped from its profits. This is especially problematic since the company has intentions of expanding their operations over the next few years, adding another 250 employees to their company to keep up with the growing popularity of online sports betting.
Consequently, Paddy Power is now considering taking its operations elsewhere to more tax friendly country like Gibraltar.
"This is a very competitive, cut throat market," said Kennedy. "The gap between doing well and underperforming is very, very narrow. You can't take too many structural impediments to your cost base, and that could lead to the tipping point."
Kennedy maintained that the company was not keen to leaving the country and said that the group retains a "strong commitment" to Ireland but the Government’s tax policies must change.
Paddy Power currently controls nearly one third of Ireland’s sports betting market.
Miss B says: Operating offshore could lessen the company’s tax burden. Take William Hill for example, last year the company moved operations offshore and since then they’ve seen an increased advantage over their competitors.
HBO will be broadcasting a new television series about gambling. The upcoming series is dubbed "Luck." Academy Award winner Dustin Hoffman will play the leading role in the David Milch scripted show.
Variety magazine recently announced Hoffman’s casting. Apparently, Hoffman will be playing the role of Ace Bernstein, an autodidact caught up in gambling on the horse-racing track who recently completed a four-year prison term.
Joining Hoffman will be a distinguished cast of actors. Dennis Farina will star as Bernstein’s driver, Gus Economou, a sporadic man who is loyal to his boss. Along with, John Ortiz who will play Turo Escalante, a Peruvian trainer based on Julio Canani.
David Milch previously created “John From Cincinnati” and was also an executive producer on the popular Deadwood series. His experience and creativity should bring much depth to the project.
The pilot of “Luck” will be directed by Michael Mann, who will also co-produce the series with Carolyn Strauss, David Milch, and former Sopranos producer Henry Bronchtein. Mann has directed some phenomenal television hits in the past, including the 1980s classic Miami Vice.
Miss B says: There are so many brilliant people involved in this project. I’m most intrigued to see how Dustin Hoffman will perform. He has spent much of his career on the big screen. So I’m excited to see him work on a television series.
Two Democrat Congressmen from Missouri, William Lacy Clay and Russ Carnahan, have jumped on board as co-sponsors of Barney Frank’s Internet Gambling Regulation, Consumer Protection, and Enforcement Act, which outlines the licensing and regulation of online gambling in the US.
The two lawmakers strongly disapprove of the UIGEA, the US’s current ban on online gambling, saying it is foolish of the law's supporters to believe the ban will stop US citizens from visiting online betting sites. Clay notes, “We should not be so naive to think that we are going to do away with gambling by passing that (UIGEA) law.”
They compare the ban to an ostrich-with-his-head-in-the-sand type of approach to dealing with online gambling. According to the Congressmen, internet gambling is the new reality in the gaming industry. “It's the kind of thing that requires clear rules and regulations so that it functions well,” Carnahan added.
The representatives also want the US to take advantage of the massive revenue that could be generated by regulating online gambling.
Clay referred to a study by Price Waterhouse that estimated the revenue potential from online gambling and said, “I think $42 billion is a significant sum that the federal government needs to fund some of the programs that are worthy and that Americans benefit from.”
Miss B says: This is great news! The total number of co-sponsors for Barney Frank’s bill is now 66.
Big-time Las Vegas investor Steve Wynn is stepping up to save the Foxwood Casino project in South Philadelphia. The project has been delayed for the past three years due to political and neighborhood opposition.
Wynn Resorts Ltd. announced Tuesday that it had signed a letter of intent, outlining the terms and conditions of the deal and indicating its role as an affiliate responsible for managing and developing the project.
The deal comes at a vital point in the Foxwoods project.
The original investor, Philadelphia Entertainment & Development Partners (PEDP), is at risk of losing its license and needs to find a new partner who can bring both financing and leadership to the deal.
At a hearing last Jan. 27, the Pennsylvania Gaming Control Board gave the PEDP until March 3, 2010, to come up with a new platform and financing.
Steve Wynn has opened several luxury casino resorts in Las Vegas, including the Mirage, Bellagio, and Treasure Island Resorts. He sold those companies and launched Wynn Resorts in 2002.
Wynn Resorts currently operates two casinos resorts in Las Vegas and another in Macau.
“I am thrilled to be returning to the East Coast,” Wynn said in the statement, “in particular to the city in which I was privileged to have gained my college education.”
Wynn’s role in the project now awaits approval from the Pennsylvania Gaming Control Board.
Miss B says: The Wynn name holds much prestige within itself. There is no doubt in my mind that the Wynn establishment will be able to add the needed leadership and finances to the Foxwood project. What’s your take? Is this a good or bad thing?
Two top-rate Chinese football clubs have been demoted to the second division after club officials were found guilty of match-fixing and illegal gambling, the China Daily reported on Tuesday.
According to a statement released by China’s Football Association (CFA), Guangzhou GPC and Chengdu Blades have been demoted to the second division, and second division team Qingdao Hailifeng has been disqualified entirely and fined 200,000 yuan (30,000 dollars).
Guangzhou GPC was found guilty of bribery in August and September of 2006, while the Chengdu Blades allegedly paid bribes in September of 2007, the statement read, without any additional details.
The statement did add however, that the teams would have the opportunity to appeal the decision.
“We were mentally prepared for such punishment,” the China Daily quoted Guangzhou head Coach Peng Weiguo as saying. “We will fight on.”
The president of Chengdu Blades, owned by English Championship side Sheffield United, was arrested last month during a recent probe on match-fixing in the country.
The CFA said that 16 teams would still play in the new Chinese Super League season, though replacements have yet to be named. The season is set to beginning on March 20, but ongoing police investigations could halt those plans, officials have said.
Miss B says: The recent investigation into match-fixing comes amid calls by top Communist Party officials to rid the professional game of corruption in country. China has long been downplayed as a nation with loose regulation when it comes to professional football, but now it seems that the government is ready to take action. To date, more than 20 officials arrested or detained, including the CFA's former chief Nan Yong.
Search engines play a major role within the online gaming sector, as the industry’s primary marketing tool. A ranking on Google, for instance, could literally make or break an online gaming business.
Now talks circulate that Yahoo and Microsoft will merge much of their Internet search platform.
According to sources, Yahoo.com and Bing.com will maintain their own separate brands but search results on Yahoo.com will read "powered by Bing." Yahoo, in turn, will be responsible for obtaining in valuable advertisers.
The ten year deal was established by the two companies last July to help Microsoft and Yahoo combat against Google, which has nearly 90% market share in the UK alone.
The European Union has already approved the deal and it is now being reviewed by the US Department of Justice, with a decision expected by June.
If approved, for the first five years Yahoo will receive 88% of the revenue from all search ad sales and will be given the opportunity to sell ads on selected Microsoft sites. For the remaining five years Yahoo will keep 93% of revenue earned.
Miss B says: A Yahoo/Bing merge would be very beneficial to the online gaming industry. This is defiantly a story to follow. I’ll be sure to keep you all posted on any updates.
The Academy Awards (Oscars) nominations are out - which means it time for everyone to place their bets on Best Picture, Best Actor/Actress, Best Director, as well as many other categories.
Bodog Sportsbook, a pioneer amongst online bookmakers, has put out an extensive list of wagers for the 2010 Academy Awards. Let us take a look.
Bodog currently has "Avatar" as the favorite to win the Best Picture Award with odds 4/13. "The Hurt Locker" comes in at second, listed with odds 13/10 to win the Best Picture Award this year. Distant third is "Up in the Air" with long odds 15/1.
Here is the full list of betting odds on the 2010 Oscars for Best Picture:
A Serious Man - 75/1
An Education - 50/1
Avatar – 4/13
District 9 – 75/1
Inglourious Basterds – 18/1
Precious – 28/1
The Blind Side – 40/1
The Hurt Locker – 13/10
Up – 60/1
Up in the Air – 15/1
Moving on to Best Actor category, we see Jeff Bridges (Crazy Heart) as the definitive favorite with short odds 4/29. Behind him, Bodog lists George Clooney (Up in the Air) at 17/4 and Colin Firth (A Single Man) with 10/1 odds to win the Best Actor Award.
Odds at Bodog Sportsbook favor Sandra Bullock to take home this year's Best Actress award for her role in "The Blind Side" with odds 2/5, followed by Meryl Streep (Julie & Julia) at 7/4 and, Carey Mulligan (An Education) with odds 15/2 to win Best Actress at the 2010 Academy Awards.
Finally, odds on the Oscar for Best Director set Kathryn Bigelow (The Hurt Locker), the favorite with 1/3 odds, toe to toe with Avatar's director James Cameron. Also nominated for Best Director are Jason Reitman (Up in the Air) with 20/1 odds to win, Quentin Tarantino (Inglourious Basterds) at 22/1 and, Lee Daniels (Precious) as the underdog with 35/1 odds to take home the Oscar.
Alec Baldwin and Steve Martin will be hosting the 82nd Academy Awards on March 7 in Los Angeles’ famous Kodak Theater.
Miss B says: I’m excited for the 82nd Academy Awards! 2009 saw a slew of great movies so the evening is bound to be full of excitement. Share your picks for the 2010 Academy Awards below.
The European Union (EU) was originally created to assist economic trade and development amongst member nations.
The EU requires a balanced competitive environment, with members handling each other’s commerce as their own without discrimination. Recently however, much stipulation has come up against Spain’s new gaming laws and their inconstancy with these requirements.
Currently in Spain, players who win money through lotteries and games of chance that are offered by Spanish-based companies are not required to pay any tax on their winnings. On the contrary, players who win money through foreign-based lotteries and games of chance must pay taxes on their winnings.
The European Court of Justice (ECJ) ruled that this practice unjustly discriminates against foreign operators, and that companies based overseas should be given the same privileges.
Now Spain must reassess its gambling laws or risk infringement charges from the European Court.
Miss B says: I am not surprised by this news. Many EU member countries have found difficult to regulate online gambling in matters consistent with the European Treaty. France, Germany, Italy, and the Netherlands are all under investigation for applying inconsistent rules to the requirements stated by the EU.
Much of the world is convinced that the United States will soon alter its strict Internet gambling laws. One UK-based payment processing company in particular, the UC Group, is so sure of the matter that it has announced plans to create a US subsidiary to process online gambling transactions in the US.
The UC Group will be conducting its US operation under the company name SecureTrading. The new subsidiary, which is run by several past employees of MasterCard, does not expect any delay in the processing once the Unlawful Internet Gambling Enforcement Act (UIGEA) is overturned.
"Momentum for regulated Internet gambling in the US has been building for some time," said Chris Thom, a former Chief Operating Officer at MasterCard, "As Congress prepares to take the final step, SecureTrading Inc.'s turnkey system is primed to enable our customers to go live the moment Internet gambling is regulated."
Representative Barney Frank (D-Mass) has been a leader among many online gambling proponents in Congress. In May of 2009, Frank introduced legislation that would overturn the UIGEA. In the proposed legislation Frank created a platform for a regulated online gambling industry in the US.
In recent months, there have been an increasing number of lawmakers that have joined in Frank's campaign. His legislation now has more than sixty-five co-sponsors, and several have proposed different forms of Internet gambling legislation themselves.
Miss B says: This is a smart move. I am sure the US government will overture the Unlawful Internet Gambling Enforcement Act within the coming year. When this happens the UC Group will have a head start over other companies that didn’t act earlier on. What do you all think?
A state Senate committee offered its support for a constitutional amendment that would authorize the state of New Jersey to allow in-person and internet wagering on professional and college sporting events.
The bill, sponsored by state Sens. Ray Lesniak, D-Union, and Jeff Van Drew, D-Cape May, passed Monday despite discontent from some lawmakers.
New Jersey currently offers wagering on horse races to state residents through the 4NJbets.com web site. The state would expand the law to permit casino, racetrack, and Internet hosting of sports betting wagers.
Despite great success Monday, the push for New Jersey sports betting is far from over.
Gaming proponents in the state still must challenge potential opponents like Senator Bob Gordon who argue that the issue should be decided by the full legislature, in addition to overcoming a federal ban on such betting in New Jersey.
Sen. Lesniak is already pursuing a lawsuit against the federal government arguing that the sports betting prohibition is biased. He is also hoping to have the full Senate vote on the bill Feb. 22, 2010.
Miss B says: New Jersey is known for its strict gaming regulations. So this news is sweet! I truly believe this is a landmark decision and many states will soon follow suit. Next step New Jersey Senate!
Paddy Power is well known for its Irish roots. Therefore it comes as a surprise to hear recent news that that the betting firm is considering a move abroad. The company’s chief executive Patrick Kennedy recently went on record last week to announce that Paddy Power was considering moving its operations offshore if the Government introduces plans to tax telephone betting operations.
Big-time Las Vegas investor Steve Wynn is stepping up to save the Foxwood Casino project in South Philadelphia. The project has been delayed for the past three years due to political and neighborhood opposition.
Two top-rate Chinese football clubs have been demoted to the second division after club officials were found guilty of match-fixing and illegal gambling, the China Daily reported on Tuesday.
A state Senate committee offered its support for a constitutional amendment that would authorize the state of New Jersey to allow in-person and internet wagering on professional and college sporting events.