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Monthly Archives: August 2012
Sportsbook.com says Floyd Mayweather bet $3m on Michigan
If Michigan is going to drop Toussaint and a backup lineman before a game I will hope on Denard Walker’s behalf the backups know their blocking assignments against Alabama’s line. Dallas is not quite neutral territory for the SEC versus Big Ten and basically I don’t care how many starters you lose to the NFL I am still having flashbacks about what the Crimson Tide did to LSU so I think it’s foolish not to give the 14 points (and while you’re at it bet the under.)
I just won’t say it to Mayweather’s face.
Zynga Hires Online Gambling Veteran as New COO
Following the announcement of John Schappert’s resignation as COO of Zynga, the company has filled by position by hiring Maytal Ginzburg, who recently left her role at gambling website operator 888 Holdings.
Zynga artist’s rendering of Maytal Ginzburg
Ginzburg recently updated her LinkedIn profile to reflect her new employer after serving as SVP of regulated markets at 888 Holdings. Her responsibilities at her former job revolved around acquiring customers and assisting in the operation of the company’s online portal which offers poker, bingo and sports betting.
The veteran’s arrival at Zynga is perhaps the strongest indication of Zynga’s aspirations for tapping into online gambling, a market which is expected to reach upwards of $32 billion in 2012. A recent Crowdpark market report emphasized the potential of joining the social gaming industry with online gambling, and Zynga is undoubtedly paying attention to these eye-catching numbers:
The social games industry is projected to reach $8B in 2012. Social casino and betting games marry this potential with online gambling, gross revenues of which exceeded $32B in 2011. Betting and casino games account for 43% and 24% of this figure respectively. By pursuing a cross-platform strategy, mobile social casino games developers can also tap into the mobile gaming market, which was measured at $2.72B in 2011.
In a conversation with Inside Poker Business, Ginzburg said, “We want to attract players who will play for casual entertainment, and we therefore needed to deliver social platforms that are easy to use yet provide all the interactive features users expect.”
Even though she hasn’t officially started work yet, she seems she’ll fit right in. Will Ginzburg be able to pull Zynga back onto its feet in light of the company’s recent financial troubles?
Online Poker Star Purchases Spaceflight Ticket
This animation illustrates this highly technical orbital maneuver.
In what is arguably the strongest endorsement of online gambling, Finnish player Jens “Jeans89” Kyllönen is using his online poker winnings to buy a ticket to space. Kyllönen paid €160,000 for a seat aboard Virgin owner Richard Branson’s private space vessel.
Virgin recently announced a contest that will reward the traveler who racks up the most miles on Virgin flights with a free seat on board the next space trip. Kyllönen decided to skip all that nonsense and just buy a seat.
“I’ve always been fascinated with space and now that I have the opportunity to be within the first people going I just felt like I had to do it,” he said.
€160,000 is a drop in the bucket for Kyllönen, who recently sat down at a $1-million buy-in PokerStars table, and who as of last week was up over $1.6 million.
Kyllönen told Card Player Europe that the planned spaceflight is still in the staging period, and that he expects to enter Earth’s orbit sometime in 2014. He explained there’s a three to four day training period at Virgin Galactic’s Spaceport America in the New Mexico desert.
The planned flight will last approximately two hours. Plenty of time for a zero-gravity game of Hold ‘Em. Let’s just hope they use velcro-covered chips.
Republicans Support Total Ban of Online Gambling
The Republican National Convention is taking place in Tampa at the moment, with the GOP uniting behind their official nominee for president, Mitt Romney. While Chipist is not about to make an outright political statement, we feel it is necessary to report on the stance the GOP is taking on the issue of online gambling.
The short version: They don’t like it.
Among several statements made in the “Renewing American Values to Build Healthy Families, Great Schools and Safe Neighborhoods” party stance is a brief statement that firmly establishes the Republican position on online gambling.
We’ll need a little context first. Last December, the Department of Justice stated that the Interstate Wire Act of 1961 (colloquially referred to as the Federal Wire Act) only applies to sports betting and book making. The Department of Justice’s interpretation has made it so online gambling companies can continue to operate. The GOP wants the DOJ to reconsider their position and completely prohibit online gambling.
The GOP’s statement:
“Millions of Americans suffer from problem or pathological gambling that can destroy families. We support the prohibition of gambling over the Internet and call for reversal of the Justice Department’s decision distorting the formerly accepted meaning of the Wire Act that could open the door to Internet betting.”
What stance do the Democrats have? The short version: It’s a state matter.
“The Administration understands that many Americans engage in paid online poker games for entertainment purposes. Online gambling on sporting events or contests violates federal law. The legality of other forms of online gambling is dependent upon the law of the states where the bettor or gambling business is located. It is left to each state to determine whether it wishes to permit such activity between its residents and an online poker business authorized by that state to accept such wagers, but online gambling that is not authorized by state law may also violate federal statutes.”
So what do you think? Surely you have a stance on this matter? We assume if you are reading our blog on online gambling, you have an opinion (even though we might be able to guess it.) Please let us know your thoughts in the comments below.
Zynga Launches Gambling Website?
It would appear that Zynga has launched a website dedicated to gambling, as the domain name “zyngambler.com” was registered yesterday, August 27th. The original site to post the news, Fusible, took down their story, however before this happened Games.com had already made their post.
Where this story starts to become interesting is when you look at the actual Zyngambler page itself (screencapped above). At the top one can see the Zynga Poker logo, however further down the page we leave all semblances of a gambling website as the page turns into the website for a German design firm called Crunchy, a “simply awesome design studio with class.” It really looks like Crunchy is a made-up company, as all of the links and button on the site lead nowhere.
Digging a little deeper, we can find that the domain is registered to DNStination Inc., located in Suite 800 at 303 Second Street in San Francisco, CA. A quick search reveals this to be the one of the executive offices of MarkMonitor, which bills itself as brand protection in the digital world. While no definitive conclusion can be drawn here, it would seem that MarkMonitor may be working on behalf of Zynga to hold the gambling related domain. If this is the case, why would the URL currently lead to a German design studio featuring the Zynga Poker logo?
There is definitely more here than meets the eye. Chipist will keep you updated with the latest as this story develops.
First Intrastate Poker Room Approved by NGC
It’s now official. Intrastate online poker has come to the good ol’ United States of America. Last week we reported on the Nevada Gaming Commission considering South Point Poker LLC for operating an online poker site. South Point caught the NGC’s attention by demonstrating that not only will their company operate the room, they’ll also handle manufacturing the content and acting as the service provider.
It wasn’t exactly a surprise that the NGC voted unanimously in South Point’s favor, but intrastate online poker is still big news! Once their room launches, U.S. players outside Nevada’s state lines will be able to play at South Point tables (provided they are at least 21 years old).
South Point boasts its own software client, distinguishing itself from other online poker license applicants which partner up with other developers. By electing to not partner up, South Point was possibly able to make a stronger case for its licensure to the NGC. South Point chief executive Michael Gaughan reported that the software was in its second wave of testing last July, and that an independent lab is still finishing tests. Still, the on-paper incompletion of South Point’s software capabilities didn’t stop the NGC from unanimously voting to approve the intrastate poker room.
While the company is undoubtedly excited to lead the way for poker rooms, being first out of the gate means they’ll certainly be subjected to a considerable amount of industry and regulatory scrutiny. Peter Bernhard, NGC Chairmain said pointedly to South Point, “We want to make sure it’s done correctly because what you do might have an impact on what others do later.”
We at Chipist are counting on exactly that impact. Revenue from online poker continues to skyrocket and we’re hoping that additional intrastate poker rooms pop up all across the country. Next out of the gate is Reno-based Monarch Interactive which is planning to partner up with a software developer to eventually launch their own poker room, and Global Cash Access Inc. was licensed to be an online payment provider which will partner up with South Point’s new poker room.
Playtech Announces New Cross-Platform Bingo
Perhaps spurred on by their impressive August earnings report, the UK-based game developer Playtech Limited has now announced their first mobile bingo app for the Android OS.
But don’t go searching for it in the Google Play store just yet. Right now, only a select number of licenses have been made available, with the wide release of the app scheduled over the next few months. Playtech is aiming for the cross-platform online gambling experience, having announced plans to develop the product for the iOS platform as well as an HTML5 browser version.
The new mobile product is designed to be used seamlessly between devices for customers with Playtech accounts. Users can chat with other competitors and enjoy a community online gambling experience no matter what device they’re using. Games include 75, 80 and 90-ball Bingo games in addition to Deal or No Deal Bingo.
“This is a significant step for Playtech in terms of cementing our position as the leading supplier of bingo software in the industry as well as offering licensees the largest networked bingo and jackpot liquidity through a new and thriving channel,” said Playtech’s Rhys Owen.
Online gambling operators are beginning to pay closer attention to the “new and thriving channel” of mobile devices. Last week, Cantor Gaming announced their first real-money sports wagering app, and Tabcorp’s recent earnings report indicated a rise of mobile betting that operators would be foolish to ignore.
Cantor Gaming Introduces Real-Money Sports Wagering App
Cantor Gaming announced their first real-money mobile sports wagering app called Cantor Sports Book. The Nevada Gaming Control Board recently approved the app which lets users place wagers via any iOS mobile device using the entire Cantor Games Race & Sports Book. The download is available to everyone and usable by all who have a Cantor Race & Sports Book wagering account, which must be applied for in-person at a Cantor Race & Sports Book in Nevada.
Worried about security? Cantor Games’s new app boasts “sophisticated data-encrypted technology that provides the highest levels of security and offers Nevada-based sports betting fans a convenient, fast loading, secure and easy to use application.”
“Cantor Gaming is committed to enhancing our customers’ experience by introducing innovative, fun and convenient technology,” said Lee M. Amaitis, president and CEO of Cantor Gaming. “Offering a mobile sports wagering application on Apple devices, was an important step given the widespread popularity of Apple’s products and the extensive marketplace penetration of Apple’s iPhone and iPad. As a company that is passionate about sports and steadfast in introducing state-of-the-art sports gaming experiences to our customers, we look forward to continuing to bring exciting new wagering opportunities to sports gaming enthusiasts.”
Chipist wonders if Mr. Amaitis will also consider the “extensive marketplace penetration” of Android devices as well, especially since the company’s first mobile app, Cantor Games, has a version on Android as well as iOS. It’s a virtual sports book that is not based on real-money wagering that’s designed as a fun game of experience and competition.
The new Cantor Sports Book is an interesting development in real-money wagering technology. Laws are still up in the air in the U.S. and betters are finding plenty of ways to get around the obstacles in order to make wagers. Pulling out an iPhone looks like one more way to make a buck … or lose a few.
Online Gambling Generates More Revenue than Hollywood
Global Information Inc. recently published the Global Online Gambling and Betting Report 2012 which has revealed huge revenue numbers that surpass even the earnings of Hollywood films. In South America alone, the online gambling market generated over $124 billion in revenue.
(If you want to read Global Information Inc.’s full report, you’ll have to pay $2,450 for a single user license of the PDF.)
Not surprisingly, the report mentions the opportunity that Facebook poses to online gambling operators. Presently, Facebook gambling in the U.S. is restricted to Facebook Credits, but those are pretty easy to come by and doesn’t constitute real gambling. Real-money Facebook gambling has only taken off in Europe, but that seems poised to change as investors and companies interested in tapping into the U.S. market continue to use offshore methods and proxies to attract American gamblers.
The report continues with more news in the online poker world. Worldwide leader PokerStars expanded its operations to Spain, and PartyPoker, iPoker and Ongame are starting to pull in some serious figures as well. Ongame is owned by Bwin.Party, which is apparently considering selling it to Zynga.
Many things seem to be in flux, but everyone is heading in the same direction. Despite the high level of regulation on online gambling and the fact that these activities are almost entirely banned in the U.S. and in Latin America, the practice continues to generate enormous revenue and stir up industry movements.
PokerStars Likely to Introduce “Run it Twice”
Here’s how “run it twice” works. This explanation only applies to people who are really good at poker.
With “run it twice,” there are two sets of community cards. The dealer deals the first set of cards, then shuffles the cards and deals a second set. If each player wins both sets, they split the pot in half. If a player wins both, they win the whole pot. This normally happens when two people go all-in.
Sam Ganzfried’s blog Game Theory in Practice offered a classic example of a “run it twice” moment:
“Suppose the players are all-in preflop with AA against KK and decide to run it twice. If the first set of community cards is 2389J, and second set is 3489K, then the players chop the pot because the AA player won the first hand and the KK player won the second hand (assume no one hit a flush).
At the time of Mr. Ganzfried’s post, PokerStars didn’t have the option to run it twice, but it looks like it soon will. An online forum member noticed the addition of a “run it twice” option in the PokerStar’s Test client’s lobby. PokerStars responded:
“There is no timetable at this point that we can share. We actually expect a prototype on TestPokerStars to be available later in August for player testing (subject to changes). Based on stability of the feature it might be released soon to main clients or might stay on TestPokerStars only for a longer period of time.”
We wonder what they’re waiting for? Perhaps “run it twice” will be introduced just as soon as PokerStars reaches its 100 billionth hand. Chipist will keep you updated on when this exciting new feature will be added to PokerStars tables.
