Romania is the latest Eastern European country to liberalize online gambling markets and presents some good opportunities, and interesting challenges, for gambling affiliates.

Here’s a few facts to consider when looking to break into this exciting new market.

Romanians Love Sports Wagering

One thing that’s safe to say about Romanians is that they love wagering on sports, especially soccer. Bookmaking making shops have been legal in the former Communist country for many years now and are very popular.

Though it’s only recently been legalized, online sports betting has big in Romania for quite some time. Most Romanian punters head to friendly online bookmakers like Bet 365 and Unibet that offer easy money transfers and some Romanian language content.

As it stands today, it looks like the Romanian Government is going to throw up a few regulatory hurdles in front of operators looking to business there, but that seems like business as usual on the Continent.

Though it stands to reason that sites offering Romanian content today will make a stab at entering the regulated market.

Mobile, Smartphone and Internet Access

Like citizens of many former Communist countries, Romanians embraced mobile phones in a major way. Recent estimates put cell phone penetration there at around 110% – 115%. That’s not surprising given the economics of setting up cellular networks over land line technology.

Affiliates with their eyes on Romania should keep in mind that while mobile phones are ubiquitous, smart phones are not. Only about 17% of mobile users there are one smart phones. (Though that number is up from just 9% a years ago.)

When it comes to getting on the Web, only about 39% of Romanians have Internet access at this time. A whopping 67% of those folks are going online from a traditional desktop PC.

Romania is still a very rural country, so most of those Internet users are clustered around Bucharest. And, like most emerging markets, a big chunk (35%) of the country’s web-enabled citizens are between the ages of 18-24.

Finally

Liberalization efforts in any country present operators and, by default, affiliates with a host of challenges. The Romanian market is still in its infancy and there are a lot of unanswered questions about how the regulatory framework there will operate.

On the upside, Romanian punters are already so familiar with offshore betting sites that affiliates can expect almost no learning curve for them. What’s more, educated Romanians tend to have more access to the Internet and lots of them speak English to some degree or another.

The downside of Romania, as pointed out by CAP commenter Hawkie, who has live there for almost 30 years, is:

This country is a socialist country that supports the average employee and doesn’t give any support for the companies. Corruptions is high and the companies that have relatives in high set places in the government take advantage in contracts with the state.

With time, it looks like the Romanian market will be a good bet for sports betting affiliates

888, Williams Interactive and Scientific Games will be providing the State of Delaware with online gambling software and services.

The trio submitted a joint bid in February and quickly got the nod, beating out 13 other bids. The team bid built on each company’s core competencies in the hopes of freezing out the competition.

As the current provider of Delaware’s lottery terminals, Scientific Games definitely had an edge the bid process. Williams and 888 will be providing the poker products.

Delaware lawmakers put their stamp of approval online gambling last July, becoming the second state after Nevada to do so.

Both states have relatively small populations, Delaware sits at less than a million, and there’s been talk of an interstate agreement between them. As it stands today, Delaware’s online gambling laws do not allow for such agreements.

How big a difference a two-state compact would make remains to be seen. Between them, Nevada and Delaware have a population of less than four million. Nearby New Jersey, on the other hand,  has nine million on its own. When it comes to keeping virtual poker tables filled, those numbers are pretty significant.

As its written, Delaware’s online gambling  legislation allow for tables games, scratch cards and something no other state will have anytime soon, sports betting.

Remember, Delaware is one of the four states that were grandfathered into legal sports betting under the Professional and Amateur Sports Protection Act (PASPA) of 1992. That means Delaware residents should be able to play the state’s popular NFL parlay wagering games online.

Do you think Delaware will have much impact on the US online gambling market?

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A new Pennsylvania online gambling bill being consider by lawmakers goes well beyond online poker.

It’s a big step for the nation’s second largest gambling market, and a potential threat to New Jersey’s dreams of online gambling supremacy.

HB 1325, introduced by Rep. Tina Davis, is the most detailed Pennsylvania igaming bill to date and includes a wide variety of table games absent from previous versions. In its current form, it allows for poker, slot games and table games (to be determined by the Pennsylvania Gaming Commission).

Under the terms of the proposed bill, online player accounts would be tied directly to player clubs at existing land-based casinos. Pennsylvania players would, however, be allowed to log on to their accounts from out of state.

Interstate gaming compacts are allowed if they’re consistent with Federal law and casinos would be taxed 28% on their weekly gross.

While the HB 1325 is potentially great news for Pennsylvania casinos, it’s terrible news for neighboring New Jersey.

The Keystone state’s booming land-based casinos have already cost Atlantic City plenty of players. If Pennsylvania becomes a major player in the online market, they could be a major competitor for lucrative interstate gaming agreements, too.

What do you think of the Pennsylvania bill? Share your thoughts in the comments section below.

The Mashantucket Pequot Tribal Nation is entering a partnership with the UK-based GameAccount Network to develop an online gambling product centered on their Foxwoods Casino.

In the beginning, the partnership will be focusing on free-to-play offerings with a real-money version set to launch sometime in the future. Tribal leaders described the plan in an online press release saying:

In 2013, Foxwoods.com will launch a compelling virtual Internet gaming offering, future-proofed with an automatic upgrade path for real-money Internet gaming should regulation permit.

So far, efforts to legalize online casino game in Foxwoods’ home state of Connecticut have been derailed by anti-gambling reformers. (Though the state does allow online horse betting.)

In the absence of State legislation, it’s likely that the Mashantucket Pequot Tribal Nation would have to wait for Federal legislation and that could be a very long time. Attempts to pass the Federal online gambling bill, known as Kyl-Reid, have floundered and it’s unclear when legislators might revisit the issue.

Tribal gaming is a huge x-factor in the American market and calling it a, “political football,” is something of an understatement.

As it stands today, smaller and remotely located tribes can’t really compete in the land-based market against tribes like the Mashantucket Pequot Tribal Nation. In the online world, however, tribes of any size will be able to compete on a fairly level playing field.

In short, expect to see lots more activity in this market space in the months ahead.

What kind of impact do you think tribal gaming will have on the American online market? Share your thoughts in the comments section below.

William Hill is now the proud owner of William Hill Online (WHO) after completing its acquisition of Playtech’s 29% share of the operation. The £424m ($557 USD) deal is the completion of a joint a venture that started back in 2008.

It’s also providing a very handsome return on investment for Playtech, which saw its initial seed money grow three and a half fold over the last five years. Playtech will also be receiving a chunk of WHO’s Q1 2013 earnings.

To pay for the acquisition, William Hill is putting forth a whopping £375m ($573m USD) in stock certificates, as well as £50m ($76m USD) in credit.

Acquiring full ownership of their online operations is just one of many recent moves by William Hill to beef up their online presence. Late last year the company, along with their partner GVC, purchased Sportingbet for £485M ($741 USD). In that deal, William Hill took over Sportingbet’s Australian and, some of, their Spanish operations.

At the time, William Hill CEO Ralph Topping said:

This is bang in line with our strategy. More online revenues, more international revenues and more regulated revenues…We are laying the foundations today of success for the next 30 years

Investors have reacted positively to the announcement, William Hill (WMH.L) stock prices by almost 1.5%.

What do you think of William Hill’s online growth? Share your thoughts in the comments section below.

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Top 5 slots in March 2013

We get many requests for lists of the most popular slots played each month at the casinos, so from now on we will release top 5 lists at the end of each month to keep you all in the loop

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Former Full Tilt Poker CEO Ray Bitar will be pleading guiltyto charges relating to his role in the fraud case that brought down the American online poker industry.

Bitar is in poor health and in need of a heart transplant and that’s what motivated the plea deal.

Details on exactly what type of deal Bitar struck with prosecutors are still murky and unconfirmed, but in an interview with the Wall Street Journal his attorney John F. Baughman said:

It’s a very unusual situation. We’ve been able to work out something with the government that takes into account the unique circumstances. We appreciate the government’s courtesy in this regard.

The disgraced poker mogul is expected to enter his guilty plea at a hearing on April 19, which could be conducted via video due to poor health.

PocketFives.com is reporting that Bitar will plead guilty to at least two felony counts and forfeit nearly all of his personal assets at that hearing as part of the plea deal. (Though this has not been confirmed by Bitar’s attorneys.)

Bitar is facing as much as much as 145 years in prison and spent several years living as a fugitive in Ireland thanks to his role in the Full Tilt Poker collapse. Since surrendering to American authorities last summer, Bitar been awaiting trial in California on a $2.5 million bond .

Given these circumstances, a plea deal that didn’t include some sort of prison time would, indeed, be very courteous.

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The world known and world famous online gambling website, William Hill, has seen its domain name banned and added to the Belgium’s government black list of companies. Their website literally became outlawed in Belgium and it is illegal to play on their website. The Belgium gaming commission claim that they do not have the proper gaming licenses to operate within their boundaries.

How It All Happened

The Belgian Gaming Commission has recently released an expanded list of operators who continuously offer their services to the Belgian market which has caused them to get outlawed and blacklisted. Belgium’s government has introduced earlier this year a new license-based system that will allow a certain limited amount of online casinos and operators to offer online poker.

Only once that license will be acquired by the operators will they be able to operate within the borders of Belgium. Once that number caps out, no more licenses will be given out.

The Infamous Blacklist

Belgium is known for its infamous blacklist of online casino operators. the blacklist has now reached 30 blacklisted online casinos and they contain some of the biggest names in the industry such as: Expekt, Stan James, Betsson, Betclic, Betfair, 888, Chilipoker, Titan, and of course, William Hill. The list still has a lot of place on it and they do not count on being lenient for any online casino operator.

The Possible Outcomes

What will happen if a Belgium citizen decides to play at any of the blacklisted online gambling operators? Well unlike the UIGEA the United-States has inaugurated which prohibits any and every online gambling operators from accepting payments from US citizens, this outlaw targets players and prohibits them from playing at any of the blacklisted online casinos.

If a player is caught playing at any of the online casinos, he can face a heavy fine that can reach up to $25,000. If the player continues to play, the opreators might face heavy fines themselves as well as having access to their websites closed permanently by Belgium’s internet providers.

Conclusion

If all the blacklisted online gambling operators wish to be able to operate in Belgium, they would have to bring some changes on how they operate and the way they manage things. Basically, they would have to fulfill the gaming rules and regulation that Belgium has established before being able to be removed from the blacklist and be fully operational.

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The leading online gambling software developers, Playtech Limited, have recently announced that they have reached a record high growth. For the first 6 months of 2012, they have a seen a growth increase of 101% for a total of almost $200 million. This is the biggest growth that they have ever seen.

The Growth

The first-half brought in a total income of $229 million which represents a 86% growth year-on-year. Adjusted earnings saw a rise of 64% if compared to the same period last year for a total of $118 million. Playtech’s net profit of the last 6 months period was of $109 million. This represents an increase of 67% year-on-year even though the tax profits saw a drop of a little over 30% if compared to the beginning of last year’s initial half.

Keep Pushing On

Playtech have declared that they have made a very strong start for the 3rd quarter of this year. They said that they have a daily revenue increase of 25% compared to last year’s same time period. They are extremely happy with their performance and count on keeping it going up in a straight line. They are looking forward to see its’ full year results and seem to be confident that they will be very good. Even though the regulatory changes in Spain arose a little issue, they remain confident that it won’t affect their market shares by much.

Words Of Playtech’s CEO

After announcing these great news, Roger Withers, the Non-Executive Chairman for Playtech, shared the following words at a press release: “It has been an exciting six months for the company and I am delighted to report that Playtech continues to deliver impressive results,” said Roger Withers, Non-Executive Chairman for Playtech.

I am particularly pleased that the company completed its move to the main market in early-July. Playtech’s multi-channel approach strengthens its market-leading position allowing it to maximise the potential for growth in newly-regulating markets in addition to enhancing existing relationships with traditional operators.

In the first half of the year we recognised the growing importance of the social gaming sector and positioned ourselves to penetrate the market through innovative software licensing arrangements. Despite the uncertainty surrounding the future of European and United States regulation, the company is ideally positioned to take advantage of changes in the online gaming market through further expansion of its joint ventures and organic growth strategy.

Playtech is the supplier of choice for technology and services for the worldwide online gaming industry and we look forward with confidence to building on our positive momentum.”

The world known online gambling agency, 888 Holdings, have recently announced that they have reached their highest ever 6 month revenue. This has been announced and confirmed by the company’s CEO, Brian Mattingley.

This was the first results received since he has took the job full time and have shown a total revenue increase of 21%. This digits behind that percentage are of $186.4 million which is a direct result of the B2C numbers. In the same perspective, the poker revenue has increased by 72% for a total of $41.3 million. The online casino has seen an increase in revenue of 20% of $83.1 million.

Words Of The CEO

Brian Mattingley, the CEO of 888 Holdings, has announced the following to the local media: “This has been an excellent first half of the year. The tremendous increase in customer numbers caused by the improvements in our product offering has led to these record results, with the highest revenues in the history of 888. On the back of this performance, the Board has decided to reinstate the interim dividend, while we retain the cash necessary to continue growing the company.”

How Did It Happen

Ever since they have relocated their business outside of the United-States, they have seen only rise in revenue. They exited the US back in 2006 when the Unlawful Internet Gambling Enforcement Act (UIGEA) passed into effect. Most online casinos and online gambling websites thought it would be the end of the industry. However, ever since this bill passed, only good things have happened for 888 Holdings.

Their mobile presence has seen a great increase of 17% since sports-book bets can now be placed via their mobile devices. They have big plans for the upcoming months and will be improving their market shares of the Spanish and Italian market, even though they already own a good chunk of it, 24% to be more specific.

Brian Mattingley Speaking On His Expansion Plans

After having announced their future expansion plans, 888 Holding’s CEO, Brian Mattingley, said the following: “The second half of the year will see increased investment in Spain, where we will attempt to build on our impressive market share, and also in the United States where we are preparing for regulatory changes. We will also continue to invest in our technological platform, the cornerstone of our offer, and make improvements to our mobile channel.”

The Stock Market Share Increase

888 Holdings stock market shares have seen a great increase and possibly one of the biggest ever. The trading update that has recently been put out shows a 4.75% increase of 86.50p. This is the highest price that they have ever reached in the past years.

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