PartyGaming Buys World Poker Tour

GIBRALTAR – Online gaming giant, PartyGaming, sent shockwaves through the poker industry this week when it was revealed that it had purchased the World Poker Tour brand and operations earlier this week.

The sale, made through PartyGaming’s Peerless Media Limited subsidiary, was valued at $12.3 million, higher than the $9.07 million bid World Poker Tour Enterprises (WPTE) received from Antigua-based Gamynia Limited earlier this month. WPTE earlier announced the prospected sale to Gamynia but backed down after receiving a heftier offer from PartyGaming. However, Gamynia will be receiving $1 million as compensation for the botched deal.

The sale, still subject to WPT shareholders approval, will include all of WPTE’s operational assets but will not include “cash, investments and certain excluded assets”.

PartyGaming will be acquiring WPTE’s brand and trade names, television library, including all related intellectual property rights,  and “certain assumed contracts and tangible personal property”. It has agreed to pay WPTE 5% from all revenues generated by assets sold for the next three years.

In addition, the next two years of payment on revenues generated by the sold asset will 20% of the payments go into an escrow account “to settle the (WPTE’s) indemnification obligations, if any, arising under the purchase agreement and the related ancillary agreements.”

According to a statement released by WPTE, President and CEO Steve Lipscomb said:

“PartyGaming has been an important partner for a number of years and we are confident that they will be an excellent manager of our brands in the future. The Board of Directors has determined that PartyGaming’s acquisition proposal is financially superior and we look forward to working with one of the pioneers and leaders in the poker and online gaming markets to provide a strong vehicle for the WPT brand to continue its global expansion and return to online gaming.”

WPTE added in its statement that net cash proceeds arising from the sale will be used “to develop or acquire a non-poker related business”.

PartyGaming, which operates wildly-popular PartyPoker.com and other gaming sites, recently acquired British bingo operator Cashcade Limited for $158.82 million, allowing Gibraltar-based PartyGaming control over bingo sites FoxyBingo.com, MirrorBingo.com, ThinkBingo.com and CheekyBingo.com.

It has signed a non-prosecution agreement with the United States of America last year, paying $105 in the process. The deal with the American government is believed to help PartyGaming’s return to the US as soon as the murky online gambling scene is cleared.

William Hill Quitting Spanish Venture

LONDON, ENGLAND – British gaming group William Hill will be gradually withdrawing from its joint operations of sports betting shops in Spain with Spanish group Codere in the coming months.

The UK-based operator cited regulatory and economic reasons for its decision to withdraw from Spain where it co-operates Victoria Apuestas with Codere. William Hill clarified that Codere will continue to manage the 98 betting shops located in the Madrid and Basque while they will continue to provide bookmaking services.

In a statement released to media, William Hill stated:

“Achieving relevant scale for the business has always been dependent upon a substantial growth in the number of outlet. Achieving this scale has proved problematic because of the slow granting of local regulatory consents and the slower than anticipated regulatory changes within other regions. These factors, coupled with the difficult economic situation within Spain, were likely to lead to additional capital requirements and a delay in achieving William Hill’s target return for the venture.”

The company further added that it will instead focus its resources and energy to tis international sports betting strategy, in particular, expanding the online presence and business of William Hill Online.

PMU Can Offer Sports Betting in 2010 Says Chief

FRANCE – Once France opens up its gaming market next year, the local horse racing monopoly Pari Mutuel Urbain (PMU) might just partake in the action by introducing sports betting.

This was disclosed by PMU COO Xavier Hurstel adding that major sports such as football and betting on next year’s World Cup can be offered to customers.

Speaking to iGamingFrance, Hurstel stated:

“The market is opening, a new offer is being developed and we are studying how PMU will be able to offer a broader product range to its customers. We are currently evaluating all those opportunities.”

The PMU official also added that the company was moving ahead in that direction by taking a stake in race data supplier Genycourses and that PMU would be adhering to whatever guidelines will be put in place once the gambling market opens up in 2010.

Hurstel added:

“There will be general rules for advertising in racing venues which I believe will put us on an equal footing with the other operators.”

888’s Dragonfish in South African Deal

GIBRALTAR – Online gaming operator 888 Holdings recently announced that its B2B unit, Dragonfish, has signed a strategic agreement with South Africa-based Phumela Gold Enterprises (PGE), a pari-mutuel horseracing and tote betting company.

Under the terms of the agreement, Dragonfish will be providing PGE with a comprehensive sportsbook and after regulations in online gambling are clearer in the African nation, it will also supply PGE’s casino, poker and bingo games.

The agreement will also allow 888 to distribute horseracing pools and live racing streaming from tracks of which PGE has exclusive distribution rights. The pools and live streaming will be made available to all 888 licensees and on the 888.com websites.

Dragonfish will also be servicing PGE with e-payments service and back-end software that will allow the South African firm to integrate into 888’s shared wallet, cashier, and support systems.

According to PGE CEO Rian Du Plessis:

“As a recognised world leader in harnessing the latest technology to globalise horseracing, we are very happy to sign with a partner that can provide us with market-leading technology to expand our offering worldwide. Working with Dragonfish going forward will help us to diversify our online offering and build on our current success.”

In response, Dragonfish Managing Director Gabi Campos said:

“Horseracing is the largest secotr in worldwide sports betting and we are delighted to work with a global leader in this area. Phumela has a huge user-base in South Africa and this deal will ensure that it has the best tools available with which to provide its customers with a cutting-edge online gaming offering.”

Harrah’s Forms Interactive Unit; Garber Named CEO

LAS VEGAS, NEVADA – Speculation at what Mitch Garber’s role would be in Harrah’s Entertainment ended recently as the company announced that it was establishing a new subsidiary, Harrah’s Interactive Entertainment (HIE), and the former PartyGaming official will be helming the new firm as its CEO.

HIE, will be tasked with managing the worldwide expansion of Harrah’s World Series of Poker (WSOP) brand and look into an interactive strategy with European territories. It is also likely that should the US lift its ban on online poker, the new firm will take on the added task of exploring an online strategy with American players.

WSOP Commissioner Jeffrey Pollack remains in his position and will add the role of HIE President to his resume.

Harrah’s Entertainment Chairman, President and CEO Gary Loveman stated:

“As the world’s largest gaming company, Harrah’s is taking a proactive approach toward international and interactive expansion. It is important we position ourselves to explore new markets as well as new technologies with our best in class brands.”