Nambling Notes | July 10, 2008

AT ODDS Two online gambling operators have initiated a challenge in the Federal Court of Australia, New South Wales Registry, against new legislation prohibiting them from advertising in New South Wales.

Specifically at issue is whether Sportingbet Australia and Betfair, both of which are based outside the state, are able to advertise in New South Wales without penalty.

Andrew Twaits, a corporate and business affairs director for Betfair, has argued the legislation, which took effect on July 1, is "protectionist" and deprives racing clubs of the chance to benefit from advertising revenue.

Moreover, Michael Sullivan, Sportingbet Australia's chief executive, called the legislation "fundamentally flawed" because it restricts open trade between the Australian states.

However, Racing NSW, the administrative body for racing in the state, disagrees, arguing commercial interstate betting operators do not adequately contribute to funding an industry from which they profit.

"These guys do not pay the NSW racing industry any money whatsoever and now they want to advertise with us and further erode our revenues," Peter V'Landys, the body's chief executive, was quoted by The Daily Telegraph as saying.

In-depth coverage on this story to come.

ANOTHER FLOAT? Stephen A. Wynn, whose company, Wynn Resorts Ltd., owns and operates the Wynn hotel and casino in Macau, is reportedly looking to raise $3 billion by way of a second listing in Hong Kong.

The South China Morning Post said Mr. Wynn's initial public offering, should it go off, would likely be the largest in Hong Kong this year.

Market conditions have been poor, however, with the Hang Seng index -- Hong Kong's leading stock index -- hitting a 14-year low on June 30.

"They are a long way from [a share sale] and they might never do it," a source, whose affiliation the paper did not identify, was quoted as saying. "At the moment, the market is definitely not right."

Samantha Stewart, the company's vice president of investor relations in Las Vegas, would not comment on the rumors.

Wynn Resorts is listed on the Nasdaq, and was down $7.62, or 9.82 percent, to $69.94 in late-afternoon trading.

RERAISE Goldman Sachs has once again raised its stake in Rank Group and now holds 17.14 percent, up from 16.10 percent.

Goldman owns 66.9 million shares, and is now Rank's largest stakeholder; Guoco Group Ltd., the investment arm of Hong Leong Group Malaysia, holds 66.7 million shares.

"Goldman has been building in Rank for some time -- they have obviously stuck to the strategy that a takeover bid will ultimately be made by Hong Leong and they will have to pay a premium," a United Kingdom financial analyst told IGamingNews in an e-mail Wednesday.

"A lot depends on the state of trading they report at the end of the month," the analyst wrote. "I expect Blue Square to continue to fly but the High Street in the UK is not looking good and it is the low end with less headroom who are struggling the most with higher food and energy costs."