Nambling Notes - May 7, 2008

Global Betting and Gaming Consultants said Wednesday that the first quarter of 2008 was the largest on record for the I-gaming industry, with gross revenues across commercial betting, gaming and lotteries -- excluding state-run lotteries -- up 28.5 percent to $3.38 billion against the year-ago period.

Simon Holliday, partner with GBGC, had these predictions for the coming year:

"We expect see Department of Justice settlements with the major operators taking place sometime in the third quarter of this year under the current administration. This and an easing of credit conditions will pave the way for consolidation and the United States to enact permissive legislation. Of the three candidates still in the running for the next American presidency it is our view that online gaming would be most likely under Senator Barack Obama and least under Senator John McCain."

Daniel Stewart & Co.., the U.K.-based brokerage, retained its "hold" recommendation and 155p target price for 888 Holdings, which Wednesday revealed first-quarter net gaming revenue of $64 million, up 38 percent against the year-ago period.

The brokerage has a "buy" note out on Betbrokers Ltd., the online gambling operator, which Wednesday revealed full-yearly revenue of £2.8 million, or $5.5 million, with earnings before interest, taxes, deductions and amortization down £2.5 million, or $4.8 million.

Rank Group, the land-based and Internet gambling operator, on Wednesday revealed like-for-like revenue was down 8 percent across the 17 weeks to April 27, which was partly offset by a 10 percent rise in revenue at its online arm, Blue Sqaure.

Shares in Rank rallied nearly 7 percent last Thursday on news that the United Kingdom's minister for sport will imminently issue positive news on measures that would help the country's bingo industry. According to Thomson Financial, Gerry Sutcliffe, member of Parliament, said at last week's annual general meeting for the U.K. Bingo Association that an announcement would be made "within the next few weeks."

Gtech Corp., subsidiary of Lottomatica, and Boss Media, recent acquisition of Gtech, have agreed to supply Veikkaus Oy, Finland's state-owned sports betting and lotteries operator, with a platform and services for a national online bingo offering.

PartyGaming, the online gambling operator, has gone live with its "Mission Impossible" and "Saturday Night Fever" branded slots, per its December 2007 licensing agreement with Paramount Studios.

Two Way TV has re-branded as Two Way Media "to reflect its status as an interactive production company focused on creating and distributing cross media TV shows and games," it said Wednesday.

On the London Stock Exchange Wednesday, 888 was down 2.50p, or 1.6 percent, to 151.20, Playtech was up 25.25p, or 5.3 percent, to 504, and Rank was down 5.25p, or 5.6 percent, to 89.