Nambling Notes | July 22, 2008

INTEGRATIVE INITIATIVE CryptoLogic Ltd., the online gambling software developer, has integrated its poker network into the e-wallet payment system of Betsafe, a Scandinavia-facing online operator.

Prior to the integration, Betsafe's poker site was not connected to its sports betting service. Because the two are now connected, CryptoLogic, hurting for poker liquidity, believes the chances are better that Betsafe's sports betting customers will also become CryptoLogic poker customers.

As part of the integration agreement, Betsafe will increase marketing initiatives targeting its online poker customers, which Crypto also believes will increase the odds of poker-player conversions.

Financial details were not disclosed.

Betsafe has been a CryptoLogic licensee since January 2007.

UNCERTAIN SALE In a letter to Parliament Monday, Gerry Sutcliffe, the United Kingdom's minister for sport, said the government could sell the Tote as early as this autumn.

The British media are reporting that the state-run bookmaker is likely to fetch between £260 million and £280 million.

The price range falls well short of previous offers of £320 million and £400 million that were made by a racing consortium last year but ultimately rejected.

Adverse market conditions stand to complicate the sale, though the Department for Culture, Media and Sport is understood to have been impressed by the 40 or so expressions of interest they received in 2007.

Goldman Sachs, the government's adviser on the Tote, is to prepare the groundwork for a potential sale.

The Tote, with turnover of £2.4bn, has 540 betting shops and a pools business that could be sold separately.