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Columnist Buzz Daly: Sports Book Scene

One offshore player takes a giant step forward, while another reluctant participant bails out. In a deal with a potential value of $185 million, U.K.-based Sportingbet.com acquired Antigua-based SportsBook.com, an offshore book which reportedly has investors with ties to CBS Sportsline.

Three weeks ago, Sportsline entered into a three-way deal to produce the NFL's Internet site. Knowing the NFL's official policies regarding gambling, it is reasonable to presume that deal foreshadowed the sale of Sportsbook.com.

Sportingbet, which has stated its goal is to become a dominant global gaming conglomerate, is rapidly becoming one of the most significant players in the North American sports betting market.

In this acquisition, Sportingbet paid an initial $51.25 million in cash, debt and shares, with part of the deal keyed to profitability. The remainder of the cost, up to $133.8 million, will be spread over seven years, based on profitability during that period.

SportsBook claimed 347,550 customers at midyear, with about 70,000 having made a bet within the preceding three months.

Last month we spoke with Sportingbet chief executive officer Mark Blandford in Las Vegas, and he told us, "Do not be surprised to see us use acquisition as a means of attaining market share in the future."

Sources tell us that within a short time, Sportingbet.com will announce the purchase of yet another Caribbean sportsbook.

As a publicly traded company, Blandford noted that Sportingbet is a strong organization with access to world capital markets to fund such growth. He cited the company's recent acquisition of Australia's largest private bookmaker, Number One Betting Shop, as part of the plan in which Sportingbet will be able to service customers in the world's three major time zones.

Last year, Sportingbet acquired Costa Rica-based Betmaker.com and integrated its customers into SportingbetUSA.com. The company's strategy is to brand the SportingbetUSA name throughout the North American market.

However, SportsBook – with its "high quality, incentivised, proven management team" and expertise in the Americas – will retain its identity as a branded website and will be referred to as a division of SportingbetUSA.

Since entering the American market, SportingbetUSA has rigorously pursued U.S. bettors by stressing its reliability, deep pockets and accountability to British regulatory authorities.

The message is resonating with players as the company's positive reputation continues to grow, as does its roster of bettors. The only disparaging comment about it recently was one we saw on a posting forum in which a bettor complained that the company did not accept overnight baseball parlays.

We wonder when the mainstream business and financial press in the U.S. is going to get on board and start reporting news of this burgeoning industry. The world press and Internet sites are not bashful about passing on newsworthy developments.

Could the fact that the Department of Justice, along with other elements of our government, casts a jaundiced eye towards "illegal" offshore gambling have a chilling effect on leading U.S. press and media organizations?

Hello, We Must Be Going. With apologies to Groucho Marx, we want to let our readers know that Buzzdaly.com will be parting company with Sportsterminal at the end of this month in order to put up a new website in time for the football season.

It's an amicable parting, and the folks who brought us to Sportsterminal – Marvin and Sam – will be putting up their own website. We wish them well. And we want to thank Sportsterminal for all their good work over the past six months.

As to why we are leaving, nothing very sinister. It's just time to move on.

The URL will remain the same, www.buzzdaly.com. When the site debuts, we'll be adding new content and contributors (while retaining the old) and enhanced graphics.

We expect to be off the Internet while the site is built, but hope to be back by August 15th. We will still write the column and send it out.

The new site, like our current one, will not have a posting forum. As we have stated in the past, there are more than enough sites whose posting forums are excellent venues for exchanging information.

Lately, the occasional sniping at each other by some forums has subsided. We know many of the principals of these sites, and they are knowledgeable, well connected and responsible individuals, some more so than others.

Here are the websites whose principals we know and where legitimate information re the world of sports gambling can be found, in alphabetical order: bettorsworld.com, thedailyspread.com, offshorebettor.com, majorwager.com and theprescription.com.

Dubious Claim Alert. While we are not a watchdog site, we do check out suspicious emails that come our way. Recently, we received a pitch for an offshore casino with the usual claims of big payouts, large bonuses, money back guarantee, etc., etc.

But this email included a warning from a recent "press release" whose origins were not disclosed. It contained the following statement: "Credit card companies may now freely supply personal information on people who wager with offshore sportsbooks to agencies that request such information. This cooperation is intended to stop the illegal offshore sportsbook business only. Offshore gaming companies that promote gaming only are not affected by this recent change of credit card policy."

This seems like a desperate and creative ploy by an offshore casino to scare up some business. A subsequent offshore casino solicitation said that Costa Rica was the only country singled out by credit card companies for the so-called policy change.

We contacted Rich at Off Shore Gaming Association and asked if he had ever heard of such a policy being implemented. His reply: "I have never heard of this happening. There is one reason that I don't believe it. And that is when you use a credit card to open an account, the money either goes to the sportsbook's bank or a financial company that works for the sportsbook. Therefore, the credit card company never really knows where the money is going."

Obviously any casino that needs to use such a tactic to generate customers is best avoided.

Quiet Book Speaks Up. Dominica's reputation has suffered because it has had several books that flamed out without paying customers. But that should not detract from a solid book that is based there, World Wide Wagering.

Head man Ron has run this quiet but well respected shop since 1996. He puts up solid lines that are posted early and tries to process payment requests on the same day.

Either because of location or their own inclination to keep a low profile, WWW might not be as well known as other long standing operations. But Ron hopes a new contest will get it a little more recognition.

Known simply as Football Blowout Contest, it offers a total of $20,000 in prize money with $10,000 going to the winner.

Entries cost $100, and every week bettors must pick the entire NFL schedule against the spread. Each week's winner will receive a $500 sports wagering account with WWW.

For more information, go to www.wager.dm or call 1-888-225-6757. Please send questions, comments, etc., to buzzdaly@aol.com.

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