[F I N A N C E
NEWS
]
VIEWPOINT
HEATHER HEALY
Head of Social Media, Stickyeyes
The implications of introducing fully transactional gambling applications into Facebook are significant. Importantly, this step change would bring gambling directly to consumers. As Facebook becomes the gateway for the internet for many users, it makes sense to utilise the platform in the best way possible. Although the “fish where the fish are” mentality is vital for gambling operators, a layer of complexity could be added when we suppose that the nature of real money gambling on Facebook may not be a natural fit for consumers. The success of social games such as Zynga Poker, where people can pay real money to gamble knowing they will never be able to withdraw winnings, is undeniable. In this instance, having a large balance in a free-to-play game is viewed as a status symbol. When playing for money, the entire landscape changes. The big difference with the changes we believe Facebook is discussing is when social gaming for fun becomes real money gaming for profit. The challenge is extended when you consider Facebook's referral mechanism. With the average user having 130 friends, gambling providers will want to leverage that. However, should one of those friends be under 18, or in another territory with restrictions on gambling, how will Facebook restrict them from seeing an update such as "I just won £100 on Roulette with..." With Facebook in control of the information that is fed to a user, do they also become responsible for policing exposure to operators for those who shouldn’t see gambling content? Who will be accountable for losses, security and the overall experience – Facebook, gaming providers or the consumer?
? Software provider aiming to build war chest to fund “imminent” investments
Playtech will look to raise £100m to ?nance “acquisition opportunities in new joint ventures”, the AIM-listed software provider has announced. In a statement, Playtech said: “The cost of [acquisition] opportunities under review vary in size up to approximately £40m,” while anticipated joint ventures would see investments of between €15m and €30m. Nick Batram, analyst at Peel Hunt, said the placing was a clear sign that “deals are imminent”. The listing will comprise the placement of more than 46.5m shares at a discounted 215p each, with the process underwritten by Brickington, a company owned by Playtech founder and majority (40%) shareholder Teddy Sagi. This represents a 2.5% discount on the price of Playtech shares in December, and comes a week after the Israeli-founded company named Collins Stewart as its sole broker, replacing Deutsche Bank. Playtech
PLAYTECH ON PATH TO RAISE £100M
also con?rmed its intention to ?oat on the main market in the ?rst half of this year.
Sagi now has a maximum of 49.9% shareholding in the company, something that analyst Simon French of Panmure Gordon believes could “unnerve” the market, retaining the ?rm’s ‘hold’ recommendation as a consequence. James Hollins, analyst at Evolution Securities, added this would “upset the anti-Sagi brigade” but that otherwise it was “good news”. Upon publishing its ?rst-half results in August, the company noted “exceptional joint venture and near-term acquisition opportunities under discussion”, and the £100m placing is expected to raise funds for both bolt-on acquisitions and strategic joint ventures. Recent deals include the acquisition of Ash Gaming for up to £23m and Sagi’s PT Turnkey Services for an initial £140m.
im n
? Danish monopoly to announce online sports betting platform by April
Danish monopoly Danske Spil hopes to source an online sports betting platform after the market officially opened on the 1 January, the company has announced after opening an EU tender. Danske’s strategy has previously been based on a combination of third-party systems and in-house developments; however, in a statement, it said it would in future “base games on partnerships with the best suppliers”. “Danske Spil will conclude co-operation agreements with suppliers in the next three years,” the statement read.
DANSKE SPIL OPENS SPORTS BETTING PLATFORM TENDER
Hans Christian Madsen, CEO of Danske Spil, told eGR it would use its own sportsbook until April when the company will announce the winning bid. “We are looking for a partnership deal for a platform that will make us competitive in the future. We need to move to a more modern platform and system than the one we have today,” Madsen said. “We want the whole solution with live and ?xed odds and we will also look to open a tender for a new games platform later in the year,” he added. ?
24
www.egrmagazine.com