The last Public Gambit Event focusing on

2006 Review

15th November 2006

It was a successful event, we had a record signup of over 160.

We had over 160+ people signedup, below are example of some:

Endemol Gaming, Inside Gaming, Wiggin LLP, KPMG, Royal Bank of Scotland, Cellectivity, MICE AND DICE LTD, William Hill, The Clever Group, Addleshaw Goddard, Sportingbet Plc, Kingston Communications, Barclaycard Business, William Reed Business Intelligence, LIDA, Citigroup, ThinkTank Mathematics, Rare Ltd., Manches, 3G Scene, PinnacleSports.com, Global Betbrokers Limited, Sarassin LLP, World Sports Challenge, Ukash, PKR, PROBABILITY PLC, Kirkpatrick & Lockhart Nicholson Graham, Citadel Commerce, Vitesse Media plc, Mishcon de Reya, Cass, Open University, Wand Agency, The Sports Recruitment company, Betfair, Alcatel, Propel London, Betfair Ltd, Capital Partners Group, chartwell games international, interactive investor, World Bet Exchange, eGaming Review, Marketforce, Berwin Leighton Paisner, Pentasia Recruitment Ltd, Bullet Business, Football DataCo Ltd and AS Biss.

The Gambit 2006 review Panel of speakers.

From left to right: Gareth Wong (GamBond, Gambit founder), Malcolm Graham (CEO of PKR, ex MD of The Ritz Online), Clive Hawkswood (CEO of Remote Gambling Association, Gambit steering committee member), and Roger Parkes (Remote & Technical Advisor, Gambling Commission).

2006 – a year to remember

by Lorien Pilling

Holding a review of the eGaming year in mid November is a little like scooping up the poker chips before the last card has been drawn - a touch premature, and with the prospect of a major surprise on the river. Such has been the speed of events within the industry over the last twelve months, no-one can be certain that the seismic activity has completely finished for the year.

But uncertainty is no barrier to Gambit or its ebullient founder Gareth Wong, and so it was, with fully six weeks of the year remaining, that around 70 industry representatives gathered at Cass Business School both to look back on 2006 and also gaze ahead into 2007.

The panel of speakers assembled for the discussion contained a variety of expertise and experience: Clive Hawkswood, chief executive of the Remote Gambling Association, Malcolm Graham, chief executive of pkr.com, and Roger Parkes, remote and technical advisor at the Gambling Commission.

Since the last Gambit meeting in September, the Unlawful Internet Gambling Enforcement Act has been signed in to law in the United States. It was with this piece of legislation that Clive Hawkswood began his review of the legal and regulatory change in the industry. He claimed that, whatever the political agenda of the current administration, the new U.S. law on gambling was not sustainable in the long term.

Turning his attention towards Europe and its various gambling monopolies, Clive applauded the newly elected Italian government’s honesty in acknowledging that a lack of funds is partly behind its recent auction for gambling licences. The industry at least knows the government’s political agenda.

For the UK, 2006 has seen as much change as anywhere in its gambling regulation, although it has been perhaps less dramatic. The Gambling Commission has taken up residence at its new HQ in Birmingham and has begun issuing consultations that will shape how the Gambling Act is implemented next year. But Clive warned that many uncertainties still remain to be resolved in 2007, not least on the issue of tax.

The gambling industry has to accept its role as a political football but that does not mean it should just let change be imposed upon it without taking part in the process.

Malcolm Graham described the final months of 2006 as a traumatic period for the online gaming sector. As the CEO of the Alderney-based poker website pkr.com, a relatively new operator in the market, he was well-placed to make such a judgement.

He said that the U.S. legislation has served to put clear water between the U.S. and non-U.S. facing operators and that there is growing tension between the two groups.

In addition, Malcolm made the prediction that online casinos and sports books will survive in the States but that online poker could be in trouble. His reasoning was that casino and sports book punters would be prepared to adopt the ‘exotic’ payment mechanisms that are created to allow them to fund their betting. The massed ranks of casual poker players would be less willing to do so, thus reducing the liquidity levels, which are crucial for a successful poker site.

Based on his own research, Malcolm estimated that the non-U.S. online poker market was worth £600m in 2006, a not insignificant figure, and still very much a market worth playing for in 2007.

The next 12 months will be about rebuilding trust between the eGaming industry, investors and regulators. The sector will also have to repair its reputation and the way it is perceived by the media and general public.

2007 will be a big year for the Gambling Commission, with the Gambling Act due to ‘go live’ on 1 September. It was, therefore, valuable to have the Commission’s remote and technical advisor Roger Parkes on the Gambit panel to explain what lies in store, especially with the consultation documents for remote gambling due to be published on 1 December 2006.

Roger was also able to respond to several issues raised by the two previous speakers on the consultation timetable and the extent of information required in the licensing process. On the topic of software/systems testing, he stated that no decisions had been taken on the type of testing required but it was highly likely that the costs of testing would be borne by the operators. He suggested there could be as many as ten testing houses approved by the Gambling Commission by next year.

After the three presentations, the audience was given the chance to quiz the speakers and, unsurprisingly, the questions covered all manner of subjects: the EU gambling debate being monopolised by the monopolies, the UK government’s jurisdictional white list, incorporating player protection into the culture of every gambling business, detecting problem gambling, and industry-funded social responsibility organisations.

Many in industry will be forgiven for wanting to see the back of 2006 as quickly as possible, despite the many successes that the eGaming sector achieved. But the end of the year does not mean an end to the issues that have affected gambling over the last 12 months. Amidst the ongoing uncertainty, however, rest assured that Gambit will definitely be back as the industry’s forum for debate in 2007.

Speakers on the night:

1.) Clive Hawkswood, CEO, Association of Remote Gambling Operators (ARGO), Gambit Steering Committee member- What happened in 2006, key issues and looking forward to 2007.

2.) Roger Parkes , Remote & Technical Advisor, Gambling Commission - update on their developments, time frames, goals. (download his presentation here)

3.) Malcolm Graham CEO, PKR. (ex MD of The Ritz Online) - (download his presentation here.)

Many thanks for the evening's exclusive category sponsor:

Hosted by:

Gambit on Talent Event media partners:

Speaker Profiles:

Roger Parkes

Roger is the Gambling Commission’s Remote and Technical Advisor. He is assisting the Commission in developing technical standards for both remote gambling and gaming machines and advising on licensing, business models and operating procedures within the remote gambling industry.

Roger has more than twenty years experience within the gambling industry. He has regulated all forms of gaming both within and outside casinos in his native New Zealand and held senior management roles in terrestrial casino operations in Africa and Greece. Returning to New Zealand, he was responsible for risk management and planning in both casino regulation and operations. Roger was closely involved in the development of Australasia’s first risk management based casino regulatory audit programme in New Zealand, a major change from the usual supervision and compliance role, and later adopted by other Australian jurisdictions.

His six years experience in the internet gaming industry began in Australia when he joined GGS, a major internet accredited testing laboratory. He later established the company in the UK as Managing Director, signing major UK companies as clients based in Alderney and the Isle of Man.

More recently, Roger spent a year in Alderney, where he consulted to the Alderney Gambling Control Commission, before joining the UK Gambling Commission in June 2006.

Phill Brear

Director of Operations, Gambling Commission

Phill Brear is Director of Operations of the Gambling Commission and is tasked with overseeing the licensing, compliance, intelligence and enforcement functions.

Phill joined the Commission in November 2005 following a 30-year career in policing with the Lancashire and West Yorkshire Police forces. During the last three years with the force Phill held the position of Deputy Chief Constable of West Yorkshire Police.

Phill had been a chief police officer since 1998 and has held national responsibilities around police performance management, changes to the criminal justice system, and the development of operational policies. In his early career he was divisional commander for three districts, worked at the Home Office for the police inspectorate, and was involved in policy development as diverse as counter terrorism and personnel practices. As Deputy Chief Constable he undertook the inquiry into the policing of Bradford Riot has led investigations into police malpractice and corruption and has overseen the restructuring of the Force and many of its functions. Phill was awarded the Queen’s Police Medal for distinguished service in January 2005.

Clive Hawkswood, CEO, Association of Remote
Gambling Operators (ARGO), Gambit Steering Committee member:

Clive Hawkswood is the first General Secretary of the Association of Remote Gambling Operators (ARGO) which was established in 2004.

Membership is open to any type of remote gambling operator as long as they are licensed and operational in some capacity within the European Economic Area. All of its members operate online casinos and most, including the larger British bookmaking companies, also have extensive remote betting businesses. On 1st August 2005 ARGO and iGGBA merged and Clive became the Chief Executive of the new Remote Gambling Association (RGA).

Prior to joining ARGO in August 2004, Clive was head of the Betting & Racing Branch at the British Department for Culture, Media & Sport (DCMS), where, amongst
other things, he was closely involved with the development of the Government’s policies on gambling.

Before that he was at the Home Office, spending time in both the Gambling Section and the Horseracing Policy Team. Earlier in his career he also spent several years working in the bookmaking industry.

Malcolm Graham

Chief Executive Officer - PKR.com

Malcolm is the CEO of PKR.com, a company which has developed a uniquely customizable 3D online poker software. The company was founded by Jez San, who was the creative force behind Argonaut Games, one of the UKs most successful games developers. PKR launched in August 2006 based in Alderney, the premier online gaming regulatory environment.

Previously, Malcolm was the Managing Director of The Ritz Club London Online, operating an online casino and poker room under The Ritz brand. He was also a Director of The Ritz Club, the land based casino located in the Ritz Hotel. Malcolm was responsible for all aspects of The Ritz Club's online gaming operations including the following: Negotiating contracts with all suppliers, Overseeing all marketing activities, Co-ordinating all customer care and retention activities, Managing The Ritz's move from Curacao to Alderney, Full P&L responsibility, selecting and negotiating potential marketing and technology partnerships.

Malcolm was Chairman of the Alderney Gaming Licensees Forum and Treasurer of the Interactive Gaming, Gambling and Betting Association in 2003.

Prior to Malcolm's role at The Ritz Club Online he worked for one of the UKs leading internet investment vehicles called the Antfactory. He was responsible for their £2 m investment in Whittards of Chelsea. Prior to the Antfactory, Malcolm was a management consultant with Mercer Management Consulting where he specialized in the telecommunications and internet industries.

Malcolm has a BA from Southampton University and an MBA from INSEAD.

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