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  • Evolution of Sports Betting is Accelerating

    Evolution of Offshore Gaming Is Accelerating
    As New Growth Comes From an Overlooked Sector
    by Buzz Daly
    www.buzzdaly.com
    Monday 23rd of June 2003


    Wagering on sports has always been a perilous undertaking, for both those who are laying the action or taking it. But so strong is the inclination of U.S. bettors to back opinions with money, whether it be Joe Sixpack or Willie Wise Guy, that the sheer preponderance of players guarantees a sizeable pool for bookmakers to service.

    About 10 years ago, offshore sportsbooks began appearing in numbers large enough to suggest the start of an industry. During the intervening years, the happy confluence of the Internet, technology and the indomitable will of sports bettors exercising their freedom to be in action has seen offshore sports gaming flourish. Offshore has established itself in the U.S. against odds so long, it would have been considered an “out” bet.

    Despite the worst efforts and dirtiest tactics of anti-gaming zealots, including religious extremists, organized sports and other assorted groups whose beliefs encompass an Orwellian doomsday scenario, the good guys have prevailed.

    Now, based on latest developments in Costa Rica, or Bookmaking Central as it is known, there is evidence that the industry is veering in a different direction. Instead of a continuance of the trend in which shops move to an hospitable offshore environment and launch post-up operations, stateside bookmakers are relocating the operational part of their credit businesses but maintaining local control of customers and handling payouts and collections in a traditional fashion.

    We’ve learned that Call Center Solutions (www.bookoffshore.com), arguably the largest company offering turnkey solutions to operators in the U.S. and offshore since 1997, “is experiencing an explosion in new business,” according to marketing director, Max.

    Given how the sports betting business has expanded and become so competitive, starting a full service shop, or even just an Internet book is prohibitively expensive, said Max.

    CCS services post up or credit players for about $30 per head per week, Max noted, adding that CCS currently handles clients varying in size from 10 players to 2,000 players, at more than 40 offices. Business comes primarily from three different areas:

    * Books writing business in the states, which are expanding or looking to get away from heat generated by law enforcement. These shops typically handle 50-250 players per week.

    * Books currently operating offshore who wish to reduce their operational costs and overhead. These costs fluctuate wildly among the different bet shops based on the business acumen of management. Despite the best intentions, many books do not have the inhouse expertise to monitor and control the cost factors that impact the business. (Max cited a client from another jurisdiction which saw its monthly “nut” go from $250K to $80K after signing up with CCS. He conceded that was an extreme example, “but invariably, we wind up putting enough money back into our customers’ pockets so that the difference is very noticeable.”)

    * Individuals already offshore who can bankroll their own business with the house taking 50 percent. With no compromise in bookmaking or customer service, a per head arrangement, whether from CCS or another servicing company, is far more cost effective, Max stated.

    He observed that starting a business from scratch without an existing base of customers, is difficult but not impossible. Most new players, including major corporations looking at the business for its promising growth rate, don’t really understand the costs involved in obtaining user friendly software, telephone equipment, and knowledgeable, experienced staffing.

    Max stated that CCS could set up a fully functional office within a couple of hours. “We’re not consultants, we’re hands on bookmakers, with the experience and expertise to get a shop up and running. It will be fully operational, at the lowest possible cost,” he promised.

    “Our clients get free bandwidth, compared with a standard monthly cost of $10K-$20K. Software licensing fees are eliminated, as clients pay only for each station. Additionally, CCS phone costs are drastically lower because we own our own earth stations” explained Max. “There are many other benefits, including absolute confidentiality,” he added.

    Of course, this is not a brand new concept, although the execution by CCS is very sophisticated. We first heard of it years ago from a medium-sized offshore bookmaker who was servicing some friends from New Jersey and New York. However, his shop eventually failed and so he never developed the business.

    Max admitted there are others trying to fill the growing need for offshore service to stateside bookmakers. “Not to disparage our competition,” he smiled, “but some of them put prospects who call on hold for long periods, or transfer them to someone who is less than helpful. We started out years ago by taking care of some associates back in the states, and used it to subsidize our costs. But once we realized the potential of this business, we now treat it just as seriously as our own bookmaking operation. It is, in fact, a totally separate entity.”

    Currently CCS is looking at other jurisdictions into which to expand. We wondered if any of the industry’s existing, well established medium-sized books might be customers in the near future, and if so, would the fact be publicized.

    Max said there were ongoing conversations between CCS and many books, and one day, it just might announce it had signed up a shop that everyone has heard of. “If we do, rest assured we would publicize it and make full disclosure. There would be no attempt to fool the betting public about the book’s new circumstances. Hell, any book that joins with us has got terrific bragging rights,” he stated.

    Sportsbook Scene bets with one of the books CCS services. There have been no appreciable problems. The only thing that comes to mind was once a winning prop bet was graded as a loser. But a polite email asking them to check the play saw the issue quickly and amicably resolved.

    All of this activity points to a resurgence of local books in the U.S. It is most unlikely that CCS will continue to operate without serious competition. We would expect other large books with strong technology to recognize the opportunity and go after business in the near future.

    This new service augurs well for stateside players who insist on eschewing offshore books and staying with their local stores. Of course, they will be playing offshore and perhaps not realizing it. It also will be a boon for enterprising BMs who seek an opportunity to take their business to the next level.

    It is encouraging to watch an industry like offshore gaming, which is under siege from a myopic, agenda-driven government, shrug off the fascist-like tactics which are designed to Big Brother it into submission. It just galls some of our politicos that sports betting cannot be killed.

    “Where there is a will, there is a way,” the old chestnut goes. Bettors and bookmakers are living testament to it.

    For those businesses interested in getting more info about availing themselves of offshore servicing, check out Call Center Solutions or call Max at 1-866-888-6812.

    Vegas Insider Sold to British Info Firm. About four months after it announced it would sell off its sports gaming information subsidiary VegasInsider.com, CBS SportsLine.com announced that the Fort Lauderdale-based company has been sold to Sports Information Ltd., a United Kingdom company.

    Terms were not announced, but the new owner said it intends to leave the company’s offices, existing management and key staffers pretty much intact. VI’s expertise will be used as SI Ltd. seeks to expand its global sports coverage into European and Asian sports.

    CBS spokesman Larry Wahl told us that the primary motivation to sell off VI was not a lack of performance by the company, but rather the decision to better focus on its core business. That business includes affiliations with various professional and amateur sports organizations which had concerns about the gaming aspects of VI. Those concerns could have hampered or compromised SportsLine’s position as an Internet sports content provider and publisher of various official websites, including the NFL, PGA Tour, and NCAA Sports.

    Just as we were ready to distribute SBS, we heard from VI vice president and general manager Peter Gold, who clarified the deal and helped put it in perspective.

    While acknowledging that being affiliated with SportsLine offered many benefits and afforded VI a comfortable operating platform, he noted that there were differences in objectives between the parent and its subsidiary. These were nothing out of the ordinary, but skewing day-to-day business toward the overall good of the parent seemingly at the expense of VI was sometimes frustrating, said Gold.

    He is looking forward to a productive relationship with SI Ltd., which is expected to be a supportive parent. “It is most encouraging that the new owner wants to build on our strengths, and has kept our close-knit company relatively intact,” Gold observed. They’ll not be looking over his shoulder or micromanaging, and the VI general manager is pretty pumped to get a whole range of ventures underway which previously were either on hold or deemed not feasible.

    Due to budgetary constraints, two long-time employees were let go. Managing editor Barry Daniels and marketing coordinator Mark Franco were victims of a numbers game in which expenses had to be reduced.

    Gold stressed that both had been strong contributors during their tenure with VI, and that he was giving each of them a stellar recommendation as they looked for new positions within the industry.

    According to a source familiar with CBS’s financial picture, VI was not only highly profitable, but the only SportsLine.com subsidiary to earn a positive return on investment.

    Under the new regime and with Peter Gold’s aggressive and dynamic leadership, we expect to see VI re-emerge as a much more visible entity.

    Joe Saumarez Smith, CEO of the acquiring company, noted that he had “enjoyed a partnership with VegasInsider.com since its original launch in 1997.”

    VI’s executive offices are in Florida, while many of its handicappers are based in Las Vegas. Under its new owner, it will continue to provide gaming info designed to help its consumer audience prevail in doing business with “legal and licensed sportsbooks.”

    We presume such info could also be used by clever clients to try to win from illegal bookmakers and unlicensed sportsbooks.

    Brush Up Your Shakespeare. Sorry, that’s just one of our favorite numbers from the musical comedy Kiss Me Kate. What we meant to say is brush up your ‘capping skills.

    With gridiron action looming in our not-too-distant future, there are lots of players who need refresher courses in some, if not many, phases of going head-to-head with their man in the world of 11-10. And from all the bettors we have heard say if they had their druthers, they’d druther be getting down on football instead of baseball, this looks like it could be a monster season.

    Two football handicapping seminars are scheduled for Las Vegas in August, and while both have a common objective, they are dissimilar enough to offer legitimate variances.

    On August 16, Football Handicapping University will be held at Sam’s Town, with Lem Banker, the dean of sports betting, presiding over the event. In addition to tips and insight from a guy who claims to live entirely off his sports betting profits, other prominent professional handicappers will impart their wisdom to players seeking an edge against the books.

    Andy Iskoe will explain how to apply and interpret information that is readily available; Arne Lang, recognized for his expertise in college football will offer a preview of the coming NCAA season with insight into up and coming teams as well as those over-rated money burners;

    Tim Trushel, who has garnered a strong following for his service from his morning show on Sports Radio here in Vegas will show bettors how to bet the games in the trenches; Jay Martin, whose Sports Information Network service is sponsoring the day-long affair, will cover Gambling 101 and illustrate how he handicaps the games.

    Norm Kelley, sportsbook manager at Sam’s Town will help players improve their wagering skills by revealing mistakes the public makes in betting.

    In addition to individual presentations, a panel discussion on football betting will be held, with a Q&A segment from the audience. Noted journalist Stephen Nover will moderate the panel.

    We will make a cameo appearance at the beginning of the event.

    Jay Martin said the “University” and its prestigious faculty will provide an in-depth education for attendees, and includes time for one-on-one meetings between teachers and students.

    For more information or to reserve seats, call Jay Martin at 1-888-797-0300, or email him at [email protected].

    On August 22-24, the Sports Betting Festival will be held at Bally’s. Key note presentations will be made by high profile handicappers including Jimmy Vaccaro, Marc Lawrence, The Prez and Larry Ness. Rob Gillespie from BoDog (www.bodog.com) will also be a featured speaker.

    Free workshop sessions with eminent analysts such as Marc “The Cincinnati Kid” Lawrence Jr., Johnny Detroit, Dr. Edwin Meyer, Marcus Langdon, Marco D’Angelo, Greg Daraban Randall Busack, Alex Smart, Pacific Star and others will be held. Topics will include: * Handicapping tips
    * Trends & statistics
    * Money Management Strategies
    * Line shopping
    * Everything you need to win this season.


    We will make an appearance at this event at a workshop session.

    Opening night will feature a cocktail reception with lots of giveaways.

    Saturday’s schedule includes the workshop and seminars. That evening, a Guys Night Out party will be held at Jaguar’s Gentlemen’s Club, where there will be a buffet and an open bar.

    The three-day gala is sponsored by Who2beton.com, DonBest.com, FreePicksByEmail.com and ECapper.net.

    For full details and pricing info, go to www.sportsbettingfestival.com. Rated players are asked to call 1-866-888-2388; their accommodations are free.

    Since we are participating in both affairs, we are obligated to suggest that football bettors who are looking to put up a better fight in the never ending struggle between players and bookmakers should consider attending one of them. If we were not convinced that both events are truly dedicated to giving bettors a leg up against the books, we would not be involved.

    It is worth noting that we do not have a financial interest in either event, and do not share in any of the proceeds.

    Players wishing to stock up on their handicapping arsenal this year are advised that Howard Schwartz of the Gamblers Book Store will be at both seminars, accompanied by a representative inventory of the store’s football betting publications.

    Culinary Kudos. In recent years, Las Vegas has made strides in evolving from a meat and potatoes outpost to a metropolitan city with serious and sophisticated restaurateurs servicing diversified cosmopolitan tastes.

    Truth be told, some of those fancy joints didn’t make it, while others serve over priced food, and still others have such snobby service, you know their days are numbered.

    So we were delighted to get an invitation recently to the media preview of China Spice and Sushi+Sake at Green Valley Ranch. Not only are we devoted aficionados of Asian cuisine, but Station Casinos is especially adept at providing patrons with a variety of top quality eateries at competitive prices.

    So, as we hied ourselves over to the company’s most upscale property, visions of Japanese and Chinese delicacies danced through our head. Our imagination did not do justice to the food or the strikingly contrasting designs of the two new restaurants.

    Sushi+Sake is notable for its ultra contemporary and upscale casual ambiance, while China Spice features a modern, casual dining atmosphere. Both are distinctive for their authentic menus which offer multi-regional dishes at moderate prices. China Spice also offers a wide variety of American favorites.

    Since we have an almost unlimited capacity for sushi, we first ventured into Sushi+Sake, where we were seated at a comfortable lounge table, This area surrounds a modern and attractive sushi counter which was already jammed with hungry press people.

    As Japanese servers in native garb attended us with a continuous medley of attractive sushi offerings, our jaws never missed a beat. Spicy tuna, yellowtail, unagi, salmon, tuna, red snapper and more were presented along with California rolls, tempura rolls and assorted special rolls including Kwan’s duck egg rolls … all disappeared with the flick of our chop sticks. The impeccable array of food was accompanied by various infused sake potions, whose names we cannot remember. But we did consume quite a few Geisha Girls, a particularly kicky drink made from sake, Parrot Bay coconut rum, bananas and strawberries.

    As our tank edged closer to full, we shifted over to China Spice to check out the imaginative and tasty dishes that were in evidence. This facility is well designed so that patrons have plenty of elbow room and conversations can remain private.

    You might not think of Pu-Pu platter as an especially imaginative dish, but the version served here is delectable. We had just enough room left to sample scrumptious pot stickers filled with pork and veggies, and our all-time favorite Chinese dish, chow fun. The wide rice noodles were enrobed in a savory meat sauce which was loaded with tender pieces of high quality beef. This is a good as it gets.

    With our appetite sated, we headed to the casino’s comfortable sportsbook to check scores of bets we had made earlier in the day. But it was impossible not to salivate over the honey glazed walnut prawns and Chinese spareribs on a table we passed enroute to the book.

    The restaurants open officially Monday, June 23. We can't wait to go back.

    Update. The happy ending to June 9th's column is that we received apologies from the proper parties, and have amicably put the matter to rest. Benjamin Eckstein expressed regrets over what happened, and stressed that while a mistake had been made, it was not malicious.

    We accepted the apology and remain friends with the folks at America’s Line. As far as publishing a new magazine, Benjamin said health problems among key staff put a 2003 publishing date in doubt, and that 2004 was a more likely launch date. When they come out, we wish them well.

    Please send comments, questions, etc. to [email protected]
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