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Amaya Gaming’s Reverse Acquisition of PokerStars and Full Tilt Poker

Posted by :admin On : June 13, 2014
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Amaya PokerStars and Full Tilt Poker SaleThe rumors proved true. Amaya Gaming and PokerStars announced the deal via a press release late in the evening of June 12.

Amaya will acquire Oldford Group, parent company of Rational Group, which owns and operates PokerStars and Full Tilt Poker. The agreement is worth $4.9 billion.

The deal includes all issued and outstanding shares of Oldford, and all of the assets associated with the company. PokerStars and Full Tilt Poker alone have more than 85 million registered players on the online poker sites, with PokerStars by-and-large the biggest Internet poker entity in the world.

Figures included in the press release show that the pro forma combined revenue for Amaya and Oldford in 2013 was $1.3 billion, and the EBITDA was $474.8 million. Adjusted EBITDA, before interest, financing costs, taxes, and other costs, was $473.8 million, and that estimated adjusted EBITDA for 2014 (back-dating to January 1, 2014 for the buyout) is $600 million to $640 million.

Some estimated the worth of PokerStars to be more alone than the $4.9 billion sale price of Oldford, but the exclusion from the United States market dented that worth and may have reduced the price to one that worked for both parties.

Amaya didn’t have $5 billion cash on hand for the transaction, but a $50 million deposit started the deal. The Blackstone Group will assist in financing some of the debt, as has an unnamed investment manager. A combination of cash, new debt, subscription receipts, common shares, and preferred shares will be used to complete the sale.

Business as Usual, Mostly

Despite the size and scope of the deal, not to mention its possible impact on the global and United States gaming markets, business at PokerStars, Full Tilt Poker, and Amaya Gaming is said to be moving forward as usual. Players on the gaming sites will not see any change in their day-to-day activities.

PokerStars and Full Tilt Poker will continue to offer the same games to the same markets, for the time being.

Tours like the European Poker Tour, Latin American Poker Tour, and UK & Ireland Poker Tour (just to name a few) will operate with PokerStars as their sponsor without any changes to their respective live event schedules.

The Rational Group will continue working from its Isle of Man offices, as well as current sub-offices, and Amaya will stay in its Montreal headquarters.

Amaya and PokerStars Management Shuffle

There are a few people involved in Rational Group that will see a change. In fact, that change is an integral part of the agreement and one that will likely give Amaya a better chance to offer online gaming services to more states in America.

Oldford Group founder and Chief Executive Officer Mark Scheinberg will sell all of his company shares to a subsidiary of Amaya, as will other Oldford shareholders. Scheinberg and several other executives will resign from their positions and leave the company altogether.

The exit of Mark and Isai Scheinberg is a key component for PokerStars to gain entry into New Jersey. Though Amaya has a fully executed and valid license, its new agreement with PokerStars will need to be reexamined.

Since PokerStars’ license application was on hold due to the pending US Department of Justice indictment against Isai Scheinberg, this move may signal a new chapter for Amaya, PokerStars, and New Jersey Internet gaming.

Speaking of Regulated Markets

The press release specifically addressed the entry of PokerStars and Full Tilt to regulated markets and named the United States as the most pertinent.

“Amaya believes the transaction will expedite the entry of PokerStars and Full Tilt Poker into regulated markets in which Amaya already holds a footprint.”

Quite a few states have bad actor clauses in place or prepared for upcoming legislative opportunities, but many in the online gaming industry hope that the Amaya deal will shine a new light on “bad actors.”

The Poker Players Alliance was quick to praise the buyout with respect to the positive effect it may have on PokerStars and the regulated US market. “Amaya’s acquisition should remove any perceived impediment for this popular brand to once again be available to players in regulated US jurisdictions,” said PPA Executive Director John Pappas.

He went further to explain his hope that the news “will bring the gaming industry together – tribes, commercial casinos, card rooms, lotteries, and others – to push as a united front for state and federal legislation that licenses and regulated Internet poker.”

Affiliate Marketing Details Released by New Jersey Regulator

Posted by :admin On : June 12, 2014
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Affiliate Marketing Online Gambling In NJThe online gaming affiliate industry was a thriving market in the United States before the UIGEA and Black Friday, and it has yet to gain much ground at all since the regulation of online gaming in New Jersey.

The primary reason is that affiliate marketing had yet to be thoroughly addressed by the New Jersey Division of Gaming Enforcement. Affiliates had been awaiting further instruction for months before an official document was released on June 9, 2014.

Licensing of Internet Marketing Companies Overview

The Director’s Advisory Bulletin was issued from the State of New Jersey and signed by DGE Director David Rebuck. It aimed to address the licensing of Internet marketing companies, better known in the industry as affiliates.

Two licenses are available for the entities – vendor registration or ancillary casino service industry enterprises. Compensation dictates the type of license required.

For instance, if affiliates are paid a flat fee for directing traffic to an online gaming site, they require a vendor license. An ancillary license is for companies who are paid based on player activity on those sites.

Vendors

The vendor registration license is for companies paid a certain fee when a user clicks on a banner or link for a New Jersey gaming site, based on how many people view a particular advertisement, or for an official partnership.

This type of license also applies to affiliates taking a flat fee for sign-ups, deposits, site downloads, or a particular number of bets or amount wagered.

Ancillaries

Affiliates must request an ancillary casino service industry enterprises (CSIE) license if pay is dependent upon gaming action. For instance, if an affiliate is paid a percentage of every deposit or a fee based on the amount of money a player wins or loses on the Internet gaming site, the ancillary license is required.

Revenue share revenue is also a determinant for an ancillary license, meaning the affiliate is paid a percentage of the net gaming for a user.

Sub-Affiliates

The document from the DGE goes on to discuss sub-affiliates, which are entities that are paid by the primary affiliate for referring players to a particular online gaming company. The bases for sub-affiliate licenses are the same as indicated above for vendors versus ancillaries.

Sub-affiliates must submit their contracts with primary affiliates to the DGE for the proper license. Should a sub-affiliate fail to obtain the proper license and file the necessary paperwork, the DGE can take regulatory action against that company as well as the master affiliate. Licenses could be revoked for failing to comply with all of the requirements.

Allowances

The DGE also details some of the allowances for affiliates in New Jersey. One of those is the ability to use a “refer a friend” application for which an affiliate takes a flat fee. Should an affiliate receive less than $2,500 per calendar year for this service, no license is required for that operation.

Affiliates are also allowed to switch compensation models as long as they remain in the same licensing class. While those changes require the DGE’s approval, they may be implemented without preapproval.

Requirements

All affiliates, no matter the license held, must submit a monthly report for the DGE’s Service Industry Licensing Bureau and Intake Unit. The documents must include details of all monies changing hands for any type of activities. License holders and platform providers must comply.

Lastly, all affiliate activity must take place in and be conducted with customers in the state of New Jersey. Any violations can result in the revocation of a license or other regulatory action deemed appropriate. The exact rules are given to the affiliate upon the completion of the licensing process.

The Inside Scoop – Busy Week For Regulated Markets and Horse Racing

Posted by :admin On : May 15, 2014
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poker affiliate Inside Scoop Column

With spring in full bloom and the WSOP just around the corner, the online poker industry is preparing for the inevitable slow down that occurs every year at this time. But just because the action on the virtual felt is expected to slow down, it doesn’t mean news out of the regulated markets will.

So let’s jump right in and look at some of the biggest industry stories and chatter taking place this week.

New Jersey’s April Gambling Revenue = Flat

As soon as the DGE (Division of Gaming Enforcement) April numbers hit the net, social media was buzzing with back forth chatter amongst industry analysts and followers. The overall initial sentiment was that the numbers are flat and that poker is the biggest reason why.

Overall, the total revenue for April was $11,428,737. Borgata continued to lead the Garden States operators with total revenues of $4.1 million. Caesars had disappointing month with revenues falling over $700k from March, down to $3 million.

Golden Nugget and Trump Taj Mahal also saw decreases in revenues.

The two shining stars in this months DGE report were Tropicana and Trump Plaza bringing in revenues of $2.1 million and $926k respectively.

Personally these are numbers are in line with what I expected. While it can be argued that payment processing and geo-location continue to plague the NJ market, the real issue is simply consumer awareness.

Until New Jersey operators can figure out how to attract casual players, and those players new to online poker, the monthly reports will continue to stagnate.

Winning Poker Network (WPN) Says Adios To The U.S. Regulated Markets

Other breaking news coming out of the regulated markets this week includes the Winning Poker Network (True Poker, Americas Cardroom, and Black Chip Poker) abruptly exiting the New Jersey market.

This was not the first non-regulated online poker operator to leave these states though. In January Merge forced all of its skins to exit the regulated markets.

Reported first by Chris Grove at Online Poker Report, a lot of speculation is floating around as to why the abrupt decision by WPN. The official statement offered by WPN suggests that the network left these regulated states out of respect to the regulated operators.

While I don’t think the DGE or authorities in the U.S. have made any specific threats to operators like WPN, I do believe that the decision by both Merge and WPN is a precautionary measure and a way of staying of the radar and playing nice.

Will Bovada be next? Don’t count on it, their sports betting revenues would make leaving these regulated states a much more expensive decision.

Who’s Next To Regulate Online Gambling In the U.S.

Trying to handicap the U.S. regulated online gambling market is more difficult than trying to handicap a race in the Triple Crown. Every week there seems to be a new front-runner, as well as a state that once looked positive but is now all the sudden on the back burner.

Craig Klinski from NJPokerOnline.net recently wrote a column assessing the states next to regulate online poker.

Give this article a read, it’s easily the most up to date and realistic assessment I’ve read in a while. I don’t for see any states regulating and coming online in 2014, but if I had to pick a trifecta for the next three states to be live, it would be California, Pennsylvania and New York. And yes, I will be boxing those three!

Speaking of Horse Racing

As a large majority of the readers of this blog are affiliates, allow me to share some Inside Scoop with you. The Triple Crown is one of the most lucrative betting events in the world.

Every year, people who never bet on horses otherwise come out of the woodwork to wager on each of these races. While the off track betting facilities are popular, more and more individuals are going online looking for places to gamble.

The opportunity for affiliates to convert these bettors is tremendous. Whether it’s SEO, email campaigns, or press releases, the amount of people looking to bet horse racing online this weekend and then again in two weeks is remarkable.

I actually had a chance to speak with one of the bosses from BetAmerica.com a few weeks ago, and the figures he told me that the top affiliates earn throughout the Triple Crown made my jaw drop. So boom, there you go. Get ready to make some money this weekend!

The Inside Scoop – California Love & a Big Week in NJ

Posted by :admin On : April 25, 2014
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poker affiliate Inside Scoop Column

I typically publish this Inside Scoop column on Wednesdays, however this week the poker Internets were buzzing with news about California, so I took a few days to absorb it all.

So let’s get started!

California’s Online Poker Hearing

If you’re a part of the online poker media, or someone interested in U.S. online gambling regulation, there’s a good chance that you were glued to your laptop on Wednesday afternoon listening to the testimonies being given in front of the Assembly Committee on Governmental Organization. And don’t worry; if you missed the hearing, you can listen to it here.

So here are the cliff notes:

On Wednesday, many of the biggest names in regulated gambling came together to give hours of testimony both for and against regulated online gambling in California.

Much of the discussions focused on the collaboration and consensus amongst the various Indian tribes throughout the Golden State. The largest point of contention is without a doubt the inclusion or exclusion of the bad actor clause.

What is the Bad Actor Clause?

The term “bad actor” refers to any online gaming company that continued to accept wagers in the U.S. after UIGEA (Unlawful Internet Gambling Enforcement Act) was passed in 2006.

It is each individual states decision to place a bad actor clause or not in any bill. All three states that currently have regulated and legalized online gambling in the various forms all have different bad actor clauses in their legislation.

Speaking of bad actors, PokerStars……….

One of the most interesting parts of the day happened during the third panel session when news emerged that PokerStars just put a press release out to the public.

The press release disclosed that PokerStars had officially partnered with not only the Morongo Band of Mission Indians, but also California’s largest card rooms; Bicycle Casino, Hawaiian Gardens Casino, and Commerce Club.

To sum it all up in one sentence, this would be PokerStars “Battle of the Alamo” moment in history. Stars knows good and well that if they miss the boat in California, their hopes of doing business in the regulated U.S. markets will become even more of an uphill battle.

And with California presenting a market over 4 times larger than that of New Jersey, don’t expect Stars to give up without a relentless fight.

A few of the best write-ups I have found regarding California, bad actors, and PokerStars are listed below:

California Gambler

Hearing Wrapup

24 Things We Learned at the California Online Poker Hearing

Online Poker Report

PokerStars Big Announcement

Summary of CA online poker hearing

New Jersey Poker Online

PokerStars California presence and it’s impact on New Jersey

A big week In New Jersey for poker

While all the attention has been focused on California this week, New Jersey has been rocking and rolling with their own excitement. The World Poker Tour’s championship $15,400 buy-in event sponsored by nj.partypoker.com has been going on every day at the Borgata Casino Hotel & Resort.

With a $5 million guarantee, this event has made history in New Jersey, as it’s the first time in its 11-year tenure that the event has ever been held outside of Las Vegas. Without a doubt, this goes to show the significance of regulated online gambling in New Jersey.

In addition to the WPT’s richest annual event, the nj.partypoker.com NJCOP (New Jersey Championship of Poker) has also been underway. With 15 events, this series guaranteed New Jersey online players over $600,000in prize pools throughout the week.

Many industry analysts and followers are watching both these events closely, as it appears that the New Jersey online poker market may be stagnating a bit.

Check back to this column next, as we will analyze both of these events in New Jersey, as well as report on any new developments in California. And after such a busy week following the California market, it only makes sense to end the column and head into the weekend with this song.

The Inside Scoop – Best Resources In The Regulated U.S. Markets

Posted by :admin On : April 10, 2014
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Inside Scoop Column

The past week has been somewhat of a rather slow news week in the regulated U.S. markets. This isn’t necessarily a bad thing however, in fact, it’s somewhat refreshing to see the markets “settling in.”

As the existing regulated markets in the U.S. continue to mature, and as new markets open up, you can bet the news cycle will have its fair share of peaks and valleys however.

As someone who has been heavily involved in the regulated markets since their inception, affiliates and others often ask me what the best sources of news are for following the regulated U.S. online gambling industry. I figured I’d share a few of the sites I find myself frequenting every day.

And for those who have either been out of the industry for a while, or perhaps new to the industry, the “go-to news sites” for the regulated markets are far different than that of the traditional online gambling news sites.

Below are my “go to sites” that I visit every day and get the majority of news from.

OnlinePokerReport.com

Over the past couple years, OPR has grown to be one of the most respected and authoritative sites on the net for reporting on the regulated markets. If a story in the regulated markets is being broken, there’s a good chance one of, if not the first site to break it is going to be OPR.

Just as impressive as the quality content being churned out by OPR, is the roster of contributing authors OPR boasts. If you follow the U.S. regulated markets, OnlinePokerReport.com should be one of the first and last sites you check in at every day.

PokerScout.com

I’ve always been a fan of PokerScout.com, and much more so now since they monitor traffic at the regulated online poker sites. Poker Scout has single handedly been responsible for the entire industry having a pulse on the traffic and growth of the regulated U.S. online gambling industry.

Another unknown gem to some is the great job Poker Scout does aggregating the top news stories on the net. Bottom line, if you’re looking for insight on who’s winning and losing with respect to market share in the U.S. regulated markets, PokerScout.com is the number one source.

PokerFuse.com

At any given time throughout the day, if you look at the browser tabs I have open, there’s a good chance PokerFuse.com is in one of them. PokerFuse does a great job reporting on the overall global gaming industry, and is also continually on top of news in the regulated markets.

I personally subscribe to PokerFuse Pro and would highly recommend it to anyone looking for the most in depth news. Through the newsbeat at PokerFuse Pro, you can be assured you won’t miss any big story or articles.

USPoker.com

The name of the site pretty much sums it up!

If there is a breaking or trending news story in the U.S. markets, you can bet it will be reported on at USPoker.com.

For years, one of my favorite writers in the industry has been John Mehaffey, also known in the forums as PokerAddict. He writes the majority of the content with respect to the U.S. regulated markets for USPoker.com.

The one thing I like about his style is that he accurately reports the news, but also takes a no holds barred approach when sharing his opinions or thoughts on the news. When there’s a controversial topic in the industry news, I often find myself excited to see what Mehaffey’s take on it is going to be.

Twitter

While all the sites listed above are my go-to sites, I can honestly say that Twitter is by far, hands down, unequivocally, the best source of industry news in the world. That is, if you follow the right people!

A wise man once told me, “Follow everyone I follow on Twitter, and you’ll never be uninformed on the U.S. market.” He was right too, so I suppose this is my way of paying it forward.

Obviously there are a ton of other news sites and resources out there to keep up to date on the regulated U.S. online gambling industry that are not listed here. But these are my personal go-to sites that I visit at least once every day.

See you back here next week for another edition of the Inside Scoop.

The Inside Scoop – My Trip To iGaming North America

Posted by :admin On : March 26, 2014
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Inside Scoop Column

IGNA - iGaming North AmericaIn this week’s edition of the The Inside Scoop, I will recap my recent trip to Las Vegas for the 2014 iGaming North America Conference. Held at the Planet Hollywood Hotel Resort & Casino, this was probably one of the best conferences I’ve been to in a long time.

My trip started with a lunch meeting alongside the crew of one of my favorite poker brands, WSOP.com. Joined by the legendary @BillRini, as well as the other marketing rockstars, Adrian and Dee, we discussed some of the exciting promotions and developments WSOP.com has coming up in the regulated markets.

After working in this industry so long, it’s nice to see such a reputable and iconic brand such as WSOP.com making big moves online in the U.S. regulated markets. I’d look for more innovation and outside the box marketing from WSOP.com throughout the rest of 2014.

With the actual World Series of Poker in Vegas coming up this summer, it would be impressive to see if WSOP.com can successfully pass its main competitor’s, nj.partypoker.com, market share in New Jersey.

Notable Speaker Sessions At The 2014 IGNA

With the 3 regulated online gambling markets currently in the U.S. and several others on the brink of legislation, this may have been one of the most important IGNA’s to date. And with that, the organizers of IGNA pulled out no stops when making sure the speaker sessions were absolutely stellar.

With multiple sessions going on at once, there were several times I had to make tough decisions on which to actually attend.

Below are a few recaps of the three most notable sessions I attended:

Visionaries Perspective – Is iGaming the Problem or the Solution?

Probably one of the most anticipated speaker sessions of the entire conference, Mitch Garber, CEO of Caesars Interactive and Andy Abboud, VP of Government Relations, sorry, Government Payoffs and Corruption (I kid Mr. Abboud), for Las Vegas Sands Corp. went toe to toe on regulated online gambling in the U.S.

As everyone knows, Sands Corp. is owned by billionaire geezer, Sheldon Adelson, who has pledged to spend whatever it takes in an effort to make online gambling in the U.S. completely illegal. The debate was a lively one that in my opinion made Mr. Abboud appear as a complete idiot.

Some of his arguments against regulated online gambling were laughable. At one point he mention 8 year old kids under Star Trek blankets in their bedrooms gambling online.

Mitch Garber, who is arguably one of the brightest minds in U.S. regulated gambling market was brilliant in his responses, as well as his arguments for online gambling. As he said, gambling in general is simply evolving with the times. The U.S. land based casinos need to evolve with times.

Garber mentioned that it’s nonsense trying to eliminate online gambling, as non-regulated rooms will always be here. Instead we need to protect consumers by allowing regulations.

He also made a strong point backed by studies that regulated online gambling will have no effect on land based profits, and if anything help land based casinos.

Easily one of the best conference speaker sessions I have ever attended. Howard Stutz wrote a nice summary of the exchanges here.

Regulated Online Poker – The Story So Far

How can you not like a panel with guys like @John_Mehaffey, @BillRini, and Dan from @PokerScout1. Even better, it was moderated by one of the regulated markets foremost industry journalist Chris Grove @OPReport. What a great mix of people to discuss this topic.

With two online poker operators (WSOP.com & UltimatePoker.com) the opinions on the questions asked varied greatly. It was interesting to hear the challenges still facing operators such as geo-location, as well as credit card processing.

It was also nice having the founder of PokerScout.com on the panel, who undoubtedly kept everyone honest with respect to traffic and stats. The panel agreed that although more poker rooms such as Virgin and Golden Nugget are expected to launch in New Jersey, the market can realistically only handle four online poker sites.

While opinions differed on many of the topics, all the panelists seemed to agree that California would be the “game changer” for U.S. regulated online gambling should that market open up.

Live at IGNA: As Close As You Want To Get To A Federally Prosecuted Sports Betting Trial

This was probably one of the more interesting sessions I attended. It opened with the Assistant U.S. Attorney from the U.S. Department of Justice of the Southern District of New York giving opening remarks. While he seemed like a nice enough gentleman, this is honestly the closest I would want to get to him again!!!

Where it got interesting though is when the team from @ifrahlaw hosted a mock federal trial that gave the audience a unique insight and understanding as to what a real federal sports betting trial might look like. A defendant stood trial on a mock stand and was examined and cross-examined.

At the end everyone was able to vote via twitter or text in real time on if the defendant was guilty or not. The audience indeed did find her guilty.

Overall, it was very well staged and gave a great perspective to those of us who have never been in a courtroom. And yea, that is the closest I EVER want to be to a federally prosecuted sports betting trial.

The Level Of Professionalism At iGNA Was Resounding

One resounding thing that stuck with me from this year’s IGNA was the shear level of professionalism. Not to take anything away from the IGB affiliate conferences, but there were a lot more executive level type individuals at this conference. Sure, it’s Las Vegas, but people were there to primarily do business versus the late night partying and gambling.

It was also finally nice to be back at a conference on U.S. soil where there was a great deal of optimism and excitement.

If I had to suggest a single conference that individuals working in the U.S. regulated gaming market should attend, it would be this one. In fact, I would say iGNA is a conference that is a must-attend.

New Jersey Online Gambling Affiliate Resources

Posted by :admin On : January 29, 2014
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newjerseyAs most poker affiliates are aware, the New Jersey regulated online gambling market is off and running. Unfortunately, at this time there are still no live affiliate programs. However I do expect that to change around the beginning of the 2nd quarter of 2014. And when it does, if you’re even remotely interested in promoting New Jersey regulated offers, you better be ready.

So I made this post today to share some great links and resources of places you can go if you’re interested in learning more about the New Jersey online gambling market.

But first, if you’re interested to get a quick snapshot of how each room is performing right now, have a look a the most recent New Jersey online gambling report card.

Best New Jersey Gambling News Sites

Obviously Google News will usually yield you the best results for general type New Jersey gambling inquiries.  However for the most up to date and breaking New Jersey online gambling news, I have to give this to OPR, followed by Pokerfuse.

OnlinePokerReport.com

PokerFuse.com

Best New Jersey Poker Information Site

Everything you will ever need to know about New Jersey online poker, and then some can be found in this post right here.

And one other great information site I’d like to share as well. Steve Ruddock is the main writer at this site, need I say more?  But seriously, this site is packed with great information about gambling in the Garden State, as well as individual reviews of each operator.

NJPokerOnline.net

Twitter Accounts To Follow

There are so many good Twitter accounts to follow if you’re trying to stay up to date, or learn more about the business side of the New Jersey online gambling industry.  A wise man once told me this, so now I will pass it on to you.  Follow everyone on my personal twitter account, less the Nascar drivers and Chicago Bears of course, and you will never miss a story or news item about the New Jersey online gambling market. @JeremyEnke

The Inside Scoop

Every Tuesday afternoon, I publish a column over at Poker Affiliate Solutions titled The Inside Scoop. In this column I dedicate most of the content to the regulated online gambling market in the U.S.  You can be assured that as soon as any news or developments about affiliate programs in any regulated market breaks, it will posted in this blog.

The Inside Scoop

And If All Else Fails

Email me at jeremy AT pokeraffiliatelistings.com or PM me through the forum.  I’m always happy to help other affiliates get into the exciting world of the U.S. regulated online gambling markets.