Net Bet Blog

Whilst Netplay go about hiring new directors they will come under increasing competitive pressures as Vigin launch their interactive TV offerings, "Challenge Jackpot".

The launch of Challenge Jackpot will put Netplay under some pressure given Virgin's reach and media properties. Working with two-way media Virgin are sure to hit the ground running.

Virgin to launch Challenge gaming channel [Digital Spy]

Virgin Media is to launch a Challenge-branded interactive gaming channel in collaboration with Two Way Media.

Challenge Jackpot will launch on Tuesday, July 1 as a 24 hour television channel on Virgin Media cable and will also be available on Freeview and Sky via Virgin 1 and Bravo 2 simulcasts overnight. On cable, an interactive application developed by Two Way Media will enable viewers to play along with live programming on the channel; alternatively, viewers may participate on the channel's website.

Eight hours of live studio games will be broadcast each day, with automated games including Get Set Roulette and Face Up Hold 'Em appearing when live programming is off the air.

"Challenge Jackpot is the first step in reinventing Challenge for the twenty-first century," said Virgin Media Television managing director Jonathan Webb. "We want this new channel to continue the values of fun and excitement that have long been synonymous with Challenge – but also to take the relationship with our viewers to the next level of interactivity."

Challenge Jackpot will be added to the Virgin EPG at channel 154, alongside Challenge and Challenge +1. It will not be available in Northern Ireland due to "regulatory and legal restrictions". Games will be overseen by Ofcom and, because Two Way's gaming division is based there, the Alderney Gambling Control Commission.

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Netplay (NPT) were on the receiving end of some bad press at the weekend with the Mail on Sunday's free scratch cards coming under investigation. Is has always amazed me that anyone would even bother scratching off the silver - they always struck me as a waste of time and effort.

The "free" nature of all of this type of game in never convincing - I would like to know how many people really enter by post and how many actually ever win anything. I suspect the number is less than 10 a year.

Netplay TV says assisting UK regulators in scratch card probe [ADVFN]

LONDON (Thomson Financial) - Netplay TV Plc. said it is assisting Phone Pay Plus, the premium rate ruling body, in the scratch card probe related to Netplay's unit Abstract Games Ltd.

The Mail on Sunday reported free scratch cards produced by the company are under investigation following complaints that the cards breach rules for premium rate phone lines and could even break the Gambling Act.

The interactive gaming company said all games launched receive prior copy advice from all the necessary regulatory bodies.

Netplay added that all its promotions comply with the Advertising Standards Authority (ASA)'s standards for 'free' entry claims. The ASA states 'free' entry has to be less than current public rates of postage. Abstract Games charges 30 pence postage, less than a first class stamp, the company said.

With current promotions, entrants can either play for "free" by post or, if they wish to find out immediately what prize they have won, they can choose to call or send a text message which is charged at a lower rate than the minimum prize available, it added.

Netplay plc (NPT) today signed an agreement with Turner Media to show their supercasino product on Nuts TV between the hours of 12.30am and 3am. Both roulette and blackjack will be shown.

The key to this deal is the NUTS.TV demographics of young men who are the target audience for Netplay.

This will almost certainly be a revenue sharing deal and although it might be considered a "move downmarket" I suspect Nuts.TV is already down there.

Partnership with Turner Media (Netplay TV) [ADVFN]

From 6th June, NetPlay TV commenced broadcasting its live TV Supercasino formats including both Live Roulette and Live BlackJack on the Nuts TV Channel from 12.30am until 3am on Friday and Saturday evenings on both Freeview channel 42 and Sky guide 207.

Does the good news never stop for Netplay?

We covered yesterday's Netplay results in this post:

http://www.netbetblog.com/2008/05/netplay-tv-npt-finals-losses-grow-but.html

Now we find out that Cannon and Ball the legendary comedy double act who were tea time regulars back in the halcion days on English comedy in the 1980s have been signed-up by Netplay to promote celebrity bingo.

It is hard to see this as a pinnacle of their career but a gig is a gig.

Netplay enlist Cannon and Ball to boost its profits [Daily Mirror]

Online gaming firm Netplay is banking on veteran comedy duo Cannon and Ball to boost its profits.

The funnymen have been signed-up to co-host its Celebrity TV Bingo, starting later this summer on Sky.

Netplay is celebrating a winning year, with sales up almost two-thirds to 9.4million.

Cyber game Live Roulette was among the biggest hits, with a 400 per cent increase in bets between January and December.

However, because the firm went on a spending spree to buy new businesses, it actually showed an annual loss of £1.4m.

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TV based gambling has an image problem but with Netplay they are working hard at overcoming this problem and are gaining traction. I am in two minds about this business and the Netplay TV model but for now let us consider the results:

Final Results [ADVFN]

Highlights

* Revenue for continuing operations increases 61% to £9.4m ( 2006:£5.8m)
* Exceptional growth for "Live Roulette", gross bets increasing by over 400% to
£17.3m for the month of December 07 (December 06:
£3.4m)
* Acquisition of Play Monday database, acquired 18 January 2007
* Acquisition of Abstract Games, acquired 23 February 2007
* Successful launch of "Big Box Bingo" in July 2007
* Investments made in 2007 are now showing excellent results
* Early trading in 2008 very positive, £843,000 EBITDA* in first four months
* April 2008 EBITDA* exceeds £300,000

* EBITDA quoted is before exceptional items and share based payments

Post Balance Sheet Events:
* Agreement with Parlay Entertainment, world's leading bingo software developer, to extend its bingo offering and develop 76 additional web-based games, on 22 January 2008
* Acquisition of 7,600 mobile quiz subscribers from Rubberduck, on 10 March 2008
* Acquisition of Bingos.com, on 17 March 2008
* Acquisition of Sky Channel 848, on 6 May 2008
* Appointment of Nichola Halverson as a Group Finance Director, in March 2008
* Appointment of Dominic Mansour to the Board as a CEO of Bingos.com, in April 2008

It is clear from these highlights that NPT are pursuing an aggressive expansionary policy at the moment. The key is whether one believes in the convergence of the web and TV. Is cross selling really an option here? I suspect that the TV players do not have broadband internet access and this is why they play on TV. Likewise, most online casino players have their accounts all set up and are unlikely to move across to play using a remote control. That said, the "Live roulette" experience makes the process transparent and perhaps more trust worthy.

I cannot help thinking though that the presenters over sell and give the whole channel the feeling of a low budget shopping channel. Clearly this is not putting people off.

The Bingo launch could be the saving grace for NPT.

One concern is the level of losses compared to the amount of cash in hand. This is another company that are cutting it fine and with the "crunch" is full flow raising additional cash may be costly. With £1.4m left and burning through over £2.5m last year things might get very tight in spite of a 400% rise in roulette revenues.

One worth watching.

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Netplay (NPT) the live TV gaming company today announced that it had acquired Sky Channel 848.

What does this actually mean? It means that in addition to its current roulette offering where punters watch live roulette wheel action on their TVs and bet accordingly, they can now do the same for blackjack. It is hard to see this product as as visually appealing and given the limited number of "spaces" on the screen clearly fewer punters can play. Finally, can card counters get in on the act somehow?

The next question that is naturally thrown up is why Sky 848? Were there no cheaper channels? Why is location on the sky ordering so important and what is the premium for a good number? Because it is next to Sky 847 (obviously)?

One reason is that sky are not issuing new channels so "Hollywood TV" had Netplay over a barrel and the cost has not come cheap - just how expensive we will see in time.

Netplay (NPT) remains one to watch.

Acquisition

NetPlay TV plc

Acquisition of Sky Channel 848 - New product launch

NetPlay TV plc (AIM: NPT), the AIM-listed interactive gaming company, is
pleased to announce the acquisition of Sky Channel 848, from Hollywood TV Ltd,
for the launch of its new product, "Live BlackJack".

NetPlay TV has agreed, subject to Sky Broadcasting approval, to acquire the Sky
channel 848 from Hollywood TV Ltd for the total sum of #475,000. The
consideration is to be satisfied by way of 2,375,000 new NetPlay ordinary shares
at the price of 20p. An application will be made for the admission of the
consideration shares to trading on AIM, admission is expected to be effective
from 12th May

The new channel, which sits next door to the Company's current Sky Channel 847,
will be used for the launch of their new service "Live BlackJack". The new
service, a first for UK gamers, will be launched before the end of May.

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As we see the demise of one company (Neville Porter) we see the birth of another as NetBetblog.com begins coverage of Netplay TV (NPT).

NetPlay TV effectively provides a real "roulette" experience using a TV channel and real play results. Business is doing well picking up from £100,000 bets a day to over £1 million. A recent Bingo acquisition shows that the management is keen to expand and grow.

The share price (currently 21.75p) is up from 15p in February 2008 but still below its peak of over 40p at this time last year.

One to watch (literally).

At NetPlay TV plc we believe the customer is at the heart of everything we do…

We believe all media should be interactive, allowing the consumer the freedom to participate and interact directly with it. By offering such control we can bring the excitement of the TV game show, the bingo hall, the local bar, the music concert or the casino into peoples’ homes. Its highly skilled teams bring a wealth of knowledge from TV, mobile and internet businesses to produce a truly unique company able to offer some of the most dynamic interactive solutions available today.

More from Netplay's website:

The business took its first bets in June 2005 growing its base with no marketing to over £5m in bets a month. This business is the only channel in the world to offer a 'live' wheel experience. We believe this is very important to the consumer giving them a genuine casino experience in the comfort of their own home. Our focus over the coming months is to increase the number of customers through a targeted marketing campaign in which we will educate potential users to the ease and simplicity of playing roulette.