Breaking away from the pack is a dynamic that generally promises either roaring
success or pitiable obscurity. Two offshore books -- Bodog and MVP -- are
putting distance between themselves and the rest of the online gaming industry
with a vengeance, and achieving enviable results.
Despite fundamental differences in their business models, management styles and
corporate cultures, both operations are on the cutting edge of the gaming
industry and are moving at warp speed to achieve their common objective: profits
and growth. They do share some similar tendencies -- an innate compulsion to
stretch the business development envelope, financially and otherwise.
We
don’t wish to suggest that other offshore books are not aggressive, or unwilling
to take chances, but Bodog and MVP clearly are pacesetters.
Recently, both companies sponsored marketing events which we attended and will
report on in chronological order. First was the 2005
Bodog.com Poker & Sports Marketing Conference, held in Las Vegas July 6-7 at
the Mandalay Bay Convention Center. A few days later, we were in Costa Rica for
MVP Sportsbook‘s Second Annual Golf invitational, July 10-14 at the Los
Suenos Marriott Resort.
In
underwriting the conference, Bodog turned up its P.R. machine full bore to seize
the opportunity to promote its online gaming business and generate recognition
for what founder and CEO Calvin Ayre characterized as a “neglected industry.”
Cleverly Bodog, although the conference’s sponsoring entity, avoided an
overabundance of self-hype while stressing solutions to key issues confronting
online gaming companies.
About
400 gaming industry movers and shakers attended, taking in a program that
focused on poker one day, and sports wagering the next. With an impressive
lineup of speakers dispensing business strategies and insights, and ample
networking opportunities before and after the scheduled activities, it could
easily have been mistaken for the business gathering of a Fortune 500 company.
What distinguished this meeting was its high energy level fostered by Bodog’s
itinerary and a professional Master of Ceremonies, Michael Webber, who
maintained a lively pace and kept the audience focused.
Opening day keynote speaker Daniel Negreanu, a leading professional player who
has attained superstar status in the wake of the poker explosion, set the tone
for the proceedings with his concise observations, insightful commentary and
self-deprecating anecdotes. He recalled his early attempts at playing poker,
when he was “the fish.” Today, he noted that with all the residual money-making
opportunities which didn’t exist a few years ago, he doesn’t have to “go to the
office and play poker” to earn a living.
Given
the bombastic, self-involved personalities of so many leading poker players,
Negreanu was a refreshing and effective choice to speak for the newly emerging
industry. Of course, in a game of no limit Texas Hold ‘em, his easygoing persona
morphs into a take-no-prisoners competitor.
As
celebrities and entertainers fuel the poker revolution, the game has lost its
seedy image and Negreanu sees an unlimited future. “Network poker will tell the
future,” he forecast. That’s when participants in the surging popularity of
poker will know just how big it might become.
The
rest of the first day’s program was devoted to indepth discussions, arguments
and strategies pertinent to the massive global demand for gambling and the
burgeoning growth of poker. Needless to say, optimism and mind-boggling
projections were the order of the afternoon.
Mike
Ditka and Reggie Jackson were featured speakers the following day as sports
betting took center stage.
The
Hall of Fame NFL tight end and Super Bowl-winning head coach displayed his
feistiness by debunking a popular maxim: “’Success is not a destination, it is a
journey,’ the familiar saying goes. I don’t think so,” asserted Ditka. ”You
always want to know where you’re going,” he advised.
Attaining success requires that you not wait for a job opening, but instead
create the opportunity. In his own life, Ditka said he had no idea about being a
football player, or a coach. But when the opportunities were at hand, he seized
them.
Doing
whatever it takes to get the job done, paying the price, as Ditka observed, can
be broken down to three qualities: Attitude, Character, Enthusiasm.
Baseball Hall of Fame home run slugger Reggie Jackson was low keyed and a bit
more laid back than Ditka, but equally compelling as a speaker. In a different
vein, he echoed similar sentiments about taking the road untravelled and doing
something extra to be noticed.
Reggie remembered as a kid being sent to get a pint of Neapolitan ice cream -- a
combo of vanilla, chocolate and strawberry. He was given 25 cents, the cost of
the ice cream. Along the way, he stopped to borrow 25 cents from two store
owners who knew him. And instead of a single pint of Neapolitan, he came home
with three pints of ice cream -- vanilla, chocolate and strawberry.
Some
day, Jackson hopes to be part of a syndicate that owns a major league baseball
team. He noted that one of his partners is Brian Greenspun, a leading Las Vegas
real estate magnate and influential publisher of daily and weekly publications
(the inference being that an MLB franchise could be brought to the desert).
Both
Ditka and Jackson gave unabashed and enthusiastic accolades to the Bodog
Carnivale Ball held the previous night at Rain Nightclub, Palms Hotel. They
agreed that Bodog’s party was more fun and spectacular than anything in their
recent memories, and pointed out that they are big-time party animals with lots
of experience at such galas and well qualified to make such an assessment.
The
seminar program devoted to sport betting was trade-oriented; luminaries from
leading sports services exchanged winning marketing strategies, and a precocious
Bodog techie expounded on “The Black Magic of Search Engine Optimization.”
A
discussion of balancing advertiser influence with editorial integrity was the
program finale as four leading publishers explained their approaches at
separating the two.
In
his closing remarks to an appreciative audience which had received genuine value
for their investment in time and money, Calvin Ayre promised to top himself next
year. He said plans are already underway for Bodog’s next industry mega event,
in which coverage of casinos and bingo will be included at the 2006 Conference.
As an
in-your-face and unapologetic self-promoting CEO who apparently never met a
photo op he didn’t embrace, Ayre has engendered the inevitable criticism that
comes with success and celebrity. Powered by enthusiasm, self-confidence and an
unrelenting vision for his company, the Bodog honcho is an easy target for both
jealous competitors as well as those who are genuinely put off by his style.
It
should be noted that Ayre started a company with a funny name and elevated it to
leadership status in a ruthlessly competitive industry. Moreover, he motivates
his staff to chase the same vision and beyond-the-horizon achievements that are
his passion.
In
the past, when other business leaders took the same approach as Ayre by
embracing the limelight, they too were recipients of similar negativity. But we
do not recall Lee Iacocca apologizing for becoming a media darling and putting a
face on the automobile companies he represented on national TV. Wendy’s founder
Dave Thomas never hid behind a stack of hamburgers when he was featured in the
company’s TV commercials. And Steve Wynn is deified as a gaming industry icon
for boldly fronting his own product.
Our
last words on Bodog are to agree that indeed, it threw a spectacular gala,
notable for frenetic activity, and abundantly populated with some of the most
provocative eye candy on the planet. The dance floor was a blur of kinetic
motion. Mountains of extravagant food and oceans of booze were consumed by
celebrants who were otherwise engaged in nonstop partying. We won’t cite all the
additional goodies that Bodog strategically placed throughout the party zone.
That would be overkill.
But
we will suggest that next year’s party planners allow for a quiet area, where
communication is not necessitated by bellowing through cupped hands into a
person’s ear. Allowing for aural exchanges in a small oasis of quietude
shouldn’t compromise the overall gaiety.
Barely had we got back our voice and other faculties than we found ourselves at
McCarran Airport, waiting to commence our journey via Continental Airlines’ 1:15
a.m. flight to its hub city, Houston, then on to Costa Rica and the MVP Golf
Tournament
Last
year’s event was awesome, and we were anticipating another raucous four days.
Sure enough, MVP CEO Dalton Wagner, his business partner Matt and their
super-organized ultra conscientious staff topped last year’s tournament and made
this one even more memorable.
What
makes this such a terrific experience is that MVP picks up the travel and
entertainment expenses of all the participants. For instance, we were reimbursed
for our airfare well before we took off, and so like our other travel mates from
Las Vegas, we upgraded to first class for a pittance. MVP estimated the cost of
the all-inclusive trip at over $7,500 per participant.
This
event is MVP’s way of rewarding its most productive partners -- sports services,
which send them customers. We were invited as media, then plopped in the midst
of guys who, though they might prefer other titles, will answer to the term
“tout.”
We
use that word as a synonym rather than a pejorative term, since we would
characterize these ‘cappers as sincere, dedicated professionals as disdainful of
their industry’s bad apples as are the players who are scammed by them.
We were
joined on the journey out of Vegas by Mark Franco (FrancoSportsPicks.com), a
tout with a NY Yankee obsession; Doug Kania (BartendersPicks.com), a seasoned
world traveler; Jamie Tursini (TursiniSports.com), making his first trip to
Costa Rica; and Matt Baum (RightSidePicks.com), whose energy level belied the
fact that we were on a red-eye flight.
Flying,
even with first-class accommodations, is not the most comfortable gig in the
post-9/11 world. The only vittles doled out by the airline was a bag of nuts,
but those who wanted booze were satisfied. Our group spent the three-hour
layover in Houston in the Continental VIP Lounge, alternately flaking out and
scoffing down complimentary muffins, pretzels and doughnuts washed down with
coffee and tea.
We
arrived in San Jose by mid-day on a muggy Sunday, and quickly spotted our MVP
hosts at the airport. After hugs all around, we were whisked away in a van
replete with a variety of ice cold beverages to the San Jose Marriott to check
in to our rooms.
It was a
happy reunion with old friends Sandra, Laura Jennifer, Stan, Zoë and the rest of
the MVP staffers who took such good care of us at the airport and during the
entire trip.
Grateful
for some time to unwind, we appreciated the luxuriously appointed digs we were
to enjoy, if only for one day, since we would be off to the Los Suenos Resort on
Monday. Testing the bed and pillows, we zzzzed out ‘til it was time to meet up
with the rest of the gang for drinks at the La Castilla bar where we put away
several pina coladas. Next on the itinerary was an excellent welcoming dinner
followed by a brief bus trip to the nearby Fiesta Casino.
As a
jaded denizen of Lost Wages, we are well acquainted with casinos, but this was
especially interesting because it had a full complement of games and a gourmet
buffet spread just for the MVP gang. Of course, the $50 in gaming chips supplied
to us courtesy of MVP stretched out the proceedings. We were underwhelmed by the
meager double odds offered at the craps table, but that is standard for casinos
in this country. We took the expected hit to our bankroll with good grace.
Mingling
among the crowd of gamblers was an unusually appealing coterie of comely young
women who were a welcome distraction to the testosterone-drenched MVP party.
Between gambling and hastily arranged xxx-rated liaisons it was a busy evening
and the last bus back to the Marriott at 2:30 a.m. was full of delightfully
wrecked touts, exchanging war stories.
If there
is anything that gets us going in the a.m., it is a full breakfast buffet
complete with exotic fruits, juices and our favorite staples, eggs over easy,
smoked fish and pancakes. Stoked for a busy day, our group -- numbering around
16 -- checked out of the Marriott and was bussed to the MVP offices across from
the Mall San Pedro, prior to the trip to Los Suenos.
We don’t
wish to do a commercial for MVP, but the company’s offices in its own
three-story building are most impressive. Doing business under the umbrella name
V.O. Group, S.A., it claims over 40,000 active clients and an annual handle in
excess of $1 billion. The facility houses seven different brands --
BeverlyHillsBookie.com,
MVPsportsbook.com,
Players-SB.com,
BetVSI.com,
VirtualBookmaker.com,
V-Wager.com and
PopularPoker-Sportsbook.com.
Spread
over 30,000 square feet and with more than 300 employees, the full-service
online gaming shops offer wagering in sportsbooks, racebooks and casinos as well
as on poker and bingo.
Before
getting a private tour of the facility in small groups, we were proffered a
dizzying range of potables including Grey Goose Bloody Marys and Dom Perignon
mimosas, along with a spread of munchies that was irresistible.
Getting
down to cases during this business portion of the trip with V.O. Group’s two
principals, Dalton and Matt, and various department heads, it was obvious this
is not a typical offshore sportsbook. It is a brilliantly conceived gaming
conglomerate and the physical structure is laid out in a logical
form-that-follows-function style.
A
demonstration of the company’s price per head product, for agents and
bookmakers, illustrated how aggressive and innovative the V.O. Group is. This
ambitious program services onshore (local) bookies or agents by outsourcing the
writing of their business, according to whatever parameters they want in place
for their bettors, such as wagering limits and settle-up plateaus. MVP charges a
price-per-head fee on a sliding scale based on the number of clients to be
serviced.
The PPH
product is particularly attractive to bookmakers because it insulates them from
the operational burden of running a local phone room which puts them at risk to
law enforcement. If you are not servicing customers over the phone, you are not
breaking any laws, explained Dalton.
It was
the spacious second floor call center that got our attention: over 200 wagering
stations manned by ticket writers, under the auspices of three supervisors and a
manager of sports wagering who run the show from an elevated “stage” or raised
platform.
Odds
manager Neil explained the intricacies of setting and moving lines. We learned
that numbers don’t move for just a single reason. Some sharps can move the line
with a $500 bet, while a $10,000 bet from a square won’t budge the number --
although overall total volume does factor in, said Neil.
Dalton
noted that there are misconceptions about what offshore bookmakers try to do in
running their business profitably. The mistake so many credit shops and
inexperienced offshore startups make, he said, is the erroneous goal of trying
to beat their clients.
The real
objective, he revealed, is to “cast the widest net possible and get as many
clients to your website daily. The juice (-110) is strong enough to ensure a
profit 99 percent of the time.”
For the
one percent sharps out there, Dalton said MVP simply limits them to wagers of
less than the average bet taken by the company, thus reducing their leverage to
insignificant in the overall picture.
Armed
with a smattering of inside dope about the workings of a major league bookmaking
operation, we got back on the bus and set off for Los Suenos.
The day
was overcast and drizzly and we wondered what tomorrow’s weather would bring for
the golf tournament.
Just
after dusk, we pulled into one of the most glorious and breathtaking luxury
resorts we have ever seen. It was déjà vu all over again, since we had been here
last year and we were equally awestruck at that time. The 18-hole golf course is
spectacular, surrounded by a lush rain forest populated by tropical animals. A
few condos were on the outer edges of part of the course.
Our
group was welcomed to the Marriott with hotel vouchers, gifts, a welcome drink
and a Cuban Cohiba cigar. After signing in and going to our beautifully
appointed rooms, we found more MVP gifts -- a beach towel, baseball cap, golf
shirt, and golf gear -- inside a fancy duffel bag.
We
caught a few winks, and then went to an incredibly bountiful buffet dinner. It
was loaded, but frankly we didn’t get past the lobster, filet mignon and some
elaborate veggie dishes. We did, however, save room for our weakness, dessert.
After polishing off a healthy quantity of key lime tarts and Napoleons, we were
now ready for the rest of the evening to unfold.
It was a
short stroll to the resort’s Stellaris Casino, where MVP again provided each of
us with $50 in complimentary gaming chips. The odds at the craps table were the
same as the Fiesta, but we struck early and did a quick hit-and-run to leave
with profits.
We
didn’t linger too late at the casino since we knew tomorrow’s golf tournament
would make it a busy day.
Our
wakeup call came early, but we were already dressing, enroute to the usual
Marriott grand buffet. After a hearty breakfast, we wandered off with several of
the guys looking for the golf tournament.
There on
the path adjacent to the putting green was a bunch of fully loaded golf carts
lined up with our names on the front. We were paired with Aaron Glende
(Professional-handicapping.com), a cheerful, optimistic, nearly scratch golfer
from Minnesota, and Mike Lineback (NationalHandicapping.com) an above average
player from the midwest. We were the duffer.
But this
round of golf would have a little additional bonus -- accompanying us on our 18
holes would be a gorgeous, scantily clad model with a bubbly personality.
Additionally, each threesome would be enhanced by its own model wearing a brief
halter top and golf mini skirt.
MVP
staffers were strategically spread out in golf carts bringing cold beer, soda
and water to parched touts during the nearly five hours it took to complete the
course.
The
tournament was played under a scramble format, in which the best lie of each
shot is the one that is played. Our contribution was to make three putts. We
came in second place, but Aaron won two competitions, straightest drive and
longest drive.
The most
exciting competition was on the 10th hole, where a hole-in-one would
net the lucky golfer a $148,000 Maserati. The white convertible was sitting on
the green for all to admire. Not surprisingly, it was still there at the end of
the day. Closest to the pin was Matt Baum, whose drive was 4-6 feet away from
making the shot of a lifetime.
Dalton
is a businessman, not a gambler, and he was hoping someone would win the car
since it would make a great story, provide fantastic publicity for MVP, and his
cost would be only the $6,000 insurance policy he took out just in case
lightning struck.
Exhausted, hungry and thirsty at the end of the round, we all descended on the
restaurant at the 19th hole where food, drink and a bevy of models
awaited for photo opportunities.
The next
day, before embarking for the ride back to San Jose in preparation for
Thursday’s departure, a workshop was held focusing on success stories of the
year with an exchange of marketing ideas and strategies.
Dalton
explained that MVP’s M.O. is not to do short-term buys but to work more on
branding with the sports services and keeping its name buzzing all year ‘round.
The
objective is to make money, and third party referrals are the crux of the
concept. He admitted that there is a certain amount of trial and error involved
in finding new partners and funding them, but when it clicks, it is a win-win
for both the book and the service.
He
ruefully remembered the worst promotion MVP had initiated was one involving cell
phone giveaways, in which the vendor was ripping off customers with outrageous
contracts.
A more
memorable program was a $200 matching bonus for players that was a smashing
success.
A major
unresolved issue, he noted, is the abundance of thieves who prey on sportsbooks
using multiple identities that are very difficult to uncover. Dalton estimated
that MVP lost $40-50K last year in fraudulent signups.
He
advised the touts that services face an increasingly sophisticated universe of
bettors, and that one proven way to win over new customers is to build
credibility with analysis and articles.
The trip
back to San Jose was highlighted by a stop at the Crocodile Bridge, which spans
a murky river populated by some of the nastiest primordial reptiles you’d ever
want to not meet up close and personal. Even from the relative safety of a
concrete overlook about 30 feet above the crocs and their watery habitat, they
are scary. The most evil-looking one is a huge monster, maybe 30 feet long and
very wide, known as Tyson.
Dalton
brought a few whole chickens which were tossed down to the ever-hungry crocs.
Digital cameras and camcorders recorded the frenzy with which the vicious
monsters pursued the food. When one young, skinny croc happened to find himself
with a chicken he tried to escape, but was ambushed by two attackers who fought
over the meat and the little guy was lucky to get away with his life.
The
final phase of the trip -- checking out of the Marriott, getting to the airport
and flying home -- was smooth and, thankfully, uneventful.
We hope
the camaraderie and goodwill fostered among participants pays off for MVP. Based
on our observations, MVP has forged an exceptionally productive strategy for
obtaining a synergistic relationship with its partners.
We were
happy to renew friendships with guys from last year like Mike Lineback, Dan
Ferreira (trackpicks.com) and John Misener (Pro-sports-handicapping.com). In
addition to those already mentioned, we were glad to meet Jimmy Ashton (Ashtonsports.com),
Leo Shafto (Leoshafto.com), Jay Kudla and Gerry Bellant (Doghousefootball.com),
Thomas Jensen (Gamnbling911.com) and Rudy Klananik (Beckett Publications).
Kudos to
Dalton not only for planning a spectacular event, but for conquering a plethora
of logistical challenges that would defeat a lesser man. Also, a tip of the
Sportsbook Scene hat to MVP for having such an inspired and competent group of
staffers who cheerfully and relentlessly shepherded a group of free spirits
through four days of well planned activities and adlibbed nightlife.
