First Stake

[Ian]

I know it is about a book but thought I had better post it here where I know it will be read by those that bet with this book
I do not want to be alarmist but I have been hearing rumours they are in trouble
Trading on their shares has been suspended, although they say this is during the period of re-negotiating the deal with Bowmans which had originally fallen through
Also Multisports (the UK teletext based bookmaker)who FS bought out have appeared back on the scene, and are offering their usual good service on golf betting, suggesting that the odds compilers have gone back to Multisports
Any more info I can get I will post

 

[DOGS THAT BARK]

Interesting. Thanks for info Ian,explains why I can't get through.Not sweating account there,would miss losing such a great golf out more than I would money in account.
What really pisses me off it it looks like after waiting waiting 2 weeks to fire at the beards I may have to wait another week or so

 

[FatBoy]

Ian,

I guess this is kind of late to ask this, but are funds secured at Engliah books like the ones in Australia?

 

[Stanley]

This took me completely by surprise - I knew about the suspension of share dealing, but this was a standard measure in light of the new negotiations with Bowmans. The same thing had happened with Sportingbet when they were signing a deal with Sky. However, the fact that their site has been down today is definitely alarming!

Could I just clarify some things.

Firststake.com is just the online operation of Firststake plc which is one of the larger independent retail bookmakers and has been operating a chain of betting shops under the First UK Racing fascia since 1987. They are fully registered and regulated UK bookmaker and as such have virtually the same amount of security as the Australian books. There has been no suggestion that Firststake plc is facing closure, in fact is has audited profits as proof of its strength.

Indeed the company appointed Barry Hearn to the Board last month and he has taken over responsibility for the promotion of the online operation through sports sponsorship. Barry Hearn is one of the shrewdest and richest sports businessmen in Britain and there has been no comment from him that he is having 2nd thoughts or about to jump ship.

I have even talked to someone I know who is a shareholder in Firststake plc and he knows the owner, Karim Ghaidan and even spoke to him last week about the suspension of share dealing. He reports that last week there were no detectable signs from Mr.Ghaidan that the Firststake.com was in serious financial difficulties. There are/were plans for a capitalisation issue in Spring of this year to raise funds, but these had been delayed by Sportingbet's disappointing IPO pricing announcement on 23 January.

IMO the most likely development in the near future is a selling-off of the Firststake.com operation to Gala, who have expressed an interest in the online operation but not the shops, or even a deal with the Hearn organisation. I don't think Firststake.com is dead, but is just about to change, probably in terms of ownership, hence the suspension of the commission-based agreement with Multisports.

Today has been a day of uncertainty for Firststake.com and this has been heightened by a story in The Racing Post under the headline "Firststake.com issue warning over future" - "Fears over the financial health of another internet betting site were heightened yesterday after the company behind firststake.com warned service providers about its future." Nevertheless the article also mentions that while talks with Bowmans had again broken down, Gala were still in the frame. The site was still up this morning - I think it is a reaction to this story that has led to today's action. The site will probably remain down until an announcement can be made and the panic exodus of deposited funds can be averted.

I was shocked and disturbed by this news, but now I am mildly confident that Firststake.com will return under new ownership in the very near future. Even if not, then deposited funds should be secure under the British Betting, Gaming and Lotteries Act 1963 and Firststake plc are liable for the return of those funds.

This has dominated my evening and now it's time to get on to some late capping for tomorrow's events. But just as an aside, it may make for an interesting online experience if Gala take over the .com operation. When they acquired the Hilton Hotels for ?235m from Ladbrokes, the terms of the agreement included the re-introduction of Bunny Girls into the Casinos

Anything to get rid of that green & orange 'in-yer-face' site design!

 

[Ian]

Stan
Thanks for that info, I haven't had time to do much more research into what was happening today but thought it prudent to inform people here that something was afoot.
Sorry if my original post sounded alarmist everybody

 

[Spotform]

This from the RP -:

FEARS for the future of bookmaking business Firststake plc heightened yesterday when its website firststake.com closed and a creditor voiced concern.
Sources in Bristol, home to Firststake, said they believe administrators have been called to a meeting this morning, after which staff will attend a separate meeting.
After starting life as a betting shop business, Firststake added an online arm in June and a telephone betting operation later last year. Its shares
remained suspended yesterday at 49.5p, valuing the business at ?5.98m.
On Friday, shareholders at the company?s annual meeting were told that on-off talks for the ?12m purchase of another bookmaker, Bowman International, may be back on, but since then directors have failed to return calls for the past two days.
Ian Davies, whose telephone betting business Multi-Sports Bookmakers was involved in a deal with Firststake plc in November, contacted the
Racing Post yesterday to outline his concern.
?We?re owed quite a sum of money. Also, a lot ofpunters are putting us on the spot about Firststake, but there?s no link between us and it?s
obviously worrying if it has a problem.?

 

[Stanley]

<h3>Bugger !!!</h3>

Still nothing but rumour/speculation and there was no indication of anything afoot at last Friday's AGM, but I'm worried again

Will keep people posted if I hear anything from my sharedealer friends.

BTW Coral have just announced big losses from its internet betting arm - though I just don't know how given the juice the Euro books take

 

[boris]

Stanley,
The Corals internet losses via Eurobet ($20mil?) were virtually all incurred during Euro 2000 when they thought they were smarter than the big Asian soccer syndicates and literally did their nuts.

After all, what do Asians know about soccer? It is England's game and Asia is thousands of miles away...... BIG mistake.

One of the bets was apparently 1.375 million pounds on France at 7/1 - no trading policy to lay it off, just take them all on and let it ride. And it was early days in their Asian handicap betting (dimelines on soccer), and they were getting pasted on that too.

If you live by the sword......

 

[Stanley]

Thanks boris, didn't know the background to that.

Just shows how profitable UK bookmakers are if they can take such a stance and not have their existence threatened ...

BTW There still has been no official annoucement about Firststake. They are listed on the OFEX market and if the administrators were called in, then an annoucement should have been forthcoming early this morning despite the current suspension of shares. Or maybe I am just grasping at straws ... ?

 

[DOGS THAT BARK]

A lot of this may be redundant but posed the question on 1st Stake elsewhere and here was report.-------------------------------------

Net bookies firststake.com issue warning over future
Published: 07/02/2001 (News) BRUCE JACKSON
FEARS over the financial health of another
internet betting site were heightened yesterday after the company behind firststake.com warned service providers about its future.
Shares in the Bristol-based firm remain suspended and calls to its directors went unreturned yesterday.
This follows the crash of internet bookmaker betachance 16 days ago, with punters owed pounds 30,000, and concerns raised over another site, inter-bet.
Firststake plc has been involved in
on-off talks with Bowman International Sports Limited for some time, and Friday's annual meeting announced new negotiations with Bowman-but yesterday indications were that these had broken down.
The company, which has betting shops in the Bristol area, was understood to be in talks with another possible suitor yesterday. This is believed to be Gala, the
bingo hall owners, who are interested in the betting-shop operation, leaving the website with an uncertain future
A website message added: "On the
advice of the company's advisers, firststake's shares will remain suspended pending a further announcement. But it's business as usual for all our valued customers."
The Racing Post has received complaints about the inter-bet site, with one punter threatening to contact BBC's Watchdog to highlight his plight.
Darren Atherton claimed his account had been closed after an argument over a price offered and then cancelled without repayment of funds to his credit card.
His attempts to pursue the matter,
including a bombardment of emails, failed to bring a response from the firm and the site went offline for a while last week.
Inter-bet is not covered by the independent betting arbitration service (IBAS) because it is run by offshore bookmakers.
Betachance pulled the plug on January 22, but punters have been promised their money "by the end of next week".
Conrad Allen yesterday issued a statement clarifying his involvement with
betachance. The Newmarket trainer said the sports-days.com website, of which he is a director, offered a pounds 99 free bet with
betachance for Shadowfaxracing members for six weeks up to the end of September last year.
The statement added: "Betachance is wholly unconnected to Sportsday Ltd, Mr Conrad Allen or any members of his family. He is not a member of the board of
directors of betachance nor has he had any involvement with betachance, save as outlined.''
nAnyone who has had problems with
internet betting firms can email the
Racing Post with details at editor@
racingpost.co.uk.

 

[Stanley]

Still no official announcement about the site, but it has been confirmed that (i) Keith Willis is no longer Firststake's Finance Director and (ii) the company's PR firm, CMC no longer acts for Firststake.

Speculation is getting stronger that Gala or Barry Hearn will take on the online operation.

DTB, your report about Inter-bet is correct, but they have had a bad reputation for quite some time and have been (apparently) struggling financially for just as long. This is quite different to Firststake who have had generally good financial news to report. It appears that where their financial problems stem from is an excessive degree of advertising in high-profile events/sports, e.g. having their logo imprinted on the sleeves of the England Rugby League World Cup squad [yes, it's a big thing over here

], hence the inevitable departure of the Finance Director and the recruitment last month of Barry Hearn to take over the sponsorship side of operations.

Firststake should also be covered by IBAS as they are a registered and regulated UK company. The .com does have a licence to operate in Malta, but have not done so yet because it would have meant restrictions on their ability to advertise in the UK.

Until an official announcement is made, be wary of rumour and speculation. I will try to keep everyone informed with the contacts that I have on the financial side of things

 

[DOGS THAT BARK]

Thanks Stan. Personally I will ride the storm out with them as long as they produce the numerous golf events.In the short time with them I have been very impressed by them.

 

[Stanley]

Have just received the following email

Important News

Dear Customer,

We are sorry to inform you that owing to financial difficulties the Firststake.com website is no longer active and your account with us is now closed.

We are, however, extremely pleased to inform you that we have negotiated an exclusive deal with Sportingbet.com (UK) plc who are willing to honour your funds on deposit.

Sportingbet.com is a tax-free, publicly traded company on AIM, part of the London Stock Exchange with its British gaming licence in Alderney, Channel Islands. They have over 60,000 customers from over 100 countries and have been trading since 1998.

All you have to do is set up an account with www.sportingbet.com and then contact their customer services department on freefone 0800 825 030 or via admin@sportingbet.com with your old firststake.com username, and your new sportingbet.com account details. Your previous deposit balance at firststake.com will then be transferred to sportingbet.com. Unfortunately, it is not possible to transfer/honour any open bets you have with Firststake.

Sportingbet.com will welcome you as a customer to what I think you will find is a first class service with a wide range of sports events and bet types on offer. Should you wish to withdraw your funds from sportingbet.com, sportingbet.com merely ask that you trial their excellent service by placing a minimum bet of ?20 beforehand; please note also that withdrawal requests cannot be processed by sportingbet until the 19th February.

We are clearly disappointed that we were unable to continue trading but do thank you sincerely for your custom these last few months. We also appreciate Sportingbet?s support in honouring your funds and wish you good luck.

<h2>DOUBLE BUGGER!!!</h2>

 

[FatBoy]

what if you already have an account with Sportingbet?

 

[Stanley]

Presumably they will just credit your existing account, but they are just about to be deluged with emails so I wouldn't expect a quick response from them.

From the best online golf out to one that has rapidly gone downhill IMO. Very unsatisfactory

 

[DOGS THAT BARK]

A double ditto on the last statement.
Any suggestion on another book that lines seniors and pays 5 places on outrights?

 

[FatBoy]

Stan, all open bets are lost? Why can't they just refund the open bets?

 

[Stanley]

Fats, the way I read that statementis that the open bets cannot be carried over to Sportingbet, ie. they are liable for the results of those open bets ... and nor are First Stake. I am presuming that the open bets will be voided and the balance can be transferred to SB on request.

DTB, currently working on that. Will update if I get any positive feedback from the people I know

 

[FatBoy]

Thanks Stan.

I just called SportingBet. They were very efficient. They told me that my balance would be transferred within 24 hours. 48 hours at worst case scenario.

[This message has been edited by FatBoy (edited 02-08-2001).]

 

[Ian]

DTB
Only 2 books who have quoted Seniors this week are Betsmart and Simon Bold (I will check for others) however that is no guarantee they will carry on doing that as neither is predictable, also neither pays on 5 places on regular tour events

Stan
They better void all open bets and refund stakes otherwise my payback will be the square root of diddly squat (all my money with them is tied up in open bets)