One thing that Mike A doesn’t consider is that Balderton is fulfilling it’s fiduciary responsibility by investing in the businesseses it believes will produce the best return for its investors. If it raised it’s fun without specifically excluding investments in sin businesses (i.e. it wasn’t created as a socially responsible venture fund), then in fact, you could say that it is ethically wrong for the fund to not consider online gambling businesses. It is a large, fast growing market where recent UK legislation (the gambling act of 2005) has legalized online gambling and provided a great opportunity for new fast growing businesses. Before the passing of the US unlawful internet gambling enforcement act (UIGEA), party gaming was growing their profits faster than google… If you were invested in a venture fund and hadn’t wanted to restrict their investments, but let them invest in any legal business that would bring the best return, wouldn’t you want them to invest in that business?

SMS is mostly going to be for casual gamers. Betnow are just making it easier for that market. Casuals are less willing to go to higher lengths to put bet and thats what this technology will supposedly do.

I bet, maybe 4/5 times a year, and sometimes when I have a hunch, I can’t be a**ed to go to a shop, or log in to service my account. Of course, you could point out that more casual gamers could be turned into addicts, but I think that type of customer is susceptible whatever the climate.

Having said that (@Mike) your article doesn’t really go on to assert the “Beware” part or MA’s comments yesterday.

Re-read the title to your post:

‘ Betnow wins Balderton funds for text-to-bet. Addicts beware.’

Seems a pretty explicit association between mobile gambling and addiction to me.

You’ve repeated the mistake the other Mike made: which is a bizarre assumption that ‘betting through your phone = addiction’.

I don’t completely understand Betnow’s model – as Jessie pointed out, the mobile operators will be taking a big chunk of the premium rate SMS (around 40%) which simply can’t work for sports betting that has an average gross margin of around 5-6%.

Also, the hardened sports bettor are much more likely to want to use an operators (Coral, Ladbrokes etc) own service anyway – it’s more complete and they’ve already gone through the registration process.

Interesting to see how it does though….

You’ve repeated the mistake the other Mike made: which is a bizarre assumption that ‘betting through your phone = addiction’.

I don’t completely understand Betnow’s model – as Jessie pointed out, the mobile operators will be taking a big chunk of the premium rate SMS (around 40%) which simply can’t work for sports betting that has an average gross margin of around 5-6%.

Also, the hardened sports bettor are much more likely to want to use an operators (Coral, Ladbrokes etc) own service anyway – it’s more complete and they’ve already gone through the registration process.

Interesting to see how it does though….

Joe

I wonder if these guys (betnow) have managed to negotiate an amazing rate direct with the mobile networks, or if they’re just absolutely screwing gamblers with horrible odds?