7 - 13 December 2000

Firststake places its bet on Malta, America

by David Kelleher

Firststake plc, an online betting company which will be starting operations early next year in Malta, has taken on the North American continent after concluding an acquisition deal worth £12m.
The UK-based bookmaker, which has a provisional licence to operate here in Malta, last month acquired online betting organisation Bowman International Sports of US from founder Gary Bowman. Bowman International adds over 26,000 US and Canadian customers to Firststake’s client based and is expected to generate US$200m in turnover towards Firststake’s business. This deal could also give an added boost to its European operations and result in further expansion in Malta.
Contacted yesterday, Firststake’s representative in Malta, Michael Ellul, told The Malta Business Weekly that the company expected to start operations early next year.
“Firststake have leased out office space at Portomaso and are currently recruiting staff. The company expects to employ up to 15 persons although this figure could increase in the future – up to 50 – if the Maltese operations prove successful. One cannot rule out beneficial effects resulting from the Bowman deal,” Mr Ellul said.
Due to the lack of specialised skills in this growing industry, Firststake will be bringing a number of personnel from abroad. They will also be instrumental in training the local staff complement.
“The Bowman deal could also open up further business opportunities for Firststake’s operations in Malta. There is nothing that stops them from serving the US market from Malta,” he added.
Although Malta’s extremely competitive tax rates have attracted many online bookmakers, Mr Ellul said that the availability of English-speaking staff and the fact that the island has strongly regulated financial services were strong points in favour of setting up shop here.
He added that the company will not allow any locals to place bets via their website. “There are ways and means how to check if locals try to place bets and Firststake will ensure that no local bets are placed,” Mr Ellul said.
The acquisition of Bowman International is an important step for the company and its future business. Built by Gary Bowman over the last 15 years, Bowman International is the foremost and most respected name in North American betting. With an offshore licence and telephone betting operation based in Mauritius, the company employs over 250 people. Bowman International provides US and Canadian customers with a premium sports and horseracing betting service.
Gary Bowman will take up a seat on the board of Firststake Plc and the company will benefit from his considerable expertise and insight into the North American market place.
Firststake has established itself as one of the most exciting recent developments in the betting sector.
Its easy-to-use Internet service – firststake.com – is targeted at sports fans rather than just bettors and has received both customer and press plaudits since launch in June 2000. Firststake’s recently announced deal to take on the 3,500 British Teletext and telephone based customers of Multi-Sports Bookmakers demonstrates the company’s multi-channel distribution strategy. Firststake also operates a chain of retail betting shops in the UK.
Commenting on this exciting next stage in the development of Firststake Plc, chairman Karim Ghaidan said: “Ever since we first started discussions with Gary Bowman it was clear that there were tremendous synergies between the two organisations. Bowman’s strengths lie in the North American market and on a telephone-based service for the more experienced customer.
“Firststake’s strengths are UK market oriented and primarily about targeting sports fans with a proprietary Internet platform. By pooling our resources and experiences we are creating a very powerful force to fulfil our global market aspirations, and at a stroke increasing our turnover more than 15-fold.”
With its newly set up office in Portomaso, St Julian’s, its easy to use Internet service – firststake.com – is targeted specifically at overseas sports fans.