Gambling media in the United States will be counting the probably
substantial cost of a Bodog.com Entertainment advertising cut this
week after the company revealed a plan to pull all its U.S.-facing
gaming-related advertising, mostly for its free-play and educational
site, Bodog.net.
The advertising pullback, which company spokesmen describe as "quite
extensive", includes television, radio, magazine and newspapers
in the U.S. market as the online gaming giant focuses instead on its
gaming and educational site advertising initiatives in the European
and Asian markets. Spokesmen described the move as "...a
strategic decision based on long-term business objectives."
The digital entertainment powerhouse, which has become as well known
for its television production, music distribution and other digital
entertainment properties as it has for its gaming enterprise, will
continue to advertise its other digital entertainment products, including
television, music and publishing, in North America and markets around
the world. This suggests that pulling the gambling adspend is directly
related to the recently enacted Unlawful Internet Gambling Enforcement
Act in the USA.
Bodog.com founder Calvin Ayre, confirmed this, citing current uncertainties
in the U.S. market and the recent legislation passed by Congress as
the reason behind the decision.
"Though the online gaming environment in the U.S. seems
to be headed down a path toward eventual regulation, the current climate
calls for even more focus of our gaming-related advertising dollars
into markets that face Europe and Asia," says Bodog's
billionaire founder. "We couldn't be better positioned
to build upon our current success and growth and to continue our aggressive
push toward international expansion into markets such as Europe and
Asia."
It's a busy time for Bodog; the company is currently completing the
relocation of its global head office and gaming operations from Costa
Rica to Antigua, a move that was initiated when Bodog.com acquired
Betcorp's international infrastructure in mid-November.
Bodog.com Entertainment will maintain offices in Costa Rica for
some data entry and charity foundation activities, together with part
of its television production division, which is working on or already
producing four annual reality TV series for distribution to millions
of viewers around the world.
"This is another step aimed toward strengthening our business
model," Ayre says. "This accords our gaming
division a license in a safe, reliable and well-regulated jurisdiction
and Antigua is also the right jurisdiction from which to run our European
expansion."