Online betting industry draws famous investors
Güncelleme Tarihi:
by Sevda Yüzbaşıoğlu - Referans
Oluşturulma Tarihi: Haziran 15, 2009 00:00
ISTANBUL - Virtual games of chance have become a new "gate of hope" for millions who are trying their luck at the National Lottery, horse racing and the like.
Online betting games have, in a short period, reached a market share of 13 percent in the fixed possibility and mutual betting market, which has an annual volume of 6.5 billion Turkish Liras ($4.24 billion) in Turkey. Currently, only two players are active in the online betting market: nesine.com, owned by the Doğan Group, bilyoner.com, co-owned by Çukurova Holding’s Demir Toprak and Greece’s Intralot. But scores are in line to take a share in the ever-growing market.
Saran Holding announced it has purchased the online license for Spor Toto, a state-owned football betting firm founded in 1959. Doğuş Group has founded a company led by former football star and football commentator Rıdvan Dilmen. The company has applied to Spor Toto for a license. Şansal Büyüka, another commentator and TV producer, joined forces with his son Hazar Büyüka to form misli.com. Another company that has applied for a license from Spor Toto is Esas Holding, a conglomerate led by Şevket Sabancı.
Companies have to apply to Spor Toto for a license to set up a virtual franchise. Investors wishing to do so have to pledge $1 million. The company also has to have a strong Internet infrastructure.
Spor Toto officials said requests for virtual franchises "are pouring in" from investors, adding that they will give online licenses to eight companies. "We choose investors who have the power to fight against illegal betting," an official said, speaking on condition of anonymity.
Two big players
Current players in the market, nesine.com and bilyoner.com, predict that the market, currently at 500 million liras, will grow when new players join. Bilyoner.com has distributed more than 400 million liras in prizes since 2004. Visitors to the site can bet on horse racing or play Süper Toto, İddaa and National Lottery. Members of the site number at 1 million.
"We grew 50 percent in 2008," said Sait Kayahan, interactive services director of the company. "Last year our turnover reached 330 million liras." Thirteen percent of turnover in betting games are gained online, Kayahan said. "If we grow the market, it can feed even 10 companies. But if the new players eye the 13 percent [without aiming to grow the market] then 10 players would be too much."
A rate of 30 percent would please both the state and investors, Kayahan said. "Firms pay 18 percent value-added tax and 5 percent betting game tax. In National Lottery, the rate of betting game tax is 10 percent. Thus, a big part of the turnover is collected as taxes."
Nesine.com, the second player in the market, has been active since September 2006 and currently has over 400,000 members. In the beginning, it was only a franchise of Spor Toto. Last November, it also received the rights for horse racing. "Until 2007, customers were betting not only on domestic sites, but also on foreign ones," said Halit Gülbakanoğlu, managing director of nesine.com. "This resulted in a dispersal of gamblers. In 2007, playing on foreign betting Web sites was banned. As we increased advertising and promotion, the number of nesine.com users boomed."
Hazar Büyüka, the son of football commentator Şansal Büyüka, has also applied for a virtual franchise from Spor Toto. "We may finish the deal in one week," he said. "We are preparing an ambitious Web site, misli.com."
Doğuş Media Group has also stepped into the market. The Doğuş project is led by NTV commentator Rıdvan Dilmen.
Saran Holding announced it has purchased the online license for Spor Toto, a state-owned football betting firm founded in 1959. Doğuş Group has founded a company led by former football star and football commentator Rıdvan Dilmen. The company has applied to Spor Toto for a license. Şansal Büyüka, another commentator and TV producer, joined forces with his son Hazar Büyüka to form misli.com. Another company that has applied for a license from Spor Toto is Esas Holding, a conglomerate led by Şevket Sabancı.
Companies have to apply to Spor Toto for a license to set up a virtual franchise. Investors wishing to do so have to pledge $1 million. The company also has to have a strong Internet infrastructure.
Spor Toto officials said requests for virtual franchises "are pouring in" from investors, adding that they will give online licenses to eight companies. "We choose investors who have the power to fight against illegal betting," an official said, speaking on condition of anonymity.
Two big players
Current players in the market, nesine.com and bilyoner.com, predict that the market, currently at 500 million liras, will grow when new players join. Bilyoner.com has distributed more than 400 million liras in prizes since 2004. Visitors to the site can bet on horse racing or play Süper Toto, İddaa and National Lottery. Members of the site number at 1 million.
"We grew 50 percent in 2008," said Sait Kayahan, interactive services director of the company. "Last year our turnover reached 330 million liras." Thirteen percent of turnover in betting games are gained online, Kayahan said. "If we grow the market, it can feed even 10 companies. But if the new players eye the 13 percent [without aiming to grow the market] then 10 players would be too much."
A rate of 30 percent would please both the state and investors, Kayahan said. "Firms pay 18 percent value-added tax and 5 percent betting game tax. In National Lottery, the rate of betting game tax is 10 percent. Thus, a big part of the turnover is collected as taxes."
Nesine.com, the second player in the market, has been active since September 2006 and currently has over 400,000 members. In the beginning, it was only a franchise of Spor Toto. Last November, it also received the rights for horse racing. "Until 2007, customers were betting not only on domestic sites, but also on foreign ones," said Halit Gülbakanoğlu, managing director of nesine.com. "This resulted in a dispersal of gamblers. In 2007, playing on foreign betting Web sites was banned. As we increased advertising and promotion, the number of nesine.com users boomed."
Hazar Büyüka, the son of football commentator Şansal Büyüka, has also applied for a virtual franchise from Spor Toto. "We may finish the deal in one week," he said. "We are preparing an ambitious Web site, misli.com."
Doğuş Media Group has also stepped into the market. The Doğuş project is led by NTV commentator Rıdvan Dilmen.