Sportech Share Discussion Threads

[trentendboy] 06/7/2017 08:58

VZ, interesting - on what grounds? Clearly they have the money from the overpayments. This is about the interest payments. Would seem a clearer case in some respects. So EU law in out favour, UK law against - better get this done quick then before Brexit. EU judges might take pleasure in stiffing the UK government :-)

[van zandt] 06/7/2017 08:49

Hello Nod,

The Supreme Court and the raising of costs before the court adjourns to make a judgement/decision, is purely a technical requirement and often a quaint way of justifying the high costs of junior B's in such cases.

personally I am not convinced the of the ruling in Littlewoods favour, from what I saw of the proceedings.
Regards,
VZ

[nod] 06/7/2017 00:10

The Supreme Court hearing has concluded. The Court will come back with their decision after the summer recess.The last 20 minutes of the afternoon video are the judges summary discussions and worth listening to. My understanding from a first pass is that under English Law they would accept the HMRC application. Under EU Law they may reject the HMRC application. As a final word, the Littlewoods QC raised the question of costs, implying that he interprets the summary and likely ruling will be in Littlewoods favour.

[nod] 05/7/2017 23:16

With the completion of the sale in June of The Football Pools, we now have another GBP83m in the bank. I would like to see a special dividend payment rather than another of those silly tenders that only reward the organiser (the broker) and a few major shareholders.

[trentendboy] 05/7/2017 07:55

Seems a fair price target. I wonder if that includes a TO premium

[nod] 05/7/2017 07:41

Peel Hunt reiterated a Buy with Target Price of 140p

[nod] 04/7/2017 22:58

Littlewoods v HMRC case is available on video(s) if you have four hours spare each day to watch them.I watched around 30 minutes of the afternoon sessions.You would need all the Court documents in front of you to follow the story.In a nutshell, it's mostly about the meaning of the wording in the Acts and how the lower Courts were right or wrong in their interpretations and rulings (depending on which side you are on).https://www.supremecourt.uk/cases/uksc-2015-0178.html

[nod] 04/7/2017 12:18

Sportech Racing is well-structured to win contracts around the globe. In Europe they are a U.K. company. In the Americas and Asia they are a US company.

[trentendboy] 04/7/2017 12:06

Good stuff. I like the SPO breakout and glad I did not sell any at £1 in the recent offer.

Plenty of more to come and a could "TO" premium would be needed to get SPO licenses which are increasingly valuable

[nod] 04/7/2017 02:14

Sportech Racing receives Dutch tote betting licence
3 JULY 2017

Dutch gaming authorities have granted the first licence to offer tote betting on horse racing to London-based gaming and sportsbook operator Sportech Racing.

The licence was awarded following the company meeting pre-approved criteria and passing through a comprehensive selection and award phase designed to examine its suitability to conduct tote betting in the Netherlands.

Interested parties were required to submit applications for tote licences to authorities by 30 December 2016 in order to be considered for licence approval. Sportech were granted a six month temporary licence extension in December of 2016, while its new licensing application was considered by authorities. Under current legislation operating a horseracing sportsbook is illegal in the Netherlands without prior approval and licence by the Dutch Gaming Authority, the Kansspelautoriteit.

Sportech Racing becomes the first and thus far only provider to secure a licence to operate tote betting in the Netherlands, with the new licence being valid for a period of five years.

[trentendboy] 03/7/2017 23:30

Thx, interesting. Underpriced for sure

[funchalman] 03/7/2017 12:47

The Littlewoods case v HMRC started this morning in court 1 of the supreme court and is scheduled to finish Thursday 6th July.

[trentendboy] 03/7/2017 09:16

Flying again, I suspect you are correct on the underestimation of interest payments

[nod] 02/7/2017 13:32

I don't think the compound interest claim has sunk in with investors. Because the vat payments were such a long tine ago the compound interest could be more than double the simple interest already returned by HMRC.https://www.ft.com/content/c6ead644-4230-11e7-82b6-896b95f30f58

[gersemi] 02/7/2017 12:28

Something's being priced in here. If Littlewood's comes away with a victory this month on the compound interest case then who knows what that will do for SPO

[nod] 02/7/2017 12:25

When the acquisition was agreed between SPO and Scientific Games Racing SGR in early 2010, the USA regulators took many many months to agree it. Changes had to be made.Not everyone can get US gaming licences. You need to be squeaky clean. Even afterwards SPO had difficulty expanding due to Playtech's 10% holding in SPO and the Sagi connection.SGR kept a 20% stake in SPO until 2014 which helped with the acceptance by regulators of an overseas buyer.

[trentendboy] 02/7/2017 11:02

Interesting.Again, it is usual for big sellers to exit ahead of a deal.Someone bought these perhaps on behalf of an interested party.I can stars taking it on for one. But expensive for 888 but gvc could manage it.It is a strong US asset heavy company. There are few good quality companies left

[nod] 30/6/2017 20:09

So, the seller of the 17 million shares was Hemmings. His holding now 5%Unless he sold more today.

[nod] 29/6/2017 22:23

TEB, yes, SPO is now a USA business based around the Scientific Gaming acquisition - Racing and Venues. Albeit with customers across the globe.It is a much smaller business but also as you say much simpler and now more attractive to anyone interested in the US licences.Pools was 28% of revenues but 55% of EBITDA from the three business lines (SR&D, Venues and Pools). Pools has always been by far the most profitable business line, which will be missed.The VAT payment of 96.8m enabled SPO to write down asset values (impairment of assets) by 42.5m (Pools) and 17.2m (SR).

[trentendboy] 29/6/2017 17:17

I suspect a bid. Selling pools clears the decks and makes it a simple US gaming playRegulation inevitable in USA quality asset for someone

[finkie] 29/6/2017 12:09

Lets hope so Nod, i sold half at 99.625p which was an awesome trade as they were 103-104 an hour later......i have some left though so will hold balance hoping for 135p knockout punch!

[nod] 29/6/2017 11:26

Seller may be Lombard or Hyvern (Trevor Hemmings). Hemmings has been selling regularly.

23 million now owned by Harwood/Oryx. They were below 3% on 15 June. That's a huge commitment in a few days. A possible bid coming?

[carcosa] 29/6/2017 10:57

It would appear not.

So who sold?

[nod] 28/6/2017 22:36

A 17,000,000 trade at 100pWas that finger trouble?

[nod] 27/6/2017 10:18

finkie, yes the compound interest claim looks a dead cert, although i don't like to count my chickens before they've crossed the road.

Unfortunately, UK Gov changed the law so these windfalls will automatically be taxed at 45%

The timing of Sportech's claim is unknown. HMRC only uses taxpayer money so it may as well extend Sportech's claim as long as possible, even though HMRC ends up paying Sportech's legal costs (but hey, it's not HMRC's money anyway).

I haven't thought too much about where I would spend SPO's cash pile. With company valuations quite high everywhere they may be better off focusing in the near-term on some organic growth. They lost the California contract last year and hopefully with some investment they can fix the reason for losing a long-held contract.