William Hill’s CEO wants social gaming regulated

Ralph Topping, chief executive of William Hill PLC, used his personal blog to call for online social gaming to be regulated. Topping said the London-based firm has adopted a "watching brief" stance when it comes to social gaming.

"Social gaming is no longer the next big thing for gambling, it is already a very big thing," Topping wrote. "Over one billion dollars has already been spent by 'traditional' gambling companies alone in mergers and acquisitions and hundred of millions of dollars in revenue is already being generated."

Topping said Tuesday the United States was the largest market for social gaming because "most 'traditional' online gambling is banned."

Las Vegas-based gaming companies have placed big bets on social gaming.

MGM Resorts International's myVegas is a free-to-play site where virtual money is bet to win virtual prizes. Caesars Entertainment Corp. recently completed its purchase of mobile gaming business Playtika.

In January, International Game Technology spent $500 million to buy Double Down Casino, which has 10 times the number of players of any virtual casino on Facebook.

Topping, who was named CEO in February 2008 and has more than 40 years experience with the firm, recently completed the acquisition of three sports book operators in Nevada. William Hill U.S. Holdco Inc. operates 159 locations statewide, including 83 wagering kiosks.

The British bookmaker spent $55 million to acquire American Wagering Inc., Brandywine Bookmaking LLC and Club Cal Neva. Topping also oversaw the establishment of William Hill Online in 2008, a joint venture with Playtech Ltd.

"At William Hill we know about gaming, and anyone who has been in a betting shop will know that William Hill gets social," wrote Topping. "So what could be the problem with that? Well the problem is that it is not currently regulated as a product group and we think it should be."

Topping said it cannot be right that a "child can buy chips to play an online slot which is almost as good as anything you find on William Hill Online."

"In fact, it might even pay out more than a slot you might find on an online gambling site, which could also encourage the vulnerable," he wrote. "But that's OK because the chips aren't real money. Or are they?"

Topping noted that a player could buy about $110 worth of chips on a popular social gaming site and there was no limit to repeat purchases. He said the site, which he didn't identify, also allowed players to gift chips to their friends.

"That sounds like virtual money to me, which some unscrupulous operators might, just might, be tempted to use to make social gaming a form of real-money gaming with no regulation - even available to children."

Topping predicted that a number of operators will exploit this potential loophole and could cause a real problem-gambling issue among society's most vulnerable.

"The leading British gambling company has chosen to forgo a potentially lucrative business opportunity until appropriate regulation is in place," Topping wrote.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.