this is all about market forces and has nothing to do with ethics – as is the case with most business. We can debate whether that is right or wrong, but that’s how the cookie crumbles.

As soon as big business realised real money could be made in the gambling industry they went for it. Balderton certainly isn’t the first firm to invest in this industry and more will follow. Cantor Fitzgerald has also moved into this space recently with many more following.

Most businesses across all sectors look to increase profits and it is no different in the gambling industry. Surely, moving gambling to a new platform, in this case mobiles, was always a given.

I’m sure Balderton conducted excellent due dilligence and this is a smart move by them which does not pose any adverse effects ethically or in terms of future PR.

Oh, and it just strikes me as a little odd that Mike should have such a firm point of view in this post, but let’s the Zivity posts go by with nary a whimper…

“anyone who’s placing bets on sporting events via their mobile phone probably has a gambling problem, which betNOW is exploiting.”

Do you believe that anyone who bets on sports has a gambling problem? If not, I don’t understand why the mobile aspect makes it any different. If someone has access to breaking, current information and uses their mobile device to make a trade in their investment portfolio, does that person have a problem?

I can understand your surprise at a name-brand VC backing this idea given issues of perception from LPs and others involved with them. But your statement above doesn’t appear very well-informed about the topic.

Some journeys are more rewarding than others.

Of course there are problem gamblers, just as there are problem drinkers, but you can’t ban something that is enjoyed by so many people because of the small minority who can’t control themselves.

I hope you’ll take on board some of the comments from other posters, rather than getting defensive.

Thanks for all your entertaining and informative work, and best wishes for the New Year.

The gangster history is only affiliated with Vegas casinos that occurred decades ago. I’m pretty sure that there weren’t any gambling websites then.

The US right now is threatening the whole future of the WTO by not abiding by their recent ruling in favor of Antigua. Why should China etc.. take WTO rulings on copyright etc seriously when the US just picks and chooses the rulings it obeys?

No wonder the US is having a hard time lately with its image! Its not just Iraq and human rights…

Michael … there is a world outside of the US … you should maybe check it out some time …

Index Ventures (Betfair)
Softbank (Betfair)
Benchmark (Betfair)
Kleiner Perkins (Silicon Gaming)
Bain (GameLogic)
General Catalyst (GameLogic)
Maveron (GameLogic)
Apollo (Harrah’s)
TPG (Harrah’s)
Goldman Sachs (Station’s Casinos)
Morgan Stanley (Revel Entertainment)
Tiger (GTech)
MacAndrews & Forbes (Scientific Games)
Sumner Redstone (Williams Gaming)

not to mention the literally hundreds (thousands?) of institutional investors who invest in gambling public equities

So lighten up, will you? In excess, Coca Cola demonstrably kills. Does Warren Buffett have a PR problem?

“When my pot dealer began accepting SMS orders, I knew I definitely had a problem. I don’t have a problem with pot — I mean how hot is Mary-Louise Parker? — we just need to keep these transactions within some reasonable limits.”

f’ing hilarious. well done.

In response, there’s a market for everything. Some things (eg. child porn, snuff, etc.) would be the exception of something not to invest in for obvious reasons – so I hardly think it’s a PR blunder on Balderton’s part to get into this legal business that just makes sense.

On another note, you continue to make all these leaps into things that may make people feel slightly uncomfortable, but they’re legal nonetheless. I guess we’ll use this post as a testament to your moral / non-objective slants.

BTW – You’re not right. You just think you are (lol), but at least you’re honest with your thoughts.

With regards to texting to place bet i don’t think you can automatically qualify them with a gambling problem, texting is a way of life here in the UK, would you say the same if someone uses an IPHONE to place a bet ?

Secondly, while betting by phone has been legal since at least the 1960’s the UK betting laws have been increasingly liberalised over the past 7 years (although our new Calvinist prime minister isn’t allowing us even one big casino ). The interesting thing is that over the past 7 years government research has shown that the instances of problem gambling is stable.

Lastly, this isn’t Balderton’s first investment in a UK betting company. They already have a stake in Betfair (which has offered mobile betting since about 2002).

(Disclosure: As a former employee I have a small amount of shares in Betfair)

You couldn’t have this one more wrong… and your post sounds very biased and slanted. Who are you to shake your finger at someone making a perfectly legal investment in the gambling market in the UK? Why no moral judgment on the AdultFriendFinder deal? Guess you like your porn and promiscuous sex with strangers… it’s cool, I do to. Also, considering you make your money by commenting on who VC’s are ‘betting’ on… this article wreaks of hypocrisy. I’d say anyone who invested heavily in Tech before the bubble burst had a serious gambling problem… wouldn’t you?

All jokes aside, this could be a useful service that easily make a lot of money legally in the UK. For example, live betting ( ie. during an event ) is a massive growth area in the online gambling market. If you’re in a pub watching a match (or at the event) and you want to place a bet (as many people do) sending a txt is a convenient way to do so. Many of the largest UK bookmakers have mobile sites that allow punters to place bets via their mobile…. though not via txt message.

Do all of the people using their mobiles to place bets have gambling problems?? No.