| Wayne
Lochner, winner of the Ernst & Young award for 'London's
E-Business Entrepreneur of the Year' in 2000, left his
group Affinity PLC in 2002 to join Global Betbrokers
(GBB) as Chairman. Here he tells us a bit about GBB,
his accomplishments and his personal investments over
the last 3 years.
Why did you start
Affinity PLC in 1995?
I had been in Asia for
20 years, mainly Japan, where the internet was keeping
pace with the US. When I returned in 1995, I was amazed
to see how slow Europe was in adopting this new mode
of communication. It became apparent to me that the
major obstacles ( other than normal cultural ones.....)
were around the press hyping the evils of the internet
- Credit Card Fraud and Pornography - and that the
major companies offering access to the internet were
American ( AOL and CompuServe). It appeared to me
that the first two issues were being exacerbated by
the second and Europeans cultural distrust of anything
new coming from the US...
So I developed the idea of building a single ISP platform
and allowing it to be white-labelled by household
brands. Arsenal and many other Football Clubs, Royal
Bank of Scotland, Tiny Computers, Sainsbury's, magazine
and newspaper titles, charities - in fact, any brand
that could sustain a reasonable following. We even
had the organisations like the British Canoe Union.
The interest was considerable and nearly 400 different
brands became clients.
From here the natural development was to build a fixed
line telephony business and Mobile phone business
using the same principles.
What are some of the recent investments that you've
made and what attracted you to these companies?
I have invested in an
American company called Cardio. Through being on the
Appeal Board at Bart's Hospital for Centre of Excellence
for Breast Cancer I have been asked to assist with
their latest fund raising . This is to further research
into using ones own stem cells (in this case from
your own thigh) to heal heart disease. The results
are amazing and the process straight forward. Applications
for all sorts of other problems from neurological
to replacement skin for burns victims - all using
the patients own stem cells.
Although Cardio is not exactly stem cell development,
its product is along similar lines. If commercially
successful the results will be a significant benefit
to everyone as well as financially very exciting.
A second investment is in Global Betbrokers Ltd. which
is the main focus of my attention. The gambling industry
is seeing staggering growth and development. However
there are some fundamental issues unresolved in the
sports wagering area which GBB Ltd addresses.
There are some parallels between the technology boom
we experienced and what we are seeing globally in
gaming and gambling - the main difference being this
industry is based upon real turnover and profits rather
than those wonderful doctrines we learned to adopt
''landgrab'' , ''eyeballs'' , '' free'', ''future
advertising revenues'' etc.
In general, what makes an investment proposal attractive?
For me the investment
proposal needs to be imaginative yet easy to understand
with a clear route to market. Ultimately the team
which is executing the plan will win or lose the day
for the business, so they need to be experienced and
impressive.
The last time you were interviewed for the Ariadne
Capital journal, you told us that if you ever left
Affinity, you would like to take up extreme sports.
Have you managed yet to (safely) jump out of a plane
or from a bridge?
Unfortunately I have
not indulged in the extreme sports - although I am
beginning to feel that fundraising for Charities and
Start-up ventures should be classified as an extreme
sport!!
Although you may not have parachuted or bungee-jumped
yet, you have since joined Global Betbrokers as their
Chairman. Can you tell us a bit about the company?
GBB is a start-up in
what must be globally the growth industry of the next
few years. GBB is bringing the tried and tested methodologies
of the financial markets to sports wagering. In particular
creating a voice brokerage and clearing house for
the regular retail clients and the wholesale (bookmakers)
market. We are still fundraising at this time, but
plan to launch this year
Why did you decide to join them as their chairman?
Before Affinity I ran
broking businesses in Asia for 20 years. When the
original idea behind GBB was suggested to me, I could
see immediately the enormous potential it held. Moreover,
it was returning the business I enjoyed more than
any other. So it satisfied the two most important
needs - job satisfaction and financial return.
Do you have a favourite quote?
Many favourite quotes,
but on a light note, one from a Bond Film - "Never
let them see you bleed and always have an escape plan!"
What is your favourite company and/or most inspirational
businessman/woman and why?
Virgin and Richard Branson
- without a doubt.
Mr. Lochner, who is quite involved in the world
of gambling, shares his thoughts with us on the recent
discussion on licensing of professional layers in
the gambling world.
'In general I agree with
sentiment of the Betfair statement. However it does
omit one key factor. Before the advent of Exchanges
it was very difficult for an individual to "lay"
(or accept) a bet apart from one's immediate circle
of influence. Since the advent of the exchanges it
has become possible to be an unofficial bookmaker
and lay bets from anywhere around the world - where
legal of course. Moreover it is anonymous. You do
not know if the person you are placing the bet with
has key influences over the outcome of the event.
Therefore it has opened
wide the door for potential fraudulent activity. For
example the owners of horses/dogs , jockeys, referees,
key sportspersons and other persons of influence can
alter the outcome of a sporting event and make significant
financial gains where they have been the ''layer ''of
a bet . Whilst it is possible to make money from placing
a bet and influencing the outcome, it is much easier
to '' throw '' an event whilst taking ( or laying
) bets from people who think you have a chance of
winning.
Licensing the ''professional
layers'' is intended to have a two fold affect. First
and foremost, it will improve the probity of the industry
by making it more difficult to act in a fraudulent
manner as described above - but it does also open
the door for the taxman. I agree completely with the
Betfair statement that it would be inconsistent to
tax day traders on sport gambling but not day traders
in other financial products.
The motive of the majority
of bookmakers is clearly to dull the competitive edge
of the Exchanges, however the part of their argument
that focuses on the potential for fraud has to be
supported for the future growth of the industry.
Therefore I agree that
this licensing of professional layers would go a long
way to ''protect the vulnerable, keep out crime and
ensure fairness.'''
|
Ariadne
Capital Journal - Through the Maze Volume
5, Edition 1
