Betting Business Bulletin 16 July 2017
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Prize-money is set to rise thanks to government reforms
Income and expenditure on areas such as prize-money are set to rise according to the Levy Board’s annual report, which was published last week.
Government reforms to the levy system that came into force earlier this year have bedded in well, the board said.
In his statement in the report, Levy Board chairman Paul Lee said: “Congratulations are due to all those in government and racing who worked to achieve an extension of the levy to bookmakers based outside Britain. This has been regarded, including by the Levy Board itself, as a long-running issue to be addressed.”
He went on: “The Levy Board team have set up effectively and quickly the necessary collection mechanisms required under the new arrangements and I am very pleased to report income is now flowing to us as we had hoped and worked to achieve.
“All things being equal, this should make possible an increase in expenditure in 2018, including to prize-money.”
The Levy Board is due to be abolished next year, with the Gambling Commission set to take over collection duties and a new Racing Authority taking responsibility for expenditure.
Lee added: “We will continue to work with DCMS and others on achieving a smooth transition to the transfer of the board’s functions elsewhere, recognising that, until those transfers take effect, the board retains its statutory responsibilities and must be appropriately resourced to carry these out.”
According to the report, statutory levy yield for 2016-17 fell 8.6 per cent to £49.8 million, while total income was down seven per cent at £65.1m.
The authorised betting partner scheme brought in £14m in income, better even than the £12m mentioned in the BHA’s annual report earlier this year.
The Levy Board said its final income figure was £3.6m better than budgeted, but it still ran a deficit of £7.5m, taking reserves – which were around £45m in 2014 – down to £25.4m.
Aussie mega-merger challenged
Completion of the Aus$11.3 billion (£6.75bn) merger between Australian gambling giants Tabcorp and Tatts Group looks set to be delayed by a court challenge.
The Australian Competition and Consumer Commission has applied to the Federal Court in Australia for judicial review of the Australian Competition Tribunal’s decision to approve the deal.
“The ACCC is alleging the tribunal made three reviewable errors. It is therefore seeking clarification of these three points of law, which are central to the tribunal’s assessment of Tabcorp’s proposed acquisition of Tatts,” ACCC chairman Rod Sims said.
“We are seeking judicial review because we believe these legal principles are fundamental not only to the Tabcorp decision but to all future merger and non-merger authorisation assessments.”
Online betting company Crownbet has also called for a review.
In response, Tabcorp said they “will oppose the ACCC’s application and will pursue an expedited hearing”.
“Tabcorp and Tatts remain committed to the transaction,” they added in a statement.
Tabcorp said the ACCC’s application “will impact the timing of the implementation of the transaction, although the precise impact will not be known until the court has considered the matter”.
They added: “Tabcorp considers implementation remains achievable in the last quarter of 2017.”
Bags ends SIS agreement
A greyhound ‘war’ in servicing the betting industry has broken out with Bags announcing last week that SIS had lost the distribution rights for its fixtures from the end of the year.
However, with the major bookmakers believed to be holding long-term deals with SIS to take UK greyhound racing, Bags is facing a major struggle.
Bags will hope Arena Racing Company, the racecourse group behind rival service The Racing Partnership, which bought the Hills tracks at Newcastle and Sunderland, will see it as offering a better bet.
The animosity between the two organisations has been simmering for the past year since SIS attempted a hostile takeover of Bags and it was widely anticipated that the distribution rights would not be renewed into 2018.
Bags chairman Dominic Ford said: “Bags has been the exclusive provider of UK LBO greyhound racing content for over 50 years. The reason for the success of the product has been the focus Bags has placed on both the integrity and welfare standards of its suppliers.”
He added: “Bags has contracts in place with 11 of the strongest and most established tracks in the UK until the end of 2019. It will continue to act in the interests of its members and the UK LBO sector as we look to protect this valuable betting shop product.”
In its statement Bags added that discussions with The Racing Partnership and a number of major bookmakers were at an advanced stage “as betting shops also look to protect the business generated by this product”.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][bsf-info-box icon=”Defaults-envelope-o” icon_size=”32″ pos=”left”]For more information about Racing Post’s B2B services, contact us or browse more of b2b.racingpost.com.[/bsf-info-box][vc_column_text]Racing Post B2B caters for all digital content requirements across web, mobile, tablet and retail. But we are more than just a data provider – we enhance raw data with the best and most recognisable content authored by the biggest names in sports betting. Racing Post B2B offers an unrivalled worldwide content portfolio for bookmakers and media associations. Acknowledged throughout the racing and gaming industries, the Racing Post creates bespoke products suited to your audience that will enable your company to maximise profitability by offering unique data, editorial or multi-media solutions.[/vc_column_text][/vc_column][/vc_row]