Betting Business Bulletin 25 June 2017

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Watchdog says gambling firms load dice against punters

The gambling industry faces a clampdown after the Competition and Markets Authority (CMA) last week launched enforcement action against five online gambling firms including Ladbrokes and William Hill.

The watchdog said the ‘dice are loaded’ against customers taking advantage of sign-up promotions offered by operators.

As a result of an investigation launched last October into whether firms had been treating customers fairly, the body is now also looking into whether operators are unfairly holding on to people’s money, as they invited those who have had difficulty withdrawing funds from online accounts to contact them by August 31.

The CMA claims sign-up promotions often come with terms and conditions that can be confusing, unclear and even unfair, meaning some customers must play hundreds of times before being allowed to withdraw money, denying them the opportunity to quit while they are ahead and walk away.

“We know online gambling is always going to be risky, but firms must also play fair,” said the CMA’s senior director for consumer enforcement, Nisha Arora. “People should get the deal they’re expecting if they sign up to a promotion, and be able to walk away with their money when they want to.”

The CMA said it had “a range of powers at its disposal to bring any illegal activities to an end”.

Ladbrokes confirmed they are in talks with the CMA, although their stablemate Coral and Gala brands are not involved.

Their statement said: “Ladbrokes can confirm that the Ladbrokes brand is in dialogue with the CMA regarding its investigation into the online betting and gaming sector.

“Ladbrokes has always sought to offer customers a competitive and rewarding experience through use of promotions and we are committed to working with the CMA and move swiftly to make any changes which may be necessary.”

In a short statement William Hill said: “We can confirm we have today received a communication from the CMA and that we will be liaising with them to ensure any concerns are appropriately dealt with.”

The identity of the other three firms involved has not yet emerged.

The investigation is being conducted with the help of the Gambling Commission, which said that while operators are required to check customers’ identities to fulfil social responsibility and anti-money laundering requirements there are concerns these are being used to prevent consumers from legitimately withdrawing funds.

Chief executive Sarah Harrison said: “Those checks cannot be used as an excuse to unduly restrict legitimate customers from withdrawing their funds.

“If the CMA finds specific consumer protection failings in this area, it will add further cause for the commission to review how fairly operators are treating consumers.”

The next update on the investigation is due by December.

Ladbrokes FA link comes to an abrupt end

English football’s governing body the Football Association last week pulled the plug on its partnership with Ladbrokes just 12 months into a four-year deal and will no longer have sponsorships with betting companies.

The decision to end Ladbrokes’ position as official betting partner, a deal reportedly worth £4 million a year, was taken at the FA’s board meeting in May and came after mounting criticism of the sport’s relationship with gambling companies after Burnley player Joey Barton received an 18-month ban for betting on matches.

FA chief executive Martin Glenn said: “We would like to thank Ladbrokes for both being a valued partner over the last year and for their professionalism and understanding about our change of policy around gambling.”

The FA said it would “continue to work with betting companies, including Ladbrokes, as they play a key role in sharing information on suspect betting patterns and so help in regulating the game”.

Ladbrokes Coral chief executive Jim Mullen said they understood “the FA’s decision regarding their commercial partnerships on gambling”.

It is understood Ladbrokes were not too dismayed that the deal –which was signed for two years with the option to extend for another two – had come to an abrupt end as it was regarded as expensive.

However, questions will now mount over other deals such as shirt sponsorship by gambling companies. Should those end it will add pressure for another route to be created for football to benefit from the money bet on the sport, with a levy having already been mooted.

Ladbrokes have been the Scottish Professional Football League’s main sponsor since 2015 and this year extended that partnership until the end of the 2017-18 season.

Mischief-maker leaves Paddy Power

Ken Robertson, the man who behind some of Paddy Power’s most notorious marketing campaigns, is set to leave the company at the end of the year to set up his own creative advertising business.

Robertson was most recently advertising director at Paddy Power Betfair having previously held roles including director of brand engagement and Sportsbet’s head of brand in Australia.

But it was as ‘Head of Mischief’ that Robertson was best known, involved in stunts including betting on the Oscar Pistorius trial and Nicklas Bendtner flashing Paddy Power underpants at Euro 2012.

Robertson said: “It’s time now to take what I’ve learned into my own space where I plan to work with other like-minded individuals and brands to continue to push the boundaries of creativity.

“I’m hugely indebted to the team at Paddy Power Betfair for their trust and backing over the years and for being so supportive with this exciting new chapter in my career.”

Aussie mega merger approved

The A$11 billion (£6.6bn) merger between gambling giants Tabcorp and Tatts Group is set to go ahead after receiving approval from the Australian competition authorities.

The merged companies will control about 90 per cent of Australia’s totalisator betting.

Tabcorp chairman Paula Dwyer said: “The combination will bring together two great Australian businesses, well positioned to invest, innovate and compete in a global gambling entertainment marketplace.”

The merger was opposed by Racing Victoria, which believed it to be bad for the racing industry, as well as corporate bookmakers including Ladbrokes and Sportsbet, which is owned by Paddy Power Betfair.

However, the Australian Competition Tribunal said the deal could go through provided Tabcorp sold a Queensland-based poker machine monitoring business.

Analyst Gavin Kelleher of Goodbody said in a note: “While the combination creates a potentially stronger operator, consolidation in the Australian market was and continues to be likely and over time this could lead to less competitive intensity.

“Also, the integration will take time and could lead to distraction at the two large entities, something which scale corporate bookmakers can potentially take advantage of.”

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