BETTING BUSINESS BULLETIN 4TH DECEMBER 2017
Commission figures highlight betting shop closures
Betting shop closures highlighted in the latest set of industry statistics released by the Gambling Commission were “very bad news” for the sector’s future, according to the Association of British Bookmakers.
The number of active betting shops closed at a rate of more than 13 a week over the six months to September, bucking the trend for one per cent falls over recent six-month periods.
From March to September this year numbers slumped by 3.9 per cent to 8,502, which meant there were 342 fewer shops than in March.
ABB chief executive Malcolm George said: “The pace at which betting shops are closing is very bad news for the future of a retailer that has been a fixture of the high street for over 55 years.
“The government are currently consulting on gaming machines in betting shops. Any significant change in regulation could lead to over half of all shops closing and the loss of a further 21,000 jobs while doing nothing to address problem gambling.”
The commission’s latest statistics showed gross gambling yield (GGY) – the amount kept by operators after winnings have been paid out – for machines in betting shops was £1.8 billion, as it had been in the year to September 2016.
Yield from over-the-counter betting was £1.39bn, or 43.5 per cent of business, much less than that for machines. The yield for remote firms was £4.7bn, representing a 10.1 per cent rise compared to April 2015 to March 2016.
Across the entire British gambling industry, the gross gambling yield was £13.7bn between April 2016 and March 2017, a 1.8 per cent increase on the figures for the previous 12 months.
Commission asked to investigate Evans case
The Gambling Commission has been asked to investigate the controversial case involving trainer David Evans and Ladbrokes, further details of which emerged last week.
The Horseracing Bettors Forum wrote to the regulator asking it to inquire into why Ladbrokes shortened the price of Tango Sky with the knowledge that Evans intended to declare the horse a non-runner.
HBF chair Simon Rowlands said: “While we have considerable disquiet about a licensed trainer being granted preferential terms for what might be construed as supplying inside information, at least that matter has been dealt with by the disciplinary panel.
“But we believe somebody should be inquiring into the trimming of a horse’s price by Ladbrokes, when they have been told the horse would be, and indeed was, a non-runner. The Gambling Commission is empowered to do this with betting operators – they hold the licensing objectives to account.”
The BHA last week published the disciplinary panel’s notes from a hearing in which Evans was fined £3,140 for conduct prejudicial to the integrity, proper conduct and/or good reputation of horseracing and not immediately notifying the Racing Calendar office of a non-runner.
It also released the explosive transcript of Evans’ conversation with a Ladbrokes trader on the morning of the race at Wolverhampton in 2015. The disciplinary panel warned that trainers who commit rule breaches like those that led to Evans’ fine may in future lose their licence as a result.
Evans had been given 4-1 about his other runner Black Dave when Ladbrokes were offering the general public 7-2 at the time and it was revealed during the inquiry that this was because the trainer was viewed as a ‘high value customer’ by Ladbrokes.
The panel’s findings went on to consider the meaning of this information, noting that Ladbrokes shortened Tango Sky’s price and duly increased the rule 4 deduction when he was eventually pulled out around an hour later, but concluded in this instance: “The only actual losers from this, however, will be those punters who backed the eventual winner between the time of Mr Evans’ phone call to Ladbrokes and the re-formation of the market.”
They also dismissed the advantage gained by Evans and his associates as “negligible”, owing to the increased rule 4 deduction imposed on Tango Sky.
What’s happening this week
On Monday the United States Supreme Court will begin hearing oral evidence as the state of New Jersey challenges the Professional and Amateur Sports Protection Act (PASPA) in a case which could lead to the widespread legalisation of sports betting in the world’s largest economy.
European betting operators are following developments closely, especially William Hill and Paddy Power Betfair, who have already established a presence in the US.