Betting Business Bulletin 9 July 2017
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Commission promises ‘robust’ action
In the latest move in what appears to be a growing clampdown by regulators on the gambling industry, the Gambling Commission has said it intends to make sure operators put “the customer first” as it unveiled a new enforcement strategy.
The key changes to the strategy, which follow a four-month consultation that concluded in April, include increased financial penalties for breaches, especially in cases of “systemic and repeated failings”, and putting the serious sanction of a licence review on the same footing as other regulatory measures.
Commission chief executive Sarah Harrison said: “We’ll use the full range of enforcement powers to ensure operators put customers first and raise standards. The industry can be assured we’ll use our powers in a targeted way, and consumers and the public can be assured we’ll take robust and effective action when gambling companies don’t meet their obligations.”
In May it emerged that online operator 888 was the subject of a licence review by the Gambling Commission.
Last month the Competition and Markets Authority, which is working with the Gambling Commission, said it was launching enforcement action against five companies, including Ladbrokes and William Hill, over unfair sign-up promotions.
MPs call for evidence-based approach to review
There was some rare support for the betting industry from the political sphere last week as the joint chairmen of the All Party Parliamentary Group for Racing and Bloodstock called for the government to take an evidence-based approach to its review of gaming machines.
Tracey Crouch, the minister with responsibility for gambling, has said the findings of the review, which had been expected in the spring, had been delayed by the calling of the general election and could not be expected until October at the earliest.
Campaigners, politicians and sections of the media have called for the maximum stakes on the machines to be cut to £2 from £100 to tackle the issue of problem gambling.
The betting shop industry has claimed this would lead to thousands of shops closing, which would mean racing losing out on millions of pounds of income from levy and media rights payments.
Conservative MP Laurence Robertson and his joint chairman Labour MP Conor McGinn said: “We are also pleased that the levy issue has been resolved to the benefit of racing. We now hope that the government will take an evidence-based approach when carrying out its triennial review and in particular over the issue of regulating Fixed Odds Betting Terminals.
“We believe it would be tragically ironic for racing to benefit by tens of millions from extending the levy, only to lose potentially hundreds of millions if the wrong approach for the wrong reasons is taken in relation to this issue.
“We will therefore continue to encourage all concerned to work together to ensure that racing and bookmakers prosper, in the interests of horseracing and everyone connected with the sport.”
Israel blow for GBI
The company responsible for distributing British and Irish racing to overseas betting operators is seeking millions of pounds in compensation after the Israeli government banned betting on the sport.
GBI Racing, the joint venture between Racing UK and At The Races, has a contract with the Israel Sports Betting Board until August 2018 but its business there has been halted abruptly after the Knesset – Israel’s parliament – approved legislation banning betting on horseracing, part of a wider crackdown by the government.
According to Israeli publication Haaretz, GBI is seeking up to 200 million shekels (£44m) in compensation and made its case recently at a hearing at the finance ministry.
It was reported that Israeli treasury officials were prepared to negotiate terms, with talks expected to start shortly. GBI declined to comment when approached by the Racing Post.
British racing had been shown daily in Israel after launching in 2013 and GBI had made a considerable investment in providing a system that includes betting shop terminals with content translated into Hebrew, with revenues believed to be running close to £4m a year.
SIS agree greyhound deal
SIS hit back in the battle over greyhound media rights last week when it was announced they had agreed exclusive rights deals with Central Park and Henlow, beginning in January.
The data and pictures provider is engaged in a struggle with The Racing Partnership (TRP) over the supply of live action, both greyhound and horseracing, to UK betting shops.
TRP is backed by Arena Racing Company (Arc), which recently announced the acquisition of Newcastle and Sunderland stadia from William Hill when it had appeared SIS had clinched a deal for them.
SIS commercial director Paul Witten said: “SIS is delighted to announce that we have signed the long-term rights to Central Park and Henlow, which will further enhance our greyhound service to bookmakers.
“This is a demonstration of our ongoing commitment to the UK greyhound industry, and to strengthening our greyhound offer for our customers.”[/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]