Business Bulletin 19 Mar 2017
[vc_row][vc_column][vc_column_text]
Bookmakers hail results from Cheltenham
The aftermath of last year’s Cheltenham Festival prompted profit warnings and tales of the worst results for bookmakers at the meeting in years but things were very different this time around.
Cheltenham Gold Cup day is second only to the Grand National in scale when it comes to betting turnover and overall the results favoured bookmakers, following the trend of the first three days of the meeting.
Sizing John’s Gold Cup victory was the icing on the cake with the eclipse of both Cue Card and Native River, as well as the costly error two out by Djakadam, meaning the biggest betting race of the year outside the Grand National was a winning book.
And those who placed their faith in a trio of short-priced favourites on the last day were left with scant reward as Defi Du Seuil’s win in the Triumph Hurdle was followed by defeats for Death Duty in the Albert Bartlett and On The Fringe in the Foxhunter.
“Whatever had happened in the first three days of the Festival, we knew Gold Cup day was the biggest and most important in terms of betting turnover, and with hot favourites Defi Du Seuil, Death Duty and On The Fringe, along with the leading Gold Cup hopes, all in action, we knew punters would be looking to gain revenge,” said Coral’s David Stevens.
“When Defi Du Seuil came home in front in the opening race, we were one-nil down, but Death Duty failed to inflict further pain in the third race, and the Gold Cup result meant whatever happened in the final three races, this year’s Festival would be one we remember for all the right reasons.”
William Hill estimated Sizing John had saved the industry a £15 million payout, while Ladbrokes sized up the defeat of the trio at the head of the Gold Cup betting as a £20m win for the layers.
All in all it was a meeting the bookies enjoyed as Paddy Power spokesman Paul Binfield said: “We’ve never had a better Festival and that includes when Norton’s Coin pulled off the greatest shock in the history of this great sport at 100-1 in 1990.”
Treasury delivers good news
Bookmakers have plenty to be concerned about on the regulation front but the list was reduced by one last week after the Treasury announced the sector would continue to be exempt from new money laundering regulations being introduced by Europe.
High street and on course bookmakers had feared that the Fourth EU Money Laundering Directive would be extended to all gambling sectors and as a result have to conduct due diligence for single transactions of €2,000 (approx £1,740) or more.
There had also been the possibility that member states would be asked to consider applying the threshold to the collection of winnings as well.
However, following a consultation and the UK’s National Risk Assessment (NRA) which deemed gambling to be low risk relative to other sectors, the government decided to use powers provided by the directive to exempt gambling, apart from non-remote and remote casinos, which cannot be exempted.
The industry has though been warned that it must maintain effective procedures to combat money laundering to avoid becoming subject to the directive.
The Gambling Commission said: “The government has made clear that it will regularly review its position in relation to the money laundering and terrorist financing risk that gambling providers present.”
Meanwhile, bookmakers are waiting for the government to publish the initial findings of its review of gambling announced last autumn.
A review of gaming machine stakes and prizes is part of that and the subject came up during Culture, Media and Sports questions in the Commons last week.
In answer to a question from the SNP’s Patricia Gibson, minister Tracey Crouch said: “The hon. Lady does not have long to wait to find out what we will recommend in that review.”
Gambler loses legal action over Rangers bet
A Glasgow gambler’s legal action over a £100 bet with Coral he claimed should have won him £250,000 has been rejected by Scotland’s highest court.
Albert Kinloch, 74, placed a £100 bet early in the 2011-12 season that Rangers would be ‘relegated’ from the Scottish Premiership in 2012 and was offered odds of 2,500-1 by Corals.
Kinloch argued in court during the three-day hearing that he should be paid as Rangers, who went into administration, began the next season in a lower league.
However, Coral said that a team was only ‘relegated’ if it had been demoted for finishing at the bottom of the league on points.
Rangers PLC went into liquidation in June 2012 and the team began the next campaign in the Scottish third division.
In a written decision, Lord Bannatyne, presiding judge in the Court of Session, rejected Kinloch’s case, ruling that the relevant definition of ‘relegation’ was the one given by the football authorities not that in the dictionary.
The judge noted that the new company operating the team “applied to and was permitted to join the lowest division of the SFL as a new Associate Member”.
Lord Bannatyne also ruled that Kinloch was a “professional gambler” and added: “His actings at that time went well beyond the placing of bets as a hobby.”
As a result the judge ruled that the Glasgow man was not entitled to the full protection of consumer law.
Coral issued a statement that said: “We are clearly very satisfied with the judgement passed down.”
A source close to Kinloch has told Racing Post he is considering an appeal. No decision on costs was made.[/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]