BB126-p01-news_09/10 26/02/2015 15:33 Page 1
FANTASY FIGURES: Marc Saba on how it’s time for fantasy and real money to mesh
RACING AHEAD: Sebastian Butterworth on how Sky Bet caters for the horseracing punter
CPA: Cherry moves into affiliate business by buying 51 per cent stake in Game Lounge Ltd
BETTING NEWS 14
ESSENTIAL GUIDE 18
BUSINESS 38
ACTION IMAGES / JULIAN HERBERT LIVEPIC
£5.20 (€8.30) • ISSUE:126 • MARCH 2015 • www.betting-business.co.uk
With the government seemingly in a rush to push through ‘good news’ before the general election, the horseracing betting right consultation has been fast-tracked. LEGISLATION
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duced in France and the sporting authorities have been lobbying hard for its introduction across Europe. In the foreword, minister for sport Helen Grant MP suggested that this would not open the door to other sports: “This consultation is about betting and horseracing. The government has no plans to extend either a reformed Levy or its replacement to all sports or other activity on which bets are accepted.” There will be concerns that this opens the door quite widely for other sports though. The Remote Gambling Association has already made clear to DCMS its fundamental opposition to any new form of betting right being created for horseracing or indeed any other sport. It commented: “We will of course again set out the reasons for this in our response to their latest consultation, however,
there is fundamental reason for our opposition which should be in everyone’s interest, namely that they simply do not work.” The RGA pointed out that last year the European Commission published the 230 plus page Asser report which concluded in no uncertain terms that the ‘costs associated with the administering of the right to consent to bets will always be considerable’ and ‘there is no evidence for a link between the financial return stemming from a right to consent to bets and the financing of grassroots sport’. It continued: “Therefore DCMS should be aware that despite for example the French authorities continuing to promote a betting right, no other Member State has properly implemented legislation similar to that existing in France and that most other jurisdictions have ‘instead opted for alterna-
EVENTS
isitor figures for ICE 2015 have broken the 25,000 mark for the first time. The interim figures, which are subject to a final independent audit, show that a total of 25,386 unique attendees made the journey to London’s ExCeL Centre, an 8 per cent increase on 2014, and the sixth consecutive year of growth for what is the world’s biggest business-to-business gaming event. Portfolio director Kate Chambers said: “This was the best event that I have been involved with in my 25 year career in the exhibitions sector. The opening day set the standard with some 18,000 visitors coming through the doors at ExCeL. The enthusiasm for ICE was evident across the board, from exhibitors and visitors alike. There’s no doubt that the industry has created a winning formula, with ICE proving the ideal showcase for international gaming in all of its guises.” ICE also earned plaudits from the Racing Post, which once again hosted the international betting sector. The Post’s Jim Cremin said: “ICE simply delivers on every level. Quality visitors from all over the world, exchanges of ideas, plus simple fun. It’s all about professional business done with style. There’s nothing else even close to it, and this year’s was the best yet.” The enthusiasm for the ICE experience was not restricted to gaming’s biggest players, with the start-ups who participated in Pitch ICE, a free competition which allowed new businesses to present their ideas in front of a live audience, also responding positively. Wendy Collins from Pitch ICE participants Sporting Savvy commented: “We received an excellent response and have had lots of interest from potential partners and hope to use the opportunity to kickstart our activities at Sporting Savvy.”
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Betting right would make racing ‘uneconomic’ ookmakers have been urged to respond to the third and final consultation on the future funding mechanism of horseracing, after the government introduced a discussion on a ‘betting right’ for the sport. The truncated 5 week consultation ends on 12 March 2015 and could well see costs for bookmakers, particularly smaller bookmakers, increase again especially if the new mechanism attracts 20 per cent VAT. Warwick Bartlett, CEO Global Betting and Gaming Consultants, warned: “Paying 30 per cent plus of gross profits to racing plus 15 per cent gross profits tax and the rising cost of media rights makes horse racing uneconomic.” A betting right, where bookmakers would have to pay for the privilege of taking bets on the sport, has already been intro-
ICE breaks 25,000 visitor mark
tive mechanisms to collect and allocate revenue derived from gambling to sport’. Moreover, the Asser report evidenced that sports organisers already have sufficient legal protection and the creation, at EU level, of a French style sports betting right is not justified.” Dan Tench, a partner in the Litigation Department at Olswang LLP, seems to agree and thinks that the status quo will remain for some time. He commented: “The betting right seems to solve few of the problems with the Levy whilst creating a host of new uncertainties and issues. As a result, it seems likely that the Levy system (which the government announced it would abolish in March 2000) will nevertheless continue for several years to come.” WARWICK BARTLETT Essential Guide 19
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