ABB newsletter winter 2010

Transcription

1 ABB newsletter winter 2010 Christmas and New Year office arrangements The ABB offices will be closed on Friday 24th December and remain closed until 0900 on Wednesday 29th December. We will be open as usual from December inclusive, closed on Monday 3rd January 2011 then reopening on Tuesday, 4th January Thank you to all members for your support during 2010, and wishing you a very Merry Christmas and a more prosperous New Year in Important: register now at In order to access the members area of the ABB website, you need to register. You can do this by visiting and clicking on register. On completion of the short registration process, you will be issued with your own unique password. This will enable you to access valuable members only content, including our Suppliers Directory featuring exclusive discounts on a growing range of goods and services. Please encourage all your staff to register. Check your Rules: from 26 th December no horse will win by a distance The term a distance is currently used to denote a winning distance exceeding 30 lengths. The BHA has asked the ABB to remind bookmakers that from 26th December 2010 it will no longer be used, and the actual winning distance will be reported instead up to a maximum of 99 lengths. Any winning distance beyond 99 lengths being reported as 99 lengths plus. Bookmakers are encouraged to review their Rules on winning distances in order to minimise the risk of disputes with customers from 26 th December. Any questions should be directed to the BHA at info@britishhorseracing.com 1

2 50 th Levy Scheme Members will be aware that the terms and conditions of the 50th Levy Scheme could not be agreed between the Bookmakers Committee and the Horserace Betting Levy Board; the decision therefore now rests with the Secretary of State at the Department for Culture, Media and Sport, the Right Honourable Jeremy Hunt MP. He has called for recommendations from the Levy Board s three Government appointed Members to assist him in that decision. You can view those recommendations by visiting the HBLB website at and following the link to the 50th Levy Scheme on the Home Page. The preferred option recommended by the Government appointed members of the Levy Board is Option A: in summary, this recommends the removal of the threshold in its entirety; the inclusion of foreign racing (ie, Irish, South African, French etc) in the Levy; and a reduction in the headline rate to 9%. That means you will pay Levy at a flat rate of 9% on all your horseracing (excluding virtual). All bookmakers, large and small, will be paying an increased percentage in Levy if these recommendations are adopted but it will hit those shops at the lower end of the profitability scale proportionately much harder. Some examples: If your gross profit on British Horseracing under the current 49th Scheme is 10K, your liability under the Levy Board proposals will rise by 838%; if 20K, by 369%; if 30K, by 213%; if 45K, by 108%; if 70K, by 34%; and if 85K, by 10%. If you are already paying over the threshold, then your liability will net out at an increase of about 6%. The Bookmakers Committee will, of course, be resistant to these proposals and will point out how regressive they would be if the Secretary of State were to accept them. Our large corporate members as well as the trade associations will also register their concerns; however, our independent members may also want to do so by explaining to their MPs the effect of these proposals on their own businesses. Should you wish to do so, the appropriate course of action is to visit your MP at his/her constituency surgery and/or e mail or write as soon as possible. If you don t know the correct e mail address for your MP, the details will be on his or her website but the address is likely to be surname + first as in the example for Jeremy Hunt below (huntj@parliament.uk) In addition to their constituency offices, the postal address for backbench MPs is: Name of your MP House of Commons London SW1A 0AA 2

3 You may also want to copy your correspondence to the Secretary of State at DCMS: Rt Hon Jeremy Hunt MP Secretary of State Department of Culture, Media & Sport 2 4 Cockspur Street London SW1Y 5DH e mail: huntj@parliament.uk and to Mark Prisk MP, who is the minister with responsibility for small businesses: Mark Prisk MP Minister for Business and Enterprise Department for Business, Innovation & Skills 1 Victoria Street London SW1H 0ET e:mail: mark.prisk@bis.gsi.gov.uk We expect the announcement to occur in mid January 2011 so, if you want your voice heard, now is the time to say something. 3

4 Integrity of sports betting You will no doubt have read or heard about the red card incident which occurred during the Motherwell/Hearts game in the Scottish Premier League on Tuesday, 14th December. The initial details emerged at almost exactly the same time as the ABB sent out its alert, following a report from one of our members of an unusual bet having been placed on the market being made on the possibilities of a sending off in this game. Although this was less than ideal from an investigatory point of view, the wide publicity which the incident attracted did serve as reminder to the public and the sports that bookmakers are on the lookout for unusual or suspicious bets and work closely with their regulators and the relevant sports governing bodies to preserve the highest levels of sports betting integrity. This is a good message to send and we encourage all members and their staffs to keep a watchful eye out for anything which seems out of the ordinary and to report it accordingly, remembering also the obligations on UK licensed bookmakers which exist under the Licensing Conditions to report any suspicious betting activity to the Sports Betting Integrity Unit at the Gambling Commission. If your business is regulated outside the United Kingdom, it is also likely that a similar obligation exists to your particular regulatory authority. ABB in the media spotlight The ABB is working hard to make sure the industry s voice is heard by decision makers, journalists and opinion formers in Westminster and local government. In recent months we have generated an unprecedented level of print, broadcast and online media coverage for our messages. CEO Patrick Nixon has been quoted making the case for the industry in the Telegraph, Guardian, Daily Mail, Times, Observer, Financial Times and Scottish Sun. Patrick has also featured on BBC Radio 4 s Today, BBC Radio 5 Live, BBC 1 s The Politics Show and Sky TV s influential business programme Jeff Randall Live. Senior Executive Tom Kenny has been quoted in the Independent and Mail on Sunday along with innumerable local newspapers, and has featured on BBC local radio, BBC TV s Inside out London programme as well as STV in Scotland. Media coverage has tended to focus on 2 issues. Firstly our on going disagreement with representatives of the horseracing industry about the level of Levy which racing genuinely needs and which bookmakers can afford to pay. Secondly the issue of perceived clustering of LBOs on certain high streets, which has irked a number of community activists. We have clear positions on both issues (see below) and have grasped every opportunity to put the industry s side of the argument in the media. Patrick and Tom also responded to a blizzard of media enquiries which followed the discovery of unusual betting patterns on the Scottish Premier League match between Motherwell and Hearts on 14 th December (see above). 4

5 Punters unclaimed winnings to fund grass roots sport The ABB s autumn newsletter likened Lib Dem MP Don Foster to Oliver Twist. Mr Foster continues to call for more with his proposal that bookmakers pay punters unclaimed winnings into a fund that will support grass roots sports. Even if we accepted the notion that unclaimed winnings should belong to the local ping pong club (they don t, they belong to winning punters) anyone familiar with the everyday hurly burly of betting shop operations and the limitations of our IT systems knows what a nightmare it would be to try to account for them, and what relatively trivial sums might be collected in practice. The ABB has engaged as helpfully as possible with Mr Foster and his team, in the expectation that the weaknesses in his proposal will become self evident to the government in due course. Mr Foster submitted his report to John Penrose MP, Minister for Tourism & Heritage at the DCMS, on 16 th December. We have been told to expect a response from the Minister in the New Year and the ABB will be keeping members informed via the newsletter and online at Too many betting shops on the high street? Local activists and some politicians (including David Lammy MP) have been campaigning against what they describe as clustering of betting shops on certain high streets, including those in Mr Lammy s constituency of Tottenham & Haringey. The ABB has been at the forefront of the industry s campaign to dispel the myth that bookmakers are deliberately targeting deprived areas and that local communities are powerless to question or prevent LBOs opening in new locations. On 10 th November, Patrick Nixon spoke about this at a public meeting convened by Haringey Council which continued long into the evening. Patrick explained that the Gambling Act 2005 had removed the demand test (a change which the ABB had opposed) and that betting shop operators now had more freedom to locate in higher footfall locations. It was therefore no surprise that more betting shops had opened on the high street. He pointed out that the total number of LBOs had remained about the same, with shops in lower footfall locations having closed. The fact is that local residents, businesses and the local authority have 2 opportunities to object to a new betting shop being opened. Firstly an objection can be lodged during the betting premises licence application process which is administered by the local authority. Secondly the local authority can issue an Article 4 Direction under the Planning Act, which relates to change of use. This issue was covered by BBC TV s Inside Out London programme on 6 th December. The programme majored on the possibility that a celebrated record shop called Body Music was threatened with closure and conversion into a Paddy Power betting shop. What the programme failed to acknowledge was that by the time it was broadcast the proposed change of use had been rejected by the local authority! 5

6 Calling independent bookmakers in Scotland your help needed A meeting is to be held at the Quality Hotel, Edinburgh airport on Wednesday 19 th January 2011, the objective of which is to discuss betting shop safety and security. Representatives of the big 5 bookmakers, police, trades unions, Scottish Centre for Healthy Working Lives and ABB are expected to attend. However we need to make sure that smaller independent bookmakers are also represented either in person or by means of a prior discussion with the ABB s Tom Kenny. Experience teaches us that this type of meeting tends to overlook the particular needs and priorities of smaller businesses, so please take this opportunity to make your voice heard. Please contact Tom Kenny if you are an independent bookmaker in Scotland able to help: E: tomkenny@abb.uk.com T: M: Gambling Commission consultation on B3 gaming machines The DCMS is holding a consultation on B3 gaming machines which closes on 25th January. The proposals are to increase the maximum stake from 1 to 2, and / or to increase the number of B3 gaming machines permitted in each AGC and bingo club to 20% of the premises total number of machines. The ABB proposes to support both proposals on the grounds that they would help to maintain the commercial viability of softer gambling premises, which is under considerable pressure. The ready availability of softer alternatives makes LBOs entitlement to offer a hard gambling environment (including B2s) easier to defend and develop. To access the consultation document please cut and paste the following into your browser: Government to reform tax on gaming machines On 9 December 2010 the Government confirmed its intention to proceed with reforms to the taxation of gaming machines. The Government intends to introduce legislation in the Finance Bill 2011 for a gross profits tax under the name Machine Games Duty (MGD). MGD will replace both Amusement Machine License Duty (AMLD) where chargeable, and VAT on net takings. MGD will be a tax on the income from the playing of prize games on machines. 6

7 It is planned that the draft legislation will be published for a short consultation period in January There will be a period of at least one year from the date on which the Finance Bill 2011 receives Royal Assent before the new tax is implemented. The ABB is already working with relevant officials at HM Treasury lobbying for a sensible approach to implementation at an affordable rate. Reminder: Betview Awards 2011 As we announced in the autumn newsletter, the Betview Awards 2011 will take place on 29th March 2011 at the Grovesnor House Hotel on London s Park Lane. The Betview Awards recognise and reward our industry s outstanding achievement, ingenuity, innovation and sheer hard work across the UK and Ireland. You can support the Betview Awards 2011 by attending and helping to celebrate the best in the business with an amazing night of food, drink and entertainment. Individual tickets are available at 150 (ex VAT) per person or tables of 10 are available at 1500 (ex VAT) per table. To make a booking or find out more contact the Betview Awards team: T: E: betviewawards@betviewmagazine.com 7

8 ADVERTISEMENT For professional legal advice on all matters relating to betting, the ABB suggests members contact Caroline Matthews at Trethowans Solicitors ADVERTISEMENT 8

9 ABB members only discounts The following suppliers offer discounts to ABB members. Suppliers are not endorsed by the ABB, and members trade with them at their own risk. Key TV Systems 10% discount or free TV with any order exceeding Contact Dermot Butler on A Bet A Technology 10% off of an outright software purchase or 10% off software on the first year of rental Contact Jason Hardman on SSL & Diamond Signs 10% discount on invoice value Contact Ian McClair on specialists.co.uk diino (remote data back up) 25% discount Visit website and enter ABBOOK10 in the 'campaign code' box 9

10 Published by: Association of British Bookmakers (ABB) Warwick House 25 Buckingham Palace Road London SW1W 0PP Telephone: