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There is nobody appointed to the NRL’s Independent Commission who has an “expert” background in sport’s betting, a major red flag for the game given the embarrassing events of the last week, and a soon to be announced High Court ruling (Racing NSW V Sportsbet & Racing NSW v Betfair) that will impact product fees.
The fact is to comprehend the intimacies of sports betting and know who the good, the bad and the ugly are is a precise art and few people have this required resume.
This was underlined on the weekend when respected journo Nick Walshaw wrote the article There’s millions of reasons why rugby league needs a watchdog to fix this mess. The fact that two points in this article are so far off the mark points to the naivety about the subject. If someone like Walshaw cannot understand then what hope has the rank and file fan – or the game?
Nick went into print to say that: “The Greatest Game Of All accounts for roughly 30 per cent – or almost a third” of the $5 billion Australian bookies turn over annually in sports betting.
I will assume when he says “sports betting” he also includes horse racing so I will not question the $5 billion, but let’s get the facts right about market share.
Horse racing accounts for approximately 80% of bookies turnover and rugby league about 3%. The Rugby League percentage is much higher with illegal bookies.
Racing NSW are before the courts so they can force bookies to pay 1.5% on turnover as opposed to 10% of Gross profits. If successful, the entire bookies brand will not be as attractive and many punters will move away to pokies, casinos and the numerous interactive games available on iPhones and iPads.
The already huge illegal black market will grow substantially and many bookies will be forced to consider setting up stakes overseas at government friendly places like Vanuatu. The big sports bookies outside of Australia like Ladbrokes, William Hill, bWin and Pinnacle will inherit new punters as their product will be more attractive as they are not subjected to a massive 1.5% tax on turnover.
The world’s biggest betting exchange Betfair will be forced to close down their local subsidiary as their model is based on turnover. They only earn commission from their punters if they win and it is possible for them to turnover millions and break even, but the proposed tax would have them pay 1.5% on the million that was turned over.
There is no doubt that the corporate bookies have been great for Australian sport not only by introducing thousands of people to sport through their creative marketing, but by giving punters an alternative to the TAB who have had a monopoly for over 40 years.
Racing Victoria is by far the best and most innovative racing state in the country and they have adopted a tax on profit strategy which has seen them go from strength to strength over the last ten years while the other states have gone backwards.
It is hoped that the IC get the right advice and do not kill off the golden goose.
The NRL recruited the Chairman of Racing Stewards Ray Murrihy to assist them with the high profile Cowboys v Bulldogs attempted betting sting, but the Magistrate pointed out that a person who specialises in horse racing could not be an expert in sports betting. The problem is that the NRL do have a specialist in sports betting, especially NRL, and they had Mr. Murrihy’s number. It was an easy defence and the accused walked, but the game remains stained.
Not only does the IC have to get their pitch to the bookies right, but they must have a mechanism available to them for the correct educated information. The NRL were correct to say no to a $10m pitch for a National Watchdog which would have a “betting steward” at every ground. Nothing happens at the ground and the NRL, while slow to move, have got this one right.
The IC comprises two ex footy players, an advertiser, a number cruncher, an Indigenous leader, a few business execs and a lady who grows fruit.
Let us all agree with Nick Walshaw that rugby league does need a watchdog to fix this mess, and that the IC noted the disappointing results of last week and they get it right next time – and there WILL be a next time.
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