Sport is made for betting

Gee, never would have seen this coming - the Irish government wants to introduce a 2% tax on all wagers with firms licensed in Ireland. Very few of their competitors will have to pay it, so why should they for their online and telephone operations? So off to Gibraltar they will probably go.... Paddy Power considers moving operations abroad Paddy Power will consider moving its internet and phone betting operations abroad if the government goes ahead with plans for a 2 per cent tax on all bets, according to the company’s chief executive. Patrick Kennedy said that a new tax regime would unfairly disadvantage Paddy Power, which employs around 800 people in its internet and phone operations in Tallaght in Dublin. Most of its online competitors did not have a significant presence in Ireland and took a ‘‘catch-me-if-you-can approach’’ to regulation, so they would be difficult to tax, he said. ‘‘If we face a substantial tax, my board would - and should - turn around and say: at what s...

Interesting discussion in today's Racing Post about 'plagues' of betting shops in city centres. Councils and residents are getting sick of them, the big bookies love them and can't get enough retail shops. Why I hear you ask? Racing's share of the gambling pound is ever decreasing, more and more punters are betting online and you rarely see anyone in the betting shops that already exist... except standing around the FOBTs (Fixed Odds Betting Terminals) or glorified slot machines. And that's what brings in the profits for the bookies. Racing, football and any other sport they show in the shops are mere sideshow value to the evil machines. Every licensed betting shop in the UK can have four FOBTs (little wonder Irish betting shops are struggling in comparison without them), which have much higher prize limits than pub fruit machines. Sources at the biggest High St firms have told me that they consistently make up to £1m per DAY across their network of outlets ...

Sportsbet, the original sports bookmaker in Australia, was set up in the 1980s by a roguish chap called Bryan Clark. He eventually sold it around 2001 to a firm with suspicious overseas betting links, and pressrue from regulators and bank managers forced them to sell. Enter Matthew Tripp with a $250k cheque in 2005. Six years later and he's rolling in it. Tripp's big punt on Sportsbet pays off WHEN Matthew Tripp paid $250,000 for Darwin-based bookmaker Sportsbet in 2005, it was on the edge of bankruptcy and had just eight staff. Just six years later, Tripp is close to finalising a sale to Irish bookmaker Paddy Power in a deal that values the company at $338 million and will net him about $50m. "We had one IT guy and a couple of phone operators and that was Sportsbet," Tripp says of the business he took over. Since then, the company has grown to employ more than 250 staff, some 40 of whom are based in the Northern Territory, where bets must be struck under th...

After initially buying a majority share of leading Australian bookmaker Sportsbet, the successful Irish firm has decided to acquire the remaining shares and take full control. Paddy Power to buy out Sportsbet Irish bookmaker Paddy Power has agreed to buy the remaining shares in Australian betting company Sportsbet, giving it full control of the group. Paddy Power will pay 132.6m Australian dollars ($133m; £86.2m) for the 39.2% stake that it does not already own. Paddy Power first bought 51% of Sportsbet in 2009. The overall buyout, which increases its exposure to online betting in Australia, is expected to complete by the end of February 2011. . . Patrick Kennedy, Paddy Power's chief executive, described Sportsbet as "a cracking business".

Sportingbet started the trend by purchasing No1 Betting Shop from Vanuatu and then moving them to Darwin, Paddy Power got into the act by snapping up Sportsbet and IAS, and then Centrebet started preening their feathers in public trying to woo as many prospective buyers as they could. Anecdotal evidence suggests that several other Australian firms are available to buy, as most of the original owners are approaching retirement age. BWin, William Hill, Ladbrokes, 888 and others were mentioned as prospective suitors for Centrebet but it all seems to have gone very quiet lately. BWin have tied up with Party Gaming which should keep them busy plus neither are shy about attracting Australian customers despite laws against online casino and poker operations; William Hill's online division is 29% owned by Playtech, another company with fingers in many bingo, casino and poker pies which reach Australia either organically or by targetted marketing; Ladbrokes are still involved in the bid f...

A lot of this is bookies boosting their own PR but obviously there is some substance behind it. Any time someone knows the answer before the official announcements are made (Academy Awards, Big Brother etc), then there is always a risk of insider trading. Montgomerie 'on guard' to ensure no Ryder Cup betting coup Gambling fears prompts Europe captain to be wary of telling wildcard contenders decision ahead of announcement. As if Colin Montgomerie hasn't enough to think about in this run-up to making his three picks, the Ryder Cup captain must also be wary of a betting scam staged by "unscrupulous insiders". A source inside the European Tour yesterday revealed the Scot will be "on his guard" to ensure his selections do not leak out before his team announcement here on Sunday night. Montgomerie has said he plans to speak to all the wild-card contenders before the official unveiling, meaning many would inevitably learn of his decision while ...

I'm glad this happened because if the wowsers got this one kicked off TV, then humour would never be allowed in advertising ever again. ASA dismisses Paddy Power ad complaints The UK Advertising Standards Authority (ASA) has cleared a TV advertisement for Irish bookmaker Paddy Power that showed a game of football being played between two teams of blind men which ended with a cat being kicked into a tree, despite more than 1,000 complaints from viewers - one of the highest ever recorded by the ASA. The TV ad showed a game of football being played by two teams of blindfolded men, using a ball which had a bell inside it. One player kicked the ball off the pitch and a cat, wearing a bell on its collar, ran on to the pitch. The referee was about to blow his whistle, when one of the men was shown taking a kick and a thud and a loud cat's meow was then heard - although no contact between the player and the cat was shown on screen (and the cat was shown to be fine afterwards, albeit hi...

Not a good week for bookies at Royal Ascot, with favourites and plunge horses landing the chocolates all festival. With only six horses winning at 10/1 or bigger - a very low number considering the size of many of the fields - there was no respite at all for bookies. Only Rite of Passage winning the Gold Cup on Thursday at 20/1 was a surprise result in any of the big races. "Punters have never had it so good. Every single day they've given us a right royal bashing," said Ladbrokes' David Williams. "Thank goodness for the England football team. They are our only salvation in a week of misery for the bookies." "It has been carnage, no other word for it," said William Hill spokesman David Hood. "What is it about Ascot? For some bookies the five consecutive losing days of 2010 will make the infamous Dettori day look like a round of drinks. Totesport told a similar story, with spokesman George Primarolo adding: "Punters have clawed back their...

So the French National Assembly have passed the online gambling bill with the remaining procedures before it is implemented merely a formality. But what is actually going to achieve for French punters and foreign companies? It will be slow progress. Those French punters already playing with offshore firms will continue to bet where they do, simply because they will be able to get a better deal. Firms obtaining a French licence may be able to advertise locally, but if the proposed level of taxation and possible sports levies are passed, then firms will have to pass that cost onto consumers. If they don't, it will be a major cost against their bottom line. Firms such as Ladbrokes and William Hill are expected to take a patient approach, expecting the regulations to gradually become more competitive, as is the case in Italy. Companies entering the French market will not be allowed to cover horse racing, one of the most attractive parts of the French betting market, due to government p...

It may not be Bwin after all, as I predicted a few weeks ago, but the news is out in Australia that several different UK suitors are sniffing around the pioneer of online sports betting, Centrebet. Centrebet rockets on takeover talks SHARE investors piled into Centrebet yesterday as three British gaming companies loomed as potential bidders to take over the listed online wagering and gaming company. ... Analysts said Centrebet -- which is 60 per cent owned by the family of its chief executive, Con Kafataris -- was a good fit for foreign companies wanting to get a stake in the Australian market ahead of expected deregulation. British operators Ladbrokes, William Hill and Sportingbet are the reported overseas suitors for Centrebet and some analysts believe the takeover price could reach $2 a share. The Productivity Commission recently recommended a swag of reforms thought to be favourable for growth in online sportsbooks and casinos in Australia. The Australian market is undergoing major...

Haven't got the motivation for a long post, so here are some brief items about what's going on in the world.... Much of my traffic comes from other bloggers - do you fancy getting a free makeover for your blog? Most of us don't have the design skills to do it, but this guy does, and he has some brilliant culinary tips as well - ZestyCook Mark Davies, MD and one of the originals at Betfair, has a laugh about how bookie CEOs just don't get it and keep on giving Betfair free publicity at every opportunity. The Tasmanian government have reacted to Betfair Aus's idle threats about moving interstate (or was it rumours of other govts luring them) by offering more tax breaks to sustain employment in the Apple Isle. Leading Australian jockey Danny Nikolic could be deep in the brown stuff if the latest stewards investigation into suspicious betting activities on Betfair uncovers any concrete evidence. I'm a big fan of Nikolic, there is no Australian jockey I'd rath...

Could Con Kafataris and family, majority owners of Centrebet, be ready to sell up and get out of the bookmaking business? This report seems to think so: Centrebet keen to join forces BOOKMAKER Centrebet has confirmed it is looking to buy a competitor or be taken over after its surging share price drew a speeding ticket from the stock exchange. The ASX yesterday asked Centrebet to explain a 21 per cent increase in its share price -- from $1.32 at close of trade last Wednesday to a high of $1.60 during trade yesterday. ... Several potential buyers are reported to be circling Centrebet, with controlling shareholders the Kafataris family said to be willing to sell their 60 per cent stake if the price is right. ... Centrebet has reportedly been eyeing some of the industry's smaller players, while global operator Ladbrokes is said have considered making a bid for Centrebet. Centrebet shares closed yesterday up 8.57 per cent at $1.54. Interesting developments. Centrebet can't get a lo...

If you're going on holidays or booking flights well in advance but worried about whether that airline will still be there months later, then this might be for you... Paddy Power have reopened their next airline to go bankrupt market. I don't see an issue with this, it's the reality of the modern world, and those who criticise it are generally those under the most pressure anyway (see article re Flyglobespan). Of course there's the remote chance of an airline crash causing a bankruptcy, but that's pretty unrealistic, and very unlikely the small stakes you would be allowed to bet on this market would be big enough incentive to do evil... Don't denounce Paddy's powers of deduction Paddy Power looks set to ruffle a few feathers once again, after re-opening its book on which airline will be the next to go bust. The topic was very popular in the wake of the collapse of XL Leisure, the travel company, last year, and the demise of Flyglobespan, the Scottish airline,...

Irish betting giant Paddy Power has struck gold with a five-year partnership with French sports betting duopoly PMU. New Paddy Power B2B arm signs landmark deal with France's PMU PADDY POWER HAS MADE a major play for the French market, signing a five-year deal with French duopoly operator Pari Mutuel Urbain (PMU), the largest single operator in Europe, via a new Paddy Power business-to-business (B2B) division. ... PMU chief executive and chairman Philippe Germond today said: "This partnership is going to enable PMU to offer sporting bets online under its own brand and retain direct management of its client database. Paddy Power will provide us with its expertise in sports betting. Through this partnership PMU is given the means to be ready for the opening of the online betting market in France next year." Paddy Power's traders will set PMU odds, set risk parameters for each event, bet type and customer and manage PMU’s online promotions from Dublin. Chances are they w...

Of all the markets that could as bad taste, surely this takes the cake. Paddy Power were taking bets on which Anfield footballer would be burgled next. As if you need to provide incentives for Scouser criminals! Liverpool condemn Paddy Power bets on player burglaries After furious protests from fans and Liverpool FC, Paddy Power initially defended the bets as "tongue-in-cheek fun", but the online bookmaker has now agreed to suspend betting. On Wednesday a Liverpool spokesperson described the bookmaker's stunt as "completely tasteless and disgraceful." Bear in mind here, that Paddy Power were the official betting partner of Liverpool FC as well. Until today that is, when their agreement expires with a sour conclusion. It is believed that Betfair will be taking over 'official betting partner' status, adding to their blue-chip partners of Barcelona and Manchester United, all signed this season.

Rumours abound this morning about the demise of RacingOdds (.com.au), the bookmaking arm of leviathan, or should it be big-mouth, Australian punter Sean Bartholomew. The website has disappeared (although other Aus firms have recently been subject to DDoS attacks and are still having issues), but there have been grave doubts about the longevity of this business for a while, with the proprietor believed to have been looking for a buyer for some time. If it is just hacker problems, then it's poor publicity for the company not to immediately send out emails to all clients reassuring them the firm is still operating, as Sportingbet and Sportsbet did last month. Punter funds will be safe - that's the benefit of the tight licensing laws in Australia. Each bookmaker puts up a hefty security bond with their licensing authority, to be distributed to punters in the event of financial insolvency. It is quite possible that Bartholomew has simply given up on an unviable business and clos...

Paddy Power decided to pay out on Tiger Woods winning the US PGA at the halfway stage. But nobody told Y.E.Yang about it. He played brilliantly under the pressure of playing in the last group with Tiger, and broke Woods' record of 14 majors won from leading/co-leading into the last round. The PR stunt is estimated to cost the Irish bookmaker over £1 million, but the worldwide publicity they'll get out of it will more than make up for it, just like when local bookmaker Fred Done paid out early on Man Utd winning the title back in the late 90s. He got so much PR out of it, his local business is now a massive bookmaking firm with shops throughout the UK.

William Hill - soon to channel all online business through Gibraltar Ladbrokes - soon to channel all online business through Gibraltar BetFred - online business goes through Gibraltar Stan James - all business goes through Gibraltar Victor Chandler - all business goes through Gibraltar Paddy Power - online business goes through the Isle of Man Boylesports - online business goes through the Isle of Man Blue Square - all business goes through Alderney Sportingbet - all business goes through Alderney SkyBet - all business goes through Alderney Betfair - all non-UK and non-exchange business goes through Malta Jennings - online business goes through Malta Totesport - have no choice, they are an organization created by the UK government Bet365 - online sports betting is licensed in the UK, other products through Malta If I have any of these wrong, please feel free to contact me and clarify. So the headlines are deservedly hard on Hills and Ladbrokes, but they're not Robinson Crusoe in th...

Noticed all the advertising from bookmakers lately about "Best Price Guaranteed"? What a load of rubbish. There are only two points of comparison - when you place your bet, and the SP. So linguistically it's wrong, as it can only the better of two, not best. But more importantly, what happens if the odds go 2/1 (your bet) 5/2 9/4 (SP)? Do you get the 'best odds' then? No, you'd get paid at SP. It's a Starting Price guarantee, nothing more. True 'best odds' is what the Aussies call 'Top Fluc' - the best official price recored in the betting ring. The Advertising Standards Authority should pull Paddy Power, William Hill and any other bookmaker trying it on, up on this - it's just another attempt by bookies to pull the wool over punters' eyes.

Paddy Power haven't taken long to put their stamp on the Australian market. Just a couple of weeks after buying 51% of the Matthew Tripp-owned Sportsbet, they have now launched a bid to takeover Mark Read's IASBet. Read's company have been on the market for months, most recently with a hostile takeover bid rejected from Centrebet. 'Chopper' is getting old and wants to enjoy his later years rather than watching his sons piss all his money up against the wall, which isn't as far-fetched as it seems. The IAS board have approved the deal of 60c per share (last traded at 50c, and was trading at half that price at the start of the year) and unaminously recommend it to all shareholders. Read the IAS announcement to the ASX here The Australian wagering landscape is changing rapidly and Paddy Power have well and truly gotten the jump on any of their UK/Irish counterparts.