The times they are a-changing

Jonathan Barker

Not content with forcing most on-course bookies out of work, ripping off punters blindly with roundings and those soul-destroying poker machines, TABCorp are now engaging in a giant game of bluff with the Victorian and NSW governments in another quest of greed. Mistakenly believing that corporate bookmakers steal their business rather than (a) promote the sport and wagering better and (b) layoff vast amounts of money through the totes, TABCorp have been considering purchasing a NT-based sportsbook. The press got hold of them looking closely at the Matt Tripp-run Sportsbet operation in Darwin, but rumours abound that they have been engaging in due diligence of other businesses including IAS (the reason for their price surge late last year) and others for several months now.

BetChoice spokesman Mark Morrissey, one of the most genuine men in the industry, was quoted as saying he hoped they did buy Sportsbet for $100 million as they'd be paying enormously over the odds. And as per usual he was spot on. That would be the biggest over-valuation of a sportsbook since IAS went public in 1999. A close source told me the story of Mark Read handing out shares to a number of peers who had helped him go from rails bookie to a corporate operation. The IPO was oversubscribed, leading to hopes that the $2 float price would be the start of something big. But it wasn't.... The former board member, a leading rails bookmaker in the Melbourne ring, was advised by his stockbroker that the shares were massively overpriced so he sold the lot within days of the float, starting the freefall. The price has languished below 50c per share for most of the eight years since. Analysts use various equations to determine the value of companies but whichever way you look at it, $100 million for Sportsbet sounds several times over priced.

On the other hand, TABCorp's actions are probably good for the entire industry. In tandem with Betfair's High Court case with the WA Government (verdict expected in May 2008), the wagering landscape in Australia is likely to change markedly in the next couple of years.

If as expected, the Betfair vs WA case goes in favour of the revolutionary betting exchange, states will no longer be able to restrict services or advertising only to companies licensed within their state. The current laws are a farce anyway with Bill Hurley's sportsbook able to advertise nationally on TV but any bookmaker from outside of NSW who tries the same tactic will soon be chased by the anal-retentive NSW Dept of Gaming and Racing. It is ridiculous that national formguides have to print different editions just because of advertising laws, or more correctly, regional interpretations of them.

TABCorp and UniTAB are now publicly-listed companies with mission statements of just one thing - milk punters for every cent possible. UniTAB are now part of the Tattersall's conglomerate, a company tarnished in a recent Victorian parliamentary gambling licence inquiry, alleging that a former Tattersalls chief executive had said in 2002 that "he was going to ... screw the problem gamblers for as long as he could until he was forced to stop by government legislation".

Is it fair that they still have legislated monopolies on off-course betting premises? Have the TABs done anything to educate punters about sensible gambling? Preying on drunk punters picking random numbers on dog races on pay day hardly seems that way. And controlling the racing media only leads to a dumbing down of punters as few are able to grasp the concept of value, the percentages of a market or how to assess a price themselves. Merely suggesting the radical idea of ignoring a race where you're taking massive unders on a favourite has seen at least one SkyChannel presenter sacked.

In all honesty, I believe TABCorp are unlikely to buy a corporate sportsbook, they just want to force the government's hand, either to ban or penalise them heavily or to deregulate the market completely to allow the TABs to start betting on non-sporting contests such as politics, reality TV and awards ceremonies.

The battle which isn't in the hand of state governments or anybody that TABCorp can wave their money in front of is the the battle to allow in-play betting. A media statement late last year marked the start of a campaign to lobby the Federal government to repeal the IGA, or more specifically the ban on in-play betting online. We all know it's a farce of a law, brought in only to appease the anti-gambling crusaders who have serious and justified issues about the effect of poker machines and casinos on society. State govts are now so bereft of money-earning assets that gambling taxes and speed camera revenue keep them afloat, not one of them can afford to outlaw them or slash numbers severely. The Federal Govt took the easy option, banning something which the technology-deficient TABs were not capable of doing back in 2001, so the revenue loss was negligible. It's actually questionable whether the TABs will be able to keep up with it in 2008 but at least with the NSW sports betting staff rather than the clapped-out old trots bookies who started TAB Sportsbet in Melbourne, they'll be able to handle a decent bet and not panic at the potential risk of three grand.

Their push will be well supported by other Australian bookmakers. It is a joke that you could bet on the Australian Open final in-running with up to a dozen bookmakers online, yet not one on home soil. But it's not just international sport you can wager on, foreign bookies are starting to take on AFL, rugby league and other local sport to expand their range. AFL, NRL and even the A-League are now broadcast live into the UK. Bet365 and Bwin now employ Aus-based staff to trade live matches, ignoring the ban on in-play betting because they have no interest in chasing an Australian licence or listening to local authorities. So if you'd rather click a mouse than pick up a phone to place a bet, you have options once more.

© 2008 Punting Ace.com