BETTING INDUSTRY

Don’t forget to gamble responsibly..

Watching the Oikball the other night, sitting next to my Sons, I observed West Ham sporting their snappy outfits pressed and laundered by Betway. Newcastle were sponsored by those nice people that lend money – Wonga. The stadia was adorned with Betway bunting. The adverts during the game were predominately sponsored by companies claiming their users ‘gambled responsibly’ – Especially Ray Winstone, who I doubt has had a tenner on anything in his life. But it’s great viewing for children. Honestly

If you like to watch sport, you’ll get used to this. If you like your late night telly – you know – stop camera action from the police force in Reading, the best looking penis, or shows about cars with fabulous emission ratings, you’ll also have become used to proliferation of gambling adverts. Some of whom sound almost heroic.
Of course we’re encouraged to ‘gamble responsibly’ by the yellow sign that tells us all (subliminaly) that when we’ve had enough FUN FUN FUN – we must learn to stop.
In other words, when you’ve run out of cash, maxed out every credit card you’ve got, kicked the fruit machine to bits, mortgaged your home to the hilt, turned your Missus into a Lesbian, and of course made the BBC documentary on ‘Britain At The Bookies’ – the home for all genuine sad acts, – then you’ll have truly arrived in the worlds of Bet365 and William Hill
If you’re in the minority, like me, the Mary Whitehouse types, you might pause for a moment and wonder what effect this siege of advertising has on our phsyche- not to mention those of our children. I mean we stop cigarette adverts, so why is it permissable that EVERY ad break tells us we have to spin to win? And sometimes more than once a break?

And of course, as every independent bookmaker and decent minded citizen knows- The UK’s ‘watchdog’ – the Gambling Commission, with all its fees and hype – does absolutely nothing. Nothing at all, to justify its very existence. ‘To protect the vulnerable.’

The ‘vulnerable’in this case appear to be online gaming giants

Little known- but worth mentioning, back in April I challenged Paddy Power on promotions headlined with the banner ‘money back’ on certain wagers. This was a headline grabber and peddled widely in the press. I invited them to desist from encouraging customers to wager under the entirely false assumption certain stakes would be refunded, when in actuality the customers were being refunded in ‘free bet stakes’. Of course the two are entirely different offers

Paddy Power declined to remove promotions with said headlines.

I challenged this with the ASA as misleading and wholly false. The challenge was upheld and they were ordered by the authority to cease free bet promotions with the headlines money back.

Paddy Power were not alone – Many firms were doing exactly the same, and in direct contravention to an earlier ASA ruling against Betfair for the same type of claims. These firms were directly contravening an earlier ruling

The question is this. Why did the Gambling Commission, the custodian of fair gambling and the vulnerable, not step in at any stage to order such promotions to be withdrawn? Is this agency actively complicit in protecting such firms from basic licensing conditions? Were said firms not in fact contravening several codes in licensing practices with such claims?

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I think I’m a fair minded bookie. I try to give my customers a better class of service and compete on odds with the high street. And as a bookie you might expect me to side with my own. I mean I do have a gambling site. But I don’t bombard people with adverts at 2am about it, and if I were to shove it on my occasional trips to Channel 4, where I upset the establishment for your viewing entertainment, I’d get my backside kicked off pronto.
I’m deeply uncomfortable with what goes on. I feel for those who are suffering. I favour a UK wide ban on anyone who self excludes – not backed by the Gambling Commission. I disagree with the use of credit cards to fund gambling. I disagree with Gibraltar outfits shoving their ‘online’ products to Racing. Although I scoff at the BHA’s lack of backbone in any department, all sound bytes.
I hear a lot of complaints from punters, some of whom could accurately be described as ‘bonus junkies.’ The new breed of professionals who scour the bookie websites for top of the market hits. I have some sympathy with the bookie view that a lot of those types of customer are worthless to us in business.
BUT. If Paddy Power are to offer even money each of two in a Rugby match, with just the outside chance of a handicap ‘tie’ to save them, if Skybet are to offer a loss leading 6 places on the Cambridgeshire, if Coral are to offer 6/1 each of 2 in a tennis match to new customers only – and all of them make money, then I know they’re not getting fat on those sports, especially the increasingly worthless racing product.
So they’re fattening on gaming. – NAP

Bet365 seem totally content to treat their customers with err, uhm contempt, by offering a customer, their customers, a £1 wager. They don’t care about the PR implications of being described by the same as ‘total frauds’ for describing themselves as ‘Bookmakers.’ Because they’re global. And for every clued up punter they treat so poorly over here, there are perhaps 5% of these new accounts they dig up that make the whole exercise of pushing for new business worthwhile. And deeply profitable. One can admire their bottom line, if not their methodology
Should we feel sympathy for those professional types who complain so vociferously? Clearly we care about the genuine punters who fluke a 16/1 winner and find their next wager batted down to 36p. But the pros?
For myself, I never keep a customer on if I’m not prepared to lay him or her a bet to lose at least £50 as a minimum, and remember that’s my minimum, not the average of what we’re prepared to lay. But that’s because I have standards. I may not like what some customers get up to, but if I do, I close them down with a fair explanation of why it’s been done. We do not hide behind ‘trading decisions’
But the big companies are the ones peddling the prices and offers. They’re continuously driving for new gaming custom and fully prepared to be ‘best odds guaranteed’ or ‘best prices for all Channel 4 races’ – even if it guarantees a loss. It’s a bit like the supermarkets claiming they make nothing from milk, because they choose to sell it so cheap to get the customers into the stores in the first place. They don’t care if the dairy farmer ends up out of business.

These ‘companies’ have created the bonus and offer culture. The free bet. I heard recently Coral offering a guarantee to lay any horse to lose a decent amount, I’m uncertain if it was Coral’s diminutive UK division or their Gibraltar arm making the offer, because its hardly clear who you’re wagering with when you call up ‘Coral.co.uk’ . They’re not prepared to offer it online, nor even on their phones. Once again a headling grabbing offer that turns out not quite as good as it sounds. But in a way I support any move towards a sensible lay to lose – I’ve always advocated £100 as a startpoint. Coral stand alone in proferring any sort of guarantee to date, even if it’s only in their shops.
But they’re a multi million pound outfit, still un prepared to offer their advertised odds to all of their customers. A bit like Waitrose saying it’s 50p for that Cadbury’s flake, but not to everyone. Isn’t this sort of thing a trading standards issue? And of course pretty much all of the other outfits are exactly the same. Complaints litter about what they don’t do, far more than what they do. Now why is that?
So the next time you think about grabbing yourself a ‘free bet’ for a tenner. Ponder awhile. If you can afford not to support firms who behave with such overall disdain for large sections of their customers, why would you support them with your business? If you want change, you have to be prepared to boycott those firms you consider place little real value on loyalty.
And should they be mandated, as they are in parts of Australia, to lay a fair bet to any price they offer?
Well the Gambling Commission don’t agree with you, but I most certainly do.

Bing Bong – Pay Pay – the Bookies view of Ascot..

Anyone that describes racing as dull has to be an astronaut. If the highlight for your average rocket man involves periods of sheer terror sitting on tonnes of high explosive jet fuel, punctuated by moments spent trying to work out the on board toilet then I suppose racing falls somewhere between the two. Racing provides so much more gripping entertainment. My week started with ten minutes of fame on Channel 4. The director in my ear telling me to ‘pipe down’ – this is fairly standard. Two large security guards stand off camera ready to drag me off set.

So we chat about Gosden Horn, sitting in the sun, with forecast temperatures of 18 degrees. Lucky asks if I feel the greatest horse on the planet will take his chance. Now, I’m supposed to have done my research, which includes looking at this horse’s form.. – Unless I’m mistaken, the brute beat none other than Storm The Stars at Nottingham on ground described as good to soft- soft in places. Add the paltry 700 grand on offer, the thousands who had paid to see him, the kudos in doing the Derby-George double, that the horse had travelled, that the field was inferior, and that I’m paid to speak my mind – I said I was confident he would indeed take place.

Everyone knows I’m rarely wrong.

A gaggle of press accompanied Lord John on his perambulation around the track, sporting a knitting needle to stick in the muddy bits and accompanied by Anthony Oppenheimer, -carefully dipping his cheque book into the ground. And yes, indeed, race fans – it came up ‘moist’. Of course I jest – it was his credit card. Breeding beats prize money, there’s no appetite for a tussle anymore amongst the top owners

Feature of Ascot’s excellent support card – a big sprinty thing where they split into 9 groups and the commentator takes a pot shot at who’s actually in front. Now this gets entertaining! Unless you’re an official

History says Speculative Bid travelled the course without the jockey because Spencer was sitting on the stalls rather than the horse. Perhaps he was practicing his dismount? Starters don’t react to cries of ‘No No No’ these days- nor do they speedily inform the stewards of the status of the horse in this age of walkie talkies.

Now I know you’re dozing off here- because who gives a monkies if the bookies done more of their money than they should? Rub of the green. But there’s a strong message here – and it’s important not only to learn from it, but hold the BHA properly to account, because that is how we progress change. Of course folks make errors, but what struck me was the abject lack of taking responsibility or a will to apologise. A thorough lack of understanding from one of the most professional group of stewards in the game, that they’re responsible to the betting community and the general public- most of whom have had a bet.

Bing Bong

Error one – ‘we’re looking into an incident at the start- but the placings are unaffected’

Wrong.

If you’re enquiring into the status of the favourite as a runner, you’re most definitely affecting betting markets. Why not mention what you’re actually discussing?

Bookies paid out dutifully and swiftly without deducting one fifth of winnings as rules dictate.

Bang Wong

‘Weighed in’ –Now we all know someone didn’t do their job here. Who to blame? Perhaps the stewards themselves for taking so very long to find out what happened to the favourite

Bing Bong – Bing Bong Along

‘Stewards Enquiry – we’re looking into the status of the favourite and whether he was a runner or not’ – Say what??

Bing Ding Dong

‘The favourite was a non runner’ customers can get their money back – oh right, sure thing.

So we pay everyone out on the favourite. Which was an illegal instruction. In the meantime the Betting ring managers are besieged with confused customers. Although most bookies had paid out. Not to have done so under the instructions given by the stewards would have been unprecedented – would have potentially resulted in loss of licenses – and would have most certainly caused a riot.

90 minutes pass, during which time the betting ring manager high tails it to the stewards secretary to remind him that what they had done was an illegal instruction under the rules of racing and explain what a bet is. Oh and what ‘weighed in actually represents..

Ding-A-Lang Dong

‘Stewards now instruct that Speculative Bid was in fact a runner for betting purposes ‘ tra la la la la – go back to the bookies for more

Those few who had had rule 4’s deducted took the opportunity to return for another refund. Tee hee. (not all I would add- most realised the bookies were as much victims here- and behaved impeccably)

Jamie Stiers took to Racing UK to explain what went on, roughly. He refused to apologise. Not in his remit.

Here is the ‘decline to apologise video’ – this from the BHA’s head of regulation – so we should expect a polished performance. Instead it adds to the shambles by giving the impression even he didn’t understand the rules- or know what was occurring. ‘I am advised a rule 4 should have come with the withdrawal of the favourite’ – this is a staggering remark. I believe my 12 year old knows this one! As head of regulation he clearly had to have the rules of betting explained to him.

http://www.racinguk.com/news/article/36742/bha-to-launch-bid-inquiry

The stewards made enquiries and in their report they mentioned those findings would be shared with the Authority. Oh, I’ve heard this one before. The brush.

the official report from Ascot:-

The Stewards held an enquiry into the start to ascertain why SPECULATIVE BID (IRE), ridden by Jamie Spencer, failed to start and eventually left the stalls rider-less. They heard evidence from the rider and the starters. Spencer stated that the gelding was loaded late as he was known to be difficult in the stalls and just prior to the stalls being released SPECULATIVE BID (IRE) got his head over the adjacent stall 23. He added that when the stalls were released he was off the horse. Having heard their evidence and viewed video recordings of the start, they found that SPECULATIVE BID (IRE) was deemed not to have started and, under Rule (B)10.5, ordered the gelding to be withdrawn.

The Stewards further enquired into why the Weighed In signal was given before the enquiry into the start of the race had been concluded. They heard evidence from the Stipendiary Steward, the Clerk of the Scales and the Racecourse Announcer. Having heard their evidence they forwarded the matter to the British Horseracing Authority for further consideration.

Look, I can take a joke as much as the next man. I can easily accept errors are made. My problem with the Authority here is the abject lack of transparency, a failure to immediately apologise and take ownership of the problem. All businesses pay for their errors- except the BHA it seems. They want the bookmaking community not only to foot the bill, but take the flak, the assaults that took place on my colleagues, the inconvenience and the loss of face. In the meantime they will conduct internal inquiries and ‘move forward’. If moving forward is to set a precedent whereby we pay for their shambolic and ill informed stewarding – then I have one answer.

I’m sorry, but I’m tired of the simple lack of accountability for errors and the high minded attitude that comes with. Appalling race planning, 8 flat meetings on a Saturday in July, 3 jumps meets on a Sunday. Embarrassing integrity enquiries taking years to prosecute in which video of races are lost.The head of integrity is still in his post – headlines ‘we’re consulting ourselves into how we’re doing’. Yup. Race planning is for five year olds, yet its head sits in her chair. A general lack of consultation with the general public. The mundane press releases in the place of open press conferences like other sports in which journalists have an opportunity to test their performance.

I should say it makes me deeply uncomfortable to have to challenge the organisation. But I feel a clear need to defend my colleagues even if the actual cost to myself is minimal. Let’s hope they behave in a manner befitting new management and the promises made by Nick Rust to come together. Here’s your chance Nick

Of course the BHA have registered successes – more so from it’s rather under funded commercial arm – REL. The Champions series, Qatar involvement, marketing on a shoe string budget. This leaves the authority actually responsible for planning, integrity and regulation. It lacks any clear authority over racecourses to the detriment of the sport – and everyone has a job for life.

Why?

I’m convinced amongst appreciable talent in the BHA are a few individuals without the necessary qualities to represent the sport. In every walk of life it’s critical for performance to be achievably measured. Failing employees and managers to be moved out and replaced with stronger people. And what’s with employing a board lacking in any appreciable experience in racing? So they can be bullied?

A line from excellent columnist Rich Lee – worth quoting –

“ ~~’Has there ever been a racing authority that was not incompetent, lacking in imagination and dynamism, or out of touch with the industry’s needs?’ Guardian racing writer Chris Hawkins…asked this rhetorical question in 1996.” Plus ca change…!

In between times ‘Britain at the Bookies’ – little to say about this, rather dull if you’re not in betting- and feels like an advert for gamblers anonymous. Can’t help feeling this wasn’t a good idea

Goodwood. ‘Appointment with fear’ my Old Man used to say. A graveyard for bookies, some of whom are buried under Trundle Hill. Good news for the betting men with Hughesie retiring. He’s cost us a pretty sum over the years.. good luck to the legend in his new venture – a gentleman jockey.

And so we trundle on to York. Another track with a sense of style. A possible meeting for Golden Horn and Gleneagles? On a strip of council land. If you want to get in free, climb under the gate at the ten furlong marker and look like you belong..

Royal Ascot – 2015 – The Bookies View

www.geoff-banks.com/register.asp

Driving around Ascot is a pretty harrowing experience- streets full of burnt out Bentleys. Every once in a while you’ll pass a Waitrose, and really know you’re in a bad area.. they don’t do Tesco here – no matter what they make (? insert amount ??)

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The trick to Ascot is finding somewhere convenient to park- there’s an exit one way system which sends you back to Sunninghill (a mile away) via Biddlecombe (286 miles away)- You have to know the system or you’re stuck in the High Street for several days

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Flick knives and knuckledusters dutifully handed over, you’re greeted by throngs of gatemen. First thing you notice is how polite they are, they check what socks you’re wearing and smile. You see, at Royal Ascot- everyone feels like a Lord for the day – even if you’re entirely potless. Bookies enter with money, – they’re x-rayed on the way out to ensure they’ve left it all with the punters..

One enters the truly vast terminal- had it’s detractors when it was built, but these days thanks to ‘green fingers Barnett’ – the place resembles an advert for house and garden. Full of comfy armchairs- nooks and crannies to enjoy your glass of champagne. Uber civilised.Quality extends to every enclosure, a track run by toffs- but to everyone’s benefit – no enclosure escapes the personal touch – and you can escape the beer swilling hordes if that’s your bag

They don’t do Pomagne here!

And yes, they actually serve a bottle of champagne in an ice bucket, not a bag, and with a glass should you so desire. You see, if you’re not at Ascot, York or Goodwood, where they do things with panache- most tracks think you deserve a bowl or tumbler to drink your champagne from. Odd sort of business plan for your best spending customers wouldn’t you agree? Ascot hasn’t dipped standards to the banal trick of hiding customer service values behind health and safety. .

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Ascot also don’t do themed evenings for people dressed in football shirts..possibly because they take the view their long standing real racing fans might object to spending their days with Yah Yahs..

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But I digress

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When they rebuilt the old Ascot – some of the members said they’d never return. Well I suppose if you’re pushing up daisy’s and by extension possibly not reading this – that could indeed be true. For the rest of the ‘I’m never going again’ mob – it appears to my inexpert eye, that Ascot have built one of the world’s best sporting arenas – outstanding restaurants, bars and service. In a racing environment obsessed with sand , it’s refreshing to walk into an Ascot or York where the focus still remains what goes on around the track – not (perhaps) in a betting shop.

I spot Nick Rust, the new BHA chief exec in the throng – clearly his suit was made for someone bigger – he’s chatting to someone about ‘coming together’. I wonder idly if he’s explaining why they dug up Newcastle to create a terribly interesting series of races in a straight line. For this week though, exceptionally and perenially, we have the best racetrack in the world.

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The first race rolls around – there’s a lump from Hong Kong – ‘Able Friend.’ Our Gallic friends have sent over a Goldikova clone. Most bets are in euros, as the far east specialist proves more suited to racing at the back. Solow wins well and Maxine Guyon flicks a V sign at the toffs as he passes the post. I don’t blame him. The bookmakers rename the winner ‘Sorrow’

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The rest of the day degenerates into the stuff of nightmares for the bookie types as the Festival lurches from Prince this and Queen that . If it’s not the favourite, it’s the galactically talented Ryan Moore sweeping the board. That won’t go down well on the High Street.

People that know me understand I’m one for speaking plainly. I have listened to several respected scribes eulogising on about the rather evident talents of Mr Moore. Little question he’s probably the most talented jockey we’ve witnessed on the flat. It goes along the lines of ‘isn’t he magnificent? What a rider! And to those that know him – apparently quite a wit’

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Well, to the rest of us, who’d rather a jockey smile when he nails a Derby – he’s a thoroughly morose character – he doesn’t endear himself – nor promote the sport that makes him several millions in any way, shape or form. So no, I don’t find him admirable as a human being. Two weeks ago, we saw a brilliant horse take a Derby with a pilot who will do more for headlining the sport than Golden Horn himself. Leaping out of the saddle and engaging the crowd. That cost me a rake, but I smiled when I saw it. That’s what the fans want – not the taciturn one. He’s for betting – not for Racing. Shape up Ryan! Dettori, McCoy, Hughes, Walsh amongst many happily give of their time – you can’t manage a smile??

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When you look at the results, you could easily conclude they didn’t look that bad for the bookies, but I suppose it was the combination of several favourites going in – and if they got beat, it was either Moore or Dettori on top. Thursday I think was the most entertaining betting day – with Moore bashing the firms with a 14/1 opener followed by a 5/1 winner. Payouts could potentially dwarf the Mullins quad at Cheltenham.. (Thanks Annie)

One major off course layer went into hyper drive sending nearly a quarter of a million back for Kingfisher in the Gold Cup- all those 10p accumulators, at guaranteed odds, I expect suddenly come to haunt. This time it was Maxine Guyon to the bookies’ rescue as he held Moore on his inside – causing him to switch paths at the critical stage. For me the week’s unlucky loser. For the major bookie involved- several pence retained on their share price. I expect they were not alone in hiding under their sofas as Kingfisher turned for home..

Racing festivals haven’t been that great for the firms over the last few years. Most lead with fabulous offers and price boosts created by their marketing departments. Combine that with a dip in on course margins – polarisation of expensive horses shared by a select few jockeys and trainers, and you have a problem for those betting on the product. Expect you’re reaching for a Kleenex right about now

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Racing starts every day with a race for the Royals from the mile start in their fancy carriages. Now I’ve watched this for more years than I can remember- never once has anyone tried to pass the one in front. Surely I can’t be the only one who’s spotted the biggest bunch of non triers in racing?? Fair enough, they put on a good show, the whole event surely organised to give the bookies another betting heat to do their brains in – namely the colour of the Boss’s hat. But I’d like to see more effort from those in behind..I know I speak for all concerned who back the second carriage every year

God save our Queen..you won’t see a pageant like that at Goodison Park..a uniquely British summer scene.

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I took one wander down from the Royal enclosure towards the Silver Ring. Ascot is so vast, the silver ring is nearer to Egham. As enclosures go, it’s really quite well turned out. I walk as far as is possible before the waft of chips overtake that of Chanel.. There are bookies all the way down the racetrack, making noise, taking bets. I wonder what will happen to the very flavour of racing when the tracks inevitably take over the betting. Don’t think we don’t know what you’re about, with your expansive plans for data charges etc etc – we’re on to your tricks!

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Racetrack bet however, could do well at the festivals, I don’t think the punters are in any way price savvy, we know that from Chester – they just want service. But the diet of midweek racing we’re fed by tracks-horsemen-BHA, has leant itself to poor attendances from both customers and bookmakers. What’s the future without the ring? My dream we wake up before it’s all too late – the major betting firms have deserted racing for football and roulette. I suppose then the sand will go back to the bunkers. No Big Jim, Barry Dennis, Victor Chandler

Imagine a world where an exec at Channel 4 suddenly decides the network should quit racing, in the face of the often ridiculous criticism of a show affording the sport 44 cameras and the best coverage it has ever experienced. By comparison the BBC with its almost ‘cottage’ coverage. Racing feeds the network a diet of 5 runner group races almost weekly and wonder why the numbers are down- then makes it awkward for them to show alternate meetings in its coverage and ignores Channel 4 in any decision making processes at the highest level. Remember, they can make more money for less hassle from ‘Everyone loves Raymond.’. Don’t think the BBC will come back to save Racing from itself – they barely mention the National

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Racing has an awful lot invested in very few options. Royal Ascot is amazing, but if Aston Villa play Scunthorpe it’s likely to pull in more sponsors, viewers and press coverage. The next few weeks Racing will go into its shell from Sunday to Friday, bang on 7 meetings on the Saturday, and bolster attendances with pop concerts and a grotesque obsession with selling as much beer as possible. Hmm, get back to the Racing. Ascot leads for me with the right balance and never loses sight of its focus on the Sport

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It’s not supportable, but with a regulator fascinated by commerce, rather than how is the sport best served and gels together, – a board of novices to do as they’re told? As Nick Rust so accurately describes- the underlying trends are declining. He’s just not going to do anything about it. Sorry Nick, I don’t do sound bites. I did enjoy your BHA seminar though, with Rod Fabricious harking on about artificial insemination.. not sure who he wanted impregnated though..

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Fortunately there’s enough quality in York, Goodwood, Cheltenham, Chester and Ascot to name a few to keep British Racing at the very top of the world order, British racing has a unique calendar of major Festivals. I wonder if there’s an RCA man reading this, sympathetic to the view most racetracks are struggling with an identity crisis? A racetrack, a greyhound track or just a vast pub. Here’s one to mull over – try proper segregation of long standing racing fans, who don’t feel to have beer spilt over their girlfriends, or even the often threatening environment, from the oiks that do, – rather than selling all in sundry a pass to the members enclosure, keep some areas with civilised folk in mind. Possible? I think also a lot of racetracks need to integrate their thinking with the words ‘social responsibility’ rather than ‘sales’

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Early evenings at Ascot are spent gate crashing car park parties and pretending you’re one of the owners. Everyone standing quaffing champagne, leaning on their Astons, in an age old and endearing slice of the great meeting. It’s my time to get asked by people stuffed with my cash, how much I’d won that day.. (where’s that sharp knife?) Everyone turns up without being invited – ‘Who ARE you – and why are you stealing my champagne?’

How good was the meeting? Well to my mind pretty outstanding. How does it compare to Cheltenham? Well they’re rather chalk and cheese. Ascot is very much more about the social scene. But there’s no loss in focus on the racing. Quipco have stepped in. There’s a new Group one sprint attracting foreign raiders that really works. It has management focussed on quality at every turn. Entrance charges to the meeting aren’t steep – considering what is delivered. Cheltenham has a different feel. Far more the betting event, with months focussed on it’s feature races. The two great events provide balance. Is it a bit toffee nosed? I don’t think so, sure the babies are on Smoked Salmon, and they tow away Ford Escorts, but one has to keep the Riff-Raff out 🙂

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See you at York – could it possibly get any better?

Response to SP regulatory commission

Response to SP regulatory system – consultation

Former NJPC chief exec Clive Reams, recently penned a letter in response to the criticism levelled at the SPRC, after the Grand National, advocating ‘no change’ to the SP system. When the current mechanism was devised in the 1990’s he argued vehemently against the then proposed system whereby 5 bookmakers could govern the SP returns – as ‘a bookies benefit.’

Of course he was at the time in violent disagreement with a system being proposed where the largest five firms produced the SP’s. And of course he would have been right. To permit those same firms to control the returns, when their off course empires were of such high worth in comparison to a veritable ‘cottage industry’ – would clearly disfavour punters. Any notion of those same organisations using their on course positions to actually bet competitively – and disfavour their huge shop and mobile empires, would have been nonsensical.

Yet now, we see that same official arguing in favour of the current mechanism. Despite the fact that same system has been modified several times, to permit now as low as three trading on course bookmakers, not only to provide an SP, but importantly the shows, otherwise known as board prices

Mr Reams hasn’t been seen in the betting rings for many years to the best of my knowledge.

It’s my conviction the SP mechanism – in its current form, was practicably out of date shortly after its inception and requires thorough modernisation. Not abolishment.

The commission, in its call for responses to the system, makes clear it supports little to no change to the system. That we are afforded a workable and simple mechanism, which provides for such as guaranteed odds against SP. Why the commission feels ‘board’ prices would disappear in any revisions is beyond my understanding. Perhaps to scare people into the false belief that show odds would be consigned to the bin.

We already utilise industry odds in some meetings – Meydan and Longchamp for example. There’s no argument to support the commission’s assertion a system based on track bookie’s odds- is the only one which would support guaranteed odds

It’s rather apparent the SPRC depends upon the advice and views as reported by the press association staff, tasked with returning a fair SP from the racetracks. They are neither witness nor party to discussions between bookmakers – and their customers. Their honesty is not in question here- but they clearly cannot have the ground level experience to report accurately what is really transpiring.

The commission will also consult with the FRB, namely Robin Grossmith for his advice. Whilst Robin is a respected colleague of many years’ experience, it should be remembered that an important part of his remit is to secure payments for on course bookmaker’s data. He would naturally argue the system as working in a satisfactory manner – and without any knowledge or understanding of how the mechanism, currently being employed, affects off track companies. Most track firms care little for the impact their activities have on the wider betting community

The dynamics of betting have fundamentally changed in the last 20 years, whence the current system was put in place. In that time changes have been few and limited in nature. 20 years ago a pitch at Sandown at the top of the rail would have been worth well in excess of £100,000 – and very hard to come by. These days – those same pitches can be purchased for less than a third of that value- and with minimal interest, most certainly not from someone trying to get into racecourse bookmaking as a career! In the same 20 years- the average turnover per race to on track firms would have declined to not less than 1/6^th the value of the late 1990’s. Midweek racing has declined in interest to customers to attend. Rings are often ghost towns. Few punters turn up, and in a cashless society they have less to spend with bookies trading. Mobile betting apps have taken over – being more aggressive in nature, easy to use, from funded accounts and related to offers. Racetracks have taken over betting at some tracks –and this new competition to the business a track bookmaker is afforded will have significant impact on their very existence.

My average midweek turnover, as a leading layer, in strong betting positions, is now routinely less than £500 a race- if I bet in any way sensibly. A risible figure. For this reason I rarely attend midweek fixtures. Nor do many of my colleagues. The only way to buck such turnover figures is to exceed exchange odds, then to risk arbing from other bookmakers. If a bookmaker does not offer a pure exchange price on a ‘fancied’ runner- it’s difficult to field any appreciable money for it

Bookmaker numbers have been shored up by some firms operating multiple positions. One bookmaker (John White) operates three positions at Kempton – a small ring as you are aware. Kempton – for example, routinely operates with a sample of around six firms – they are providing prices for a huge off course industry, from a venue where few punters turn up to bet

At the same time as this decline has been evidenced- the off track firms have increased in size, technology advances, and power. Where once betting rings were vibrant and busy, with standard place terms, minimum lay to lose guarantees – and by extension a useful ‘guide’ to SP’s – now they are ripe only to cheap manipulation of their odds. Huge multi national betting concerns can control a weak market with veritable pennies. This imbalance would simply be outlawed in any other financial sphere. It is important for the SP commission to give this point full consideration.

VOLUME OF RACING

Since 1995, and importantly in the era of Peter Saville at the BHB in 2005, the volume of actual meetings has soared from around 1000 annually – to 1450 currently. Racetracks have also focussed their business more towards Saturdays and providing cheap funded product. This has had a thoroughly negative effect to the turnover on track and split the punters interest between meetings. Further a customer can now sit at home and watch either ATR or RUK on his satellite – even watch live streaming racing on the likes of Bet365. All have had an entirely negative effect to bookmakers on track. In the same period the expenses of running an on course business have soared. Many bookmakers have quietly retired from the ring

RACECOURSE DATA TECHNOLOGY

In the last 20 years or so most firms now utilise software provided for them by RDT. The build of their system and its layout is specifically designed to facilitate easy wagers to and from exchanges. A wager can be practicably negotiated faster than on a web browser, a whole set of prices backed, or an entire position closed out. RDT receive a commission from Betdaq for such activities. Such software did not exist in said advanced form when the SPRC devised the mechanism in the 1990’s. All bookmaker software on track is designed to facilitate wagers with exchanges. It has caused a sea change in how bookmakers engage in business on track. They differ from their off track colleagues in that instead of being viewed as traditional ‘layers’ – balancing books with real money, they have metamorphosed to ‘traders’

TRADING

What should also be considered is the wholesale change in the approach by on course bookmakers to betting. When the mechanism was put in play, the majority of firms were traditional in nature. That is to say they were in the business of framing a book and accepting risk. This has fundamentally changed. The vast majority now ‘trade’ many wagers away with exchanges to create margin and keep risk levels low. In order to engage sufficient liquidity to make this practice work – prices must virtually mirror those available on exchanges. For example – a firm will typically offer 4/1 a horse for any variance on an exchange from 4.9 to 5.4. If the operator is lucky, he will be able to trade at 4/1 and hedge at 5.4 – bookmakers have become the new ‘arbers’

There’s little discernible difference between ‘show’ odds and exchange odds for the more fancied runners

Off track firms are, by extension, accepting wagers – and risk, on shows therefore based almost purely on exchange odds. This is a far from healthy system – and a central plank for lower levy returns – down over 50% in recent times. Most bets are accepted at board odds- rather than the more ‘protected’ SP returns. Off track firms do not ‘trade’ wagers in the manner in which on course firms do. To boot, since the shows being returned are up to one minute behind changes in exchange odds, off track firms find themselves subject to arbing from punters. This business is unprofitable and most bookmakers close accounts from those engaged in this practice. Such moves are unpopular and leave firms open to unjustified criticism.

THE STARTING PRICE

Let us consider the actual SP – in practice most track firms have stopped trading aggressively, or at all – it’s often too risky to bet to exchange odds and risk a sizeable wager which a bookmaker cannot trade, with the exchange, in the limited time before the off. Prices are revised downwards throughout the ring – or unavailable. Most books are structured and the operator is loathe to change it. Large operators, such as William Hill on course, are naturally particularly mindful to ‘bet well’ with one eye understandably on their important off course entity. In my experience their returns are given considerable weight in any return. SP’s are, in practice, more favourable to the industry for these simple reasons.

There’s habitually a considerable difference between exchange SP’s and Bookmaker Sp’s

PRICE REVISIONS

It is common in circumstances to hear criticism of course bookmakers for failing to balance books by pricing up horses which they have not significantly laid, at times when they take substantial monies from legitimate hedging activity happening fast and late throughout the ring. Through the year we will hear many examples- the Grand National being a notable one, of an overround which disfavours punters betting at SP.

This is fairly easy to explain- since most track bookmakers are less ‘layers’ than ‘traders’ . When they do catch late funds for a selection, they are far more about dealing with trading the wager profitably on exchanges. In the 1990’s – most firms would have been trying to balance their books by raising the prices of other runners to compensate, if you will. This is no longer necessary with the advent of betting exchanges and software dedicated to trading

Further, the notion that bookmakers should counter raise odds when there are often no punters to offer those odds to, is fanciful.

Finally, large entities sending money back to the tracks place their wagers as late as practicable, certainly never 20 minutes before the race for example. Again such practices, as in the likes of FOREX, would be viewed as questionable. Is racing somehow different? I am not suggesting they are not fully entitled to boss the SP’s, but there are issues of scale and timing.

SAMPLE SYSTEM

The current mechanism employs a bank of up to 25 firms at the largest meetings. At the lesser meetings it is exceptionally difficult to find 25 firms, betting within the commission’s guidelines, to return an SP. The SPRC has revised the number of bookmakers required to return an SP to below the level which caused such upset between the NJPC and the commission in the 1990’s, when 66 questions were tabled on the subject The commission has also modified what it permits to return a show to below the accepted industry standard terms and without requirement for a minimum ‘lay to lose’ figure.

At York’s Dante meet recently, I was one of only six firms in the whole ring, to offer an industry standard ¼ the odds a place in two 16-21 runner handicaps on one day, whilst the rest of the ring were legitimately offering a 1/5th. A bookmaker betting to a fifth in said instance could offer 25/1 a horse – whereas I would only be able to offer as low as 16/1. How does the commission handle such anomalies? Or where the favourite is odds on and all but a couple of firms are betting win only? Once again the sample is nowhere near that required for a fair SP, nor takes into account it is supposed to mirror standard terms off track to be seen as accurate – that is if there were appreciable monies to bet to. There are many examples of such cracks in the system throughout the year, which would not be evidenced if we had a system properly balanced by the true weight of money wagered on a race

We are of course well aware that the Grand National return in no way accurately reflected a fair return. Whilst I would argue that 1.66% per runner is by no means excessive- the truth remains the show embarrassed bookmakers on course, and will lead to customers choosing not to wager at the racetrack at all. Many firms were offering 9/1 the favourite – which was returned at 6/1- at the same time the exchange was offering 14.5 on Shutthefrontdoor.

The simple fact is the use of ‘SP Samples’ as a methodology for returning prices (especially where 5 of the 25 firms in the show represent major off track business) is clearly far too easy, and inexpensive, to control. In practice it’s fairly evident who the firms are that are part of the sample

Bookmakers not included in the sample are routinely ignored. Bookmakers within the sample are often asked to accept wagers at less than the odds they are currently displaying. Particularly at small meetings. Is there clear and incontrovertible evidence that this goes on? No. It is however, quite routine to be asked to ‘co-operate’ on shows in return for the crumbs off of a large concern’s table. If you co-operate – you benefit.

IS this system of hedging fair? Not if a wager is proffered ‘with hooks’. Any discussions with other firms will confirm this is precisely what goes on. It is totally acceptable for a large concern to wager to control a price which reflects the full weight of money. But not where said concerns can control a the market for such a tiny outlay and by openly requesting the bookmaker to cut his odds in return for a nominal wager.

WEIGHT OF MONEY

What should concern the SPRC, is the effect on a fair mechanism of such large concerns wagering with such a tiny entity as three to eight bookmakers trading an all weather track for example. What also should engage thinking, is the possibility of manipulation of weaker exchanges on small markets. Especially when one considers RDT controls well in excess of 90% of on course firms and produces software designed specifically to encourage the practice of trading. In reality, it is Betdaq- the weaker exchange of two, who govern on course returns. In my view this could be viewed as a cartel. It takes a tiny movement of exchange money – typically less than £10, to be followed by several on course layers.

INDUSTRY PRICES

Why have off track concerns not called for control of their own SP’s to date? Two factors explain this anomaly

First, and rather obviously, where the SP itself is required to be revised downwards, it can be easily controlled in a market devoid of regular punters with a very small ‘hedging’ fund. Large concerns represented on course can constitute up to 50% of those available to govern an SP. Especially as the SPRC mandates that in the strongest rings at our festivals, only up to 25 firms are required to return the show. Hedging can therefore be restricted to just those firms. This is precisely what occurred at Aintree. Indeed one pivotal operator, running multiple pitches, informed me ‘where he was in the sample, he was 6/1, – where he was outside the sample – 9/1 about the favourite’.

If all operators are betting to the same commercial terms – there’s really no need to limit the number who return an SP, and it’s clearly a system which fails the means test in such areas.

Second – what concerns major operators off track, when one considers the issue of industry odds, is how their competitors would behave were the mechanism revised. Would, for example, an aggressive operator such as Paddy Power- buck the general acceptance of a new industry return by producing its own ‘enhanced’ SP. As things stand currently – everyone accepts the status quo, warts and all. Of course most firms would prefer an accurate industry SP, not based on exchange odds on course, but the elephant in the room remains their competitors

With the disappearance of John McCririck from television schemes – a major obstacle to industry odds has been removed

OVERVIEW

Centrally the landscape of betting is unrecognisable – were we to compare it with 1995.

The SP regulatory commission is recommending we keep a system where the ‘show’ odds for fancied horses directly mirror exchanges and where the SP is ‘protected’ by circumstances. Where small time traders – desperate for any bettors can be easily bullied by larger operators and where punters feel they are being cheated (unfairly) by track firms.

We are long overdue constructive change. I welcome this consultation

Proposals.

On Course bookmakers to compile one fifth part of a new mechanism, only where there are an absolute minimum of 25 separate entities available to return an SP
Those 25 firms must be betting to recognised tattersalls standards in every race they are engaged to return the SP. Modified terms can not be accepted
At least 25 firms must be available offering a full each way service to return an SP
Sample system to be totally abolished on course. All firms betting to standard tattersalls terms to be included in the returns
Track bookmakers who wish to include their data in any new return, must undertake to lay any advertised price to a minimum of £100 – to include to other operators.
Four fifths of the new mechanism to involve the 19 largest operators. These operators to include Betfair and racetrack bet
Betfair’s SP can only be taken from their each way market
Industry odds governed by weight of money and by provision of prices to SIS
SPRC to consult with operators to produce a formula which most accurately reflects an operators liquidity – and therefore influence on the SP

Geoff Banks

10 June 2015

The 2015 cheltenham festival – the grubbie bookie’s view

I suppose all racing fans grew up with great memories of Cheltenham in March. I recall as a boy, betting in the underaged class, on the Cheltenham rail into the members enclosure, nobody was surprised in those days to be served by a 13 year old – that you just couldn’t move for the absolute crush of humanity. Most of whom appeared to be called Mick. Although a few were Paddy’s. These days we’d invent a quango to count them by age, sex, social class and type of BMW

I prepare for Cheltenham months in advance by calling up the babestation offices to see if any of their talent is free. I got one. Brandy Brewer was her stage name. I think we should all have stage names, don’t you agree? So we downloaded an app (and you said I was a dinosaur?) put in our names and received new ‘porn star’ equivalents. I was Dan Cucumber. I was quite pleased with that.

I added two more lusty girls, bearing in mind sex sells. That I have absolutely no morals whatsoever. That it would upset the gambling commission. That some fellahs would hang around even after I’d emptied all their pocket change, asking daft questions like – how big are they when they’re out? You get the picture

Just in case any mary Whitehouse types were lurking, I threw in a couple of old grizzlies who have worked for me forever and never break a nail. We jumped into our Bentleys for the Cotswolds. And Mulllins.

It’s all about Mullins you see. Henderson has voted himself a non runner these days, as he declares the entire season to date as ‘soft’. The galactacos of racing who’ve won very little of late. One day they’ll whisper in his ear that cotton wooling of stars is a miserable failure, horses need to race, and the giant that is Seven Barrows will wake up to find Paul Nicholls has been eating his lunch for months. I’d like to see that, Henderson is a decent chap and we desperately need competition

The run up to the great party gives our beloved journalists to call up their three favourite trainers. Pre requisite to any convo is to get in early and often the phrase ‘it’s a privilege’ – or you’re struck off ze list of approved hacks. Lesser trainers don’t have phones and who’s interested in Hobbs or Bradstock anyway?

ATR extend ‘Bookie hour’ to a 3 hour slot daily. Tarts..

It was all about Faugheen, Vautour, Douvan, Un De Sceaux, Annie Power and Don Poli. Throw in Peace and Co for good measure. The average SP of the first 4 mentioned this year in all races? 3/10. Gripping stuff we’ve been treated to. Thanks Willie- you deserve a few quid extra in your wages at Cheltenham

Of course we know now – only one got beat, courtesy of the biggest howler in racing for many a years as she grinned at the crowd and paddled the last. Been a long time since I heard such a moan. Genuine shock – the biggest fail at the Festival since I tried chatting up Emma Spencer. Multiple bets up and down the land were waiting on her due diligence. Walsh set it up and she fluffed her lines

There will be those of you, reading this, who take the view betting is the dirty end of the sport. That it’s all about breeding and the majesty of the horse. You’re the type who adores a 5 runner race. You don’t care if Faugheen is 1/6 as he powers away from horses two stone inferior. You don’t care if The New One or Annie Power are doing the same in Haydock or Leopardstown. It’s all magnificent.

Actually, you’re already dead and on the Eastbourne hall of fame. Check yourself

Well for those of you who don’t care about betting or the bookies, give yourself a pinch. Because I assume you care about the finances underpinning the sport? You want owners properly rewarded, yes? Well to educate you, the Levy Board was about to have a crisis meeting had Annie duly obliged, such would the whole have been in the finances of the sport.

(so good – I put it in twice..)

You see, racing is about the punters – they fund it. You think Steve Harman’s ‘racing right’ is coming to save you? Ha! The commercial acumen in racing has always lain with the bookies. They did their stones at Royal Ascot, King George and sundry other ‘biggies’. But you’re looking at their bottom lines – aren’t you?

Modern racing festivals these days in betting terms are characterised by ‘offers’. Credit to some firms ie Betfair (did I just plug Betfair? I need a shower! Who described their offers as what they were- free bets. Companies who did not distinguish themselves led by Paddy Power and Boylesports, who fronted with money back offers – that were nothing of the kind. I think this odious practice should be stopped. Cats being kicked into trees has to stay 🙂

On the plus side, firms like Paddy Power are giving their customers some amazing offers – I’ve never seen the likes of some of the deals they do, even if you’re only getting an extra bet, it’s still a lot more than in days of yore. What concerns me, is they’re mainly targeted at racing. It simply cannot be good for the sport for the number one festival the vehicle for ‘new business,’ rather than profiting from the racing itself. Take Peace and Co for example. A rock solid 2/1 chance for months- 4/1 in the morning. Not good, not good at all.

Thursday morning, Brandy broke a nail. It was so sudden I don’t think any of us expected it. The wailing and sobbing was akin to Annie Power’s departure from the festival. One moment – ten perfect porcelein fakes – the next- nine., Brandy wasn’t in the best of spirit. Punters were clambering over each other – not for her – but to press guinness sodden fivers in her hand for horses, fart and leave. What’s this about? This never happened at Babestation. She only had to flash her tatas and the phones would buzz. Anyway, to her eternal credit, this girl has guts for sure, she knuckled down and gave Vicky (AKA – Ritzy Jiggler) and Stephanie (Tara Cream) a hand in fending off the drunken. Some of which were bookies, a lot appeared to be jilted ex’s of Stephanie. Brandy will be back next year to entertain the masses we hope

In keeping with gambling commission edict 198.259 sub section 5 ‘dealing with total morons’ – we checked with everyone if they were over the age of 13 and not in fact in the paid employ of the commission itself trying to catch us out.

By Friday morning – I was in a shell shocked state, given depressing results, and the prospect of shaming myself on the Morning Line Saturday- my office had taken the phones off the hook and the website down. Come back Ffos Las, all is forgiven. Results outside the championship races were pretty fair – especially the ridiculous plunge on China Doll in the Queen Mother Champion Chase. Surely more likely to pull up than compete seriously?

It was a festival for the new. The performance of the meeting wasn’t the unchallenged Vautour for me – nor Faugheen, but the Denman-esque performance of Conygree. By the start of the 2nd circuit, he had many class performers firmly off the bridle. He quite simply ran them all into the ground. And who WAS that jockey??

Surely the BHA should lamp Bradstock with a 60 day ban for ‘upstaging Mullins’? Well done to the authority, however, for having the last ‘laugh’ as usual and a whip ban in the gold cup to a lesser jockey – they never disappoint

Was it the best Festival in modern times? – that’s hard to say, Loads of talking points. it certainly was out with the old and in with the new. Everyone knows I worry about the all enveloping nature of it. Months of discussing five runner graded events and odds on chances is something a caring authority wants to take very seriously, with the prospect of a repeat next year.
I have one suggestion, which will have some people nodding in approval, the purists in horror, and the BHA copping a deaf un. That Mares race. 6 years in a row a grade one animal reducing the worst rated event at the meeting to somewhat of a procession. Not really the point is it? Not good for the finances non plus. Perhaps an upper rating level of some description? We all know Annie Power will line up again next year – but in reality she should be in the World Hurdle, and not hiding away in selling class. NAP

I always mention the whiners. Taking a break from the Betfair Forum. Those who moan about Channel 4’s coverage could only be uber impressed at some of the amazing images treated to our screens, the features, the slo mo’s. Fine, I’m an occasional guest, but I’m entitled to an opinion and in comparison to the beeb? No comparison. Enjoy the float race Clare. Dreadful choice over the Grand National, really it is. But we’ll have Luck and Gok- fair trade.

And finally, yes, you made it. To one jockey. Given the amounts of cash I’ve heaved out over the years over this man, the times I’ve cursed the man, you might be surprised I’m as teary as the rest of you at the departure of a legend. I think to put it into some kind of perspective, the British public admire most the total and unadulterred energy he put into every ride. His iron will over sometimes doubtful horses. It’s a shame Jonjos stable has been in such miserable form this season or he would have signed off with more winners. AP has carried himself wih humility and class and gave every punter 100% commitment. That’s why they love him. And I will very much miss the very engine of National Hunt Racing.

The BHA – Acting in the best interests of Racing or Stakeholders?

It’s become routine these days to hear and read informed commentators, pundits, industry experts discussing the issue of small fields in racing, indeed last year the BHA undertook an expensive consultation into fixture levels in an attempt to combat the issue of small fields and lack of competitiveness in racing.

The result? More fixtures in 2015

BHA announces races attracting small fields will be deleted from the programme

The result? No races removed, a three month trial period suddenly introduced, and one deleted race restored in the face of opposition from horsemen

9 new board members with little, or no experience running racing, at the BHA. Two of these new directors have been appointed to ‘bed in’ six of the others. Tell me you’re joking, or have the stakeholders grabbed two important ‘blockers’ on the board?

The BHA announces the scrapping of small field events to address the appeal of the sport.

The result? The BHA backs down in the face of opposition from the trainers involved in the race and the NTF. It goes further in placing an NTF official to the BHA Board. I’m sure he’ll be supportive of an initiative which followed an expensive consultation.

What’s the value in an authority that doesn’t govern the sport with its best face in mind? Someone tell me.

After the removal of the best politician we’ve ever had in charge, Paul Bittar, from the equation we’re left with an entiely new board, in every sense of the word. Opposing these new directors – the stakeholders. Betting, Owners, trainers and racetracks and their interests. And they’re clearly out for what’s best for them, even if the sport cannot progress

Do you care? Or would you classify yourself as one of the silent apathetic ones- to criticise the sport is wrong, it’s just not done. To my mind, constructive criticism is a requirement and you should get involved and stop taking the guided tour

Quite what the Australian did wrong or whether he had just had enough is unclear. Nobody is asking the question. I didn’t always see eye to eye with Bittar during his tenure, I’m always going to take issue with the pace of change, but it’s clear he shared many of the same concerns. Particularly in regards to ‘stakeholders’ and their negative impact on the sport, and integrity issues relating to low funded racing we seem determined to produce more thereof. He was capable of pulling the disparate parties together given time. Continue reading “The BHA – Acting in the best interests of Racing or Stakeholders?”

Cheltenham Open Festival- The Bookies Eye

I know the National Hunt season doesn’t really end with Aintree, it burbles on without it’s stars through the summer. I’d like to see it curtailed for a month – perhaps in June when Racing is so resplendent with riches such as Ascot and Epsom. For me, though, the season really starts with Cheltenham’s excellent ‘Open’ Meeting.

It needs a new title, because Open doesn’t do it justice, and we need Festivals in the winter, perhaps they should call it ‘The Tweed’ – it’s the only venue which accepts folk in that ridiculous garb. Children point and stare – you can’t blame them..

For me, it’s suits. I pack several to go with the alternating seasons Prestbury affords us. I pick up the delightful Miss King and head off into the rainstorm. I talk, she texts her boyfriends and updates her facebook. It’s an odd relationship. I’ve become dull

There will be a few of you who accuse me of using sex to sell betting tickets. All true. Don’t write to your MP or call the cops. I admit it.

We stop at what used to be the Hotel De La Bere, to pad JP’s income. I read the paper, Stephanie has a text argument with one of her spotty friends. The office bombard me with calls, on bets we shouldn’t be laying. Disappointingly for a Bookie who works indoors at 72 degrees ambient, the sun has come out, and will wreck my takings

The bastard.

Friday isn’t as busy as Saturday for the Bookies. We work hard at offering a service not only at Cheltenham, but at the ‘away’ meetings. I’m glad I had Mick and Vicky dedicated to paying out, because Wolverhampton was on. Hitler should have bombed Dunstall, I wouldn’t have minded speaking German then.What I made at Cheltenham, i gifted back to those betting at Wolverhampton. The decent people of Jockey Club stop by for a chat, they’re comfortable in the product and with good reason. People vote with their feet, the attendances are good, and racing needn’t always be seen as a vehicle for the Ladbrokes Life. JCR are experts at Festival meetings and I admire their sense of decency.

I’d like one day to persuade this influential body to see exchanges outlawed from bookie software on course , it’s a thorough cancer on service, and emptying the sport of money it deserves. Make sure you support me here if you value the flavour of the betting ring or I will ignore you at parties.

As a sidebar, people who bet at the All Weather don’t wear tweed, they’re known as bonus junkies. They scout around for ‘free bets’, – never go racing, – just sit at home in their underpants ‘greening up’. Sand racing is for camels, but we’re stuck with it, it seems. Don’t blame me, I can’t stop the fascination with grunge. Saville is a sick man, he’s hoping Jesus makes a comeback and performs a loaves and fishes trick on field sizes, with rocking horses to bolster poor fields. I wouldn’t be surprised to hear 68 fixtures being awarded to Comet 506b (taken from York.) I mean it does have the perfect racing surface..

It’s not busy on friday, so Mick finds time for a hug. He’s a charmer and ‘The Rinser’ doesn’t work that hard. Here’s one of her, not on her phone, with my main man

Friday night is a predictably boozy night in a gorgeous country pub. Everyone tells stories, – mostly lies. My favourite is telling everyone I was in the SAS, which I think everyone believes. Mick orders the fishcakes and is crestfallen when they offer us free fishcakes, by way of canapes, at the bar. He doubles up anyway.

Saturday dawns, The Morning Line tips all the favourites, Paddy Power makes me chuckle and the show hums along in entertaining style. They have someone on from Timeform, I’m glad he didn’t launch into an explanation of ‘Sectionals’ – probably gagged I expect. I wish people would stop whining about Ch4, we’re all so damned fussy about what we want to see, and my good friend Barry Orr and his x ray specs represent good value as a stand up comic 🙂

We arrive early at the track, the crowd looks substantial. Entrance fees are very fair, the track looks the business. Cheltenham is the class of National Hunt. Except for those odd plastic beakers they dosh out to customers in their lovely Golden Miller bar. The only mild blemish for me. I give the catering boss a hard time for flogging me an £85 bottle of Veuve in a kiddie cup. He tells me glasses are a health and safety issue. I ask him what the champagne comes in. He says he will feedback my comments..

The Centaur has a brash new screen, 6 hard working Bookies, the Magic Sign and Tote. They serve clods of Guiness, so everyone has their bet, farts and leaves us with the smell. I suppose given the results that’s about fair. We massage a victory. It’s very busy. Do we bet a bit better than outside? Yes we do, a half a point here and there, but we’re in business and our focus is service, not begging a bet. Besides, most traders outside don’t understand the concept of ‘sustainable margin.’ Punters are a fair lot. They just want to be treated with respect and I find most would rather they found Bookmakers who lay a fair bet and pay up with a smile. We don’t do ten pound offers, we leave that to the really BIG bookies. I’d see that outlawed when I’m in charge

We take just over 2000 bets, we don’t have any hedges, they’re for gardens. Results go in favour of the punters but I catch a break with one favourite actually winning me money and I walk away heavier than when i arrived as the punters clap me out. We peel off the bets as fast as we can and try to pay out with the same alacrity where possible. A customer with his money in my pocket isn’t wagering in the next. Punters climb over the weak and infirm to get on, experienced pensioners trample young fit men to get on. As far as we know we didn’t lay any 17 year old Gambling Commission stoodges any bets. But you can’t be too sure..they’ll write to me I expect. I don’t fancy my chances with Mrs Williams

There’s no other way to describe the Racing on offer than exhilarating. Horses that looked done in, walked all over, came back to win or held on. We were lucky with one of Geraghty’s- Druid’s Nephew, who ran too free and got under his fences, but jumping is the game. Cheltenham tends to offer some of the most unpredictable finishes in the Sport. Some horses turn in going easy and flop, and others, like Caid Du Berlais, whose jockey supplanted whip for cattle prod. It’s the very soul of National Hunt racing. I understand why the track dominates the code.

I recall one slightly inebriated looking fellah who walked up to me, gambling commission plant methinks. I lay him a bet.

‘tenner each way on Budweiser’ he slurred, displaying his opt out of gambling forever card

‘Don’t you mean Buywise Sir?’

‘Err, yeah, sorry, er, repetition, you know, – been drinking for four days, – where am I?’

He loses his money. Well, to be fair, 13 year olds shouldn’t be betting- and no mistake..

A couple of suggestions to friends in charge to improve the quality of winter racing. Do away with both Jumpers bumpers on the all weather, as well as ‘racecourse gallops’. It’s time to force the stars back to work in races which struggle for quality entrants. I know you’re all looking at each other round the board table at that one.

Saturday night is predictably good, another beautiful Cotswold pub and a few bottles of the firm’s champagne to reward the team for looking after my clients. They guzzle as if its their last, particularly ‘The Rinser’

Sunday is predictably quiet, although the racing remains competitive. The day starts with the shock news of Dessie Hughes’ passing. A minutes silence is strictly observed as we watch replays of the mighty Hard Eustace, as if we needed reminding! Many Bookies turned their boards off and I didn’t hear anyone talking in the ring. A great tribute to a legend.

One odds on chance at the meeting is all, a load of great finishes, punters and bookmakers alike celebrated a great trainer, the gate staff are the same people the track has employed for years, the views remain beautiful, – the Open became a showcase for two decent fellahs, Phillip Hobbs and Richard Johnson. Little wonder the season tends to revolve around this jewel in the Cotswolds

Put fifty pounds in the box on your way out. Thanks

TROUBLE GETTING A BET ON HORSES? HERE’S WHY

Not easy getting a bet on horses these days. You hear it everywhere. Forums, papers even telly. Bookmakers roundly criticised for offering inflated odds on horses, then laying them to derisory amounts. It rather sticks in my throat to be in any way associated to such behaviour. I mean I came from a father who epitomised fearless in laying – often standing in the back lines at tracks he would dominate the far more cautious firms at the front. I took over that business some 20 years ago now, and I’ve tried to distance myself from restrictions and £10 bets. But this isn’t about me. Is the criticism levelled at modern day bookies justified? If you’ll indulge, I shall try to put this difficult subject into context.

Bear in mind there are broadly 3 different arms of the industry involved here. Exchanges, large bookmaking ‘chains’, and independents.

One of the things that strikes me about the complaints is they’re rarely levelled at exchanges. To my mind they’ve always been the smart ones. By investing heavily in marketing and advertising, you sanitise your product from some of the more important critics, such as journalists. Don’t bite the hand that feeds, even if it lives under a rock. Yet they often claim the moral high ground. Good job there lads.

You see, the deal with exchanges is simple. First off most punters are small, and don’t wager more than £20 in a bet. Second, it’s accepted you can’t get a place bet on the same. I don’t see an exchange offering an each way bet. Third, not easy to blame the exchange for what is often pitiful liquidity levels, when you’re supposed to pony up and add to the ‘lays column’ is it? That aside, the effect of exchanges on British Racing margins cannot be overstated. Obscenely they govern the on course bookmakers, many of whom have turned into arbers, playing exchange odds off against what punters will take. Low liquidity is ridiculously easy to manipulate. If you’re trying to get 10 – 20 thousand or more on a horse, simply feed in a relative low amount into the lay side and watch it drift as bots and the ill-informed react. Alternatively, pick a random ‘gambling stables’ no hope 33/1 chance, pop a grand or two on it and watch it collapse to 9/2. In the meantime, you’re favoured selection drift from evens to 2/1. Your 20 grand profit becomes 40, for an investment of 1. It’s a childishly simple example. Surely it’s not that easy you say? Oh but it is. Plus if you have the second in the market ‘squared away’, in knowledge or integrity terms, you’re flying.

It’s not just the track which obeys the pennies on exchanges these days. It’s the off track ‘odds compilers’ at the large bookmaking chains. And here’s their sub plot. Go onto LinkedIn, type in ‘Corals’ or ‘William Hill’ and you’ll be met by picture after picture of guys in their 20’s – fresh faced out of school, describing themselves as ‘traders’ or ‘odds compilers’. It’s a grand term, or used to be.

In my time, such individuals would spend years working hefty on course markets, working figures and percentages. Or perhaps work their way into the trading room after due time in the trenches answering phones. But in an environment which puts so much stock in exchange movements, all these spotties really do these days is monitor the price movements on their screens and shave their odds appropriately. Same as most racecourse clerks do. Neither group are particularly skilled. I accept some may have an inflated view of their abilities. That comes with youth. In this game, experience counts for everything and they bring little of that to the table. Policies such as these have led to large concerns being assaulted by a new two new breeds of punter. Arbers – very much the same as many track bookies, and those putting ‘job’ monies on for the connected. Both groups, in a world of odds which are more often than not both unrealistic and manipulated, are extremely difficult to beat. As a consequence they’re restricted. By extension this has a knock on effect for the less ‘professional punter’. An accident of circumstances I suppose.

Similarly if you spend your time following certain tipping lines, backing shorteners, betting mainly on the inflated morning odds markets, backing each way when the favourite is odds on or happening to back the same selections as per say Patrick Veitch, you’ll find your half-life as a punter with such firms shortened dramatically, along with what you can get on.

It’s also important to understand the world of Ralph Topping. In his time, boardmarker to boss, he’s witnessed William Hill turn from a traditional bookmaker to a casino operator. This is a key point. Let’s call a spade a spade here – were I king Ralph, as things stand, I’d do exactly the same as he’s doing. You see the oil in the machine is precisely that. The machines. Large chains have engorged themselves on legislation permitting them to site shops anywhere and that growth remains unchecked. Witness the recent case in London against Paddy Power, brought by a Newham Council who argued they had piles of shops already in the region and that the shops were merely a vehicle for their Fixed Odds Betting Terminals. FOBTs. The case was quashed on the grounds there’s no law against serial proliferation of betting shops. Let me be honest here, Newham was right in my opinion. They didn’t need the shop, nor its machines. This situation is true in many of our towns. But Paddy won the day, arguing they made a ‘positive contribution to High Streets’. Of course that’s nonsensical hyperbole. Essentially though Newham hadn’t proved their argument and were kicked out. Each FOBT generates a gross profit of circa £900 a week for such firms – and they can have 4 in every shop. That’s £3600 in gross profit a week. Add in a ‘manager’ who gives out the change, a cashier, and a rolling ‘relief manager’ and you’ve a very low staff cost, maintenance and risk business. Providing that is you don’t get too involved in the poor margin horse racing product.

This is where leaders such as Paul Bittar are so blinkered in their view that more racing equals more levy. A childishly simple claim, and one with no data to support it. The reality is quite the opposite. A punter has a fixed amount to spend. More racing won’t make him draw out more money. The machines claw for his cash, and they’re clearly addictive. When the racing is competitive, it becomes the draw.If it’s low grade 5 runner races on offer, they become the background rather than the vehicle that pulls people into the shop to start with. The BHA is far too tight in with the bookmaking-exchange fraternity to be healthy. Ostriches see a little more. Am I a little unfair to the new Chief Exec? I don’t believe so. Within a month of his arrival he had thrown his hat into the ring with big business and declared 1450 as the right ‘level’ for Racing. Was that an informed decision based on hard data he hadn’t been provided with by the way, or just towing the establishment line? I’ll let you decide on that one. There isn’t a third option, except for the PR merchants from the chains.

I haven’t mentioned the casino side of most modern day bookmaker or exchange businesses. These super profitable products yield enormous profits. Why focus your attention on the 4.05 at Plumpton and the risks involved, when you can push your customers to bet on the areas of your business you absolutely know represent a no-lose situation. To boot there’s been a substantial market share war going on between the large concerns over the last 3 years. It’s routine for the morning price market for a feature race on a Saturday to be actually overbroke between the majors. The King George at Ascot ran to 89% at best odds available. This represents a net loss to racing of 11% in real terms. Will such top of the market offers make it more likely you’ll get your £100 each way wager? Evidently not.

Of course the whole margin debate is pretty much a nonsense these days, except perhaps for Bruce Millington who majors on the 9.30 at Wolverhampton. So many horses effectively priced out of events; we never saw horses going off at 400/1 in the sixties and seventies. One of the major issues affecting the laying of bets is the integrity of the sport. The bottom line is, the lower the prize fund available, the more likely the integrity of the event will be affected. The great scandals in racing of late can be directly attributed to serial failures at the BHA who should insist on a strong, well-funded and staffed integrity division. In fact in a period where there’s more racing than ever before, the integrity division at the BHA has had its budgets slashed. Being kind it’s poor management, but I lean towards a dereliction of their responsibilities to police the sport. The key phrase ‘shut the stable door after the horse has bolted’ wouldn’t be out of place here. All the spin in the world from Mr Bittar cannot hide the fact it’s grossly understaffed and most certainly lacking in the experience necessary to break down the vital betting markets. In fact, in a bizarre twist of fate, it’s Betfair who highlight most of the scandals perpetrated on its own exchange, but then only when amounts are excessive. Hong Kong has 238 people tasked with maintaining the integrity of its programme, which races 6 days a month. Here with 1450 fixtures we have less than 20 including those running around testing horses and the like. The numbers don’t stack up. It’s time to get proper with integrity, and not just when Channel 4 ask the questions on doping. Non-triers and ‘explosive last to first’ gambles have become the accepted norm. Why? How does it affect your punting dollar? Will it be easier or fairer to bet when people in the industry don’t trust the ‘lesser’ events?

One smaller factor to consider is the time delay. On course traders react swiftly to volatile exchanges in proffering odds. However, the actual shows fed into betting shops will reflect those movements by anything between 1-2 minutes later, and may be made up by some trader betting to a sixth of the odds on the place book. This creates a clear arbing situation of betting shows vs exchange odds. Don’t forget the modern day punter is armed with super fast broadband links to exchanges – they know the reality and can gain significant advantage over the bookmaker in the High Street.

How do these points relate to how much you can get on? Well you have to understand what you’re betting on; racing is up against the other products a bookie is offering. Sure if you do your nuts you can call your own tune with any bookie. That’s obvious. But if they don’t know you – and you just have a lucky run? Well I’m afraid the outlook is dim.

Let’s encapsulate racing in this simple equation:

Exchange – On Course Traders – Delayed shows to LBO’s + Glut of Racing = Low margin out of date product open to serial manipulation v Fixed Odds Betting Terminals and casino products.

The last cog in the wheel are the independents. They’re either shop based, or running telephone and internet operations such as my own at geoff-banks.com. Many do not possess the vital casino products, nor are they able to operate relief manager situations to rotate their staffing and keep costs down. They shoulder increased share of costs such as taxation and Gambling Commission fees and they’re competing with offshore low cost firms to boot. Smaller firms tend to rely much more heavily on their racing product. As a result they’re struggling to remain competitive with set down by firms who are reluctant to lay much more than an egg at those paper odds. Does it really matter if they survive, any more than does it matter if the on course market does? I’ve heard the argument for natural selection in business. And I fundamentally disagree. In my view, it’s an unhealthy situation. Big business is getting bigger, they’re paying less taxes than small business and most certainly giving a vastly inferior standard of service. Who hasn’t sat on a phone line to speak to a world weary operator with little training or the ability affect change to improve the lot of the customer they are serving?

Decisions are made at boardroom level by ‘executives’ who won’t have to sit waiting to be served by the individuals they employ. They’re in no way into ‘customer facing’ or ‘customer focussed’ initiatives. They’re about money.

The internet has most certainly improved many areas of our lives. But unchecked it spells the death knell for many businesses we used to take for granted which are the very fabric of the decent society we grew up in. I’m one of life’s survivors – I lay a fair bet. My boys answer a call within two rings, or answer a textbet within a minute. But businesses like my own are in the minority. The bottom line is: the larger the firm, the worse its service standards. But they’re cheap. They offer deals and money back offers and price guarantees.

If you want real change in the service you receive, including how much you get on – you have to accept such standards involve you being prepared to take slightly less in return for a more civil way to bet. It’s a choice. Want an exchange price? Accept it’s only going to be to their stakes. Not a lot these days.

Ryanair aren’t British Airways, and they treat their customers with a disdain that’s breathtaking. But they’re cheap. They lead on low cost travel without frills or service standards or conduct codes respected by rivals. So are Paddy Power, Bet365 and William Hill. If you believe in SP guarantees, money back if your horse falls and so forth, all well and good and they will happily accommodate you to lower stakes. It’s simple, you cannot offer the top of everyone’s market and lay whoppers. So bet away with the offshores but expect to pay for it elsewhere.

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