Tag: GAMBLING ACT

Six more fixtures

I don’t want to bore you with statistics, sometimes they can prove meaningless, but there’s one stat that cannot be ignored in the sport we hold so dear. From 2008-2014, the horse population has declined by 1600, around 10%, that’s to say horses in training. In the same period – the number of races has grown by 15%. I hesitate to coin the phrase ‘the net result thereof’ – but you have to admit there appears a strong correlation in these two figures. More races – less horses..

Next year- six more fixtures. I want to make clear from the outset, I was given more than fair opportunity by the British Racing Authority to state the case on behalf of those of us who believe there’s simply too much racing. I was simply out-voted, or failed to press my arguments, indeed I think it’s fair to say my view stood pretty much alone in the face of data and reports compiled by important racing entities, to include the Racecourse Association, Arena leisure and Jockey Club. Racecourse Media Group, and Attheraces. The Levy Board also support the current level, based on data provided by big betting.

The consultation group doesn’t include any elements of Betting..

The aforementioned ‘pick five’ of racing (excluding Bet365, who oddly declined any participation, perhaps they don’t see us as serious?) Ladbrokes, Betfred, Coral, William Hill, Betfair broadly agreed with the current levels. This, despite their complaints on field sizes, elements of planning with competing fixtures devaluing certain races they sponsor, quite understandable, – that .

As to the influential Horseman’s Group? I honestly don’t know where they stand.

The BHA? As usual they get the blame, despite only controlling 200 odd fixtures themselves. One has to bear in mind, the OFT stripped the body of its powers in effect, and this is the result. I believe they definitely favour a reasonable cut. After all, the consultation was their plan. They weren’t prepared for the various stake holders to play rough, with spurious claims as to what any kind of cull would cost, without mind to the potential benefits in a raising of the bar on quality.

The sport is losing TV viewers and racegoers midweek. Bookmakers are the dominant sponsors, even if some view that as distasteful. Cheltenham lost six sponsors for their major festival races alone.  The margin in betting has seriously declined, so has racing’s market share of the betting cake and lay to lose is a cancer on the sport. I’m sure racing’s most important group of tracks would prefer to move to a more balanced sponsors book given the pervasive influence of betting, but can’t find sufficient alternate companies at the current time. After all our tv networks and newspapers are literally stuffed with adverts from gaming empires. I’m aware some of you don’t care, nor understand the long term impact of this. But a full moon is coming.

Ladbrokes, one of the largest operators in betting worldwide, have already told you of their concern as to the viability of racing as a betting product. Were you listening, or did you put it down to their failures as a company to deliver a competitive digital platform?

In order for the BHA to ‘monetise’ the sport abroad, to betting, and to new sponsors, they must deliver on field sizes, and control the level of ‘grunge’ – low quality racing put on exclusively for betting, and stop the tendency for our best meetings to compete with England vs Moldova. An instant fail.

The critical Asian market, we base some of our Levy upon, bases itself on numbers betting, – often backing several in a race. The odds permit this kind of play. How does that fit with a five runner race at Southwell? Indeed, of what interest are such events to our betting public – other than the professional players? None. Of course, I’m painfully aware to some track bosses this is of no importance right now, but change is coming with the new media rights negotiations.

In the face of the spirit of change from the Authority, Arena leisure have threatened legal action.  Yes folks, the same group who benefitted from the whole Good Friday concession is now holding the sport to ransom over their demands for a gothically dull floodlit mile for predominately low class horses at Gosforth Park. In much the same way as Pat Cosgrave was delivered back to racing – by lawyers, and their assertions. Tracks aren’t about to permit any reduction in their share of a media rights cake that has seen Bookmakers pay more than a hundred million more in recent times in fees to racing, with racetracks the primary beneficiary, and they’re not going to let a good thing go lightly..

We’ve reacted to the threat to field sizes by actually increasing the number of fixtures. Hard to believe it’s true. One is bound to question the purpose behind expensive consultation processes, other than to witness a circling of the wagons from ‘stakeholders.’ They simply refuse to countenance change, even if its utterly clear this is exactly what the sport requires to prosper.

The consultation discussed the removal of races that attracted low turnouts midweek. What’s wrong with that? It also discussed reducing the grade in certain races, to grow field sizes because we have more horses of very poor quality. This is to embark on a programme of lowering the overall quality of the programme still further. That wouldn’t be my choice, but I believe there are those who would use rocking horses if it made up a race.

All weather is on the increase, despite poor attendances, which adequately demonstrate the public have no appetite for it. The fare is largely unappealing. Racetracks focus our jewels in a one hour slot on Saturdays, often opposing more popular sports such as soccer. The midweek continues to be run down to the extreme. Sunday night racing, distressingly, has now appeared on the calendar. Nobody trumpeted that. Hardly surprising.

Few of these measures are customer focussed or about increasing quality. They evidence of an Authority boxed in the corner. Placed there by the office of fair trading. What a mess they made, ignorants with clipboards.

I’m fully aware though, there’s a strong body of fans and insiders who believe the current volume of the sport is farce.  That to prune the programme by less than 1% and move a few races about won’t change things much. It’s a view I’ve heard many times from my customers, read constantly on social networking. Most of these views are the punters of course. The vital stakeholders group in racing who don’t have a seat at the top table, as things stand currently. They are joined though by a few brave souls from the training ranks, and some well intentioned journalists.

As we keep lowering the bar on quality, we make the whole thing just that bit less interesting to bet on. The USA has seen a dramatic decline in interest and betting in the sport. Excessively dull as a product. That’s precisely where we’re heading. Believe it’s true. The global data is fully at odds from that argued by the Levy Board and Betting.

Of course, I know we can offer some superb product, and accept we can’t always have group ones. Anyone at Ascot last weekend on British Champions Day can only be thoroughly impressed by the event. Cheltenham, Aintree, York and Goodwood showcase the best of Racing. Horseracing in Britain can be utterly superb at times. I want no mistake made that I have the utmost faith in the sport. Yet we seem to be choosing the route as driven by big betting, and backed up by their highly questionable data. I don’t want to dwell on the tracks themselves. If they’re paid to race in front of empty stands, they will do just that. It’s a business. They will inevitably favour the current level. Many have impressive debt levels to service.

People are persuaded by betting by two very simple phrases. ‘Every race contributes to the Levy’ and ‘if we don’t provide racing when the punters are in the shops, we will simply sell rival products.’ Data is brought out to back up this argument. As a colleague correctly pointed out, it’s hard to take the argument for a cut in the volume of racing forward when the data appears to show we could lose substantially from any cut in the programme. I argue in a different vein. No data has been produced, nor analysed, to show what would happen to the sport’s finances were we to embark on a programme which raised the overall bar on quality. No figures have been produced to show that in fact were we to raise the average field sizes by just one – from the current average of 7 to 8 horses a race, that the extra business we would ‘field’ would more than balance any loss in the total volume. Horses would seek other opportunities.

I hope I have made that simple point well.

Let me explain big betting for those who do not understand it. No, I’m not here to discuss those who ‘get on.’ Broadly speaking, what the multiples desire is ‘product’ – lots of it. The successful supergiant will deliver as many betting opportunities as they can in an hour. Racing is marginalised as a product in comparison to gaming, which is the engine of their businesses, and other sports such as soccer. The actual number of races put on every week, make the sport relatively inexpensive to bookmakers in real terms, and they generate noise and footfall in the LBO’s. They get so many spins of the wheel. Anyone who’s remotely threatening in the modern betting environment is closed down with alacrity.

What’s our future? I believe the data rights deals racetracks have enjoyed likely heftily squeezed by the bookmakers, and we will see racetracks close.  The bookmakers simply carry far more commercial nous. Midweek racing most weeks has simply collapsed. Even our finest races ‘carve up’ between a select few, whilst lesser owners struggle at the cost of keeping their horse as the balance between prize money at the highest level and most of the programme is thoroughly disproportionate We can make more of the product.

We can grow, by embarking on a programme to cull more fixtures and move the overall quality and competitiveness right of centre. How many of you are prepared and supportive of the battle the BHA faces in forcing change, or to contribute financially towards a more interesting programme? The simple fact of life – we need a robust BHA, thoroughly in charge of what’s best for Racing. How vocal will you be in support of the surgery we actually require? I don’t see many leaders. We need a few more prepared to serve the sport and not eat its lunch.

Racetracks are feeding off rich machine based pickings from Betting, whilst many fixtures deliver a very poor product much of the time. Their focus has to be in deliverance of a better product for bettors. Not holding their hand out because 8 races makes more money than 7. Poor thinking

If I’m ever asked to stand to post and serve the sport I love in a capacity other than pricing up races, by people who seek and desire constructive change, I shall of course, but will evidently have to climb over a few stakeholders on the way! Geoff Banks October 2014

TALE OF THE RING

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My last blog about modern day racing, and its sanitized ways, seemed to attract a lot of attention or hits as they say. And more than a few compliments from like-minded souls, or perhaps concerned, individuals on Twitter. It’s hard to be humble when you’re as great as I am…in future my rate for such scribing shall be ten pounds an article, and I’m not budging from that.

What was absent was the contra view which I expected from trainers and connections of horses boxed away in padded cells for months on end awaiting their glory moment. Shame that. However, all is not lost. I did receive one rather hateful response from a fellah describing himself rather grandly as ‘a proper Bookmaker’ who ranted about my attitudes to modern day betting rings. He wasn’t quite brave enough to tell us all who he was, doubtless of the view should he reveal his true identity, some would have realised the true worth of his business practices.  Few punters thoroughly approve of modern day Bookmakers. The horrible truth. Exchanges are the ‘good guys’ wherever they trade from. Who’s going to criticise someone for low liquidity when you’re part of the problem?

It’s perhaps helpful if I illustrate the problems as I see it in the modern ring, for those who do not understand the issues. Anyone who goes racing, midweek in particular, can’t have failed to notice the distressed state of the ring. A handful of Bookies, usually with just one member of staff each, huddling for warmth whilst serving but a few customers. In an environment where racetracks claim attendances overall are holding up, it’s a paradox that rings are so quiet. Of course, were I the RCA, I’d be talking up the product. And yes, if they don’t address the problem of stable stars retiring as 3 year olds or worse sitting out for Cheltenham, they’re going to have attendance issues; we’re agreed on that. On a Saturday, and at the major meetings however, the crowds still look good to me, but the public aren’t betting as they used to.

Or perhaps they are. I mean who goes racing these days and doesn’t have a bet? Racing’s pretty dull if you don’t have some kind of interest other than an anoraky view of form or breeding. Why does the Queen have so many ladies in waiting when she’s in attendance? Quite right, they’re running her bets out! She’s no fool. Loves a Union Jack does the Boss. Everyone’s having a play in reality. Because if you’re racing, and not betting, you must be wondering what all the fuss and noise is about!

As to the Punters, they’re just getting bored. 98% of Bookies these days have turned to trading as a simple and cheap method of making a living. From the moment the interminably ignorant Rob Hughes, of the then controlling Levy Board, cast his vote in favour of opening up the Ring to outside influences, in particular exchanges, the die was cast for the Bookies. Led by ‘pioneers’ like Martyn of Leicester, who I recall describing it as the new Holy Grail to me one day, many leapt from odds, percentages and margins, to trading every dollar they took with an exchange, at better odds. Presto, easy money – minimal risk. At the outset the gap between the odds offered by the trader and the exchange was wide, and the method simple. It was a golden time. As the years progressed, with traders chasing a diminishing pound, and their own silly greed for every bet available, the odds soared to the punters. Traders found with what profits could be engendered, squeezed so tight, they couldn’t breathe. Even when the crowds were good, they moronically bet so tight to the exchange, the profits, if at all, were derisory.

In the same period, liquidity on exchanges fell markedly. Now we had a situation where traders would offer 7/1 about a horse trading at 8.2 on the exchange but only to £20. Lord-A-Mighty if someone asked for a couple of hundred each way – a bet far larger than they could stand, trade or even dump with the few proper Bookmakers betting to opinions. Casually they knocked the larger punters back, without thought for their future. They turned to following the exchange win price, but restricting the place returns, making something off of that book instead. Tossing casually away years of agreements and the code laid down by Tattersalls. This code has, and still is, respected in betting shops and credit offices and even improved upon. They laid off staff, and finally stopped going in some cases, altogether. So when ‘a proper Bookmaker’ tells me I shouldn’t be going about criticising their business plan, I have to laugh. Proof of the pudding is in the eating. It gives me little pleasure to be proven totally right. I said this operandi would fail on every platform available to me, to whoever would listen and many who would not. If there’s no work – you’ve failed.

I’ve covered the traders, what about the views of my customers? First off, make no mistake, I like a laugh with my punters, especially when they lose – but I don’t mind the jibes when I do either! It’s part of the fun of betting with the old enemy. Because I am, the old enemy in all but age… I still offer odds which reflect my views and I don’t knockback bets from genuine punters, ever. Why aren’t the punters flocking to a ring where they can very often beat an exchange price and pay no commission? Because my friends, like me, they’re so famously bored of a ring with rows of Bookmakers betting like soldiers – all offering the same odds. There’s no variety or choice. It’s uniform and drab. Worse it’s an exchange driven cartel. Most punters believe the Bookmakers win, whatever the result. If everyone has the same price it appears like price fixing. They disapprove of restrictive practices such as 1/5th odds on the Grand National, and traders who dress as if they’ve  just stepped out of their front rooms. And worse, they just want the fun of a bet. It really matters little to them whether a horse is 5/1 or 4/1 when the nags are toiling up the straight. One of the loudest punters in the ring I love, little Tommy, makes the most noise. He doesn’t bet big, but to him it’s still the buzz, and I love him for his enthusiasm. These days, customers are afforded little of the respect of past days, when giants like John Banks and Stephen Little battled them with a smile, a thumping bet at their odds, and a tie.

I offer two thoughts for punters at this stage, out of balance. If you moan about poor place odds and you give those traders who offer them your fiver each way at 1/5 the odds on the Cambridgeshire because they are 17/2 about something which is 8/1 elsewhere, then you’ve only yourselves to blame for supporting them, in any race.  I believe you should identify the culprits and never bet with them; period. That’s how you rid the ring of scoundrels without the business acumen to appreciate exchanges aren’t the savior, but their death knell. Oh, and tell your friends. Second, although I enjoyed the banter from Big Mac, even if it occasionally made no sense, the culture of moreism always has a price; go for service over value, every time. Think I fly Ryanair if British Airways head in the same direction?

Fine, I’ve given my thoughts. What of the future? For those leading Bookmakers these days, and for the empty vessels in the ring, standing looking at the tumbleweed, bitching away, and blaming everyone but themselves for the problems, I offer these solutions.

Number one; allow the racetracks to dictate the terms of business in the rings. Fundamentally to restore order on place markets, introduce a guaranteed minimum lay to lose amount for each ring. This stops traders betting to pennies, offering unsustainable odds, and knocking back the larger punters. It’s so tiresome to hear dinosaurs claim tracks ‘shouldn’t be allowed to dictate the terms of business’. What a narrow view, especially as even now, they already do! It’s hardly in the favour of racetracks to do away with the draw of their betting rings, is it? Chesterbet is a success, but only in parallel with Bookmakers bringing the punters to play into the track in the first place. On their own, and without a ring, tracks – whilst they can deliver on the bet at more restrictive odds – can’t deliver on the flavour and atmosphere people in this country enjoy about the ring so much. Think that Simon Bazalgette and Charles Barnett are rubbing their hands with a go it alone approach? They’re no fools. They would prefer a symbiotic relationship. Every time we say no to their requests for improved service standards, they become just a little more unsympathetic to our problems. They will naturally turn their vast expertise in running business, into taking betting under their wings and employing people like me to show them how it’s done successfully. And yes, I would, if the alternative is to stand amongst a bunch of fiddlers trading dollars in their jeans.

Number two, for racetrack bosses. Extinguish the cosy little relationship between RDT and Betdaq, with software capable of skillfully enabling traders to hive off bets at lightning speed to the exchange. Do away with track broadband and WiFi altogether. Outlaw data cards, secondary laptops and hand held PDAs for Bookmakers. No, it’s not air tight, but it does go an awful long way to restricting the ability to trade with exchanges. Especially at festival meetings where mobile phone networks like Vodafone do a total runner. Fundamentally, switch off the exchange displays on laptops provided by companies such as RDT and return rings to a lower tech environment. Give serious pause for what I’m advocating if you value a vibrant ring, its draw and income. Stop worrying about losing a few traders who do not approve of restrictions. Believe me, they’re no loss! En fin, if you’re showing exchange odds on a big screen at your Racetrack, you’re doing yourselves no favours. It isn’t about price.

Number three Bookies, get into the modern day age of cashless societies and find bank’s willing to offer the new fast generations of swipe debit cards to enable punters to bet without the need to queue for hours and days at cash points.

I accept there will be a variety of views out there to this. If you’re a hard working Bookie, you have my respect for your efforts, but you’re going nowhere, if you don’t adapt, and you know this is true. If you’re the blinkered sort, who believes the Son of John Banks got here through luck rather than focusing on service standards, or if you’re worried someone else in the ring on a mobile will break the mould and have a huge mass of punters at his joint, whilst you have nothing, then you’re missed the point. It’s greed and an unworkable long term business plan that got you here in the first place. You have to work as a collective, rather than a series of individuals, and you have to act now and stop thinking of what’s good for you, but what’s best for the customers you’ve lost. The tracks have the power to lay down sensible practices, if you’d only let them. One thing’s absolutely for sure, the one you’re using right now has failed, miserably. I don’t think anyone could argue with that. For those that view some of the points as ‘legally challengeable’, I point you to the free for all 2008 Gambling Act. Good luck in Court trying to get a decision as to what is, or isn’t legal anymore, because the Gambling Commission certainly don’t.

One final point, Bookies. Just a few years ago, many of these points were laid down by the NJPC articles. I don’t recall anyone at that time complaining, or challenging the terms. We can change, and we must, if the whole shebang doesn’t migrate to GoodwoodBet in a very short time.