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Letter from Tim Ryan about betting exchanges
This was written in response to a letter
from Smartgambler client Max Hugen.
The Sydney Morning Herald article criticized
by Hugen also provoked a Smartgambler editorial attacking
vested interests for their campaign against
betting exchanges trying to enter the Australian market.
Tim Ryan is from the Australian Bookmakers' Association
Internet Betting Committee, one of the so called 'vested
interests' involved.
Smartgambler editorial
Guy,
I
actually didn't say exchanges were stupid - just the
act of an explicit breach of the IGA was stupid.
As
to vested interests - as I made the point at the bottom
of my first e-mail - bookmakers and TABs pay tax and
statutory levies to racing (a significant if not the
biggest cost - the TABs pay (on racing about 56% of
margin); bookmakers pay about 30% + extras like stand
fees). All we want is a level playing field. We would
be happy if the government barriers were lowered.
What
most people don't understand is that the rise of betting
exchanges in the UK came about for exactly that reason
- the government dropped its 6.75% betting duty and
horserace levy 1.25% and substituted those with a
15% Gross Wagering Margin Gross Profits Tax and 10%
GWM Levy) - effectively to put in our terms reducing
the TAB takeout by 9% (of turnover). The unresolved
issue in the UK is that unlicensed persons are using
the betting exchange platform to negotiate bets but
do not pay tax or levy in respect to their GWM (profits).
Secondly,
its about sound bites (or is that bytes in your case
online?) - I have a good dialog going with Mark Davies
of Betfair and we both are 'guilty' of 'aggressive'
statements because that's what the press want - and
apparently what the readers want. However - everyone
in the game plays the ball not the man - I don't make
derogatory remarks about particular people - I am
playing the "ball" - its subtle but very
important distinction. That said, personally I'd settle
for a reasoned public debate then trading missives
in the press.
If
you want to do something constructive attack governments
social policy on gambling issues not wagering operators
- we are simply compliant with the law.
(We
do. Editor)
For
the record though I don't think that government is
too far away from the opinion of the majority on gambling
issues (if anything they are viewed as not being tough
enough at least on pokies). In that climate its hard
to argue for tax relief.
The
point I made in the SMH Form "Weighing In"
column stands - Australian oncourse bookmakers could
provide all the services betting exchanges provide
(currently illegally) if they (the bookies) were permitted
to do so. If bookies have to be compliant with the
law its not unreasonable that punters are asked to
do likewise, nor that breaches of the law (by illegal
operators) are prosecuted to full extent of the law.
Betfair
have been in breach of IGA - they are now trying to
extradite themselves - it is a "win" for
law and order. Betfair are in breach of numerous publishing
restrictions statutes in various states and territories.
I know that they are being pursued, on a cease and
desist basis, by government departments - if they
persist they will ultimately be pursued by the police.
This is why Betfair desperately are trying to get
licensed in Australia (in all states) or at least
be authorised to take bets from Australia (but at
the same time they say they can't pay the same taxes
as Australian licensed operators).
Cheers,
Tim.
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