The week in 60 seconds
The week that saw online bookmakers face the prospect of yet another proposed tax and the Guardian put its sportsbook under review after just five months
Story of the week: Industry hits back over sports levy plan
The gambling industry stood united after the UK’s opposition Labour Party revealed possible plans to extend the current horse racing betting levy to all sports.
The Labour plans echoed similar calls made by the ruling Conservative and Liberal Democrat coalition earlier this year and sparked a strong response as a host of bookmakers spoke out, claiming it to be yet another tax on betting companies.
Ladbrokes’ director of external comms Donal McCabe accused Labour of regarding the betting industry as a “bottomless pit”, while a spokesperson for William Hill derided the plans as “illogical”.
The Association for British Bookmakers echoed the sentiments expressed by Ladbrokes and William Hill and said it was concerned by the proposals, with other bookmakers also understood to be up in arms about the plans.
Good week: Numis says there’s still value in bwin.party
Shareholders in bwin.party will have been boosted this week after a report issued by brokerage firm Numis claimed there to still be value in the firm, albeit as a divided entity.
The report, issued on Monday, said the operator should “crystallise value” by carving up the business and selling it off, suggesting doing so could be worth twice bwin.party’s current market cap of £705m.
Numis suggested bwin.party’s unregulated market business could be sold to contenders such as GVC Holdings for as much as 823m, while its regulated European sports betting, poker and casino businesses could fetch as much as 394m from someone like Paddy Power.
Other assets, such as the firm’s payments arm Kalixa and its social gaming division Win could also contribute towards the total.
Bad week: The Guardian accused of hypocrisy over sportsbook
The Guardian responded to accusations of hypocrisy regarding its sportsbook plans by placing GoWager under an internal review.
Readers had questioned the eligibility of the newspaper’s “socially responsible” stance and opposition to fixed-odds betting terminals in betting shops while also launching an online sportsbook.
A poll of Guardian readers found that more than half opposed the newspaper’s plans, and a Guardian News & Media spokesperson confirmed the firm’s intent to increase transparency with its readers in the future.
GoWager launched in February this year after contracting FSB Technology to provide the platform.
Quote of the week:
“The Department recommends counselling to further whether the proposed method of regulation is not worse than the disease.”
The Dutch advisory board the Council of State speaks its mind on gambling proposals, released this week, after they attracted substantial criticism from related parties.