What is a fair deal between sport and gambling?

What is a fair deal between sport and gambling?

Tuesday, May 19, 2015
Australia’s NRL calls for a “fair return” from bookies

Australia’s National Rugby League (NRL) wants a “fair return” from the gambling industry after confirming to TotallyGaming.com that it is in talks with 16 companies over a new betting right deal.

Media and communications manager Peter Grimshaw (pictured) said that while talks are still to be finalised, the body that runs Australia’s top rugby league competition believes it deserves a share of the money that the companies generate from the NRL’s properties.

Reports suggest that the NRL could double its income from the betting industry to as much as Aus$30m (€21.4m/$23.9m) over the next three years as it uses the terms of incoming state government legislation that states that the proceeds of betting should be based on turnover rather than profit.

“We are negotiating new agreements with the betting agencies aimed at securing a fair return to the sport – and ensure integrity in betting on rugby league,” Grimshaw told TotallyGaming.com.

“The sport delivers the product for the betting agencies and is entitled to a return on those betting activities.

“Our aim is to put that revenue back into the game. We would just stress that any revenue generated from our agreement with betting agencies will go back into the game, from the juniors through to women’s rugby league and the elite level.

The NRL and other sports have been eager to change their betting income arrangements since the landmark High Court case won by Racing NSW in 2012 that saw millions poured into racing via the introduction of a fee of 1.5 per cent of turnover enforced on agencies.

The existing NRL deal only returns the code a five per cent piece of bookmakers’ profits on rugby league betting, which amounts to a far less generous figure given the low profit margins with wagering on the game.

Some estimates suggest that about Aus$720m per year is wagered on NRL games, with betting operator TAB taking nearly Aus$200m alone.

Gerard Daffy of Ubet told the Sydney Morning Herald newspaper that the industry has been preparing for bigger duties to be paid to sports.

“We knew this was coming and it's been mooted for a while,” he said.

“We know the world is a changing place and I don't think anyone would argue that any sport is not entitled to their share of the revenue stream.

“No one will tell you that they like paying more, but most of us can see the logic behind it and have an understanding.”

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