'Potentially Significant Competition Concerns'
The Australian Competition and Consumer Commission (ACCC) said in a prepared statement on Aug. 2 that Victorian-based Tabcorp's proposed A$1.9 billion takeover of Queensland's UNiTAB raised "potentially significant competition concerns." The ACCC said its main concern is a substantial decrease of competition in pooling services. Other areas of concern are wagering and the acquisition of racing products. The statement was not a final decision on the matter, which was expected today. The commission has instead called for comments on the statement by Aug. 11, before making a final decision by Aug. 16.
Betfair in Queensland
Betfair Australia , which was recently approved to operate in Victoria, is reportedly prepared to offer Queensland Racing more than A$400,000 for a sponsorship deal in a bid to be licensed in the state. The betting exchange said it had a A$4 million chest to divide between the states as a back payment for fielding on meets, and that figure would grow. Queensland Racing Chief Operations Manager Malcolm Tuttle, however, said the body is still "fundamentally opposed to betting exchanges."
Fallon in Court
British jockey Kieren Fallon and 10 other people appeared in the City of London Magistrates' Court on July 18 over allegations of race fixing. He and jockeys Fergal Lynch and Darren Williams deny charges of conspiracy to defraud customers of Internet betting exchange Betfair. All 11 defendants were released on unconditional bail and scheduled to appear at Southwark Crown Court later in the month. On July 28, Fallon lost his High Court appeal and will not be allowed to ride in Britain until the end of his race-fixing trial, which isn't expected to happen until July 2007. Fallon denies the charges.
Embracing Technology in Illinois
Richard Duchossois, the chairman of Arlington Park racetrack in suburban Chicago, told state regulators last week that it is time for the racing industry to embrace technology (e.g. the Internet) that will bring their trade to the masses, according to the Arlington Daily Herald. "If we don't get up with technology, we aren't going to exist anymore," Duchossois told Illinois Racing Board members at their third and final hearing on the industry's health. Duchossois wants state lawmakers to allow Arlington Park and other Illinois tracks to set up their own online betting sites.
Nason's Replacement
Racing Victoria Limited (RVL) announced July 18 the appointment of Stephen Allanson as its new Chief Executive Officer, replacing Robert Nason who abruptly left in April to take a position at Tabcorp. Allanson had been acting CEO since Nason's departure. His appointment took immediate effect.
What about that Racing Exemption?
Opensecrets.org, a Web site that tracks political contributions, has revealed that the National Thoroughbred Racing Association (NTRA) contributed $10,000 to Bob Goodlatte's race for congress in 2004. Horseracing and Lotteries were exempted from HR 4411, the Internet Gambling Prohibition and Enforcement Act, which was passed on July 11 . . . at least it is in the minds of opponents to the legislation. Goodlatte has argued all along, however, that there is no such exemption, and he reiterated this position in an interview with CNBC last week that the legislation, if passed, would expand the federal Wire Act (which refers to sports betting) to outlaw race betting. "[4411] makes it clear that it covers all forms of gambling," he said.