EC Looking into UK Tote Transfer
The European Commission said it will investigate the transfer of the U.K. Tote to a racing trust (scheduled to take place in 2006) to ensure that the deal complies with E.U. rules on "state aid." The investigation will likely delay the transfer until 2007, if it is even allowed it at all, and has many racecourse owners frustrated. The process of putting a value on the Tote has been stalled by the EC's announcement, and while a figure of £150 million to £200 million had been put on the sale, Warwick Bartlett of Global Betting and Gaming Consultants put the market value of the Tote's shops alone at £350 million (based on the sale of Stanley Leisure's shops to William Hill). A spokesman for the EC said the investigation would take "several months" depending on the complexity of the issue and the level of cooperation from the Department for Culture, Media and Sport.
Victor Chandler Denied
One month before the Court of Appeals' scheduled decision on the ongoing data rights war between William Hill and the British Horseracing Board, rival bookmaker Victor Chandler was denied an injunction by the High Court--a small victory for the BHB. VC had applied for the injunction against the BHB and PA News, the pre-race date service provider for the BHB, after the firm stopped paying for the service in November when William Hill won a ruling against the board in a European Court of Justice case. VC argued that the board was abusing its "dominant position" in racing to make bookmakers pay "abusively high and excessive charges," but was ultimately ordered to pay £200,000--money the BHB argued it was owed as part of the data contract.
CHRB Asks Associations to Do More
The California Horse Racing Board is calling on racing associations throughout the state to do more to help with racetrack security, marketing and advertising and providing financial information. Improving security in the stable area has been a high priority for the CHRB for the last year, and imposing requirements for racing associations to assist in that effort as a condition of license is the latest move in the continuing process. All racing associations already are voluntarily conducting TCO2 testing, which has all but eliminated the practice known as "milkshaking," and by including TCO2 testing and related security requirements in the license application, the board can ensure the program will continue.
Lottomatica Takes on Horse Betting
Lottomatica, the Italian lottery and gaming operator, signed a preliminary agreement last month to operate Italy's Tris horse race betting game for six months. Sarabet, the current operator of Tris, said it wants to give up its concession to run the service six months ahead of its contract expiry date.
Preakness Records;
Youbet.com, Inc. reports that it handled more than $3.5 million in pari-mutuel Internet and phone wagers on the 2005 Preakness Stakes at Pimlico Race Course. The day's handle, which was the third highest daily total in Youbet's history, was 75 percent greater than the $2 million Youbet reported for the 2003 Preakness, the last time Youbet.com carried the race. Of the total wagered by Youbet customers on Preakness Day, $1.8 million went to wagering pools at Pimlico, including $1 million for the Preakness itself. Both the 2005 track and race totals were more than double the amount Youbet handled in 2003.
BetBarn66.com, the newly launched account-wagering site, set new handle records for the site over the three-day Preakness weekend. The site's total handle for Preakness weekend increased nearly 4 percent over the total handle for the Kentucky Derby weekend. The group attributes much of its Preakness success to an aggressive radio, e-mail and direct mail marketing campaign.