By TERRY BUTTS of the NQ REGISTER
THE much-anticipated merger between Tatts Holdings and Tabcorp Group has hit another hurdle – and the snake in the woodpile is said to be Crownbet.
The merger has been under a cloud ever since the two appeals by the ACCC and CrownBet were lodged in July, according to a Fairfax report, but Tabcorp has consistently told shareholders it was ‘committed to the transaction’ and confident of delivering the deal.
Those with a passion for racing and its survival can only hope Tabcorp is right – and that commonsense will in the end prevail.
Of course CrownBet welcomed the court's ruling on Wednesday.
“The merger is bad for competition, bad for punters and not in the public interest,” its Chief Executive, Matt Tripp, trumpeted.
It could also be said Crownbet and its corporate colleagues are bad for racing, bad for punters and certainly bad for public interest.
To use racing parlance Crownbet should be charged with causing severe interference and given life. And the ACCC should be charged with failing to perform on its merits, sometimes known as running and handling.
Crownbet, along with its bloodsucking colleagues – the corporate bookies – should have absolutely no say in the matter and would be doing the racing industry of Australia a great favour if they simply packed up and vanished.
Tabcorp Chief Executive David Attenborough told investors the year had been ‘strategically important’ for the company, and the hefty investment in its campaign to take over Tatts was worth any risk the regulators might knock the deal back.
The combination is expected to deliver at least $130 million per annum. It has been widely reported Tatts and Tabcorp hoped the merger would make them strong enough to expand globally, compete with international bookmakers and bid for wagering and lotteries licences overseas.
Fairfax reported last week that with the exception of Racing Victoria and Crownbet every racing state and associations, including jockeys and trainers, has supported the merger, saying it could lead to a national TAB, turn Australia into one of the most profitable racing jurisdictions in the world and realise an extra $50 million a year for the racing industry.
“The merger is a long awaited realisation of a dream from forward-thinking racing authorities who as far back as the 1960's could see the advantages for employment, prizemoney and growth,” wrote Patrick Bartley in The Age.
He added: “The ACCC has reservations but not ruled out a merger between both gambling houses.
“Just years after Premier Henry Bolte introduced the TAB to Victoria it took little time for those in the industry to toy with the notion of a workable, national TAB.
“Across Australia the advantages of such a TAB has slowly gained momentum.”
He said while the Chairman of the Australian Competition and Consumer Commission had reservations, at the same time he did not rule out the merger.
The highly-respected Bartley called on Chairman Rod Simms to get his head around the nuances and advantages of having one healthy, strong TAB so that our gambling industry will finally be on terms with countries across the world.
Coincidentally, Rod Simms was Financial Advisor to Prime Minister Bob Hawke who it is said played a helpful role in the first Australian off shore betting licence being granted in Vanuatu several years back. You might wonder what Hawke now thinks of the infiltration of the corporates into the Australian racing landscape. And the deleterious effect that it has had – and is still having.
A refusal of the merger between Tabcorp and Tatts would see racing prizemoney fall to UK levels, the Chief Executive of Racing and Wagering Western Australia, Richard Burt, told the Tribunal.
He said the funding of racing in Australia, which is among the most lucrative in the world, would shift towards the UK model where corporate bookmakers dominate and prizemoney is poor.
Australian owners, trainers and jockeys compete for almost $400 million more in prizemoney each year than their British counterparts.
“You can see how the market is going to unfold," Mr Burt told the Tribunal. "If the TABs don't remain competitive, I believe you will end up with more of a UK-type model. And when corporates get a hold of the customers en masse, as evidenced by the UK, you will find racing will decline.”
It just elementary dear judges – a no brainer!
DO THE QRIC COPS KNOW HOW TO GET A DRONE OFF THE GROUND?
WE have our QRIC cops decked out in the latest spy gadgets, videos and hidden microphones etc., and we now await the use of drones to catch illegal activities in stables.
In Victoria last week a trotting trainer was fined $2,000 after he was caught on film by a drone as he drenched a horse on race day at his Mildura stable. Brian Sybia pleaded guilty... well he was caught red handed... but his defence claimed it was an invasion of privacy.
He parked a car across his stable gates to block access and had his horse hidden from roadside view, said stewards.
But it didn’t stop the drone from capturing the drench on film.
In a letter last week from Queensland Trainers’ Association, members were warned or advised of the latest detection techniques. One wag responded with ‘based on the known competency of QRIC it is doubtful they would know how to get a drone off the ground...I think we are safe’.
Well ‘safe’ at the moment because it is not legal to procure evidence by drone in this State. But be assured that will change.