Select Committee on Culture, Media and Sport Written Evidence


Memorandum submitted by Adrian Pariser

  Please find below my views on the three terms of reference. I also fully support the submission by the Federation of Racecourse Bookmakers.

MY BACKGROUND

  My name is Adrian Pariser. I am a 55-year-old on-course bookmaker whose family has been involved in racecourse betting for 81 years when my Grandfather started bookmaking. I went to the London School of Economics before joining the business in 1974.

  The majority of my present pick positions are inherited but since 1999 I have also spent around £50,000 improving my positions on the present lists. I hold a significant, strong portfolio of picks:

Tattersalls Rails
Royal Ascot1 Cheltenham 14
Ascot Flat1 Newmarket July 12
Ascot NH1 Plumpton 6
Kempton NH1 Newbury 8
Lingfield Turf1 Windsor 9
Lingfield AW2 Goodwood 9
Brighton2 Fontwell 8
Epsom2
Kempton Flat3
Newmarket Rowley3
Goodwood July5
Sandown5


  Despite the strength of my picks, despite the years of experience I and my family have, it has been a struggle over the past three years to break even after taking home a very modest wage. The proliferation of Internet betting sites, (primarily Betfair), has clearly had a negative impact on business. Larger customers have stayed away from the racecourse—despite our percentages tumbling to an extremely competitive level (some would say suicidal level).

What the likely effects would be of allocating on-course betting pitches on a purely commercial basis, as has been proposed by the Racecourse Association

    —    Smaller businesses would be priced out of the racecourse.

    —    Many old established traditional bookmakers would be lost.

    —    It could allow those who do not understand the intricacies of racecourse bookmaking to take over the betting ring, as they would be willing to pay an inappropriate charge.

    —    Conceivably the larger off-course bookmakers could control all parts of the ring—clearly there would be a competition issue.

    —    On-course bookmaker attendances would slump even further than the current level.

    —    There would be a great lack of confidence within the on-course bookmaking industry.

    —    The on-course betting public could suffer from a lack of service, variety and the loss of we traditional bookmakers; the betting public off-course could suffer from poorer Starting Price returns.

  Discussion over new agreements with the RCA is not a problem if both sides realise they work best with mutual respect. The RCA's stance is disdainful to racecourse bookmakers. "We will not recognise bookmakers' lists". No ambiguity. No respect. No tradition. Just money.

What indications on security of tenure, if any, were given to those buying positions on bookmakers' lists in recent years

    —    From the first NJPC newsletter August 1998, "The NJPC has been established by the HBLB to implement the changes approved by the Levy Board to the administration of betting rings on British Racecourses". A Government body at the forefront of the changes.

    —    From the same newsletter "The NJPC comprises three independent members appointed by the HBLB, two members appointed by the Racecourse Association and two bookmaker representatives" Again three members appointed by a Government body and the full inclusion of the RCA!

    —    The NJPC road shows talked about "security", about "confidence", about "career bookmakers". They actively encouraged bookmakers to sell and buy picks.

    —    The new system replaced one that had remained quite unaltered for around 70 years. The new system was brokered by a government department. It was quite reasonable to extrapolate that the new system, which allowed for huge amounts of money to change hands, would last at least as long—if not indefinitely.

    —    Similarly, it was quite reasonable to assume that the picks were bought and sold because there was a long-term future in bookmaking.

  It would have been inconceivable that picks would have been bought and sold for the amount they traded for if any of us had even the slightest indication that the picks had an expiry date. The RCA's assertion that this situation has been known about for years is unacceptable. They may have known, but despite their position on the NJPC, they did not tell on-course bookmakers. It was only in February 2005 that authorised bookmakers were alerted on the transfer forms to be aware of the full implications of the forthcoming Gambling Bill. How could we know what they may be even then?

  The prices paid show that the positions on the lists were not sold on the basis of a short-term lease. It would have been uneconomical. We are not that silly or naïve.

What the role of the Government should be in the process for agreeing on a future framework for allocation of on-course pitches for bookmakers

    —    The RCA, by dint of its draconian and intransigent stance it took immediately the Act was assured, has shown itself to be untrustworthy.

    —    The RCA, in it's press release after the Westminster Hall Debate 4 July 2007, welcomed the comments made by the Minister for Sport, yet, incredibly, failed to mention the previous hour and a quarters debate where all sides of the house spoke against the RCA's stated intention "that as from 31 August 2012 they will not recognise bookmakers' lists".

    —    Whilst it is been comforting and encouraging to hear that the DCMS will be working closely with the racecourses and bookmaking bodies to resolve issues that have arisen, it really doesn't mean a lot if there are no statutory powers to stop the RCA acting unilaterally.

    —    We need recognition that the current pick lists are an integral part of all future administration of on-course bookmakers—as was the intention when they were set up.

    —    We need security.

  The Government, unintentionally through the Gambling Act, has removed that security and not replaced it. The RCA has taken advantage of the situation. Picks cannot be sold whilst the RCA's threat hangs over us. People have seriously lost more than their livelihoods—many would have lost their life savings unless the matter is resolved—and given the RCA's stance—resolved by statute.

In Conclusion

    —    A new system was introduced in 1998 by a quango of a Government department.

    —    It introduced the buying and selling of pick positions.

    —    This replaced a system that had been in use for many decades.

    —    It was therefore quite reasonable to assume that the new system would last for many, many years.

    —    The reason the RCA have been able to say that they will not recognise the lists from 2012 is because of their interpretation of the Gambling Act 2005.

    —    Hundreds of racecourse bookmakers will lose many thousands of pounds.

October 2007

  This position has been endorsed by Celia Barlow MP who feels that important lessons can be learnt from her constituent's experience.





 
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