Select Committee on Culture, Media and Sport Written Evidence


Annexe

Extract from the Racecourse Association's Position Paper—September 1997

BOOKMAKER SENIORITY AND ATTENDANCE

  The present system of seniority is long established and broadly speaking is satisfactory to the bookmakers themselves—at least to those bookmakers whose seniority under the system is such as to provide them with the opportunities they want. To those of low seniority it can prove frustrating, with opportunities to bet severely restricted.

  Despite the criticisms of the present system levelled by racecourses and waiting list bookmakers, it must be acknowledged that when introduced more than 60 years ago it brought order out of chaos and has maintained that order ever since. Changes to the system are certain to meet with opposition and to minimise this it is proposed to maintain as many of the existing principles as possible.

  The seniority of pitch bookmakers (authorised bookmakers) is defined in the rules as dating from the day on which they were first allotted a permanent pitch in the ring in which they operate (or on the Rails). Waiting list bookmakers earn their seniority from the date on which their name was added to the list.

  In effect there is one list of bookmakers in the order of seniority, albeit that the list is presently divided into:

    (a)  Pitch bookmakers;

    (b)  The Supplementary List;

    (c)  The Extended Supplementary List;

    (d)  The Waiting List.

  The combination into one list would not affect the seniority of any person on it, but would remove the necessary categorisations. Any combination beyond merging (b) and (c) would destroy the concept of designated numbers and/or the necessary protection for the public. Merging (a) with any of the others would remove the right of pitch holders to bet in excess of the designated number. Merging (d) with (c) would mean that any bookmaker was eligible to bet as soon as he had joined the waiting list, before he had been approved or lodged a bond, which many waiting list bookmakers do not wish to do until they are in a position to bet regularly. There is scope for simplyfing the waiting lists by phasing out the advantage given to supplementary list bookmakers (ie merging (b) and (c)), as originally agreed in 1992 at the inception of the ESL.

  Pitches are allotted strictly in accordance with seniority. However it has now been agreed that "seniority" can be bought and sold by offering the rights attendant on that precedence to those in descending order of seniority below that of the seller. This in itself is liable to result in the retirement of a number of long-serving bookmakers and effect a major revision of the ring. Once that has been achieved little further significant movement is anticipated.

  While the NAB has still to finalise details of the Transfer of Seniroity Scheme, it is not expected to differ greatly from the Draft paper.

TRANSFER OF SENIORITY SCHEME

  Beaing in mind the legal advice received by both the RCA and NAB it has been agreed that the facility to buy and sell pitches as such (ie a specific plot of land on a racecourse) is deemed to be unacceptable to the RCA as such a transaction would confer proprietary rights to the purchaser who would have, in effect, property rights conferred to him by the racecourse concerned.

  As a result of this the NAB developed the Transfer of Seniority Scheme, which does not confer any property rights.

  The NAB have yet to finalise the details appertaining to this Scheme, however, the outline provisions of the Scheme are, as under, subject to adjustment and modifications yet to be decided.

  1.  That is shall be permissible for a pitch holder to sell his personal seniority to a "willing buyer" who shall retain rights and responsibilities identifical to those of the seller.

  2.  That a "willing buyer" must be either:

    (i)  A pitch holder of the same type in the same ring on the same racecourse.

    (ii)  A pitch holder in any ring on the same racecourse including "Away", "Unorthodox" and "Rails".

    (iii)  A waiting list bookmaker for the same ring on the same racecourse.

    (iv)  A waiting list bookmaker for any ring on the same racecourse.

  3.  Persons other than pitch holders and waiting list bookmakers on the racecourse concerned will not be permitted to buy seniority.

  4.  A "Willing buyer" as at (2)(i) to (iv) above will have the right, in order of personal seniority, to be offered the "opportunity" to buy, strictly in accordance with the order given in (2) above.

  5.  In order to determine the priority right of the "willing buyer" to buy, personal seniority only will be taken into account, that is to say "inherited seniority" will not confer any advantage in the right to have first refusal. First refusal, therefore, will be given to the most senior and thereafter to the next senior and so on in descending order in each category in the order given at (2) above.

  6.  The valuations of seniority in any ring will be recommended by the relevant Association for acceptance by the NAB.

  7.  "Valuations" will be reviewed when considered necessary by local Associations or by NAB.

  8.  No pitch holder will be under any obligation to buy seniority, but others with less seniority may overtake him on the seniority scale should he refuse to do so.

  9.  Any waiting list bookmaker offered the opportunity to buy seniority at a particular course shall be obliged to do so, subject to the following:

    (i)  he will be allowed one refusal without penalty;

    (ii)  on a second refusal he will be moved 10 places down the waiting list; and

    (iii)  on a third refusal he will be removed from the waiting list.





 
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