Lose or be locked out; you bet!
But the good thing is that someone still loves you very much - the bookies. And the odds are they are Poms.
The Poms are snapping up the corporate bookmakers. British juggernaut William Hill has splashed $700 million to bring Tom Waterhouse, Sportingbet and Centrebet into its stable of online betting brands while Sportsbet is owned by Paddy Power of Ireland.
And no wonder the big boys have moved in. Thanks to ultra-low tax rates in the Northern Territory, the takings are huge.
According to figures last week from the NT Department of Business, turnover now surpasses $5.7 billion a year, on which the bookies leaked just $2.35 million in tax, a rate of 0.05 per cent. Profits were $469.2 million last year, shared among the 12 licensed bookies.
Not surprisingly, the department has finally conceded a review is on the cards.
Besides the negligible tax rate, and the aggressive advertising that has expanded the overall market, there is a more insidious reason for the thumping profits.
Increasingly, the corporate bookmakers only take on losers. If you start beating them, they shut you down.
Professional punters and even successful amateurs are up in arms. BusinessDay canvassed a number whose accounts had been closed or restricted to small bets or products on which it is difficult to win.
One, Richard Irvine, tells his story for BusinessDay online.
Irvine has had his accounts closed or severely restricted by all of the five top online bookmakers in the territory: Luxbet, Sportingbet, Sportsbet, Centrebet and Bet365. Restrictions are as good as a closure, says Irvine, as the bookies no longer offer a fixed-price service. The point of difference to the TAB and its totalisator system is they offer fixed prices to their clients.
"The odds are locked in at the time of placing the bet, whereas the TAB totalisator system is a pool of money that is distributed by weight of money for a particular result. So, by not allowing you to bet fixed price with them, these bookies are effectively closing your account as well."
Wagering, like other businesses, has become an online affair. In the good old days, on-course bookies had been obliged to bet all comers, a rule that had been in place for decades. Since the latest regulatory shift by the territory government, though, the bookies are not obliged to bet anybody.
The Department of Business was unable to respond to this story by deadline. Corporate bookmakers contacted by BusinessDay did not deny placing restrictions on accounts.
A spokesman for Luxbet (owned by Tabcorp) said it had suspended a small number of customers for indiscretions such as "abusing a telephone operator or other breaches of conditions of use".
"It has not suspended customers solely for winning," said the spokesman. "It is standard global bookmaking practice as part of managing your book to place restrictions on some products for a very small segment of customers."
Those are the winners, says Richard Irvine, who did not, incidentally, abuse a telephone operator. Luxbet's email to Irvine says its restrictions are "a commercial decision made by the Luxbet senior management team".
Sportingbet told Irvine he was allowed to bet only on the website and could not call up and bet with an operator.
"I am not allowed any fixed-price bets. They offer me a tote product only. I tried to back a horse at odds of $41 in the Epsom at Randwick [one of the biggest races of the year] and was told I could have $3.75 on it. So, their liability would be $150. Not to mention it's a tote product, where they assume virtually no risk. Sportingbet is the biggest bookie in the country."
In a recent interview, Centrebet boss Michael Sullivan said the bookmaker "had not banned a punter for four years". But he agreed that his business reduced successful punters' outlays.
The conundrum for the territory is that its tax take used to be higher, before Tasmania abolished all taxes for bookies in 2009 in favour of a flat $256,000 fee. There is competition in this state market.
Then, in 2010, the territory replaced its turnover tax with a tax based on gross profits. A profit is easier to "game" than turnover.
Frequently Asked Questions about this Article…
The article says British firms like William Hill have been buying Australian online bookies because the market is highly profitable thanks to ultra-low Northern Territory tax rates and big turnover. William Hill reportedly spent $700 million to add Tom Waterhouse, Sportingbet and Centrebet to its online stable, attracted by large takings and generous margins.
According to NT Department of Business figures cited in the article, turnover in the territory now tops about $5.7 billion a year. Bookmakers paid roughly $2.35 million in tax, a rate of about 0.05%, while reported profits were about $469.2 million shared among the 12 licensed bookies.
The article names William Hill, Tom Waterhouse, Sportingbet, Centrebet, Sportsbet (noted as owned by Paddy Power of Ireland), Luxbet (owned by Tabcorp), Bet365 and Tabcorp as key corporate bookmakers or owners active in the Australian online betting market.
Yes. The article reports many professional punters and successful amateurs have had accounts closed or restricted. It cites Richard Irvine, who says his accounts were closed or limited by major online bookies including Luxbet, Sportingbet, Sportsbet, Centrebet and Bet365. Bookmakers contacted did not deny placing restrictions.
Fixed-price bets lock in the odds when you place the bet, while a TAB totalisator (tote) pools bets and pays out based on the weight of money in the pool. The article explains bookies often switch winning customers to tote-only products, which transfers most risk away from the bookmaker and effectively reduces those customers' ability to win at fixed prices.
Historically on-course bookies had to accept all comers. The article says a recent regulatory shift in the Northern Territory means corporate online bookmakers are no longer obliged to accept every customer, allowing them to restrict or refuse bets from certain punters.
The territory has conceded a review is on the cards because the current tax take is negligible relative to turnover and huge bookmaker profits. The article also notes competitive pressure from other jurisdictions (like Tasmania’s 2009 change) and that switching from turnover tax to a profit-based tax in 2010 made the system easier to ‘game.’
Responses quoted in the article vary: Luxbet (Tabcorp) said it suspended a small number of customers for breaches of terms and denied suspending customers solely for winning; Sportingbet told one customer he could only bet online and was limited to tote products; Centrebet’s boss said they hadn’t banned a punter for four years but acknowledged they reduce successful punters’ outlays.
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