Tuesday, September 30, 2008

ClubsNSW reject Centrebet PC plan - The Australian - 29th September 2008

The NSW clubs industry has rejected an offer from online gambling giant Centrebet to set up computer terminals in its venues, saying it is taking a stand against the internet gaming industry.

Centrebet approached the industry representative body ClubsNSW in April with an idea to set up an internet cafe-style system linking gamblers directly to the online company's website.

Clubs were offered a 50 per cent cut of all revenues generated on the computers, which would be paid for on gambler's credit cards.

A similar mobile phone system was also proposed by Centrebet, Australia's largest online bookmaker.

ClubsNSW represents almost 1400 registered clubs.

The ClubsNSW board today revealed it had rejected the offer in June, saying it was taking a stand against credit card and internet gambling.

It was the first of two approaches made by online betting agencies, with smaller player betezy.com.au making a similar offer last week.

ClubsNSW chairman Peter Newell said the federal government should step in and ban credit card betting.

"It's one thing to gamble with your own money, it's a completely different thing to gamble with money that is being provided on credit,'' he said in a statement today.

"ClubsNSW has taken a stand at a financial cost - one which we believe is the responsible action to take.

"Now it is up to government to address the issue."

Mr Newell said problem gambling affected less the one per cent of Australian adults, but recent research showed the number of internet problem gamblers was rising.

"Recent research shows that the number of internet problem gamblers is on the rise at well over 20 per cent,'' he said.

Greg Tingle comment

My interpretation of this is that Centrebet and ClubsNSW are doing their best to try to protect their business interests, play the right political cards and build a better mousetrap. I think they see that some of the mice are finding other mousetraps to play in. Regarding credit cards, are they going to try to stop people spending up on plastic for Christmas time also. Make no mistake, it's all about money and trying to protect turf. News Corp's own Rupert Murdoch said, "Big will not beat small anymore, it will be the fast beating the slow". Seems that Centrebet and ClubsNSW know what Murdoch was talking about. It will be interesting to see where this goes in the news media business. Online casinos continue to shake up the landscape.. just ask James Packer and Stanley Ho about it.

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