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Welcome to the News desk. |
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Bookies urged to volunteer millions for reinvestment via grassroots
fund |
24/11/2009 |
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Owen Gibson |
The government
has proposed the creation of a fund that would lead to bookmakers handing over
millions of pounds to Sport England for reinvestment in grassroots sport as
part of a new voluntary code.
But
the plan, the implementation of which the sports minister, Gerry Sutcliffe, has
asked Sport England's chairman, Richard Lewis, to oversee, has already received
short shrift from the betting industry.
In a letter to representatives
of the bookmaking industry and the major sports governing bodies, a copy of
which has been seen by the Guardian, Sutcliffe attempts to heal the
long-standing divisions between the two sides by suggesting that the voluntary
fund would offer "an opportunity for all parties to show goodwill".
He urges the bookmakers "to move
relatively quickly to an agreement". Contributions from the bookmakers must be
"serious and significant", said the letter. It is understood that figures of
between £5m and £10m have been discussed.
Sutcliffe said in
his letter that the grassroots sport fund should not be linked to "any of the
ongoing and wider issues on which there is currently discussion", which include
sporting integrity issues and offshore operators. Betfair last year led
discussions about a possible voluntary fund, but talks broke down. The
bookmakers have argued that unless the new fund is linked to an end for the
campaign among sports bodies for a statutory right to a percentage of revenues,
as is now the case in France where each licensed operator must pay 1.8%, there
would be little point in entering a voluntary agreement. It is
believed that the Remote Gambling Association and the Association of British
Bookmakers responded with letters querying the government's approach. Clive
Hawkswood, chief executive of the RGA, said the plan was ill conceived and put
Sport England in "an untenable position with no prospect of success" by asking
for a solution by the end of December. "If any sort of voluntary scheme is to
work fairly and effectively then it needs the support of the wider industry and
neither the online or offline sectors have been consulted as a group," he said.
Sutcliffe is waiting for further responses before deciding on his next
move, which could include bringing forward new legislation to force bookmakers
to contribute. But any decision to legislate would face time pressures in view
of next year's general election.
A series of key decisions will have to
be taken on the gambling industry before the end of the year. A panel chaired
by former Liverpool chief executive Rick Parry is looking into the issue of
integrity in sport. The panel, which met yesterday, will deliver its
conclusions before the end of the year. The subject has risen further up the
agenda in the wake of last week's match fixing revelations from German police,
which revealed around 200 games across Europe had been influenced by criminal
gangs.
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