---

Gambling Act (On-course Bookmakers)

The basis of the auctions that were held from the beginning of the 10-year period was that they were, in effect, selling freeholds. The people who bought pitch positions were not given any indication that they were buying them for 15 years. That is the basis of my argument. I appreciate the Minister’s point, but I challenge him to ask anyone who bought a pitch position in an auction whether they believed that they were buying it for a set term, or any term. If they were buying them for a 15-year term, not informing them of that at the time is tantamount to fraud. The clear indication is that the bookmakers who are currently in good positions on a race course through their seniority, or through having paid for their pick placement from someone in such a position, could find their assets worthless. As I have said, they believed that they were buying their pitches in perpetuity. The 2005 Act makes no provision for protection of people in either scenario. I wish to highlight the case of my constituent Adrian Pariser of Pembroke crescent, Hove, who trades as an on-course bookmaker under the name of Sam Harris. Mr. Pariser has an extensive family history in the bookmaking industry. He recently contacted my office to express his grave concerns regarding the soon to be implemented Act. He had problems at the introduction of the period and successfully challenged the position that he was given. I have already outlined how his concerns are echoed by many in the bookmaking industry. My constituents Don and Gary Morill are in a similar position. They have been in dispute over their original pitch positions for the past 10 years. They now feel that they have been hit by a double whammy—please forgive my unparliamentary language, Mr. Conway—as the value of even their disputed pitch will be taken away. With pitch allocations switching to the Racecourse Association, the subsequent worth of the pitches will also transfer to the association. To put it simply, the association stands to make millions of pounds at the expense of the accrued assets of the very people who, arguably, are their most regular and long-standing customers. Ironically, the NJPC has been selling picks and gaining 6 per cent. commission on the auction sale, as I informed the Minister, plus a transport allocation of £150 a sale. Those sales continued up to and into this year. However, Caroline Davis, the Racecourse Association representative on the NJPC, said in an article in the Racing Post on Tuesday, 3 April, that the legislation that paves the way for change has been around for two years. During those two years, the NJPC has continued to auction pitches based on pick seniority, taking the commission and transfer fee. I would also like to draw the attention of hon. Members to comments made in a letter written by John Stevenson, the chairman of the National Association of Bookmakers. Hon. Members may be aware that I have been critical of Mr. Stevenson in this very Chamber in the past. However, no one can doubt his depth of knowledge. In a draft letter to MPs, Mr. Stevenson estimated that the current value of pitches based on the pick lists is in excess of £100 million. Following implementation of the Act, those pitches would have no marketable value whatever. Mr. Stevenson’s conclusion is that the failure of the Act to redistribute the authority to provide bookmakers with a certificate of approval will allow a race course to confiscate bookmakers’ positions as of 1 September 2012. He also concludes that that could not have been the original intention of the Act. I am sure that most people in this Chamber would agree with that. With the Act coming into force later this year, it is of vital importance that any potential avenues for genuine misunderstanding or even potential corruption be considered and addressed. I would therefore be grateful if the Minister, who is new to his post, could investigate the situation as a matter of urgency, and make it a high priority to identify what measures can be put in place to ensure that the agreed procedures for establishing placements for bookmakers can be continued. The principle at stake is one of fairness for businesses that have for many years abided by current regulations and recognised the system of seniority. With the value of the pitches running to millions of pounds, it should not be the case that years of hard work by families or commercially-run businesses could be rendered virtually worthless. The intentions of the Racecourse Association will surely discourage many from entering the industry, contrary to the rationale behind the new rules that were introduced 10 years ago. If the Racecourse Association needs to raise greater revenue from bookmakers, there are alternatives that many consider to be more appropriate and fair; for example, a variation of the commission on sale position. The outcome of the current predicament will have far-reaching consequences not just for the bookmaking community but for the general public. The traditional bookmaker is as much a part of the racing experience as the horses and jockeys. Spectacles such as Ascot and the Grand National are part of our national calendar. They bring in many thousands of tourists, and are watched and admired the world over through television and satellite coverage, which also brings much-needed revenue. As the Act will change the rules that govern how the bookmaking industry operates, it is especially important that confidence in the industry is retained, not just by the public but by those who work in it. I support the broad outline of the Act. With the advent of modern technologies, the gambling industry has undergone many changes. It is only right that the Government acknowledge those changes and introduce legislation that best reflects the need to adjust and adapt so that this great sport, the sport of kings, may continue to operate throughout the 21st century. However, with the allocation of list positions no longer being recognised after 2012, many bookmakers in the industry are concerned that too much control of trackside betting and the associated assets will be in the hands of one body—the Racecourse Association. There is great worry that such unprecedented control would provide the association with a greater degree of commercial control over trackside betting than would be desirable in a free industry. The consequence of the Gambling Act 2005 is that Britain’s 59 race courses will be able to take over ownership of sought-after sites in 2012 and then rent them back to the people who originally bought them in good faith. No distinction or preference will be made on the basis of the bookmaker’s previous list position, which, in some cases, was acquired through a century of work and trust-building in the industry. Obviously, the allocation of pitches will be awarded on a commercial basis to those who are prepared to pay the greater rent. Perhaps I am being absurdly pessimistic, but I can envisage the end of the family bookmaker as a result of the Act. Bookmakers, many of whom are individual businessmen, will vie for their trackside position against huge, enormous betting companies that obviously have huge, enormous resources. Having paid for their list position once and been promised that it would be for life, they will find themselves once again at the mercy of big business. It is fair to say that many of the well-established but smaller bookmakers will be unable to compete. If they were to be lost, an essential component of our horse racing industry would be lost for ever. It is the duty of this House to do everything in our power to ensure that that does not happen. The loss of recognised list positions would be grossly unfair to those who spent so long building up their businesses. It would be unfair to their children, parents, grandchildren and grandparents—to whole generations of bookmakers. Furthermore, it would leave them with no long-term financial security. A highlight of previous legislation was that it gave bookmakers something to hand on to their children. I therefore strongly urge the Minister in his new position to consider the specific intent of the Racecourse Association, and to consider whether legislation should be amended so that list positions remain in the ownership of the bookmakers. The issue is causing a great deal of stress and anxiety to many in the bookmaking industry who want nothing more than to continue to work in the profession that they admire and respect. We have but a short time before the Act comes into force, so I would appreciate the Minister’s review of the issue. 2012 looks set to be a golden year for British sport, but it is important that it should be a golden year for all British sport, not just the Olympic sports. It is important that we do everything that we can to protect the livelihood and reputation of those who have given their life to the industry.