How To Save On-Course Betting
What are the current issues facing on-course betting? How can these problems be solved? Today on the blog one of the UK's leading independent bookmakers Geoff Banks has some advice for the racing industry and offers some solutions to save the betting ring.
My last blog about modern day racing, and its sanitized ways, seemed to attract a lot of attention or hits as they say apparently. And more than a few compliments from like-minded souls, or perhaps concerned, individuals on Twitter. It’s hard to be humble when you’re as great as I am. In future my rate for such scribing shall be ten pounds an article, and I'm not budging from that.
What was absent – was the contra view. Which I expected from trainers and connections of horses boxed away in padded cells for months on end- awaiting their glory moment. Shame that. However, all is not lost. I did receive one rather hateful response from a fellah describing himself rather grandly as ‘a proper Bookmaker’ who ranted about my attitudes to modern day betting rings. He wasn’t quite brave enough to tell us all who he was, doubtless of the view should he reveal his true identity, some would have realised the true worth of his business practices. Few punters thoroughly approve of modern day bookmakers. The horrible truth. Exchanges are the ‘good guys’ wherever they trade from. Who’s going to criticise someone for low liquidity when you’re part of the problem?
The Issues Of The Modern Betting Ring
It’s perhaps helpful if I illustrate the problems as I see it in the modern ring, for those who do not understand the issues. Anyone who goes racing, midweek in particular, can’t have failed to notice the distressed state of the ring. A handful of bookies, usually with just one member of staff each, huddling for warmth whilst serving but a few customers. In an environment where racetracks claim attendances overall are holding up, it’s a paradox that rings are so quiet. Of course, were I the RCA, I’d be talking up the product. And yes, if they don’t address the problem of stable stars retiring as 3 year olds or worse sitting out for Cheltenham, they’re going to have attendance issues, we're agreed on that. On a Saturday, and at the major meetings however, the crowds still look good to me, but the public aren’t betting as they used to.
Or perhaps they are. I mean who goes racing these days and doesn’t have a bet? Racing's pretty dull if you don't have some kind of interest other than an anoraky view of form or breeding. Why does the Queen have so many ladies in waiting when she’s in attendance? Quite right, they're running her bets out! She’s no fool. Loves a Union Jack does the Boss. Everyone’s having a play in reality. Because if you’re racing, and not betting, you must be wondering what all the fuss and noise is about!
Trading In The Ring
As to the Punters, they’re just getting bored. 98% of bookies these days have turned to trading as a simple and cheap method of making a living. From the moment the interminably ignorant Rob Hughes, of the then controlling Levy Board, cast his vote in favour of opening up the Ring to outside influences-in particular exchanges, the die was cast for the bookies. Led by ‘pioneers’ like Martyn of Leicester, who I recall describing it as the new Holy Grail to me one day. Many leapt from odds, percentages and margins, to trading every dollar they took with an exchange, at better odds. Presto, easy money - minimal risk.
At the outset the gap between the odds offered by the trader and the exchange was wide, and the method simple. It was a golden time. As the years progressed, with traders chasing a diminishing pound, and their own silly greed for every bet available, the odds soared to the punters. Traders found with what profits could be engendered, squeezed so tight, they couldn’t breathe. Even when the crowds were good, they moronically bet so tight to the exchange, the profits, if at all, were derisory.
In the same period, liquidity on exchanges fell markedly. Now we had a situation where Traders would offer 7/1 about a horse trading at 8.2 on the exchange but only to £20. Lord-A-Mighty if someone asked for a couple of hundred each way- a bet far larger than they could stand, trade or even dump with the few proper bookmakers betting to opinions. Casually they knocked the larger punters back, without thought for their future. They turned to following the exchange win price, but restricting the place returns, making something off of that book instead. Tossing casually away years of agreements and the code laid down by Tattersalls. This code has, and still is, respected in betting shops and credit offices and even improved upon. They laid off staff, and finally stopped going in some cases, altogether. So when ‘a proper Bookmaker’ tells me I shouldn’t be going about criticising their business plan, I have to laugh. Proof of the pudding is in the eating. It gives me little pleasure to be proven totally right. I said this operandi would fail on every platform available to me, to whoever would listen and many who would not. If there’s no work – you’ve failed.
I’ve covered the traders, what about the views of my customers? First off, make no mistake, I like a laugh with my punters, especially when they lose – but I don’t mind the jibes when I do either! It’s part of the fun of betting with the old enemy. Because I am, the old enemy in all but age... I still offer odds which reflect my views and I don’t knockback bets from genuine punters, ever. Why aren’t the punters flocking to a ring where they can very often beat an exchange price and pay no commission? Because my friends, like me, they’re so famously bored of a ring with rows of bookmakers betting like soldiers - all offering the same odds. There’s no variety or choice. It’s uniform and drab. Worse it’s an exchange driven Cartel. Most Punters believe the bookmakers win, whatever the result. If everyone has the same price- it appears like price fixing. They disapprove of restrictive practices such as 1/5th odds on the National, and traders who dress as if they’ve just stepped out of their front rooms. And worse, they just want the fun of a bet. It really makes little to them whether a horse is 5/1 or 4/1 when the nags are toiling up the straight. One of the loudest punters in the ring I love, little Tommy, makes the most noise. He doesn’t bet big, but to him it’s still the buzz, and I love him for his enthusiasm. These days, customers are afforded little of the respect of past days, when Giants like John Banks and Stephen Little battled them with a smile, a thumping bet at their odds, and a tie.
I offer two thoughts for punters at this stage, out of balance. If you moan about poor place odds and you give those traders who offer them your fiver each way at 1/5 the odds on the Cambridgeshire because they are 17/2 about something which is 8/1 elsewhere, then you’ve only yourselves to blame for supporting them, in any race. I believe you should identify the culprits and never bet with them, period. That’s how you rid the ring of scoundrels without the business acumen to appreciate exchanges aren’t the savior, but their death knell. Oh, and tell your friends. Second, although I enjoyed the banter from Big Mac, even if it occasionally made no sense, the culture of moreism always has a price, go for service over value, every time. Think I fly Ryanair if British Airways head in the same direction?
Solutions To Help Save On-Course Betting
Fine, I’ve given my thoughts. What of the future? For those leading Bookmakers these days, and for the empty vessels in the ring, standing looking at the tumbleweed, bitching away, and blaming everyone but themselves for the problems, I offer these solutions.
Allow the racetracks to dictate the terms of business in the rings. Fundamentally to restore order on place markets, introduce a guaranteed minimum lay to lose amount for each ring. This stops traders betting to pennies, offering unsustainable odds, and knocking back the larger punters. It’s so tiresome to hear dinosaurs claim tracks shouldn’t be allowed to dictate the terms of business. What a narrow view, especially as even now, they already do! It’s hardly in the favour of racetracks to do away with the draw of their betting rings, is it? Chesterbet is a success, but only in parallel with bookmakers bringing the punters to play into the track in the first place. On their own, and without a ring, tracks - whilst they can deliver on the bet at more restrictive odds - can’t deliver on the flavour and atmosphere people in this country enjoy about the ring so much. Think that Simon Bazalgette and Charles Barnett are rubbing their hands with a go it alone approach? They’re no fools. They would prefer a symbiotic relationship. Every time we say no to their requests for improved service standards, they become just a little more unsympathetic to our problems. They will naturally turn their vast expertise in running business, into taking betting under their wings and employing people like me to show them how it’s done successfully. And yes, I would, if the alternative is to stand amongst a bunch of fiddlers trading dollars in their jeans.
This one is for racetrack bosses. Extinguish the cosy little relationship between RDT and Betdaq, with software capable of skillfully enabling traders to hive off bets at lightning speed to the exchange. Do away with track Broadband & Wi-Fi altogether. Outlaw data cards, secondary laptops and hand held PDA’s for bookmakers. No, it’s not air tight, but it does go an awful long way to restricting the ability to trade with exchanges. Especially at festival meetings where mobile phone networks like Vodafone do a total runner. Fundamentally, switch off the exchange displays on laptops provided by companies such as RDT and return rings to a lower tech environment. Give serious pause for what I’m advocating if you value a vibrant ring, its draw and income. Stop worrying about losing a few traders who do not approve of restrictions. Believe me, they’re no loss! Enfin, if you’re showing exchange odds on a big screen at your racetrack, you’re doing yourselves no favours. It isn’t about price.
Number three, bookies, get into the modern day age of cashless societies and find bank’s willing to offer the new fast generations of swipe debit cards to enable punters to bet without the need to queue for hours and days at cash points.
I accept there will be a variety of views out there to this. If you’re a hard working bookie, you have my respect for your efforts, but you’re going nowhere, if you don’t adapt, and you know this is true. If you’re the blinkered sort, who believes the Son of John Banks got here through luck rather than focusing on service standards, or if you’re worried someone else in the ring on a mobile will break the mould and have a huge mass of punters at his joint, whilst you have nothing, then you’re missed the point. Its greed and an unworkable long term business plan that got you here in the first place. You have to work as a collective, rather than a series of individuals, and you have to act now and stop thinking of what’s good for you, but what’s best for the customers you’ve lost. The tracks have the power to lay down sensible practices, if you’d only let them. One thing’s absolutely for sure, the one you’re using right now has failed, miserably. I don’t think anyone could argue with that. For those that view some of the points as ‘legally challengeable’. I point you to the free for all 2008 Gambling Act. Good luck in Court trying to get a decision as to what is, or isn’t legal anymore, because the Gambling Commission certainly don’t.
One final point, bookies. Just a few years ago, many of these points were laid down by the NJPC articles. I don’t recall anyone at that time complaining, or challenging the terms. We can change, and we must, if the whole shebang doesn’t migrate to GoodwoodBet in a very short time.
Follow Geoff on Twitter: @geoffbanksbet
And visit GeoffBanks.com